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Why do countries need to borrow money to pay for stuff why not just use cash reserves

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    (Original post by Quady)
    Not:


    Otherwise someone without any debt cannot own their own house or cash...
    I certainly think my assets are greater than my liabilities because I own about £15k of whisky and more in cash savings yet my credit card bill (only debt) is £2k.

    No?
    Assets = Liabilities + Equity.

    That's a given, A on the A side | L+E on the L side.

    go back to school dude before you talk
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    Sorry - which equation is it?

    1?

    (Original post by Txi)
    LOL

    A + L = always balanced, accounting 101 for you, mr. dumb dumb.
    or 2?

    (Original post by Txi)
    Assets = Liabilities + Equity.

    That's a given, A on the A side | L+E on the L side.

    go back to school dude before you talk
    Not sure why I need to go back to school because you got your equation wrong the first time, assets and liabilities don't balance most of the time.

    Since equity exists then how is your original point (unquoted) valid?

    Or do you just enjoy collecting neg rep?
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    (Original post by Quady)
    Sorry - which equation is it?

    1?



    or 2?



    Not sure why I need to go back to school because you got your equation wrong the first time, assets and liabilities don't balance most of the time.

    Since equity exists then how is your original point (unquoted) valid?

    Or do you just enjoy collecting neg rep?

    L = equities AND liabilities but they are NOT the same thing.

    goog it !
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    (Original post by Kalb)
    ehm , no. leaving the gold standard has brought enormous wealth. yes, unlimited credit has created bubbles but still we are better off since leaving the gold standard
    The dollar is worth less than 1/5th of what it was in 1971, coming off it has let an unaudited Federal Reserve and politicians saddle future generations with debt to justify ever increasing spending on ponzi schemes to grab votes, and has destroyed the idea of saving and personal responsibility while encouraging serfdom to a few central bankers. It amazes me how people complain about too big to fail and the rentier class but so passionately defend the cartel of central banking.

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