Digits wanted!

[Skybird]

http://news.bbc.co.uk/2/hi/business/7660409.stm

The clock's owners say two more zeros will be added, allowing the clock to record a quadrillion dollars of debt.

Should that be a threat to the rest of the world...!?

[UnderseaLcpl]

If you think that's bad, just give it a few more years.

[Hylander_1314]

[Skybird]

Originally Posted by Hylander_1314

Can'T disagree with him on most things. Just that lack of monitoring (lack of regulation) allowed business rules that ecouraged risky business models that encouraged low criterions for credit and that encouraging bigger spending than what epopel could afford by their income - that he does not see. So, the current crisis should be allowed to kill banks and business pratcices that accepted to much risk by thinling they could take the profit from it by selling the risk to the rtest of ther world. but in the market emerging after that crisis, there surely must be rules that are tight and strict in that bilances must be much more trasnparent and have less opportunities to hide unwelcome dinformation, and risks from giving credit must be accepted by the giving banik so that it has a vital self-interest to insist on healthy conditions being fulfilled in order to get credit from it. This, and some other rules, must be enforced on the business, sinc eit has proven that it will go into the oppopsite direciton with today's consequences if you leafve it to itself. The good news here is that the Fed or Washington is no longer in the position to prevent this anymore, after years of blockade and rejection. American finance rules and models no longer will dominate global markets as they did before. The price for that victory is very high and costly, though. It could include not only the collapse of national economies, but the bancruptcy of whole states.

Instead of adding more digits to that damn counting clock, the US has the duty to finally start to pay back it's debts which are money that got spend althiugh it was not owned. By that, as many digits as possible must be made obsolete on that clock - that would be the right way - not just getting familiar with the idea of even more rising debts. a redution and balöancing of the mad and crazy import.export-deficit also is mandatory. You can only spend as much as you earn, you have to pay back your debts - that should not be too difficult for any nation to understand. Spending more than what one earns, is not illustrating a functioning system - it illustrates a failing system.

[SteamWake]

How about the nations that owe the US money...

Remember that silly 'lend lease' thing?

Lack of regulation certianly allowed the abuse to happen. What about those that encouraged.. hell even demanded that abuse?

[Skybird]

Originally Posted by SteamWake

How about the nations that owe the US money...

Remember that silly 'lend lease' thing?

Britain has payed back the last rate two or three years ago, and russia owns so much state bonds (second strongest holder behind China) that I would not dare to ask for that calculation.

Lack of regulation certainly allowed the abuse to happen. What about those that encouraged.. hell even demanded that abuse?

It was encouraged and fro0m top to down: demanded indeed. It was formed into a busines model, a product to be sold. And that exactly is what the lack of regulation made possible, and what future regulation needs to put under penalty. Becasue market regulates itself to allow best and fastest profit. Market does not regulate itself to be sensible to responsibilities for higher interests, or the interests of the community. To secure that protec tion - that is what regulation should be therefore. It sets a frame, within business should do busniess freely. It just should understand that "not anything goes". More than that, "regulation" should not mean and does not want. It is a safety against humans' flaws causing catastrophic failures, like you have speed limits on public roads. Even on many parts of German Autobahnen - where speeders and "Drängler" get sacked by the police even on parts where there is no speed limit. But closing in to the car in front of you until there is less than two meters distanc ebetween both cars, with a speed in excess of 180 km/h simply cannot be tolerated, period. Is that the tyranny of the state? Hardly.