Who Owns The Fed?

Discussion here.

The author's version is the standard I learned when I was in financial services. But as we all know, the Federal Reserve is a leitmotif for so much more among people.

Which led to a response from the author leading into a talk about debt.

I agree with the author. There's a fundamental misunderstanding of what "debt' is these days largely because people are financially illiterate. Add that they choose freely to live beyond their means and presto! Confusion when the monthly minimum is due or when the collection agency calls.

I think people fail to factor in if they can afford to service the debt and have a decent plan to pay it back. No one says you have to pay it back in one day but you should be able to understand your budget so as to cover the principal and interest owed.

Alas, there's a certain indignant attitude these days about the "nerve" of banks demanding payment. They're not evil nor did they force anyone into a debt situation. It's just business.

As for debt being evil. Debt is a state of mind in many ways. It becomes part of your payment routine - or at least it should be - like your car payment or house insurance. It's always preferable to take on an asset (business, house, rental property, gold and silver, perhaps even stock investments etc. depending on your needs and objectives) you feel will appreciate in value but if you need a lap top for work or need to earn a Masters then go for it. Debt is fronting money at an interest charge.

Just make sure you consider your income whenever making decisions.

Too big a topic so I'll give it a rest right now.