Would you like to know the reason behind our world floating in debt. Not so complicated really. Reason: Promoting indebtedness is a matter of public policy and has been for a long time-3,797 years. It’s really worth contemplating not only when you take a glance at the economic tussle we’re in but when you look around for a place to put your money. Load up on some debt-financed REAL real estate, which you can do by buying buildings with mortgages or owning investment trusts that do that. See, that way when the next round of dough is dished out to debtors, you shall receive yours.
There are four way public policy reward debtors: First, loan forgiveness-debtors outnumber creditors by quite the amount. Politicians falling over themselves to bail out improvident home buyers and the banks that lent to them. This kindness will be financed by taxes on people who are less caring. Next, the Obama Administration is going to forgive college loans owed by people who take public service jobs. It’s difficult to think of a worthier soul than the debt-troubled graduate who passes up a lucrative Wall Street career in order to be a teach or doctor.
Next form of debtor aid is credit guarantees. Explain? When the government wants to subsidize a factory, it does so by cosigning the loan. Let me tell you right now that those financed ventures miss out. Last item on the list is inflation, and this is where your debt-financed real estate comes in. It’s way too early to say whether the Federal Reserve, which has doubled its assets in the past year, will end up ruining the value of a dollar. Although you may be in store for a windfall. Borrow dollars now and pay them back with the funny money Ben Bernanke throws out.