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Politics : The Trump Presidency
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To: neolib who wrote (69501)5/2/2018 5:23:25 PM
From: TimF  Read Replies (1) of 355732
 
Let me make it more specific. Given a choice of borrowing from an arms-length lender or from a related party, at identical terms, why are you claiming that the arms-length lender got "real interest" but the related party lender didn't?

Because it isn't a related party.

Borrow from a related party, sure that related party gets interest from you. They may be related but they aren't you.

Borrow from yourself and you don't get any real return. Cancel the "debt" to yourself and you get neither the boon of a gain in net wealth by lower debt nor the loss of expected future income from the debt payments. Double the "debt" to yourself and again you don't make or loose money. Having different accounts and in your head thinking or on paper writing that one owes another one X amount of money can be useful for organization and planning, but it doesn't make you any wealthier (or poorer).
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