Posts Tagged ‘reverse’

There are many reasons for creating your own financial system.  The main objective is to reverse the effects of negative compounding and turning it into positive compounding.  Just as debt can work against you, it can work even greater for you once it is under control.

“Debt is one person’s liability, but another person’s asset.” –Paul Krugman.  This statement is true any time a person goes into debt unto another.  In essence, the indebted transfers their money to another.  The indebted could reverse this transfer of money by simply creating a pool, or reserve, of money from which to provide their own capital needs.