A Zorrowful Exchange Part 2
Continuing from Part 1.... Zorrow ducks, weaves and jabs: "If you've ever owned a business, was it wrong for you to accrue debt to suppliers, employees, and capital goods providers? How can you run any modern business without debt. How can Elon Musk build a battery factory without debt? I really don't think you know how things work. The fact that the government incurs debt--seems to upset you. We would not have won World War II without deficit spending for a brighter tomorrow. Even the Moslems have found a way around the Koran-they call it sommething else--but its debt."
We Nattered back: "was it wrong for you to accrue debt to suppliers, employees, and capital goods providers?"
Productive type 1 transactions or business debt (GDP contributing, PCE consumption) incurred to expand inventory or R&D/plant (capex) and "animal spirits" is necessary and encouraged. Type 2 (market speculation, financialism, hedging, and RE flipping is not. For your further schooling see here.
"The fact that the government incurs debt--seems to upset you."
The Nattering One muses...
That is public debt and the same rules apply as above. "Animal spirits" are usually good, especially in depressed times such as these with WWII being the last justified war debt. i.e. (not fought for special interests) and we have no issue with these debts. Incurring debt to bail out the miscalculations by idiocy or design for a bunch of paid attorney whores in trust on the hill and Wall Street punk ass MBA blue blood screw ups is unacceptable under any terms, unless of course your a feck who takes pleasure in being F'ed in the A.
By the way, trade, mercantilism and neo-mercantilism are historically and anthropologically at the heart of all development and wealth building, not debt. Although debt has been part and parcel as a "trusted" moneylike exchange, excessive popular indebtedness has usually led to widespread impoverishment and violence, aka unrest, insurrection, and revolt. More to come in Part 3.
We Nattered back: "was it wrong for you to accrue debt to suppliers, employees, and capital goods providers?"
Productive type 1 transactions or business debt (GDP contributing, PCE consumption) incurred to expand inventory or R&D/plant (capex) and "animal spirits" is necessary and encouraged. Type 2 (market speculation, financialism, hedging, and RE flipping is not. For your further schooling see here.
"The fact that the government incurs debt--seems to upset you."
The Nattering One muses...
That is public debt and the same rules apply as above. "Animal spirits" are usually good, especially in depressed times such as these with WWII being the last justified war debt. i.e. (not fought for special interests) and we have no issue with these debts. Incurring debt to bail out the miscalculations by idiocy or design for a bunch of paid attorney whores in trust on the hill and Wall Street punk ass MBA blue blood screw ups is unacceptable under any terms, unless of course your a feck who takes pleasure in being F'ed in the A.
By the way, trade, mercantilism and neo-mercantilism are historically and anthropologically at the heart of all development and wealth building, not debt. Although debt has been part and parcel as a "trusted" moneylike exchange, excessive popular indebtedness has usually led to widespread impoverishment and violence, aka unrest, insurrection, and revolt. More to come in Part 3.
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