Sunday, April 24, 2011

Financial ponder

If someone spent 100 Baht a day for his daily meals and other expenses, but had a daily income of 58 Baht, what would he do ?  He would borrow money of 42 Baht each day from somewhere. Right ?
For a typical person, I feel that any lenders would have no realistic time frame as to when they 'd get their money back. They 'd only get daily interests, hopefully paid on time each day. Now what if there is a chance that he might have a problem paying his daily due ?

Now the exemplified case is not a person, but a big government, I can feel the impacts on the World's economy.  I am talking about debt of a big country, not debt of a small "developing" country like "Sarakhant".

And the impact on higher oil price is getting to higher food prices, looks like in many countries. Soon there will be chaos everywhere.