Around the world there are a lot of complaints that there is too much debt, that debt will prevent a recovery, and that debt is the root of all problems – be it fiscal deficits, debt fueled consumption, or a debt powered housing market.
While there are undeniable issues to keep in mind, there are a few things to remember with these large debt levels – and one of the most important is that there are some people on the otherside of this debt.
Unknown to some is the fact that, as a planet, we are not actually in a net debt position with the rest of the galaxy (although the statistics say otherwise, I think there is an error – rather than us owing money to Martians). As a result, for every person who has a liability owing there is another person or group who views that as an asset. When we look at what the “issues” are with debt, we have to keep this point in mind.
Now this sounds like me stating the bleedingly obvious AGAIN … but lets think about some of the conclusions that come out of this: