STRAIGHT TALK
MARK BARNES: We will be in debt forever and it is going to get worse
The real problem is the habit-forming nature of the debt drug and the angst that it’ll give you
You won’t realise you’re poor until you find yourself among rich people. When you come from a place where everyone’s the same, it’s easy and peaceful. It’s inequality that causes the problem, and we have that in abundance. You don’t have to leave your rural village anymore to realise that there’s stuff you want that you can’t afford — your smartphone will show you what’s out there and help you buy it now, pay for it later. The thing about money is that its value is not measured by its abundance but its absence. The marginal utility of money is reached sooner than you think. But if you’re short, even just a little bit short, it can spell disaster. So, if we’re short, we borrow. Big mistake. People mostly get into debt to buy something they can’t afford. It is always defensible but it never makes sense. The Institute of International Finance estimates the total world debt at $244-trillion, which is more than three times global turnover. It is simply not possible to trade out of that. ...
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