How Money is Created For a country’s GDP to grow there needs to be economic expansion, which means people must earn and spend more money. But in order for additional money to exist somebody has to create it first. That’s where you and I come in. 🙂 Money is created whenever we borrow money from a bank. When we take out a… Read More »
The basic concept of debt is simple. It’s when someone borrows money from another person. But once we start looking at different forms of debt such as sovereign debt, treasury bonds, mortgage-backed securities, demand loans, etc, it can start to sound like a different language to many of us. 😕 Even the money in your wallet right now is… Read More »
Financially speaking this has been the best year for me so far. Here’s a 2014 year end review and some updates about what’s been going on in my personal life. Braces Removed Earlier this year I decided to get braces for financial reasons. According to my research people with very straight teeth make more money than the average person. The… Read More »
Flawed and Unreliable The debt to disposable income (DTI) ratio represents the ratio of one’s total debt amount to his after tax income. But the debt to income flaw is not often discussed. “Debt” is a balance sheet item (net worth,) but “income” deals with budgeting (income statement.) Debt is simply a static number, while income requires the element of time… Read More »
Americans VS Canadians on Household Debt Consumers love to spend money. And around this time of the year big spenders tend to have a whole lot of purseonality. A report from the newyorkfed.org shows that Americans have a total of $11.7 trillion of household debt. Roughly 74% of that is mortgage debt. That’s aboot $37,000 of total debt for every… Read More »
The trickle down effect It has been said that if we cut taxes for the rich and help profitable businesses make even more money then the economic benefits would trickle down from the top to the rest of us. But for many in the working class this has simply not been the case. 🙁 The top 1% have… Read More »