Quote Originally Posted by Tiaexz View Post
Hello all! I would like some advise from the more economically minded ones of you amongst us.

I was reading this article by the BBC which provides a very interesting picture of who owes what to who:
http://www.bbc.co.uk/news/business-15748696

If you click on the various countries, you can see who owes what to what.

One very interesting tibbit I noticed was this - countries owe money between themselves and their counterpart

So what I propose is this - Debt Cancellation

Let's take the United Kingdom for example. America owes us more money than we owe them. However, under what I propose is that we basically do this sum:
USA debt - UK debt = NewUSA Debt, Ukdebtless

So using United Kingdom again, we sort of get a picture like this.

United Kingdom
Debts - Germany, Spain, Ireland
Owed - America, Italy, Portugal
Cancelled - Japan, France

So now, the United Kingdom only owes debt to Spain, Germany and Ireland, whilst only America, Italy and Portugal owes to United Kingdom.

Effectively, we start pulling all these strings away reducing it all to simply numbers.

If politicians want to take that extra-step. They could attempt to use the Central European Bank as the debt-nexus. By doing this for example, lets say Germany owes America money (whilst UK owes Germany and America owes UK), they can eliminate the debt America owes UK in return to the debt the UK owes Germany.
Edit: Double checking it, it seems America owes more money to everyone in Europe than the otherway around..

Since all this debt gets eliminated, it means there is far less money being lost on "interest", which means all the economies can improve at home.
what is the quality of the debt?

example:

french bank owns £200m of solid british debt british bank owns £200m of dodgy french debt

why would the french government want to swap?

now multiply that detailed and searching calculation by thousands!