Topic: A generation spends money, a lifetime pays it back. - page 4. (Read 806 times)

The best we can do is to avoid such cycle from ever taking place, and while there are things most people will be forced to buy in credit, like a house, everything else must be paid with cash, and if we do not have the money in hand to do so then we must not buy anything until we do, now I can recognize this can be difficult as we are bombarded every day with ads that try to persuade us to buy everything right now, but we must find a way to ignore them, because if we do not, then we will find ourselves spending money that we do not have and we will have to pay huge interests to the banks for doing so.

I'm not sure putting it in the context of a "generation" is correct, the thing that makes more sense is how we very easily spend money when we are younger - constantly bombarded by peer pressure and the race to have the coolest stuff, which can often lead to easily accumulating debt and not necessarily understanding the consequences of having to pay it back. If you get credit when you are younger, it can feel like you've won the lottery and got a load of free cash, which is then spent like crazy. However the pain comes later, when you realize your paycheck is starting to get eaten up by debt that you may barely make a dent in repayments if you've racked it up on credit cards paying the minimum balance every month.

These corrupt leaders don't want their activities to be monitored that's why they'd always kick against the use of the Blockchain. Like you said it's because they don't care about how these loans get paid that's why they continue to take them because if you're concerned and know that it's for something beneficial that you need the loan for, you'd achieve it and definitely make profits enough to repay your loan before going for another.

This is not the true concept of borrowing even in this modern era, most
Government borrow for key infrastructural development purposes with strategic repayment plans put in place, citizens on one hand are bound to hold government accountable, the parliament is there to help checkmate the executive. I don't have any issue with the concept of borrowing, but the big question is, what are you borrowing for?, are you borrowing for consumption or your borrowing for production.

Borrowing if done responsibly is supposed to improve one's financial status without putting any burden on the borrower or those that will take over from him in the future. The reason Borrowing appears to not be the best option in most cases is because those who borrow do not practice responsible Borrowing.

Responsible borrow demands that the government or private individuals take only debts they can manage. The debts taken should be able to fund projects that will generate revenue capable of repaying the loan and the interest involved without neccessarily passing it down to other people who would finally bear the burden of debts they know nothing about. If this is not the case for those who borrow, it means they are only promoting misappropriation of funds without any intention of solving any problem.  Lenders will keep lending money because they benefit the most.

That's how government works, they dictate what is valuable for the people to trust in it that it has a value. And that's how it goes with fiat and just as we in the community, we all believe and have a huge confidence in the value of Bitcoin because we all trust it. Now, with the borrowing generation or whoever borrows money and spends it, this is what the government wants us to do. They want us to pay our lifetimes into these debt so that we're already tied to it and that's the trap that many are looking at.

This is also happening in my country, huge loans are constantly being taken, from all sides... the rich are getting richer, and due to rising inflation, everyone else is in a worse and worse situation. Not only will we and the next generations pay back that debt with all interest, but the country will be sold to "investors" with all the resources and other benefits the state provides them (lower taxes, cheaper fuel/electricity, and cheap labor). That's the reality and it's been happening here at my place for years.

And is there a solution? I see only one thing, the system has to change, and to do that, people have to wake up and the collective consciousness has to work... but I doubt we will see that anytime soon.

That’s typically what the modern economy is all about, one set of people given the privilege to look over and govern the affairs of the rest people misuse the mandate given to them and take loans that cannot be paid back for years to come. They themselves know they won’t put it into anything resourceful over the years that can enable them to pay back the loan and therefore makes the later to pay for all they’ve indebted which cannot be possible again due to inflation and worsen state of the economy at the time. They the new government would also want to take new loans in order to get a share of their own pocket. This is very disgusting and as it continues like that for years, the country overall economy gets worsen and those that are yet to be birthed will be asked to pay back those loans. Borrowing of loans isn’t bad but not putting it into good use is disastrous and will cause economy downfall of the whole nation. The richer nations given the loans get richer and the poorer nations get poorer.

incompetent leader corrupt everywhere, the rich country just know how to take advantage of it, giving temporary money for lifetime debt, which is a bad thing, but some country just can't stop taking out a loan , it's good knowing that certain country actually try to pay off its debt, but majority just doesn't care, not their obligation to pay anyway, that's what their tought process as I imagine, if only smaller less developed country could just take radical approach, adopting blockchain for its transparency and monitor the spending, maybe things could've been a lot different.

Words like that don't describe modernity because they just look ordinary. And the question is, why borrow money if you can't use it in a business that can turn money around and make a profit so that the same generation can pay the loan back. This means that borrowing money must have a clear direction because it is not a mandatory job so that most people will not want to do it when they can't use it properly in their own lives.

this is so easy to relate with because it's what's happening across different nation most expecially in mine. Every government will borrow money to fix the mess the previous administration have left behind only to create a worse deficit that the coming administration will come to fix. It has gone to the extent that the debt they are currently owing can't be payable till almost this generation ends because the borrowing continues and there's no sign that it's coming to a close.

Borrowing money wouldn't have been an issue only if it's used for the right purpose that will yield better returns. Unfortunately, that's not the case as all the money that's being borrowed is either used to sort out insurgency, sent to house holds as palliative or even embazled by same people that collected it only for the next administration to come again to repeat the same process over and over again.

World bank and IMF ought to stop giving some nations loan for a project that's not able to yield good returns. I'm aware that when it comes to individual sourcing for a loan,  there are clauses that include telling the organization or person you're obtaining the loan from how you intend paying it back but when it comes to national loans, I don't know if such a thing is in place or else some clueless countries that keeps on collecting and increasing their indebtedness would have stoped taking loans recklessly.

In my opinion the problem lies less on the borrowing part and more on where these borrowed money go. These borrowed money are not used to invest in profitable projects but instead are wasted going onto the pockets of the leaders of the country. Are there any countries that were able to pay back debt? I am sure there are and they are probably doing well right now and their politics might not be as dirty as other countries especially third world ones.

The corruption in third world countries are so immense that no amount of borrowed money are enough to actually improve our economy because like I said it all goes directly to the pockets of corrupt politicians. Debts can be paid if the right people know how to or want to but otherwise yes the future generations are the one to suffer.

 Sometimes, the loan givers knows that some countries who come seeking for loans may not have the ability to pay them off at the stipulated time and would rather prefer to still keep giving them so that these ones would remain indebted to them for a longer while so that when another set of individuals who come into power try to attempt at paying, it would seem too big for them and now instead them to channel their energy and resources into making the economy of the country better, they would exhaust it all in paying off debts which is sad.
 Sometimes I wonder why a country would need to take a huge amount that would be burdensome and yet you won't as a citizen see the effects because some greedy leaders have chosen to pocket them and the citizens have to pay for what they didn't use.

Well, that's how a debt based economy works! It's printing money out of thin air. Let me give you an example,

Let's assume a central bank prints $10. Then bank A borrows that $10 from the central bank to bring it into the circulation. Now an individual borrows that $10 from bank A and deposits that money into his savings account in bank B.

So in theory, that $10 would be shown as asset in bank A. The same $10 will be accounted as liability of the individual. Also the same $10 will become a liability of bank B towards the individual. That's $30 in circulation and not the same $10.

That's how money is created out of thin air in debt based economy. Crypto is the answer to this flawed banking system.

With high interest rates, inflation, and taxation today, impacts from debt resonate within the individual generations.Take from one of the biggest economy in the world, the US interest payments on federal debt are now at an all-time high and siphon budgets away from needed services, like healthcare and education that benefit all people alive today-not just future taxpayers.

Meanwhile, debt reliance can become more and more issue-related to burdening future taxpayers, but even hinder economic development-as high levels move money away from investment that may produce returns over time. Some economists indicate that this may be reduced in the future through policy choices-make targeted spending cuts or reforms. Debt is indeed a shared responsibility, but that does not mean only future generations bear the load; it's an issue for the present too, since the interest payments and need for budget adjustments are being felt across age groups.

I don't know whether modern economics has anything to do with people borrowing money and mismanaging it, leaving the burden of repayments to future generations. And leaders of countries that depends on borrowing and diverting most of the funds into their private pockets, leaving incoming administrations with the responsibilities of repaying. What happens is that the incoming administration will also borrow and divert most of the monies, while the dept continues to pile up. People and governments are supposed to borrow money to fund projects that will generate income, and from the profits that they get from the project, they'll be servicing the dept.

I guess that the world bank, IMF and industrialized countries like China, are happy to dish loans to most underdeveloped countries, in the end they'll own the countries indirectly. It's very convenient for people in leadership positions to take loans that'll run for a long term beyond their administration because it won't be their responsibility to repay. They're free to embezzle the funds without any remorse and when a new administration comes to power the first thing they'll tell the electorates is that they've inherited too many depts.

Let me give a a typical example. My country's government just borrowed money from the World Bank which is running in billions of dollars.They say the loan is to stabilize the economy blah blah blah but honestly we don't need those loans. The first repayment is in 10 years way after the current administration has left office. Obviously I have no faith in the because they are going to divert it into personal coffers and their will be no penalty for it. We don't need these loans. Even the loans are a trap by the World Bank to keep poor countries poor. The next generation is going to spend their lifetime paying back loans.
Here it is - https://www.google.com/amp/s/punchng.com/tinubu-govt-borrowed-6-45bn-from-wbank-report/%3famp

The essence of modern economics can be summed up in two words: borrowing money. One generation spends, and the next spends a lifetime paying it back.