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Why going debt free though? What's the point of going debt free? The real economy is dictated by production and consumption, not amount of number that you have
by Aperocky 7y ago
Why going debt free though? What's the point of going debt free? The real economy is dictated by production and consumption, not amount of number that you have on the either side of the balance sheet. If going into debt creates a bigger economy by balancing/revitalizing production/consumption, it should be done. The debt gets larger but so does the economy.
- toomuchtodo 7y agoThis assumes the debt you’re incurring is going to grow the economy. This is a big “if” in most developed countries, where no amount of debt will change foundational demographic transitions (see: Japan). But as long as you control monetary policy and can inflate debt away in the future, no one today really cares as the can is kicked down the road.
- Aperocky 7y agoAnd that's correct too, how much debt you have doesn't nearly matter as much as the perception that it will be paid eventually. And sovereign countries (Might only be a few on this planet) have almost unlimited choices there. The only kind of debt that matter is the debt denominated in another currency, which is dangerous.