Where money comes from.
On Twitter this evening I had a very brief conversation with @Aceofwaste about the Greek debt and the effect them defaulting on their debt would have on the European banks, and it made me think. Think about how fragile the worlds economy is and how much every country, every business, and every individual relies on each other to keep the economy moving.
This isn’t old news, it’s a practice I swear by in my business by ensuring that I always pay my debts on time. One of the best statements I ever saw on an invoice was “Please pay me promptly, so I may pay them promptly, so they can pay you promptly.”
This isn’t the whole story though, because if it was that easy we wouldn’t need a regular recession every 20ish years to balance our economies again. So why do we need a recession so frequently? It’s because our economies and our concept of inflation is a complete fallacy. Set yourself aside about 40 minutes and watch this video about what drives our economies…Money as Debt.