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The following is the basic difference between Good debt & Bad debt, without the bullshit from some halfwit politician, pretend economist or news reporter who clearly failed primary school mathematics.
Is when we logically eradicate the need for perpetual reflation by simply eradicating the unwarranted imposition of interest on falsified debts (phony loans) & therefore eradicating the ruse of banking altogether that neither ethically or rationally lends us money in the first place, where any increase in circulation can otherwise instead equal the remaining debt & equal the related property value by *rightfully retiring principal* (NOT STEALING & LAUNDERING) at the rate of depreciation or consumption of the related property.
Is when purported banks only ever pretend to loan us the sum of principal, where the bank is neither risking or giving up commensurable consideration of value from the banks otherwise prior legitimate possession that might justify any loan to one of us, which is nonetheless charging us a further sum of principal again in unwarranted interest for the privilege of being robbed of the former sum of principal in a purported loan that in truth never transpires, that subsequently as a result sets of these terminal cycles of deflation & reflation. Primarily due to the volumetric impropriety of interest (perpetual deflation) we all formerly pay out of circulation in all private debt, which not only irreversibly multiplies both government & private debt in perpetual cycles of reflation, but the very process reflation can only ever be artificially sustained with further falsified debt.
Therefore the process of perpetual deflation by interest & perpetual reflation with new debt that never increases the remaining circulation above the sum of principal can only ever at best service the former debt, BUT NEVER THE NEW due to the added cost of interest banks clearly steal above the sum of principal inclusive in purported loans, which is stealing all that much further from us in artificial price inflation when each & everyone of us just spends money today.
IN SHORT FOR THE DUMMIES.
Bad debt: Is a so called loan that in truth never transpires, making the purported loan a monumental crime of theft instead.
Good debt: Is merely an obligation by the debtor (obligor/creator of money/one of us) to *pay & retire* principal — free from unjust intervention or exploitation — where there never was or ever is any loan or borrowing.
Advocate / mentor, Co-founder, Co-director – Mathematically Perfected Economy™ (au)
(Published : July 01, 2017, last edit October 09, 2017)