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Here's why a surplus is stupid...
A country is not a person. So if you are going to live & work "forever", & your "assets" are an entire country with unlimited growth over time...
...what should your credit history & debts look like at any one point in time?
A country is not a person. So if you are going to live & work "forever", & your "assets" are an entire country with unlimited growth over time...
...what should your credit history & debts look like at any one point in time?
Governments can make as much money as they want - & never have to pay it back. The "debt" is a reflection of the economy over history.
At any point of major change an economy will go into debt as infrastructure will cost more than annual GDP.
BUT you balance this over centuries
At any point of major change an economy will go into debt as infrastructure will cost more than annual GDP.
BUT you balance this over centuries
So long as you are getting "value for debts accrued" its fine. So a country might end up trillions in debt that will take a generation to pay off.
BUT if that debt is equivalent in infrastructure value to a persons house that triples in value?
We view that as a good investment.
BUT if that debt is equivalent in infrastructure value to a persons house that triples in value?
We view that as a good investment.
It is just governments use the "size of the numbers" to scare us plus hide thier own wastage.
We are at point technology has shifted as much as industrial revolution. Investment & debt must be accrued.
But it will pay itself back 50 fold in value. And we are our own banks.
We are at point technology has shifted as much as industrial revolution. Investment & debt must be accrued.
But it will pay itself back 50 fold in value. And we are our own banks.
The ridiculous part is we view this like ourselves. Okay - so what happens if next year we dont make enough to cover our "bonds" (debt) payments?
Does some bank foreclose on us and take the country of part of it? That would stop future production & actual wealth from that part.
Does some bank foreclose on us and take the country of part of it? That would stop future production & actual wealth from that part.
The "consequence" a country faces if it stuffs up "debt" is inflation. Your currency will become worth f'k all compared to rest.
So if we print all our own money & build useless crap - then our "debt" over history wont relect well in terms of inflation. Our $ will be worth shit.
So if we print all our own money & build useless crap - then our "debt" over history wont relect well in terms of inflation. Our $ will be worth shit.
Then everything in world costs more & no matter what you do economy struggles. This also happens if your infrastructure falls behind.
So balancing an economy does NOT mean having no debt. You have debt when changes are needed to keep up with rest of the world or you fall behind.
So balancing an economy does NOT mean having no debt. You have debt when changes are needed to keep up with rest of the world or you fall behind.
"Balancing an economy" means using all resources avaliable, to achieve any jobs required - so long as they have a payback over time.
Money is NEVER the issue nor is time - the country will never die.
If investments are sound its success. If resources are not used its failure.
Money is NEVER the issue nor is time - the country will never die.
If investments are sound its success. If resources are not used its failure.
MY FINAL TWEET IS A QUESTION... Based on those parameters - is our current economy success or failure?
