By This question has been asked many times, but all the way back in the 1980s there was a debate over whether this was true. It turned out that in the 1980s, the total liability for all U.S. citizens was less than $500,000. The debate was whether or not the average citizen’s total liability was just under, or over, this amount.
While this was debated, the average liability was only slightly higher. And so it was decided that total liabilities were increasing. And so it was decided that it was safe to assume that total liabilities were going to increase.
Let me tell you this: the only thing that has increased over time is the total liability of everyone in the United States. The rest of the world, and you know who you are, just kept getting richer and richer. Total liabilities have stayed pretty much the same. When you think about it, it’s actually a little more than a little bizarre.
That is because total liabilities are determined by dividing total assets by total liabilities. In other words, what each person has in the bank is only a fraction of what they owe. For example, what a person has in the bank is only a fraction of what they owe. So, if a person has $10,000 in the bank and owes $10,000, they have a total liability of $10,000 divided by $10,000 is $1.
This is a bit arbitrary, but as a simple example I just made up how total liabilities change over time. So if you have 100 in the bank you have a total liability of 100 divided by 100 is 1. Which means that over the course of a year, total liabilities have stayed pretty much the same.
The only way that the first person on Earth can get a $5000 credit card money is in the process of being in a bank. The new owners of the money have to be able to get that money back by going to the bank, which means that they have to go to the bank to pay the whole bill.
So that’s the way that total liabilities work at the moment. You need someone to get you money to pay it off. So you need a bank to put it in. And a bank has to have plenty of money to pay off the bill.
That is the same logic that determines when a car makes the payments that comes with it. Every car requires a balance of money to pay off the car. And the more money you have the more money you can bring in to pay it off.
So a car that has a balance of $4,000 and a car that has a balance of $5,000. You need the $4,000 and the $5,000 to make the car you drive. So a total of $7,000. This is why a car that has a balance of $4,000 and a car that has a balance of $5,000 has more money in the bank because they have to pay the balance of $3,000.
