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Old 01-05-2012, 05:58 PM
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Stirling Stirling is offline
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The debt has a few sources to whom it is owed. For example in some cases to foreign investors, and foreign governments, and in some cases to banks who essentially created the money out of thin air by loaning it out.
The debt will either have to be repaid, through higher taxes or the fatal act of printing money (likely in Greece), or the debt will have to be defaulted on -also a strong possibility with bad implications. That will likely mean deflation.

Funny, right now CBC is showing some documentary about the end of the world in 2012.