Do you aware, we are now closer to the point when global debt is larger than global economy. Today so many loan payment made by us as an individual, company or even government are interest payment. The debt remain the same, or grows if we doesn't keep up with interest payment. Interest comes with a serious problem. When you have money, the money itself will work for you and gain wealth without do anything. But if you don't have money, you have loan, you even must work harder to pay it off with interest.
What about our world? When I was young I heard that government the one who control money supply and all the money circulation will backed up by something intangible such as gold or other valuable things. But now, all are change, most major economics control take by bankers. The bankers, lend money to government with interest, which is paid bank using taxpayer money. Just an illustration: Government need US$ 500 billion, government will write a treasury bond and Central Bank will give it the money. In most cases, Central bank doesn't actually print the money but make digital transaction in which government access to the newly created money. It doen't have to backed money up with gold.
The same goes with your spending on your credit card. You borrowing and paying X% interest for money that the bank doesn't have before you pay it to them as credit payment. For the bank it's more profitable if you can't pay back your loan on time. They will get gain, because your interest will perpetually growing.
Even iuf you have no debt, you pay for this outstanding interest by way of rising food and gasoline prices, higher taxes, poor quality of product and others. The money you have in pocket isn't money, but note of debt. Why? because they will less value in years next. That's you paying off the interest on the loans others took. So what you think... we are in the world of debt...
Lollii-Pii
April 23, 2009 at 6:01 PM
Right.. though I can't feel the burden of paying those taxes for I'm still a young student, I do recognize how hard it is for my parents and even the humanity to pay such an amount. You do have a point there. It seems like we are existing in a world filled with iniquity..
Biased..corrupt.. those words would exactly define what type of governments we have.. They make us pay for those matters in which they are much responsible of.. I hope one day this world will realize what chaotic damage those unjust individuals created..
yoj
April 24, 2009 at 4:52 AM
bloghopping here and have a wonderful day to you!!!!
Josh
May 6, 2009 at 10:47 PM
You are definitely right! Debt can add burden not just to us who are currently taking our breath, but to those who are yet unborn. They too have their own share of that burden even when they are years away from living. The worst case!