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Re: The Effect of Debt 

By: nacl01 in POPE 5 | Recommend this post (4)
Wed, 04 Sep 19 3:58 PM | 30 view(s)
Boardmark this board | Pope 5 		Msg. 39230 of 62138
(This msg. is a reply to 39229 by Decomposed)
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We’re not borrowing ourselves rich. We’re borrowing ourselves broke.

I wish more people understood this.

nacl

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The above is a reply to the following message:
The Effect of Debt
By: Decomposed in POPE 5
Wed, 04 Sep 19 3:32 PM 		Msg. 39229 of 62138

Schiff's statement lacks eloquence. I'm posting it because it is important to understand the situation. It's also important to understand that as the end of an unsustainable economic model approaches, the rate of adverse consequences accelerate rapidly. If, between 2005 and 2019, things got substantially worse, we might anticipate things getting that much worse again in just five more years. And then in just two years. And then in months as reality asserts itself and the smarter people run for the exits.

We had to add a lot more debt in 2018 to buy not as much growth as a much smaller amount of debt in 2005. So, the takeaway from that is this is unsustainable because the growth came at a heavy cost. We had to increase the amount of debt that we had by a lot more than the percentage that the economy grew.”

“If your debt is growing faster than your economy, then you’re not getting richer. You’re getting poorer. You would have been better off without the debt and without the growth … We’re borrowing ourselves into poverty. We’re not borrowing ourselves rich. We’re borrowing ourselves broke.“
-Peter Schiff, via Seeking Alpha

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