From Activist Post
''Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it''. -- Albert Einstein
''Michael Hudson in Productivity, The Miracle of Compound Interest and Poverty, makes a case why the poor always gets poorer.
And indeed today, markets are shrinking in many countries. But not because people are saving out of prosperity. The jump in reported 'saving' in the National Income and Product Accounts (NIPA) in recent years has resulted from repaying debts. It is a negation of a negation – and hence, a statistical 'positive.'
Paying off a debt is not the same as building up liquid savings in a bank. It reflects something that only a very few economists have worried about over the past century: the prospect of debts rising faster than income, leading to financial crashes that transfer property from debtors to creditors, and indeed polarize society between what the Occupy Wall Street movement calls the 1% and the 99%.''
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