The Global Debt Pyramid Scheme and Leverage

There is a problem endemic to virtually every country in the world that can be argued to be an inevitability after paper money had been introduced. This problem is that virtually every single country in the world is in debt.

The concept of debt is an interesting one. Governments need money in order to run countries, as the act of running a country tends to cost a lot of money. Since a government is not an entity that is run for profit, nor do governments usually own for profit enterprises or any other means of earning money, governments take money from the people they govern. This money is referred to as taxes, and it is considered the civic duty of the citizen of a country to pay their taxes in order to provide their government with enough funds to run the country.

In essence, these taxes are all the funds the government should use in order to run the country. Every single penny of tax money should be spent on the country, but governments often go beyond this. The spending of governments, much like the spending of people, tends to extend beyond the financial means they possess. In order to justify the spending of more money than they possess, governments printed more money and referred to this money as debt. This money is then used to fund everything that taxes would otherwise have been used to fund. However, this money is owed to somebody.

The spending of money that is not owned by the government has become a problem that is now endemic to the world’s economy. Global debt has reached a number that is so high, so immensely large that it is unthinkable. Global debt has now reached not the billions or even the hundreds of billions, it is past trillion and is numbered at even more than tens of trillions. Global debt is now estimated to be over one hundred trillion dollars, and is growing at an exponential rate every single day.

This immense amount of debt has placed the entire world’s economy on the tip of a needle. The tiniest puff of air could tip the balance, something that has been seen before in Italy. All it took to reduce Italy from a pillar of European economy to a beggar state was an increase in the interest rates by a mere two percent. If drastic changes in interest rates begin to occur, entire countries could go bankrupt. This system that has been created is inherently flawed, because it involves the attribution of monetary value where there is no value. Money is worth far, far more than the paper it is printed on, and ever since it has become cheap to make money, governments have been spending a lot more than they had.

Where this will go, no one can say, but suffice it to say that, once the scales are tipped, natural order will be restored suddenly and in violent fashion.