Global debt management

With the Greece situation taking center stage the last year or so, you think that the world has never been through such an ordeal before. In fact there are always countries at the brink of collapse and the impact just as great. Argentina is one example of economic collapse which causes global unrest. However the question remains, how to stop or slow down the collapse? As always the advice is to not panic. Sadly that is what takes place because the doomsday thoughts take over. To manage such panic rests with the negotiation tactics of the lenders, supporters and the borrowers. The advice on how to manage the debt pay back is to not air the dirty laundry in public at all. Next is to take the long term view of repayment. Meeting the fixed payment amount should not be the focus. The focus should be making as much a payment as possible at each target date. Most economist would quickly point out that such a plan would only create a never ending cycle of missed payments. Furthermore there is the issue of interest payment. The money is leant out in order for the lender to make money. Now this is where arguments often diverge on two paths. One being economic and the other being social. What is the main focus in global debt servicing? Is it to secure economics or is it to secure society? There can only be one top priority. It should be no surprise that society is the main focus in this short essay. In this focus the debt repayment schedule is hinged upon the borrower making as much payment as possible. The negotiations should be able to monitor and understand the moving dollar amount well before the due date. This keeps the security of the economy going. In such a situation it is absolutely necessary to not panic, worry or openly fight about the repayment schedule. Each due date a payment is made then, future due dates and amounts are adjusted accordingly. Such ideology of flexibility is often met with the phrase – you have no idea what you are talking about. For those that say that, they are often more interested in the making money, interest payment, in short greed. The civil unrest is of secondary concern. The flexible approach would save us from the talk of the European Union breaking up. It would save the banks from closing and save the ripples of panic attacks. All of these are the social impacts we are enduring right now due to a focus on economics not society.