Response to: A Taste for Debt

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I read an article by Yahoo! Columnist Robert Kiyosaki who drew a comparison between imperial Spain and the United States. He argues that the good economy we have now is bought on the credit used by consumer via high interest credit cards to governments who borrow from other countries to finance their daily affairs.

He explains that like Spain whose monarchs had a thirst for conquest and war and borrowed to pay for it, the United States and other debtor nations have been borrowing money like crazy to pay for the things they crave. Most importantly, he touches on the inflated price caused by all the borrowing.

Like Mr. Kiyosaki I too believe the roaring global economy we have right now is largely due to credit. At department stores I see people paying for a $150 pair of jeans with a chase credit card and my home state of California applying for savings bonds to pay for things like painting schools. Yes, debt has gotten way out of control and if this trend of borrowing continues the whole world is going to be in for a world of hurt.