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 Get Your Mouth Off His Schwantz
Great American Patriot Tickerguy 210k posts, incept 2007-06-26
2019-07-27 10:29:59

@Jayhawk -
Quote:
It seems to me the situation is actually worse than you state, because you deduct increase in federal debt but not increase in business and personal debt. I would think that increasing all form of debt is negative economic growth, and should therefor be seen as negative when calculating growth.

Maybe.

All debt is not equal. That which is offset by an asset that is sequestered as collateral until the debt is repaid, and which IS in fact repaid, is not longer-term inflationary (e.g. does not destroy currency value.) It does create a problem in that it creates a "squeeze" for dollars needed to repay, but that's really nothing more than overpaying. For example you borrow $200,000 to buy a house but over the 30 years you pay that back more than twice, so you REALLY paid ~$450,000 for the house, not $200. This of course makes people jump shit so nobody talks about it, but it's true, and what's worse is that the first few years your P&I is all interest, so if you move somewhat-frequently the kick in the nuts in terms of your effective loss (compared against, for example, renting) can be very large.

Unbacked debt (credit cards, for example) is another matter; that is directly additive. The problem is that figuring out what is truly unbacked especially in the corporate sector is not easy - with governments it is, since federal borrowing is always unbacked.

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"Perhaps you can keep things together and advance playing DIE games.
Or perhaps the truth is that white men w/IQs >= 115 or so built all of it and without us it will collapse."
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