"Wilbur Hubbard" wrote:
It is NEVER cheaper to borrow than to pay cash.

Malarkey.

If I have $X invested in a bond fund that is earning 8% interest (and
helping businesses produce goods & services, providing employment etc
etc); and I can borrow $X at 6% interest, then I would be stupid to
cash in bonds to buy anything.

Better yet, if I can borrow money interest free, such as on a credit
card which will be paid in full at the end of the month, then I can
leav money in my interest-bearing checking account longer and gain
more interest accrued to me.

That's not to mention the use of credit to acquire capital goods for
production of wealth at a higher rate than the interest charged.

If it were not for the *intelligent* use of credit, we would still be
living in caves or perhaps thatched huts.



..... But who borrows without
usury these days?


You're confused.

1- interest rates are near historic lows.

2- usury is the charging of excess interest, it has nothing to do
with the borrower.

DSK