World Debt

[mikekle]

I see they’ve priced this in $US currency.

Now if we only can price it in terms of gold. Gold should theoretically be at ? per oz.

We would be in serious trouble if they went back to the gold standard.

Another thing, its funny how many of these ‘We buy gold’ places are out there now, I see them almost everywhere, even un-related companies, have signs up, will buy old broken gold jewelry, rings, etc.

I wonder why so many are trying to accumulate so much gold over the past few years?

 

[Theo520]

We would be in serious trouble if they went back to the gold standard.

Another thing, its funny how many of these ‘We buy gold’ places are out there now, I see them almost everywhere, even un-related companies, have signs up, will buy old broken gold jewelry, rings, etc.

I wonder why so many are trying to accumulate so much gold over the past few years?

Those places are such a scam, give them $100 in gold and they’ll give you $50 cash. I think the people selling gold are just playing off economic worries people have.

 

[sallybutler]

Those places are such a scam, give them $100 in gold and they’ll give you $50 cash. I think the people selling gold are just playing off economic worries people have.

Anyone who thinks we will go back to the gold standard is seriously delusional and needs to stop watching FOX news commercials.

 

[Eric_Hyom]

There’s government debt and personal debt.

Governments can be in debt to individuals or companies.

If you take the world as a whole, governments, individuals and companies, do the books balance? Is the world in credit or in deficit?

 

[stinkcat_14]

If you take the world as a whole, governments, individuals and companies, do the books balance? Is the world in credit or in deficit?

Global stock market capitalization alone is over $70 trillion.

 

[stinkcat_14]

I see they’ve priced this in $US currency.

Now if we only can price it in terms of gold. Gold should theoretically be at ? per oz.

That has always been my problem with the gold standard. The value of gold is always going to be subjective, since it has little intrinsic value. What should the price be? $35 an ounce? $200? $800?

 

[Eric_Hyom]

Global stock market capitalization alone is over $70 trillion.

I think stock market capitalisation is a work of fiction, people gamble on what they think the value might be in the future. As an example, Facebook’s market capitalization was around $190 billion in 2014, this seems an extraordinary valuation when it had $2.91 billion in revenue, and nominal assets.
techcrunch.com/2014/07/24/facebook-is-now-worth-190-billion/

So when Facebook was valued at $190 billion, hypothetically, could they borrow a further $190 billion on the strength of their existing capitalisation?

Every few years there is a crash or market correction, often because stocks are over valued and growth cannot be sustained.

 

[Theo520]

I think stock market capitalisation is a work of fiction, people gamble on what they think the value might be in the future. As an example, Facebook’s market capitalization was around $190 billion in 2014, this seems an extraordinary valuation when it had $2.91 billion in revenue, and nominal assets.
techcrunch.com/2014/07/24/facebook-is-now-worth-190-billion/

So when Facebook was valued at $190 billion, hypothetically, could they borrow a further $190 billion on the strength of their existing capitalisation?

Every few years there is a crash or market correction, often because stocks are over valued and growth cannot be sustained.

Yes, the stock market is largely a gamble on which stocks will be popular in the future. There is a lose correlation between projected profits and revenue but it’s still a popularity contest.

No, facebook could not borrow the equivalent of their capitalization. I’m sure the banks would focus on cashflow needed to service the debt, though FB could issue more shares to raise $, and dilute their stock price. The net impact would hinge on what they planned to spend the cash on.