Your Questions About Debt-free Countries

David asks…

Why is Australia so often viewed as 3rd World?

We are quickly becoming an economical superpower, and are playing a vital role in the war on terror. Our medical research has yielded some of society’s greatest medical marvels.
Our country became DEBT FREE last week.
So why are we viewed with such contempt?
Our governemnt is one of the most powerful governments in the free world, and we are seting new political precedents almost daily, which other countries are adopting.
I just don’t get it.

John answers:

You’re not third world in my book. You are America’s greatest ally and we love your country! God bless you for always being there for us when everyone else is bitching. The Aussie’s are a first world country as far as I’m concerned! Want to visit that beautiful country one day!

Mark asks…

Should we sell land to pay debt?

We’ve accumulated quite a bit of debt putting kids thru college. We own our home as well as acreage in the country.Would YOU sell the land to be debt free?

John answers:

The best thing any one can do for themselves is get out of debt!

If your land has timber, sell it to see if that gets you debt free.

Is there any way, yet, that the kids can take on their own college debt now?

I don’t know your age group, but if you’re anywhere in your 40’s or 50’s, you need to be as debt free as possible and get your 401K’s (or whatever pension plans that match 50% or better) added to and other savings plans added to to be able to live your same life style.

You never know when you’ll need that money to help yourself. After all, what is the land sitting there for? Did you want it for your kids later? Maybe their jobs or living place tastes aren’t that area. Was you going to use it for yourself? If you thought about it, you probably don’t want to live there now or in the future. Why hold onto something that isn’t paying you anything in return right now or for a few years? If you never sell it, isn’t it a negative asset just sitting there not adding anything to your future wealth? Does that area seem like in 10 years or less that it will bring more money or the same or less?

I wish you the best.
Hez

Donald asks…

why dont we cancel the debt of every country in the world to get out of the recession?

ok, so i know if we did this-the rich ones would be debt free and still have their properties etc
but cant we just pretend its like a game of monopoly and give up and start over again when things get messy?
im sick of this recession. wouldnt it be easier for evryones debt to be cancelled and we start spending again?????????????????????

John answers:

Good grief, the problem isn’t that that would be unfair or some would lose out. No only would that not end the recession, it would cause the worldwide collapse of civilization.

What you need to learn is that one person’s debt is always another person’s asset. One person’s debt is another person’s wealth. Bank assets are in the form of loans they’ve loaned out. If you canceled those loans, the bank collapses. Cancel all debt, every bank in the world collapses. Retirees and investment funds the world over are invested in bonds, which are debt. Cancel those bonds, and every investment firm in the world collapses, and retirees become impoverished. Corporations manage their cash balances by investing them into short-term debt instruments. Cancel those, and businesses everywhere go bankrupt.

Credit (debt) is fundamental to every economy in the world. Canceling debt to try to solve the recession would be like chopping off a sprinter’s legs, expecting he could then run faster because he’s lighter. No only does he not get any faster … Not only can he no longer run at all … In fact he bleeds to death in a few minutes.

Sandy asks…

How is a country supposed to repay its debt torwards a central bank ever?

weather its the dollar in America or the Euro in Europe, all money is issued by a central bank at an interest. Every issued dollar comes with 5 cents of debt, if the interest rate is 5%, which amounts to 100% after 20 years. Even if a country would be able to repay its debts towards the central bank in their country, by getting their hands on a sufficient amount of foreign currency, in order to be and stay debt free that country and the banks of that country that are not the central bank, would have to return ALL of their currency to the central bank, plus foreign currency they acquired, to pay off the interests.

John answers:

Absolutely correct in your argument that the debt CANNOT be paid. Over time, due to compound interest, the total debt rises beyond the ability to ‘pay’ the debt. It can only be ‘serviced’ by the banksters in order to regularly extract what they believe is their just due – $$$
I say string up the banksters – from a lamppost – as in the original ‘black friday’ when lynch mobs moved from Main street to Wall street. Why, on God’s green earth, do the mass of US sheeple put up with this – ongoing theft from everyone – from poor folk (97%) to rich folk (3%) at an accelerating rate – AND DO NOTHING – not even talk about it with their family. This has been going on since 1913 !! Just a little, from most everyone, at first. Then with the passage of years, the Fed-issued currency, the Printed Dollar, has become worth less and less and less – the silver dollar of the Constitution is now worth 21 Federal Reserve Notes – at a minimum. What this country needs is Real Money, not debt notes from the Fed … Which are perhaps the real root of all evil.
Bottom Line – The Federal Reserve System is a Criminal Fraud and Private Cartel and must be dissolved. Hey, could a smart bunch of lawyers put the System into involuntary bankruptcy ??? Just a thought.
But to answer your question direct – A country CANNOT EVER fully satisfy debt to a central bank, just because of the mathmatics involved – numbers don’t lie, but politicians and banksters do. Mr. Clint Eastwood showed the way; Hang ‘Em High – so everyone can see and learn.

Ken asks…

why don’t some people take responsibility and pay off their debt?

I did! OK, it took me a year but I paid off every penny of it. Some people think that moving to another country is the solution. It’s not! I think if people got help then they could become debt free!

John answers:

Some people live on credit , when they can not afford it , running up debt , instead of comming to terms with there problems and sorting the matters out , they avoid paying for what they have spent .

The only answer is to get a world wide argeement on debt recovery , so as to stop people running away from there responsiblitys.

Another is to make people pay the full amout of there debt , no discount for not being able to pay , for they should think before they take out credit

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One Response to Your Questions About Debt-free Countries

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