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cropsey, il 61731 | On a business/personal level, the ability to borrow capital to enter into a business that will pay the loan off is great. Dave Ramsey might suggest you need to save the money first to do it, but at 75 I doubt I'd be interested in getting into hogs. In the end I have a paid for, valuable asset that continues to generate income. So aside from what's really going on in fractional lending, the system works great for business.
On the other hand borrow to consume (like borrowing to go on vacation or buy a boat) doesn't work at all. Gov'ts borrow 'zillions' of dollars created from nothing that they really never intend to pay back. There is no earning/payback mechanism except to tax more.
On the 'we will never have a depression because there is too much money' - that's one of those "wow" statements by someone who has not been exposed to a business cycle. Perhaps they are comfortable with the Obama types sucking up more control of our lives and business and maybe it's somehow just 'all good'. The concerning part to me is that to avoid a crash we end up with mild forms of dictatorships. Not sure it's a one world order stuff, but I think it can certainly look a lot like it because "somebody has to step in". | |
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Next economic question. WHY is debt so prevalent throughout the world today?
