- DEP, if you're looking for a yes or no answer to your original question , my answer is absolutely no. The Banks are operating in cohoots with their governments and hoodwinking the world. QE is nothing more than a Ponzi scheme and frankly I dont believe
well, according to your equation, the "no" cancells out on both sides, so credit = growth. but the point is that credit on its own is useles...its all about gearing, so it must be linked to assets/equity?
I am not gettinginto another of these arguments. Consider what ever definition you have found carefully and think about my point. I will be happy to discuss it ater that; BUT rationally. Remember my point about equity being treated as "credit?" Well "GEARING" is a classic example.
you cannot gear credit without assets...so credit is not gearing if there are no assets so CREDIT IS NOT GEARING Definition of 'Credit' 1. A contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some date in the future, generally with interest. The term also refers to the borrowing capacity of an individual or company. Read more: http://www.investopedia.com/terms/c/credit.asp#ixzz2072VoEWm
Gearing is the use of assets for which you has not paid (credit.) The definition relates long term debt to equity capital. It shows "systemic" exposure within the business. Same thing. No credit - no gearing! You would use the assets you bought for cash. Without adquate cash - you would be exluded from that business. So you borrow. So...? What is you point?