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And you can reframe this further -

The poor and middle classes are going into debt to sustain the personal wealth of the rich.

The spending is semi-voluntary, but the effect on personal wealth is very similar to taxation, in that there's less real money available. This will become a very bad thing over the next few years, because debt that was once used to fund luxuries is now increasingly being used to pay for essentials like housing, fuel and transport. At the same time 'economic reforms' will be putting pressure on real wages.

Also, it's not actually true that the repayments will be at low rates. I suspect a lot of that debt will be credit card debt, whose rates are notoriously usurious.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Tue Apr 11th, 2006 at 12:54:51 PM EST

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