Addiction to debt

[Doggy Styles]

How do you figure? You can save without going into debt. Where do you think debt comes from without central bank funny money? Or credit, rather.

Tom Tom is correct. Whoever you save with will have a debt to you.

[Zero Liability]

Tom Tom is correct. Whoever you save with will have a debt to you.

I thought he was alluding to the rather ridiculous claim by some economists that government spending (and debt) in the economy is required for savings. It depends, anyway, as you can simply stash money in a piggy bank and that will constitute saving it, as it isn't necessarily a case of parking it in a bank to perform its intermediation function of offering interest on it whilst it lends it out for a higher rate. However, it does make more sense put that way, since it is how banks regard any money you put in them (the more recent development being: theirs for the taking.)

[tomtomagain]

I thought he was alluding to the rather ridiculous claim by some economists that government spending (and debt) in the economy is required for savings. It depends, anyway, as you can simply stash money in a piggy bank and that will constitute saving it, as it isn't necessarily a case of parking it in a bank to perform its intermediation function of offering interest on it whilst it lends it out for a higher rate. However, it does make more sense put that way, since it is how banks regard any money you put in them (the more recent development being: theirs for the taking.)

Stashing money away in a piggy bank decreases the supply of available money and should cause a tiny-weeny bit of inflation.

My main point ( if there was one ) is that debt is neither good nor bad, and saving is neither good nor bad but both are vital to a functioning economy.

Today I created some debt out of thin air. I have sold some of my software ( to an Australian company and a German company ). I have provided them with the software and an invoice. But you wouldn't describe that debt as "bad" or an addiction - it's just vital to business.

[BrilloPad]

My main point ( if there was one ) is that debt is neither good nor bad, and saving is neither good nor bad but both are vital to a functioning economy.

I wish we had known that in 2008 - it would have saved alot of trouble.

[tomtomagain]

I wish we had known that in 2008 - it would have saved alot of trouble.

It's a self-balancing system. Sometimes it corrects gently, other times a bit more violently.

2008 was great for me . I was threatened by unemployment in December 2008 and concluded that it was not acceptable for other people to be able to make the decision about whether I had an income or not. So I created a product and am now working "for myself". The 2008 crash was the nudge I needed.