How the Economic Machine Works

[morfiend]

Credit = economies these days

Without it 95% are broke lol

It is why 6 year CD pays less than 1% now

It is why countries are going negative interest rates - they cannot afford to pay the interest on their printed debt.

It is why we are in the sheet storm we are in now around the globe.

<S>

Eagler

 Credit is not the problem debt is! Credit allows you to buy a house that you wouldnt otherwise be able to but then you go into debt. Most take 20 or 30 years to pay that house off and during that time they incur even more debt because they want that new car and new tv and new whatever so they end up in a endless cycle of debt.

 Personally I have no debt,and it's amazing how little you can live on when you dont have to pay CC debt,a mortgage and a car payment. You can actually put some money into savings,investments or if you like under the mattress.

 The massive amounts of money that is printed is done because of debt,not credit. Credit can be a good thing if you use it wisely,I have used some credit to make investments,thats was some time ago and the debt was paid off but I'd never remortgage my house at a lower rate just to get a new car/boat or insert your favorite item,thats how you stay in debt for life!


     

[Eagler]

Exactly!

Now how many ppl can handle credit properly and not allow it you create debt for them?

From what I see and read most cannot handle credit properly as they can't live without the latest whatever and have to have it NOW and dont have $1000 for an emergency.

Life debt free is wonderful!

But we drive 7 and 12 year old cars - neither over 50k in mileage

Its all about choices.

But if gov doesn' t make the right ones, can it expect joe 6 pack to be able to?

Going negative with interest rates is your sign the world is truly broke.

Eagler