The possibility of never fully repaying global debt

Most folks think that when it comes to debt, countries eventually pay it off and move on. But that's not how it usually goes down. Here’s why: At a national level, a lot of economies are keeping afloat by refinancing and pushing their debt further down the line. In some cases, countries even have to hand over parts of their natural resources for a few years just to take on more debt. Taking a closer look, it feels like the current financial system is set up more for ongoing debt management than for actually paying debts back. What does this mean? Well, it seems like inflation might start getting the nod over austerity in politics, which could change how we think about holding onto currency for the long haul.

Almost all countries just prefer to only service debt than not having debt. This is the world has been since many years ago. The government believes they can achieve more without no being in debt. Although some countries are in low depth, while some countries like United States are in high dept but well developed. Inflation has been politically preferred since fiat was created from nothing.

Global debt first of all can never be repaid. I just think all we are doing is one big Ponzi scheme. Never ending. Always running. Printing more money to finance a debt that keeps growing and the circle continues. Most of these countries that borrow money from IMF will never grow economically. It's by design. One big debt trap. Let's put this into perspective. If the world owes money. Who then are we paying it to? That alone will tell you no debt will ever be paid. It will just keep on climbing until the entire system collapses.

Debts are paid back by creating new and bigger debts.

Because once its done, it would drain the world's money supply and therefore an economic collapse with be highly possible after. So its not surprising why countries practice credit expansion instead because the financial system is built on debt, and it is clearly seen that the country's government rely on deficit spending just to see an economic growth, and eventually repeat the rollover cycle to maintain liquidity. In the end, with the loan's compounding interest, debt continuously grow until its hard for any country to pay its old debt without applying for a new debt.

Borrowers of money must have hidden intentions in it like what the IMF did, they gave Indonesia a prescription in 98 to improve the economy but afterwards it became even worse because of their advice, capitalist borrowers are really crazy in terms of terms that can threaten sovereignty, if we refuse to borrow whether it is true or not they will carry out propaganda in your country so that you are forced to borrow. The world is hard enough for those who don't understand how these debts work, it's better not to have any, but the situation is definitely difficult after borrowing will definitely borrow again, many things are not known behind the table of agreement. Now it's a problem that continues to spiral, the country can only pay interest on the debt, while the debt continues to grow every period. But I always believe that the world's debt problem will inevitably become a bubble that bursts and resets the system to a better one.

Sounds like the liars paradox, the debt is not ever repaid I think we can just agree on that rather then go in circles.  If each dollar were denominated in the year of issue as its value then the problem would be more obvious.   We aren't ever repaying the value taken in the first place, they give interest upon it I suppose is fair to say.  Its also notable that the market is increasingly asking for more interest to accommodate this inflation meta that is becoming more concious and obvious in its damage to value of investors.

Many countries around the world are not fully paying of their National debt instead they are keeping it at a manageable level according to their economic growth. They are refinancing their old debt with new borrowing. Main problem rises when the value of the debt grows faster as compared to the economy of the country  and the government become dependent on the value of inflation so that they can reduce the real value of what they owe. It is very easier for the government to increase inflation as compared to increasing taxes but when there is a very high increase in inflation then the value of the currency becomes weaken .

Imagine there's the country that lends money to other countries by printing more money and when that happens, inflation is hitting badly. And when the lender's economy has been hit badly due to higher inflation, they'll have somehow to do the same thing as what others done to them which is to take a loan. It's a cycle that will never end and for generation to generation, they're all going to pay the debt and that's the mission for all of those who's got debt. They will have hard time in clearing their debt because it's not the priority where the spending should also be done in improving infrastructures and other government services.

That’s right. Many people don’t realise that the debt-money system we live in tends towards constant and potentially infinite expansion of the money supply because, when debt-money is created, the problem is the interest – which isn’t actually there – and the only way to pay it back is to create more debt ad infinitum. There are just a few minor bumps in the road, known as crises, where politicians and central banks temporarily reduce the money supply until they expand it again by much more so that the system does not collapse. It is totally fucked up.

Yeah modern economy is just refinancing the debt and do nothing substantial to pay it off, there is no such thing as making roadmap to pay off the debt and bring it to zero. It's either you refinance the debt or you go collapse there is nothing in between for most developed countries. But since economy of each country so entangled, they normalize it. It's honestly the entire system, people who put some attention into this knows it very well. Just countries borrowing and lending to each other, the modern economy in a nutshell.

Global debt is a way for some countries to exist either at the expense of future generations or at the expense of other countries. Of course, this debt will never be repaid. Inflation can devalue the national debt, but along the way, inflation devalues people's savings, which is much worse. Up to what point will this bike continue to move until it falls? I think that the remaining time is calculated in a few years.

We just have to accept that countries and depts have become sinonymous because their is always eager institutions who are willing to borrow them and that is how institutions like IMF and world bank are surviving. My problem is not about borrowing but what the funds are used for, if they are channeled into sectors that are productive then it won't be a problem because they will add value to their economy. Unfortunately some countries take loans for the wrong purposes and on top of that they will pad budgets inorder to syphon most of the borrowed funds, in the end they will be creating dept burden for the country's future generations. Also it's not as if a productive economy like America, doesn't have the resources to pay off their country's dept but for some reasons they will rather be paying interest while leaving the loan capital untouched. Perhaps these countries that have what it takes to repay their loans but decides not to are indirectly keeping the loan institutions in business, this is my own thoughts.

Debt sometimes is beyond just borrowing and paying, it is also used as a means to create some bilateral relationships between countries, some Debt can be serviced for a very long time that the lender ends up forgiving the Debt and this can result from the relationship these two countries has built as a result of the Debt.  Some even go ahead to become allies and use that as a means to strengthen relationships. Some of these Debt can never be fully paid because upon it lays the foundation of certain economic and political tie, so if they are fully repaid, these ties could be weakened and these benefits from such ends , I stand to be corrected but debts has also helped some nations economically and repayment may sometimes not be the plans one of the parties have for the other but to create economic ties and even political alliance. Some lenders use this as a means of gaining some influence on the sovereignty of a nation.

Countries paid the debt with another debt so that will not end even in the long term. But strangely, debt can make economies survive in a hard situation, makes country have more difficulties to repay the debt. The country might expend the resources as collateral and get fresh money from the debt but citizens will never know how the government calculates the debt and repays. They just know if the debt can develop their country better, the debt has been used for the right. But if not, more corruption happens in their country.

All debts would certainly be paid even if the country is making allies using the debts because the money is also important to the country that borrowed them the money but however it is believe that if the country didn't pay them back with money there might be other means they use to settle it but definitely is something the lender would profit more than the amount they gave out to any country, so actually allies are not form in one side benefits through this way because the two countries most have what they benefited from each other's. It mustn't even be loan a country should use to create a relationship with other countries but investment is more suitable for it.

Economic debt is on a different level. Some countries have huge debt, while some countries are in debt that they cannot fully repay through inflation or by their foreign exports. This can be said to be one good way of repaying debt. This would be true if the government takes a new loan to pay off an old loan. But this is not how it is. Government revenues are not growing fast enough to pay off an old debt. Economic debt is hard to pay off.

Some governments are unable to repay their debts in full. Some countries are not willing to repay their debts, especially those with high levels of corruption. Corrupt countries try to increase their personal wealth by increasing their debt levels. They plan to maintain their power in such a way that if those governments do not come back to power, it will be even more difficult for any other political party to repay their debts. That is why they deliberately increase their debt levels instead of repaying them. And even for those lending institutions that find it easy to lend, they make them regular in borrowing by giving them more loans. It will certainly not be easy to get out of this debt system completely unless the government of a country tries to repay it while in power for a long time.

I don't think any country with huge amount of debt can easily get out debt. Usually, they will take more loans to refinance their financial needs. And whenever pandemic or financial crisis hit their country, there will be another reason to take loan. Also, if they want to have economic stimulus or long-term investments like building huge infrastructures, they will find creditors if not from the World Bank. So all in all, the debts of the countries are just revolving and we don't know when will this end. It is stated that no sovereign country is totally free of debt but there are few has 0% debt-to-GDP like Macau and 0.5 % Liechtenstein. It means, almost all countries have somehow owed a debt in their financial system.

Imagine if the government focuses on paying it full, then it could also mean a collapse of the global financial system. And no country would want this to happen, that's why instead of paying it full, governments often prioritize continuous borrowing for growth. The point here is, debt will be used to create economic progress, and as long as a certain economy grows faster than than the debt's interest, I think that will be good enough. It becomes more sustainable on the part of any country's government. Global debt is seen more perpetual, so seeing it fully paid would be highly impossible.