Wednesday, November 26, 2014
Wednesday, November 12, 2014
Debt based monetary paradigm
'Debt'.
I think it is justified in only 2 scenarios:
a. When debt allows an entity to acquire an asset which increases productivity in the long run; this can even be investment in an intangible asset, like 'skill set' or 'health'.
b. When debt is able to prevent a breakdown; of institutions, countries, corporations, or household.
In general, any requirement for debt, should be matched against a simple thumb rule; is this driven by a genuine need, or is an aspirational desire fueled initiative.
Also, acquiring debt for high risk investment is an all time NO ...
Fantastic article noting how debt/credit flows from country to country, private to public sector and so on ...
Credit - How it moves
Effectively, Debt is almost like energy .. it can neither be created nor destroyed.. if not serviced through innovation and structural mechanisms for quick re-allotment of capital and risk in economy, debt can only be 'transformed', not destroyed.
I think it is justified in only 2 scenarios:
a. When debt allows an entity to acquire an asset which increases productivity in the long run; this can even be investment in an intangible asset, like 'skill set' or 'health'.
b. When debt is able to prevent a breakdown; of institutions, countries, corporations, or household.
In general, any requirement for debt, should be matched against a simple thumb rule; is this driven by a genuine need, or is an aspirational desire fueled initiative.
Also, acquiring debt for high risk investment is an all time NO ...
Fantastic article noting how debt/credit flows from country to country, private to public sector and so on ...
Credit - How it moves
Effectively, Debt is almost like energy .. it can neither be created nor destroyed.. if not serviced through innovation and structural mechanisms for quick re-allotment of capital and risk in economy, debt can only be 'transformed', not destroyed.
Wednesday, November 5, 2014
Ideals: Realistic or an Aspiration led Utopian notion ??
Found myself thinking of the difference between 'Doers' and 'Visionaries' for some reason after reading this article.
One lays the road-map ... Another walks down that road.
'Case for Low Idea;s' by David Brooks
Maybe a person with 'Low Ideals' can get things done more consistently in real world; getting things to move forward.
But the surge of support that emerges from societies cannot come unless there is a person who inspires masses through articulation of 'High Ideals'.
I guess.. both are required
One lays the road-map ... Another walks down that road.
'Case for Low Idea;s' by David Brooks
Maybe a person with 'Low Ideals' can get things done more consistently in real world; getting things to move forward.
But the surge of support that emerges from societies cannot come unless there is a person who inspires masses through articulation of 'High Ideals'.
I guess.. both are required
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