wrote in message
oups.com...
"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.

Oh my gawd, yet another brainwashed sucker whose bubble I must break.

If your bond fund returns 8% then you will not be able to borrow at 6%
interest.
Not possible. Nobody who's sane is going to lend you money to you at 6%
when they can lend it to an institution and get 8% for it.


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.

You seem to have forgotten all about the credit card service charge. I'm
afraid you will pay them more than any interest bearing checking account
will pay you.
Credit card companies aren't stupid. Why would they bother to give you a
card when they could do just what you suggest doing? They'd simply cut
out the middle man.


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.

Voodoo math. It only works if you leave out production costs...

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

Negative, sarge. All the wealth you see in the hands of the credit card
companies would be evenly distributed among the general population.

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.

You're confused. Usury is just another name for interest. Any rate of
interest is usury. Interest rates are near historic lows. I agree. They
go in cycles. What ALWAYS remains constant is the borrower is charged
higher interest for borrowing than he receives for investing. The man
who wishes to get rich lends. That's a fact.

Wilbur Hubbard