America: Land Of Debt

[kingfish]

Debts ok if used to purchase assets or make investments that have a higher yield than the interest rate. Mortgages and car debt to have a place to live and way to commute isn't too bad. But debt with super high interest for stupid shit you don't need not so good.

 

[TFLNetwork]

IN B4 FTCHATER

 

[FTC-Hater]

IN B4 FTCHATER

IM SERIOUSLY NOT EVEN GOING TO BOTHER

GOOD LUCK WITH YOUR FINANCES, BROS

 

[BluAffiliate]

Inb4 people who don't understand that currency is pieces of debt.

Oh wai...

 

[JakeStratham]

This thread needs creative tags. Lots of 'em.

 

[justo_tx]

Jefferson>Hamilton

 

[davidne]

yeah, and you're a fucking moron if you don't understand that the entire monetary system of the largest countries in the WORLD is based on debt. Look up "fiat currency".

I was talking about consumer debt, not the nation as a whole.

 

[gbmack]

Burr > Hamilton

 

[-joe-]

Back to the topic on hand; If I were running the show, Credit Cards and all other types of unsecured loans would be illegal before the age of 21. Better yet 30!!

If people get in debt through their own stupidity, that's their problem. Banning things helps nothing. (and that applies to everything)

 

[lukep]

If people get in debt through their own stupidity, that's their problem. Banning things helps nothing. (and that applies to everything)

It's not about the banning; it's about giving them TIME to learn how to live without it... A firm foundation of NOT using debt for everyday life.

-I was never given that chance, my parents taught me to use a credit card in high school... My only prior experience was a friggin pink piggy bank!

Luckily I read rich dad poor dad (without my family's blessing) and I'm debt free today while they're strapped with a half mill worth of debt.

 

[WickedJoe]

yeah, and you're a fucking moron if you don't understand that the entire monetary system of the largest countries in the WORLD is based on debt. Look up "fiat currency".

It has nothing to do with fiat currency. It has everything to do with fractional reserve banking. One does not imply the other.

Fiat w/out fractional reserve banking is possibly the best modern monetary system.

 

[clyde]

If people get in debt through their own stupidity, that's their problem. Banning things helps nothing. (and that applies to everything)

+1 this.

 

[WickedJoe]

Let me take a stab at this.

Debt isn't bad. It's only bad when it destroys you. In fact, it makes economic sense to take on as much debt as you can handle.

A little known fact was after the revolutionary war, America was broke. States could not pay back the debts they had written and were considering telling their veterans and Europe: Sorry, we can't pay you back because we don't have any money! This was what everyone expected, actually. However, Hamilton's goal was to set up a national debt. Why? Isn't debt bad? No, it isn't. Hamilton assumed all the debts of the states as part of the national government and began to pay them off.

Why did he do this? Debt is momentum. A goal, a constant reminder to keep things going. If people had no debt, as those in other countries, they have no incentive to keep living so to speak. People in other countries are also not as productive as Americans. The huge debt Americans take on is a constant incentive, a constant reminder to keep going and to pay off their debts. Otherwise, what's the point in it all?

This is mostly wrong. Nice try though. Debt = momentum only when the loan is used directly as an investment in a business or other pursuit that will make even more money for the business or individual. Otherwise Debt = Slavery. Most national debt is not a good debt... neither is most debt that we charge on our credit cards, etc.

 

[lukep]

^Would you guys stop hijacking this thread about CONSUMER DEBT and turning it into one of the many other national debt threads?!

 

[barman]

Debt is slavery (for the average American)

 

[cheshire]

I don't seem to understand the Debt is slavery mentality. Debt is only slavery if you need to take out more debt in the future. They can't throw you in jail if you don't pay. If I rack up $100k in credit card bills and decide one day I don't want to pay them anymore what's the worst they can do? Ruin my credit which is already ruined because my debt/income ratio is out of wack. Debt only makes you a slave when you depend on the ability to take out future debts. 7 years later the slate is washed clean and I can take out debt again.

 

[WickedJoe]

I don't seem to understand the Debt is slavery mentality. Debt is only slavery if you need to take out more debt in the future. They can't throw you in jail if you don't pay. If I rack up $100k in credit card bills and decide one day I don't want to pay them anymore what's the worst they can do? Ruin my credit which is already ruined because my debt/income ratio is out of wack. Debt only makes you a slave when you depend on the ability to take out future debts. 7 years later the slate is washed clean and I can take out debt again.

Many jobs worth a damn check your credit when you apply these days. Many apartments worth a damn check your credit. And of course if you ever want a house mortgage you will need a credit check. Need a car loan? Credit check. I'm sure there are more things as well. Unfortunately, you can't escape the side effects of bad credit too easily these days.

But if none of those things matter to you then ruining your credit may be the way to go - until they start garnishing your wages. Also, many things take more than 7 yrs to get off your credit report.

 

[supplyshock]

This is mostly wrong. Nice try though. Debt = momentum only when the loan is used directly as an investment in a business or other pursuit that will make even more money for the business or individual. Otherwise Debt = Slavery. Most national debt is not a good debt... neither is most debt that we charge on our credit cards, etc.

There's no functional difference between different kind of debt. Classifying whether debt is good or bad is really up to the eye of the beholder. But we needn't not make that distinction either. It really doesn't matter so long as debts are eventually repaid.

I think you guys fail to understand what wealth is or what money is. Money has no tangible value on its own, it's merely a note that claims a debt to the U.S. Government. Until it is exchanged for something it is just a piece of paper.

If all debts were repaid then all value would disappear from the economy. Debt = wealth.

Read up on this:

Man, Economy, and State with Power and Market by Murray N. Rothbard - - Mises Institute

 

[barman]

I don't seem to understand the Debt is slavery mentality. Debt is only slavery if you need to take out more debt in the future. They can't throw you in jail if you don't pay. If I rack up $100k in credit card bills and decide one day I don't want to pay them anymore what's the worst they can do? Ruin my credit which is already ruined because my debt/income ratio is out of wack. Debt only makes you a slave when you depend on the ability to take out future debts. 7 years later the slate is washed clean and I can take out debt again.

That's my point.

The average American is fucking stupid, and they don't know personal finance. Even non-retarded people get tricked into a decade or more of debt (the higher education bubble)

For example....
Getting a 7 year car loan with no money down
Buying a house with variable APR and no money down
Rent-a-center
Payday loans
Carrying credit card balances
so on and so forth...

Overall most Americans don't seem to appreciate how much money they waste because of interest, fees, and depreciation.

I'm not saying all those things i listed above are bad, but they're being leveraged way too heavily by people to pay for lifestyle, not business or other investment.

 

[barman]

So a family's disposable income goes to pay off debt, rather than buying Slap Happy Cream through my affiliate links