Market News

The "Debt to GDP Ratio by Country: State of Global Debt 2022" article

highlights some crucial points.

But I wonder if these Debt-to-GDP figures by governments are reliable, as often accounting rules and practices varies and fudged by use of assumptions.

Most central banks have proven to show they either do not have good applicable skills in the achievement of long term stability, or the theories they used IS THE PROBLEM, ALONG WITH THEIR ASSUMPTIONS. It is, with them, always a roller coaster ride.  And, they did not even see the recession coming, until it was upon us, or someone pointed it out ( to those they listen to ), that it is in progress, before the rest found out. The 2007 recession, for example, where almost everyone was thinking and claiming a great economy, as even when the markets had already started to fall from their all-time high of that time, months later the very big fall occurred.

QE's really served to do the opposite to the intended goal. Not surprising since the money supply was violated by over-use, or is it abuse?

Maybe it has been some generations past now when private economy, industry and banks use to handle their affairs without government interference. Once upon a time there were no phony laws passed with the aid of bankers wanting "easy and relaxed financial laws", and help with bail outs to save the top banks and big companies when they fail ( as in 2008) or "free" subsidies.

if they fail, whether its the external event that brings the critical trouble, or its by their own mess created, their CEOs and executives failed to plan for such occurrences and use prudent financial practices. After all, we have had many boom and bursts and shown the need to take it into account. Yet, NO cushion of cash kept aside for the rainy day by many companies, instead reckless binging on debts. Central banks happy to encourage such practices too, thus creating an unintended future potential spiralling domino effect collapse. 

Politicians too weak to confront this very problem at their feet. Perhaps the current culture of appeasing the public to spend, spend and over-spend in their 5-year term, and the confused blind belief in the central bankers and economists by pushing aside the traditional prudent practices and personal responsibilities of individuals, companies and bankers. Private industry use government as a punch bag or for "free money" to bail them out when needed.

EVERYONE HAS FORGOTTEN THAT GOVERNMENT, ONCE UPON A TIME EVERYWHERE BALANCED THEIR BOOKS ANNUALLY.   BUT APPEASING POLITICIANS, AND BANKERS, HAVE VESTED INTEREST IN EXPANDING DEBTS, EACH FOR THEIR OWN PURPOSE. GOVERNMENRTS ARE THERE TO GOVERN, TO SEE THAT GOOD AND JUST LAWS EXISTS, ARE USED, ETHICS MAINTAINED, MONITOR GOOD PRUDENT PRACTICS AND ARE UNDERTAKEN BY INDUSTRY, NOT CREATIVE ACCOUNTING, NOT BE OVERLY-INDEBTED AND BAISC BUSINESS / FINANCIAL GUIDENCE USED.

IF THEY CONSIDER ALL THIS IS TAKING PLACE, THIS FELLOW HAS GOT IT WRONG, THEN THERE SHOULDN'T BE ANY BUST ISSUES ANYWHERE, SHOULD THERE?

WOULD YOU FINANCE, TO ANY DEGREE,  A COMPANY WITH MILLIONS TO TRILLIONS IN VALUATION BUT HAVE NONE OR LITTLE CASH FLOW, NO PROFITS EVER, AND EVEN HUGE DEBTS? 

WOULD YOU FINANCE, TO ANY DEGREE, A SPECIAL PURPOSE COMPANY, THAT DOES NOT SAY WHAT IT WILL USE THE MONEY FOR?

BANKERS SEEM TO BE HAPPY TO ALLOW IT, ECONOMISTS DON'T SEE THE PROBLEM WITH THAT, POLITICIANS APPEAR TO BE BLIND TO THE ERROR OR FLAWS IN IT, AND FINANCIERS AND INVESTERS ARE WILLING TO GAMBLE WITH IT.  SO WHAT COULD GO WRONG?

MAYBE THER IS NOTHING WRONG AT ALL. NO FLAWS. MAYBE IT IS JUST ME WITH A SENSE OF "SOMETHING WRONG HERE, SOMEWHERE" FEELING. DO YOU HAVE A SIMILAR FEELING?