a loan an actual exchange, an actual service rendered by the lender, and which makes the borrower liable to an equivalent service,--two services,
The more the government interferes the more it makes things worse. We have a phoney economy built on debt.
Problems in making cuts in government expenditure
Today's Western democracies now play such a large part in redistributing income that politicians who argue for cutting expenditures nearly always run into the well-organised opposition of one or both of two groups: recipients of public sector pay and recipients of government benefits.
The hole in the argument for more debt
If debt was the answer, we would never have a problem, just keep borrowing.
Credit and Government
- Obama claims credit is the lifeblood of the economy, but actually it is proving to be a cancer
- Credit comes into existence through savings
- The reason credit is gone is because savings have gone, when the US ran out of its own savings, the securitisation process allowed the US to acces foreign savings
- You can't skip the savings and go right to the borrowing and spending
- Credit needs to go to producers so it can be paid back with the proceeds of growth.
- Politicians claim that the books need balancing, but at the same time keep borrowing.
- Government stimulus is really a depressant.
The moral argument against debtNo parent would borrow off their child, but what the government does is worse than that, it allows people to steal from their children. It is a form of child abuse.
IOUSADavid Walker - America on Brink of Bankruptcy
David Walker - America on Brink of Bankruptcy- Controller general of the USA says the standard of life cannot remain
- How can the government ask us to be responsible if it is not.
- The crisis is not immediate, but it is a fiscal cancer and it will have catestrophic consequences
- We cannot afford the promises we have made, let alone pile on top of them
Ways of showing public debt
http://www.usdebtclock.org/ (US debt)
References
Linkshttp://www.cityam.com/forum/the-poorest-will-suffer-if-we-ignore-the-real-evidence-payday-loans | 