Rags to Riches – and back down again

"Also the people of Tellus started from scratch in ancient times, but now everybody already owes astronomical sums--!!"
“Also the people of Tellus started from scratch in ancient times, but now everybody already owes astronomical sums–!!”
How did we ever end up in this situation. The picture ultimately says it all: Europe is in debt, the USA is in debt, Russia is in debt, Japan is in debt… All the great countries from years past. The only country that doesn’t seem to be in debt is China and India, but especially China. On the contrary, China owns most of our debt.
This is scary.
Not necessarily the fact that a specific country has most of our debt, but a country, an one country in general, owns most of our debt. This country wields the most amount of power over the world it has basically bought up.
How did we come to this situation? Where everybody is in debt, there is need to save, but we just aren’t able to. We used to be able to do so much with so little, but now it is impossible.

One reason is inflation, the value of money becoming smaller and smaller over the years. Inflation in Europe was about 3 % in 2011 and that got people worried. Believe me. Its nothing as bad as during the 16th and 17th centuries when Spain and Portugal discovered the Americas and their vast gold riches. Inflation was during a hundred year period about 300 to 500 percent. A hundred year period!

Of course if you multiply 3 by a hundred, you’ll get 300. But I don’t think economical mathematics works that way.
I’m no expert, and no frankly very little about the subject of how economical history lead us to this situation from nothing to a lot to less than nothing, technically. You would have to consult other sources to get the details, and I regretfully am not able to give any other sources. They will have to be searched later on.Even without much knowledge, one gets to wonder and worry. It’s a real rags to riches tale — and back down again.

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