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Money is created as debt by the Federal Reserve. Debt becomes a tool when you use it to buy assets that produce cash, and it can offer tax advantages. Using debt for consumption instead accelerates losses.
Money is created as debt by the Federal Reserve. Debt becomes a tool when you use it to buy assets that produce cash, and it can offer tax advantages. Using debt for consumption instead accelerates losses.
The rich don't avoid debt, they just know how to use it. Debt is money. Money is debt. Money is created when debt is issued by the Federal Reserve. So debt is not good or bad, it's just part of the system. So if you use debt to acquire cash producing assets that may also go up in value, then debt is a very good tool. Debt is tax free. When you borrow against your house or you borrow against a business, or when you use bank money to acquire a house or a business, that money that you get is tax free. It makes much more sense to use debt to buy things that make you money than it does for you to save up money and pay cash for it. Debt is a way to make things happen faster. Of course, where people get into trouble is they do dumb things and debt makes the stupidity happen faster. But if you have a smart way to deploy capital, the rich people know how to use debt to make their goals happen faster.
