Mark Moss explores why Coca-Cola issues billions in debt despite generating massive free cash flow, with some bonds not maturing until 2093. In a system where credit creates money, borrowing when you don't need to becomes a strategic choice worth understanding.
We live in a system where new credit can create new money. And of course, once you understand that part, then something else starts making a lot more sense. Take Coca-Cola, for example. Coca-Cola generates billions of dollars in cash, and they have so much cash that they don't need the debt, but yet they're still taking on billions of dollars of debt at the same time. So why is that? Why do they have all this money, all this income, all this free cash flow, but they're borrowing billions of dollars of debt, some with maturities all the way out to 2093? I mean, think about that. A company with enormous cash flow chooses to borrow money for longer than most of us are even going to be alive.
