Money Is The Root Of This Evil
Money Is The Root Of This Evil
A famed economist once said that debauching currency will unleash forces of destruction only a very few can see. I find what he said valid as time has shown economies of many developed countries today becoming weaker after playing currency games. Despite this, many people still chose to ignore FN0-202 advice because debauching currency made people feel rich as they could buy more things and this was exacerbated by the creation of the credit card in 1951 where people could now use debt to purchase goods. All these can be attributed to 1 root and that is money.
Today, money is the cause of weakening economies because people controlling money supplies want use to need more of their toxic money. The more we need money, the more they print, the weaker we become, the more dependent we are on the government. All these make the rich richer as they receive more passive income from interest payments by printing more money. Let us now look at how money has weakened the US economy.
From 2000 to 2007, America’s biggest export was debt. Today, the US government is issuing record numbers of bonds, incurring huge amounts of debt to devalue the US dollar for stimulating its economy. This has now caused many currency wars with countries like Japan also trying to devalue their currencies to maintain the competitiveness of their exports.
With such currency wars going on, the US will have rack up more debt to increase money supply and this will be an endless cycle because other nations will not allow US exports to be cheaper than theirs.
Nevertheless, the US has to do that because its economy can only grow now by getting into debt. This has been the reason for its growth till today. To quote, ratio of household debt to disposable income rose from below 40% in 1952 to 133% in 2007, amounting to US$2.56 trillion in consumer debt.
To add on, bank debt rose increased from 21% in 1980 to 116% of GDP in 2007. All these show that the US can only grow with debt which itself is a threat to the economy. Thus, when the world talks about a bubble, the greatest one is actually the American debt bubble and as a word of caution, economies worldwide are following footsteps of the US today.
With debt running economies today, the world will usher in an inflationary age where savers will be losers. This is because inflation will silently eat away the purchasing power of savings. Given today’s increasing trend for debt, inflation will rise and the rate of money being eroded will accelerate. Thus, in contrary to what experts say, I do not think that savings is good for the day.
However, while money can be the root of an evil, it can also be the source of good and one example will be wealth. As Sun Tsu said, know your enemy and yourself to win a hundred battles. Thus, one good way to be rich is to know yourself and money well. In other words, unlike economies worldwide trapped in an abyss of debt, you should control your personal cash flow and monitor the world’s cash flow for where money flows to will be where you find opportunities to become richer.
Hence, to conclude, given today’s economic situation, it is reasonable to say that money has led us thus far. It brought us growth but also dangers with it. However, to say that it is the root of all evil will be unfair to it FN0-405 because it would be too much of a sweeping statement. Nevertheless, it would still be apt to render it responsible for economic weakness because many of today’s crises are the fruits of debt.
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