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The economy is extremely difficult. The debt, in the long run, is not as significant as people think. How you manage debt is an art form. Whether you do it this year or next year, whether you spread these things out, how high is too high – I have not spent my career on those areas.
I feel – I guess – that it's substantially too high. I guess that you shouldn't try to make it low in a hurry, but you should have a 20-year plan to chip away.
We've gotten ourselves into a bit of a rathole, and we should be careful getting out of it, but it is not the overwhelming thing that will dominate our future.
What it does is it distracts us from the real world. Debt is an accounting world. It's paper. The real world is the quantity and quality of your people and the quantity and quality of your capital spending.
Are you building new machines? Are you being inventive? Are you training your people? Is your high school system delivering the same education that it used to relative to the South Koreans and relative to the Norwegians?
No, it's not.
We should worry more about the real world and less about the paper world. And somehow we're in this death grip that only paper things matter. And so there's much too little attention spent on education, training, capital spending – finding a way to beef it up.
And also, I'd rather stimulate the economy directly through government spending than I would like to play games with the monetary system and games with the interest rate, inflicting great wounds on retirees and so on, and transferring wealth to people who won't spend it.
We're transferring wealth from the poor to the rich by keeping interest rates low. I'm not even sure the economy gains at all by a low interest rate, and furthermore, no one has established convincingly that it's a good idea.
It's a tradition that it's a good idea. And that's not the same. We've had lots of traditions, like that the market would look after itself – that people wouldn't be crooks because economic theory assumes that they're not.
But they often were crooks, and greedy, and short-term oriented, and willing to dance until the music stopped – although, as Soros said, the music had actually stopped long before.
Jeremy Grantham agrees with Paul Krugman on Debt and so do many other smart people if you phrase things correctly. After all 'debt' is only an accounting term.
The economy is extremely difficult. The debt, in the long run, is not as significant as people think. How you manage debt is an art form. Whether you do it this year or next year, whether you spread these things out, how high is too high – I have not spent my career on those areas.
I feel – I guess – that it's substantially too high. I guess that you shouldn't try to make it low in a hurry, but you should have a 20-year plan to chip away.
We've gotten ourselves into a bit of a rathole, and we should be careful getting out of it, but it is not the overwhelming thing that will dominate our future.
What it does is it distracts us from the real world. Debt is an accounting world. It's paper. The real world is the quantity and quality of your people and the quantity and quality of your capital spending.
Are you building new machines? Are you being inventive? Are you training your people? Is your high school system delivering the same education that it used to relative to the South Koreans and relative to the Norwegians?
No, it's not.
We should worry more about the real world and less about the paper world. And somehow we're in this death grip that only paper things matter. And so there's much too little attention spent on education, training, capital spending – finding a way to beef it up.
And also, I'd rather stimulate the economy directly through government spending than I would like to play games with the monetary system and games with the interest rate, inflicting great wounds on retirees and so on, and transferring wealth to people who won't spend it.
We're transferring wealth from the poor to the rich by keeping interest rates low. I'm not even sure the economy gains at all by a low interest rate, and furthermore, no one has established convincingly that it's a good idea.
It's a tradition that it's a good idea. And that's not the same. We've had lots of traditions, like that the market would look after itself – that people wouldn't be crooks because economic theory assumes that they're not.
But they often were crooks, and greedy, and short-term oriented, and willing to dance until the music stopped – although, as Soros said, the music had actually stopped long before.
Jeremy Grantham's Charlie Rose Preview - Business Insider
Do you understand how the federal debt does not at all resemble private debt, Norman? Because that understanding is critical.
Jeremy Grantham agrees with Paul Krugman on Debt and so do many other smart people if you phrase things correctly. After all 'debt' is only an accounting term.
The economy is extremely difficult. The debt, in the long run, is not as significant as people think. How you manage debt is an art form. Whether you do it this year or next year, whether you spread these things out, how high is too high I have not spent my career on those areas.
I feel I guess that it's substantially too high. I guess that you shouldn't try to make it low in a hurry, but you should have a 20-year plan to chip away.
We've gotten ourselves into a bit of a rathole, and we should be careful getting out of it, but it is not the overwhelming thing that will dominate our future.
What it does is it distracts us from the real world. Debt is an accounting world. It's paper. The real world is the quantity and quality of your people and the quantity and quality of your capital spending.
Are you building new machines? Are you being inventive? Are you training your people? Is your high school system delivering the same education that it used to relative to the South Koreans and relative to the Norwegians?
No, it's not.
We should worry more about the real world and less about the paper world. And somehow we're in this death grip that only paper things matter. And so there's much too little attention spent on education, training, capital spending finding a way to beef it up.
And also, I'd rather stimulate the economy directly through government spending than I would like to play games with the monetary system and games with the interest rate, inflicting great wounds on retirees and so on, and transferring wealth to people who won't spend it.
We're transferring wealth from the poor to the rich by keeping interest rates low. I'm not even sure the economy gains at all by a low interest rate, and furthermore, no one has established convincingly that it's a good idea.
It's a tradition that it's a good idea. And that's not the same. We've had lots of traditions, like that the market would look after itself that people wouldn't be crooks because economic theory assumes that they're not.
But they often were crooks, and greedy, and short-term oriented, and willing to dance until the music stopped although, as Soros said, the music had actually stopped long before.
Jeremy Grantham's Charlie Rose Preview - Business Insider
Personally I love it when people make useless rhetorical statments like "Debt is just an accounting item".
"Sun is just a bulb of gas".
"Water is just molecules."
After the author explains how debt is just an accounting item he conrinuwa to imply how desperately there needs to be more of it... Makes sense. That article is absolute trash, it makes no sense at all. For the record all these monetary things are spent on REAL THINGS. Not imagination. Shocker.
Do you understand how the federal debt does not at all resemble private debt, Norman? Because that understanding is critical.
Not paying debt is like stealing from someone; so naturally its not permitted
what world do you live in? Of course not paying debt is permitted. It happens all the time.
Do you understand how the federal debt does not at all resemble private debt, Norman? Because that understanding is critical.
Not paying debt is like stealing from someone; so naturally its not permitted
Not paying debt is like stealing from someone; so naturally its not permitted
Think about it for a moment. Paying back people for something they lent you is a matter of integrity. Not sure what you're trying to promote exactly with this statement...
Think about it for a moment. Paying back people for something they lent you is a matter of integrity. Not sure what you're trying to promote exactly with this statement...
Promote? Reality. All debts carry risk. Assumed risks. Sometimes a bet turns out badly.
Think about it for a moment. Paying back people for something they lent you is a matter of integrity. Not sure what you're trying to promote exactly with this statement...
Promote? Reality. All debts carry risk. Assumed risks. Sometimes a bet turns out badly.
1) Try telling that to Apple after buying a $1,500 iMac.
2) When you receive a good or a service from another entity (who used time and resource to provide you with that good or service), it's my opinion that ethically you are obligated to repay that entity under the agreement that was originally outlined.
3) Debt is REAL and someone always will lose out when you fail to repay. I personally don't like to play the part of the scumbag, and do not want to contribute to the idea that our great nation is nothing more than a bunch of cheapskates.
Promote? Reality. All debts carry risk. Assumed risks. Sometimes a bet turns out badly.
1) Try telling that to Apple after buying a $1,500 iMac.
2) When you receive a good or a service from another entity (who used time and resource to provide you with that good or service), it's my opinion that ethically you are obligated to repay that entity under the agreement that was originally outlined.
3) Debt is REAL and someone always will lose out when you fail to repay. I personally don't like to play the part of the scumbag, and do not want to contribute to the idea that our great nation is nothing more than a bunch of cheapskates.
1) We can do dueling examples, but it would be boring
2) Ethics are good. They are not and never have been the foundation of most transactions in modern society.
3) Debt can be and often is written off. Debt as we are discussing it is real on paper. "The debt, in the long run, is not as significant as people think. How you manage debt is an art form" - "What it does is it distracts us from the real world. Debt is an accounting world. It's paper. The real world is the quantity and quality of your people and the quantity and quality of your capital spending." - see post #1 http://en.wikipedia.org/wiki/Jeremy_Grantham
Rome burns? Oh teh drama!
Think about it for a moment. Paying back people for something they lent you is a matter of integrity. Not sure what you're trying to promote exactly with this statement...
Promote? Reality. All debts carry risk. Assumed risks. Sometimes a bet turns out badly.
Not paying debt is like stealing from someone; so naturally its not permitted
Think about it for a moment. Paying back people for something they lent you is a matter of integrity. Not sure what you're trying to promote exactly with this statement...
The ONLY WAY WE CREATE NEW MONEY IS THROUGH DEBT ISSUANCE.
So, no, it isn't at all necessary to repay it. It is only "debt" in the sense that it money we must pay to ourselves at an indeterminant point in the future--if it is convenient, and if we have nothing better to do.
