Jamaica Debt: Worse Than Greece

**MsPeaches** · 07-28-2011, 09:31 PM

Paying back WHAT?!

Pardon me for asking........

But what 'money' are Jamaicans supposed to be paying back?!

Money that people have deposited in their bank accounts????

NOPE!.

Money from the Treasuries of other countries??????

NOPE!

'Money' tapped out on a computer keyboard and made from thin air???

Anybody????

In most 'First World' countries, the money that is 'lent' doesn't even EXIST!

In Canada, for instance, there is NO RESERVE REQUIREMENT of Banks.

That means they don't have to have anything in the Bank in order to lend as much as they like!

--------as long as they think ppl can or will 'pay it back'

BAXSIDE!!!

**RichD** · 07-28-2011, 09:43 PM

Re: Paying back WHAT?!

Paying back what? : a very large part of the Jamaican govt debt is private bond placement..that means individuals took money that had and gave it to institutions who posted it to the gov accounts and gave them pieces of paper in return. it not "created "
money in the way you mean.

even though there is no reserve requirement most banks in Canada do practice keeping a certain percentage as reserve.

**MsPeaches** · 07-28-2011, 09:54 PM

Re: Paying back WHAT?!

Ahhhhhh......BUT THEY DON'T HAVE TO!!!!!!!

And if you're silly enough to give large sums of your hard-earned CASH to somebody in exchange for a piece of paper that is not by any stretch of the imagination 'risk-free'.....

Excuse me for saying so, but there are hospitals.......

Might as well 'INVEST' it in a 'HEDGE FUND!'

**RichD** · 07-28-2011, 09:58 PM

Re: Paying back WHAT?!

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: MsPeaches</div><div class="ubbcode-body">

Ahhhhhh......BUT THEY DON'T HAVE TO!!!!!!!

And if you're silly enough to give large sums of your hard-earned CASH to somebody in exchange for a piece of paper that is not by any stretch of the imagination 'risk-free'.....

Excuse me for saying so, but there are hospitals.......

Might as well 'INVEST' it in a 'HEDGE FUND!'

</div></div>
do you keep your money under your mattress?

it the debt was externalized (Seaga gov was trying to do this back in the 80's) walking away would be an option ...but since so much of the debt is domestic it would destroy large numbers of jamaicans financially.

**MsPeaches** · 07-28-2011, 11:23 PM

Re: Paying back WHAT?!

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: RichD</div><div class="ubbcode-body">do you keep your money under your mattress?</div></div>
<span style="font-size: 14pt"><span style="color: #3366FF">If I did would I tell YOU??????!!!!!!!</span></span>

**RichD** · 07-29-2011, 09:09 AM

Re: Paying back WHAT?!

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: MsPeaches</div><div class="ubbcode-body">

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: RichD</div><div class="ubbcode-body">do you keep your money under your mattress?</div></div>
<span style="font-size: 14pt"><span style="color: #3366FF">If I did would I tell YOU??????!!!!!!!</span></span>

</div></div>

i don't see why you wouldn't

**remo** · 07-29-2011, 10:36 AM

Re: Paying back WHAT?!

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: MsPeaches</div><div class="ubbcode-body">

Pardon me for asking........

But what 'money' are Jamaicans supposed to be paying back?!

Money that people have deposited in their bank accounts????

NOPE!.

Money from the Treasuries of other countries??????

NOPE!

'Money' tapped out on a computer keyboard and made from thin air???

Anybody????

In most 'First World' countries, the money that is 'lent' doesn't even EXIST!

In Canada, for instance, there is NO RESERVE REQUIREMENT of Banks.

That means they don't have to have anything in the Bank in order to lend as much as they like!

--------as long as they think ppl can or will 'pay it back'

BAXSIDE!!! </div></div>

Correct except the bank of Canada is fully owned by Canadians on paper that is...

**remo** · 07-29-2011, 10:39 AM

Re: Paying back WHAT?!

Don't laugh but,what would happen if Jamaica defaulted...because if them only paying on the interest and nothing on the principal how is it possible to get out of this predicament...

**RichD** · 07-29-2011, 10:42 AM

Re: Paying back WHAT?!

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: remo</div><div class="ubbcode-body">Don't laugh but,what would happen if Jamaica defaulted...because if them only paying on the interest and nothing on the principal how is it possible to get out of this predicament... </div></div>

why do you think they only paying the interest?

because such a large portion of the debt in domestic a default would be catastrophic for many people.
the debt restructuring exercise the carried outlast year was likened to a default by many pundits.

**remo** · 07-29-2011, 10:57 AM

Re: Paying back WHAT?!

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: RichD</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: remo</div><div class="ubbcode-body">Don't laugh but,what would happen if Jamaica defaulted...because if them only paying on the interest and nothing on the principal how is it possible to get out of this predicament... </div></div>

why do you think they only paying the interest?

because such a large portion of the debt in domestic a default would be catastrophic for many people.
the debt restructuring exercise the carried outlast year was likened to a default by many pundits. </div></div>

I get it now...yuh learn me something today Rich......
catastrophic for many rich people

**RichD** · 07-29-2011, 11:05 AM

Re: Paying back WHAT?!

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: remo</div><div class="ubbcode-body">
catastrophic for many rich people </div></div>

not just rich people ..many many working class Jamaicans have their life savings in govt bonds..pension funds in Jamaica are heavily invested in govt paper.

**remo** · 07-29-2011, 11:29 AM

Re: Paying back WHAT?!

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: RichD</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: remo</div><div class="ubbcode-body">
catastrophic for many rich people </div></div>

not just rich people ..many many working class Jamaicans have their life savings in govt bonds..pension funds in Jamaica are heavily invested in govt paper. </div></div>

I hear yuh..But,when 45% of government spending is just paying interest
this is outrageous some thing has to give........... I have to admit I had no idea it was this bad

**johnnycakes** · 07-29-2011, 11:31 AM

Re: Paying back WHAT?!

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: RichD</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: remo</div><div class="ubbcode-body">
catastrophic for many rich people </div></div>

not just rich people ..many many working class Jamaicans have their life savings in govt bonds..pension funds in Jamaica are heavily invested in govt paper. </div></div>

I don't know about Jamaican government bonds but in the U.S government bonds are the FIRST thing that a financially strapped U.S pays, before ANYTHING and EVERYTHING because not paying would wipe out investments in these government bonds. The security guaranteed by the fact that these bonds will always be paid is what enables governments to sell them in the first place.

**RichD** · 07-29-2011, 11:32 AM

Re: Paying back WHAT?!

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: remo</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: RichD</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: remo</div><div class="ubbcode-body">
catastrophic for many rich people </div></div>

not just rich people ..many many working class Jamaicans have their life savings in govt bonds..pension funds in Jamaica are heavily invested in govt paper. </div></div>

I hear yuh..But,when 45% of government spending is just paying interest
this is outrageous some thing has to give........... I have to admit I had no idea it was this bad
</div></div>

is that number accurate?

check out the ministry of finance debt management unit for a lot of details

**remo** · 07-29-2011, 11:39 AM

Re: Paying back WHAT?!

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: RichD</div><div class="ubbcode-body">[quote=remo][quote=RichD][is that number accurate?

check out the ministry of finance debt management unit for a lot of details </div></div>

Will do

Jamaica Debt: Worse Than Greece

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