My apologies for continually harping on about money and economic matters, but the reason why the western economies are in such as mess is down in part to confused ideas about money and wealth. A good example is the terms we use to describe certain kinds of money or ways that money or wealth are represented.

For example; why is it that credit cards (credit has positive connotations if you look it up in a dictionary) actually put you in debt to the bank? While debit cards (with which you can pay with your own money) actually use your own credit.

Even from the banks point of view, using a credit card leaves you indebted to them while using your debit card allows you to use the credit that you have stored with them.

And does owning a large amount of mortgages mean you have accumulated many assets (yes, if you keep collecting interest) or a liability (when people start to default on their mortgages).

So when you buy a house, have you invested in property as an asset (when house prices increase), or have you taken on a liability (maintenance, bills and increasing cost of mortgage repayments)?

The answers aren’t black and white, it’s up to you to make up your mind depending on the circumstances. It’s just more evidence that you have to question the prevailing ways of describing the world.