Further considerations on debt, from Nick Hubble

Posted: July 7, 2018 in Debt, Paper money, Poverty, Statistics
Tags: , , ,

MoneyWeek always does a good job in joining together different strands of the reality surrounding debt and putting it all into perspective.

This piece is another example of such work, I found the following points worth noting;

• The effect cheap debt has on corporate behaviour, which in turn translates into market moves/signals

• Statistics in the shape of national debt being measured against GDP which is not entirely genuine due to the whole economy not being ‘owned’ by government . However this leads me to ponder that although government debt is initated by the State, it is all tax paying citizens that will ultimately bear its burden, hence comparing it to GDP does equate to it being the nations debt, but of course not all GDP belongs to all citizens

• How much debt is responsible for living standards. This is particularly worth contemplating, many look at material wealth and standards of living as a barometer for social advancement however if this is heavily influenced by credit and in some cases unaffordable credit, is it simply an illusion? Another house of cards, which others are vying endlessly to win a share of?

https://www.capitalandconflict.com/uncategorised/debt-solves-everything-hopefully/

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