It is strange that that map says the US debt is $14 trillion. It is over $18 trillion by now.
I checked the map. It is saying that all the countries have some debt, even the green ones. I wonder, then who is lending ? I mean, is there any country without a debt ?
p.s. Sorry, I'm not good in economics.
[...]
All loans could in theory be paid back, extinguishing all debt. If the loaners are not able or willing to pay back, the loans could be written off as a loss, same result in the aggregate.
[...]
could you explain how this can work in a system operated under fractional reserve? (except for mass defaulting of the loans)
Fractional reserve does not change this (it just adds risk of nonpayment). Even I do not want a debt free system, although it could theoretically work for capital (only personal loans for consumption are strictly necessary, businesses could just have more investors in stead). The point is that there are lenders, ultimately those lenders are persons, and in the aggregate, non government persons are the net lenders to the government persons.
Hey, you clipped the anti government rant from my post, I shouldn't reply to you.