SA is drowning in debt

[infscrtyrisk]

Almost correct.

The correct item to blame is the central banking system and fiat currency. They make the act of lending money ridiculously cheap and risk free.

Malcolm Henry's explanation is way too simplistic, and there are some obviously flawed assumptions. For example, he states that that "...most of the money stays in the gambling pool, or ends up back in the savings accounts." I don't agree -- surely some of it flows back into the economy?


I see the problem as "the people", and therefore the blame to be laid at the foot of "the people". It's "the people's" "unfulfilled needs" (which are actually wants), that they feel that they are "entitled" to. Even if the government is complicit in 1) telling the people that they are entitled to it, 2) satisfying these "needs" over the short term, and 3) purging bad credit records, in a democracy they are the people's choice (and the people's votes are a key driver for them to act this way), which points at the root of the problem: back to the people.