Debt- What is it good for?

November 22, 2011 § 1 Comment

Hold on, hold on, hold on what’s going on?

I’ve just been reading the latest BBC chart detailing the amounts of money owed in the Eurozone.

http://www.bbc.co.uk/news/business-15748696

It’s an accurate if rather tedious diagram, just click on a couple of countries and you’ll get the general idea. Now one point screams out at me, which no one, yes NO ONE has yet suggested.

Rather than paying each other their debt, why don’t countries just cancel what they owe each other? Bloody hell. Look I’m not an economist, I am a mere (sic) trader. But I look at that diagram and I see that the UK owes France 209bn euros. France meanwhile owes the UK 227 bn euros. Right– simple maths calc, UK 18bn in credit. Frogs pay UK 18bn (about equivalent to  the bonus pool at Goldman) and go back home and let DSK have his orgy-filled Xmas.

I’m sorry (sic) but why has no one thought of this before? Am I stupid? (sic). Or is this world just to preoccupied with diagrams to make any sense any more.

Note: Slight error in above calculation, it’s the UK that owes France 18bn euros, not other way around. No bonus for Goldman traders this year.

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