what if there is another great depression like 1929? would the world bank withdraw all it's loans? would it have more or less effect in a modern world? and could an event be engineered?
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what if there is another great depression like 1929? would the world bank withdraw all it's loans? would it have more or less effect in a modern world? and could an event be engineered?
It's certainly possible. Though I say, if something like this did occur, the cause would be more like Y2K then the prices of stocks plummeting. The world economy is completely tied to computers and the internet. Money and it's value are basically a collective exercise is faith. Many transactions are now done electronically; now tangible currency actually exists, so a large enough problem with the internet could cause financial breakdown.
would it though be possible to purposefully crash the market into depression?
and what would happen to america if it's trillion dollar loan was taken back all off a sudden?
hrm, very good question. I myself do not know the answer 100%. Supposedly the government has money set aside to guarentee anyones bank account of upto $100,00 USD per account. I bet that money is no longer there :) Money like that goes missing a lot. Just as ex-Governer of Wisconson Tommy Thompson - and chrystler. I'm so glad our loot could help em out. :cry:
Anyways, as loans go - the money that the bank loans out on a lower level is often liquid enough for it to be pooled quickly as not to loose it in a vaccum. On an international level, I really have no idea what would happen though.
hrm.... should we find out? :cool: (pulls the plug)
the loans the US have taken out are in the form of US Treasury Bonds issued in various denominations. Many of these are held by US citizens, and many more are held by foreign organizations like the Chinese government.The bonds have a specific maturation period (for example 30 years) which the US government then pays off. I'm pretty sure there's a penalty for calling in a Treasury Bond before the maturation period.
but we did it with the germans in 1929 did we not?
would it be possible to put alot of money into the stock market (illegally gained probably) then to quickly remove it one day and cause a loss of confidence like the great depression?
We?Quote:
Originally Posted by Cloud No.9
well america cos it was the marshall plan. ah well. we is easier to use as most people here are american.
Wasn't the Marshall Plan post-WWII?
Yes, yes it was.
http://usinfo.state.gov/usa/infousa/...emocrac/57.htm
so what were the american loans to germany called the to pay for reparations after ww1?
Loans?
the dawes plan that was it. the stresseman years and all that stuff.
Money is all subjective, isn't it? And can't they just freeze trading, etc?
In other words, aren't there countermeasures?