"Paper money has had the effect in your state that it will ever have, to ruin commerce, oppress the honest, and open the door to every species of fraud and injustice."
-- George Washington
(1732-1799) Founding Father, 1st US President, 'Father of the Country'
Source: in letter to J. Bowen, Rhode Island, Jan. 9, 1787
(1732-1799) Founding Father, 1st US President, 'Father of the Country'
Source: in letter to J. Bowen, Rhode Island, Jan. 9, 1787
Nothing more aptly sums up the world situation we are in today than the above quote by the Founding Father of USA himself. If at all its to be compared between what the current trend has become to what it used to be, a startling habit, which was looked down upon in a previous time has become the sinking force responsible for costing people there livelihood - CREDIT.
In the small rural villages of India, far away from the dogmatics of the big world , a villager keeps an account with the local cigarette stall, a weekly tab on how many beedis he puffs away and repays at the week end. If at all he fails to repay, his supply of smoking pleasure stops there immediately.
Getting a loan in India, for the common man is still not an easy process. Job guarantee certificate to an independent assesment of your valuable holdings is done thoroughly even for the minimal amounts. And by luck or the stringent guidelines set down by the basic banking system of India, the credit story is at a far cry from there counterparts in the USA or Europe.
This has resulted in the principle of having a control on the amount spent by the average Indian to a large extent. With no credit guarantees and no other way to fulfill every desire, the age old rule of spending according to what your worth in terms of bank balance is, still prevails. Had that moment come wherein every Indian could walk away with a house which he couldn't afford, drove a car way out of his affordable range, then we would have been witnessing the same economic collapse which is being witnessed by those who had it easy for themselves.
As simple as it may sound, spend what you earn, don't go beyond your means for the easy way out - AVOID CREDIT IN EVERY WAY!
In the small rural villages of India, far away from the dogmatics of the big world , a villager keeps an account with the local cigarette stall, a weekly tab on how many beedis he puffs away and repays at the week end. If at all he fails to repay, his supply of smoking pleasure stops there immediately.
Getting a loan in India, for the common man is still not an easy process. Job guarantee certificate to an independent assesment of your valuable holdings is done thoroughly even for the minimal amounts. And by luck or the stringent guidelines set down by the basic banking system of India, the credit story is at a far cry from there counterparts in the USA or Europe.
This has resulted in the principle of having a control on the amount spent by the average Indian to a large extent. With no credit guarantees and no other way to fulfill every desire, the age old rule of spending according to what your worth in terms of bank balance is, still prevails. Had that moment come wherein every Indian could walk away with a house which he couldn't afford, drove a car way out of his affordable range, then we would have been witnessing the same economic collapse which is being witnessed by those who had it easy for themselves.
As simple as it may sound, spend what you earn, don't go beyond your means for the easy way out - AVOID CREDIT IN EVERY WAY!
