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Unfortunately, because of the way monetary policy is structured, it is not possible for all, or even most, to live without debt. Debt is fundamental to our econ
by jsprogrammer 11y ago
Unfortunately, because of the way monetary policy is structured, it is not possible for all, or even most, to live without debt. Debt is fundamental to our economy. You can only be without it if someone else takes on some amount of debt.
- pc86 11y agoWho takes on debt if you pay off your mortgage early?
- btilly 11y agoIn order for you to pay off your mortgage, you need to receive money. That money was generally created through the creation of debts. So it is hard to say exactly who took on that debt, but someone probably did. For more on how debt creates money, read up on http://en.wikipedia.org/wiki/Fractional-reserve_banking http://en.wikipedia.org/wiki/Fractional-reserve_banking. And the person you replied to is exactly right - our entire economic system only works right if there is a lot of debt to go with it.
- jsprogrammer 11y agoPaying off a mortgage destroys debt (and therefore, the money you used to pay it off).
- bjelkeman-again 11y agoIt is interesting that in Sweden, the debt of the population in Sweden has not grown as fast as the assets. Since 1996 when the assets where 2x the dept, the gap has widened. The debt is now nearly 3x the debt. (The last graph in on the page, unfortunately in Swedish). It didn't say anything how this debt and assets are distributed though. I am not saying debt isn't a fundamental part of policy, but in a place like Sweden actually not having more debt than you can handle is possible. http://www.scb.se/sv_/Hitta-statistik/Artiklar/Bostadslanen-pa-uppgang-igen/ http://www.scb.se/sv_/Hitta-statistik/Artiklar/Bostadslanen-...