Eric Siu explains why debt isn't always bad. After Nixon ended the gold standard in 1971, money became debt. Consumer debt like credit cards is bad, but borrowing for real estate or business is good. Large-scale debt can be structured so others pay it back.
If you understand money, money became debt in 1971 when Nixon took the dollar off the gold standard. And so most people don't know that debt becomes an asset. So like when they have a Treasury bill, a Treasury bond, that's debt. And so the poor people are trying to get to live debt-free, which is good advice from Dave Ramsey. If you don't know anything about debt, don't touch it. But I had to study debt. I had to study real estate. I had to study, you know, business. To learn how to use debt as money. So when somebody says, I don't have money, I just borrow money. But most people borrow bad debt, and bad debt's like credit card debt. And credit card debt is debt you have to pay for. Good debt is debt that somebody else pays for it. So when Kenny and I borrow millions and billions, it's debt that somebody else pays for us. That's the only difference. So when Dave Ramsey says live debt-free, it's talking about bad debt.
