Nationl Debt Good, Personal Debt Bad

Salaam.

A few months ago I had a conversation with a family friend on the fiscal economy.  Personally I still can’t get my head around the whole fiscal thing (and it seems the bank of england can’t either). Other than knowing that they can print as much as they like, and that the idea this will cause inflation is not entirely true. as the market would have to be aware of this money creation. And the last vestige of law ensuring this was revoked. Good thing there is a movement to put a reform law in place

But he said that every time new money is created and put into the economy it is registered as a debt by the government. And this new money is used to create goods and services, which is the real wealth of a nation. So on every side of the government debt is the equivalent of goods and services. which is a good thing.. It really boils down to the fact that the nation creates the money (i.e it just prints it)

So given todays snow blog on the looming american crisis and the rush into gold. I thought i would dig around to see if anyone else shared my friends view. and lol and behold it is a well respected view

Ken Fisher we need more debt

and from the congressmen Peter Stark, bit arrogant but he explains it. National Debt is very different from Personal Debt

 

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