Steven V Johnson wrote: "Who all this global debt is owed to is of course the 64 quadrillion dollar question"
National debt has existed for a long time. When I was growing up I used to wonder why, if just about every country had a debt, they didn't simply pay each other off and then most countries would be debt free. It was only subsequently that the answer became clear - the debts are owed to our future selves. The banks loan money into existence because of the "fractional reserve banking" system http://en.wikipedia.org/wiki/Fractional-reserve_banking and that is why "growth" is so obsessed about by economists and politicians. There can never be enough real money around to pay back current debt and so the economy has to continue expanding/growing to generate enough new real funds to pay back those past debts. The big problem that we face is that the economy can only be made to grow by yet further debt obligations being taken on - more money "loaned into existence". The debt alway races ahead of our ability to pay it back. The entire world economy is a a form of Ponzi scheme. While we still had room to expand into and resources looked effectively infinite, the Ponzi scheme continued to "work". Nowadays we are reaching the limits of growth - population, raw materials extraction, soil erosion, habitat destruction etc. We are almost certainly wrecking a benign climate.
Standard growth of the global economy cannot continue without continuing to deteriorate the natrual systems that sustain us. If we don't grow the economy, there will be a gigantic financial crash to make the 1930s look like a wonderful time.
There are no easy answers to what we need to do. Nick Palmer On the side of the Planet - and the people - because they're worth it Blogspot - Sustainability and stuff according to Nick Palmer http://nickpalmer.blogspot.com
