Quote:
Originally Posted by Skybird
If you need to put aside reserves for the future (and you always must!), you can buy a maximum of only one apple: one Taler. The second Taler is for the debts, and the third is for the reserves.
I wonder what is so difficult in understanding this.
Our finance system is complex, but complexity does not make it any less insane.
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I like that analogy. Debt is a very good thing in small measures, because it is the lubricant that makes things go smoother. The oil that greases the society and economy. You can iron out and get things running instead of stopping everytime you run out of cash.
But.
Drown your engine with oil and you risk catastrophical damage to it. While debt and oil are not easily comparable, you should know when to apply it and when to stop. In my personal economy, a bit less than one third of my salary is going towards debt repayment. And that is how it should be.
I find it shocking that UK has accumulated that much debt!