Loans Quotes
There is some debate as to whether this statement was made at this time or different parts of it on two different occasions. The sentiment and position appears to be genuine but the issue of the timing is in doubt.
There were little controls over usury in his time in India. Villagers often paid 500% or more to borrow money in a necessity like needing critical health care.
After the Great Recession the Mexican bankers, like their American counterparts, tightened their credit standards so much that the only people who could get loans were the ones who didn’t need it. If banks do not make loans, it matters not that they are solid institutions that are well capitalized.
Gallatin was complaining about requirements of Congress, with which he and Madison disagreed but were not powerful enough to stop.
This is one of the earliest expositions of the legal and economic doctrine that if a borrower is made unable to pay the interest and principle of the loan by an act beyond anyone’s control. The obligation to pay for that year is cancelled. In modern times most cultures go the other way. When the banks caused the economic Meltdown of 2008, millions of Americans could not pay their loan obligations and mortgages. They received no relief whereas in the “primitive” world of 4,000 years ago they would have relief for that year. Note the subtle difference in Hammurabi {611462} where someone had prepaid and rented land for a year and the crop fails, and this situation where there is borrowed money.
Interest is forbidden in all transaction, both business and personal.
These loans come from either the World Bank or the International Monetary Fund, both of which are headquartered in Washington. Usually, financially distressed countries participating in such a program have to agree to a series of economic reforms which the government of the country would not make if the pressure were not there. Therefore some like Goldsmith argue that there is a loss of sovereignty.
The practice became extensively used and the phrase along with it during the William Howard Taft administration where the media popularized it.
This is an excellent historical quotations showing how our government financed the Spanish American War. Wars have always placed economic stress on the nations which wage then. In the American Revolution we borrowed from individuals and from France. After that all our wars were financed by a combination of war bond sales, other borrowing, and tax increases—all except the George W, Bush Afghanistan and Iraq Wars which were not funded thus complicating an economic crises caused by Bush’s Great Recession. While some critics saw Bush’s actions as reprehensible and irresponsible—it was the only time in American history where tax rates were cut in wartime, Bush’s team had a plan. They had an ideological point of view that said that major tax cuts would spur the economy and lead to MORE government revenue as a result of the growth that would come. However, in this case there not only was no growth, but there was the worst recession in American History. But there was a plan to finance the war—it just went awry.
Student loan debt had rocketed to 2nd place (behind credit cards) as the largest form of consumer debt.
Although almost a century ago, the same can now be said of many of the poorer nations of the world. Mexico, however, finally addressed many of the problems that Esquivel Obregon articulated, and Mexican development has been much more extensive.
Morgan had arranged to lend the government $36 million in Gold when the national treasury was virtually bankrupt.
