CreditOrSavings

Transcribed from original postings on the Increa Technology Blog.
UsingCreditToFundYour401k - Originally posted 17 Jan 2009 on the Increa Technolog Blog.

This is written January 2009, as Obama tries to pass a big stimulus package. I wonder why we have a big drive for "get credit turned on"? Credit affects the economy like a big money press, allowing us to create effective money where it does not otherwise exist. When all the transfers settle, what this extra money allows is the funding of a huge money infrastructure. It provides life, and jobs, and vocations, and livelihood for many people in the financial industries.

How does this compare with a savings-oriented culture? In other words don't stand up all the credit-generated money supply for financial types to live on. Instead, the money is stashed in a bank, "saved" per se. Many people today believe the money is not "working" when handled this way. But, in fact, it funds things like stable family and home investment, capital acquisition, property ownership, etc. It's just that these things, valuable to you and me, don't show up in all the quoted "how good is our economy" GNP numbers.

There is a boundary condition as we switch from a savings community to a credit society. Doing it one way or the other, we only switch where the "dollar bulges" are in our society.
  • If we want a lot of rather well-to-do financial types, then let's lean toward a max-credit society. It will work, it will operate. We'll all go on living regardless of what Republicans say.
  • If we prefer individual property ownership, and equity company ownership, we need to allow the money to bulge in the savings account. This will also work, it will operate. We'll all go on living regardless of what Democrats say.

It's like toothpaste or cake icing or rats under a blanket. We can accept/design the bulge anywhere we want. One place or the other. It's just that debt and credit funding tends to move the center of gravity away from individual choice toward big city financial organizations. I like it the other way.

Created by brian. Last Modification: Wednesday 21 of September, 2011 19:24:32 CDT by brian.