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I am not an economist, but, it seems to me to be nothing but simple
mathematics. If I am paying out $0 verses $100 per month, at the end of the
year I will have $1,200 more. How can it be different for a nation. I
seriously doubt it is. It is really very simple, if you just sit down and
think about it. There was a guy on CNBC a couple of weeks ago, and he
stated the simplest way to get rich is to get out of debt. This is plain
and simple mathematics. Remember, for each dollar you spend, you have to
earn at least two. If you are paying out $500 per month on a mortgage, you
had to earn $1,000 to make that $500 payment. A year or so ago a guy said
that the newly married couples $20,000 Trans am will have cost them $100,000
by the time they are 60. This is also simple mathematics that anyone can
check out that has a financial calculator. Think about it. $500 per month,
starting at 25 years age, by the time you are 60 that mortgage will have
cost you 35 X 12 X 500 = $210,000. I would submit that with the interest at
8%, the future value would be $1,146,941 by the time the person reached age
60. Yes, there is nothing better than debt, for the banks anyway.
Kohath
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