Too little credit, or too little credit, in today’s society is perceived as a bad feature, and when lending volumes fall, various media reports immediately reveal the need to renew lending and increasing both the volume and volume of loans granted. This, in turn, only means that lending has become so important that a small drop in the volume of loans issued immediately means a decline in economic growth.

How do you think it is right or do we look at all of this from the wrong side? Credits or crediting should not be the things we need to pay attention to, but the human spending that is not made on credit but directly on credit.

The largest part of our economy is credits

The largest part of our economy is credits

The more people need to borrow to buy new goods and services. And the further this borrowing cycle goes, the harder it is for sellers to sell and profit from other things, and that is the best way to earn money. But credits and taking them usually result in a negative cash flow because, even if the money can be spent at the moment when the loan is taken out, then in the future, this loan will be much less profitable because you will have to pay interest. . on each salary and therefore his spending will be limited.

That’s why getting more and more economic growth needs to borrow more and more, people are getting less and less money to spend every day. But this cycle cannot go on forever, because at some point people will have borrowed so much that they will simply no longer have the money to pay even more monthly loan payments, and then the lowest point of the credit cycle will come, and most likely.

Economic downturn

Economic downturn

There will be an economic downturn that no amount borrowing can no longer be resolved. That is why, even now, when the global economy has not yet recovered from the 2008 crisis, which we overwhelmingly overcome with more and more credits, economic growth is stagnating.

And all the men and wives of us and other governments think that this is because there is not enough credit. Although in reality people are already in the credits to say ‘to the ears’ and simply no more credits can be obtained.

Base interest rates

Base interest rates

Therefore, no matter how low the base interest rates are to be determined by the central banks, even if they are minus, as is already the case, the economic downturn will inevitably follow, while people will repay most of their credit and will be able to start using their monthly salary again different spending, which will then bring economic growth again. And, as a result of the economic downturn,

 

 

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