Wednesday, April 26, 2006
One Person’s Answer is Another Person’s Problem
Understandings that the problems are interconnected and so too are the answers. If we were as efficient in solving our problems as we are in recycling them the problems would be solve. It is easy to spend money than it is to save it, as it is easier to destroy something than build it. The same hold true where it is easier to describe a problem than it is to solve it. As the problems evolves so to must the answers on a multi-level platform. Problems have to be addressed on many micro levels making a macro platform that can be implemented simultaneously. Where people will disagree and not understand to what the problems are. They will disagree even more and understand less to what the complicated answers are.
Growth of the Global Debt
Solving the problem of the growing global debt is not in the best interest of the banks and the moneylender. They are the players that are needed to make the needed changes to work. The creation of a Global Debt Relief Bond (GDRB) could help reduce global debt. This is a brief outline to how the GDR Bond would work.
The federal banks of nations would finance the GDR Bonds as part of their foreign and domestic aid program. The GDR Bonds would be created in various denominations that would be traded to reduce debt. The regulations to the GDR Bonds would be different from other bonds this way. The GDR Bonds could only be traded according to the guidelines of the bond to reduce debt. These bonds are not an investment to make money but a vehicle to reduce debt. They can only be traded among entities that owe the face value of the bond to another single entity.
The buyer of the bond would pay a stander fee of the GDR Bond to cover the cost of the trade. There would be a series of GDR Bonds created with the guidelines varying. There would be GDR Bonds created to reduce debt on a national and international level between one government and another. There would be a set standard for the International GDR Bonds with a wider variation for the National GDR Bonds.
As an example if a one million dollar GDR Bond was traded 100 times you could reduce the debt of a 100 million dollars. Multiply this several times over and you could free up billions of dollars of debt for million of dollars of aid. Only by reversing the current procedures can we bring balance into a system out of balance. This is only one of many steps that are needed to make things better.