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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: geode00 who wrote (163993)	6/10/2005 3:44:16 PM
From: Maurice Winn	Respond to of 281500

Geode, it's borrowed because people like to borrow, figuring they'll get something now, such as a dirty great SUV and gymnasium membership and some yummy meals to make them even fatter, rather than wait until they've saved the money. They think they'll worry about it later and pay later. <if this is chump change, why do we have to borrow it instead of taking it out of our petty cash?> If they had the petty cash slopping around, they'd probably use that first. The borrowers don't have spare cash slopping around so they borrow. The total borrowing is small compared with total GDP. Divide both by 300 million, to get a smaller number, comparable to individual cash flow experiences, and the ratio stays the same, but you can then better see the scale of the problem, which is relatively small. Mqurice