License to Spend?

Read a very interesting article recently.  It made me smile with glee...I found the license to spend : D


The title says :
SAVINGS IS SIN, SPENDING IS VIRTUE By S. Gurumurthy


The article started by comparing the economic condition of two countries : Japan vs. the US 


Japan:
Japanese save a lot. They do not spend much. Also Japan exports far more than it imports. Has an annual trade surplus of over $100 billions.  Yet Japanese economy is considered weak, even collapsing. 


US:
Americans spend, save little. Also US imports more than it exports. Has an annual trade deficit of over $400 billion. Yet, the American economy is considered strong and trusted to get stronger....They borrow from Japan, China and even India. Global savings are mostly invested in US, in dollars. India itself keeps its foreign currency assets of over $50 billions in US securities. China has sunk over $160 billion in US securities. Japan's stakes in US securities is in trillions. 




The secret:
The secret lies in the American spending, in that they hardly save. In fact they use their credit cards to spend their future income. That the US spends is what makes it attractive to export to the US. So, US imports more than what it exports year after year. 


The result:
The world is dependent on US consumption for its growth. By its deepening culture of consumption, the US has habituated the world to feed on US consumption. But as the US needs money to finance its consumption, the world provides the money. It's like a shopkeeper providing the money to a customer so that the customer keeps buying from the shop. The customer will not buy, the shop won't have business, unless the shopkeeper funds him. 


The lesson:
A nation cannot grow unless the people spend, not save. Not just spend, but borrow and spend.  


Caution: 
Before you start spending... get some fools to save so that you can borrow from them and spend, after you exhaust your savings. This is what US has successfully done in last two decades.


The writer ended the article with this:


"Still thinking ... Why :)"


Click HERE to read full article.
Caution : Read with care..the article may be 3 years outdated *wink*






Now..how do I apply this to my spending :D


The manufacturers are dependent on MY consumption for growth. MY deepening culture of consumption, has habituated the MANUFACTURERS to feed on MY consumption. But as the I need money to finance MY consumption, the MANUFACTURERS provides the money.When I don't buy, the MANUFACTURERS won't have business, unless the THEY fund ME. 




He he..what wishful thinking :D