Nov. 19, 2009 Binyamin L. Jolkovsky: Please Listen to this Godcast (5 minutes) Jonathan Tobin: ADL Crosses the Line with Report Bashing Obama Critics Nov. 18, 2009 Rabbi Yonason Goldson: What Judaism has to say about the secret of the Mona Lisa's smile JWisdom.com: The (Jewish) Dating Game with Rabbi Lawrence Hajioff (8 minutes) Nov. 17, 2009 Steven Emerson: How Does the 4th Amendment Impact Terror Finance Investigations? JWisdom.com: If Frank Sinatra married Edith Piaf with Rabbi Y.Y. Rubinstein (2 minutes) Life lessons from what would be regarded as the most inappropriate lyrics ever sung Nov. 16, 2009 The Jewish Ethicist by Rabbi Dr. Asher Meir : When borrowing is stealing JWisdom.com: Deconstructing faith with Rabbi Warren Goldstein (9 minutes) Nov. 13, 2009 JWisdom.com Sarah's subjective reality with Rabbi Sroy Levitansky ( 6 minutes) Caroline B. Glick: Obama's failure, Netanyahu's opportunity Nov. 12, 2009 The Kosher Gourmet By Marialisa Calta : A sweet sweet potato treat JWisdom.com Does God get tired? with Rabbi Harvey Belovski ( 5 minutes) Nov. 11, 2009 Rabbi Avi Shafran: Jews and money: When anti-Semitism isn't JWisdom.com Marriages are not made in Heaven with Rabbi Lawrence Hajioff (VERY fast 15 minutes) Nov. 10, 2009 Michael Doyle: Author of book exposing CAIR ordered to remove supporting documents from Web JWisdom.com If the creation so loudly shouts the existence of the Creator, why aren't more people believers? with Rabbi Naftali Brawer (9 minutes) Nov. 9, 2009 Mark Steyn: Shooter exposes hole in U.S. terror strategy JWisdom.com It's never too late to have a happy childhood with Sarah Chana Radcliffe (5 minutes) Nov. 6, 2009 Rabbi Berel Wein: Choosing to hear JWisdom.com Zero to 1/60th: How to Empower An Hour with Gavriel Aryeh Sande (7 minutes) Caroline B. Glick The mullahs' big week Suzanne Fields A Fallen Wall for Fallen Man Nov. 5, 2009 The Kosher Gourmet: Three scrumptious -- but simple -- butternut squash dishes JWisdom.com Hidden Hints: Unlocking Faith & Prayer with Rabbi Jay Yaacov Schwartz (10 minutes) Nov. 4, 2009 Tom Hamburger and Kim Geiger: Should prayers be covered? JWisdom.com When God played peacemaker With Rabbi Sroy Levitansky (5 minutes) Nov. 3, 2009 Martin Peretz: Beware, Barack. Beware, Rahm. Beware, Axelrod JWisdom.com Are you are closet idolater? With Sara Yoheved Rigler (10 minutes) Nov. 2, 2009 Paul Greenberg: The Holocaust is now on Facebook JWisdom.com Abraham's Strange Change With Rabbi Yitzchok Fingerer (5 minutes) Oct. 29, 2003 Mortimer B. Zuckerman: Graffiti On History's Walls (MUST-READ!)

Jewish World Review Oct. 11, 2006 / 19 Tishrei, 5767 Better to Borrow or Lend? Rethinking conventional wisdom By Paul Johnson http://www.JewishWorldReview.com | Charles Lamb wrote a famous essay, "the two races of Men." In it he refers to those who borrow and those who lend. Most people are brought up to believe it is better to lend than borrow. I certainly was. My father said to me, "Never borrow money. Never have an overdraft. Only take out a mortgage on your first home, and pay it off as soon as you can. Always pay bills by return post." I have followed this advice all my life. But is it good advice? My friend Jimmy Goldsmith took the opposite view. He and I first met when he was 16 and had run away from school (Eton College). He'd won an accumulator bet at the horse races and thought it was time he began enjoying life. When he died, Goldsmith was a billionaire (in dollars). I once asked him, "What is the key to your financial success?" He replied, "Borrowing. I have become rich on other people's money." OPPOSITE ENDS OF THE SPECTRUM The argument — lend (save) or borrow? — applies to countries as well as to individuals. The Chinese, for instance, have traditionally been savers. It's an axiom of Chinese culture that a prudent man saves 40% of his net income. This axiom also applies nationally, in that China's policy has traditionally been to export the maximum and import the minimum. This approach led to trouble in the 19th century. Western countries, led by Britain, imported vast quantities of Chinese luxury goods but found it nearly impossible to sell anything there in return. Opium was the one exception — and the Chinese authorities did their best to forbid its sale to their citizens. Ultimately, Britain fought a series of wars, which became known as the Opium Wars, in order to force China to allow its sale. Chinese financial culture has not changed all that much, even though the country is now becoming a major manufacturing power. China runs an enormous balance-of-payments surplus by pegging its currency low, so that its exports are cheap and its imports dear. This makes the Chinese feel good, morally. But, as in the past, there is a price to pay. Pegging its currency below market value means that China must spend more than $100 billion of foreign currency (chiefly U.S. dollars) annually in buying securities and other assets, largely in the U.S. This brings me to American financial culture — spending and borrowing — which is just the opposite of China's. This culture was evident even in the colonial days of the early 17th century. If figures were realistically presented, I think they'd show that America has usually run a current accounts deficit. King James I's ministers persuaded him not to ban smoking in England because tobacco was the only crop earning the growing American colonies enough profit to pay for their imports of luxury and manufactured goods from England. Americans have traditionally spent up to the limit — and beyond — of their credit, believing that G-d, or the world economy, would provide. And it has. Like Jimmy Goldsmith, the U.S. has become the world's richest nation by using other people's money to finance its own spectacular and continuing growth. WEALTH STORAGE In the 15 or so years since 1990 the U.S. current accounts deficit has gone from 0% to 7% of GDP. America is able to do this by offering the rest of the world the biggest choice of wealth storage options — bonds and other assets — that they can buy with their savings, knowing these instruments are secure and will give a good return on investment. The truth is, if you make a lot of money by making cheap goods, as the Chinese do, or by selling expensive oil, as the Arabs do, you either have to spend your money, riotously, or save it. And if you choose to save, you have to put those savings somewhere that is secure and rewarding. Thanks to its political and social stability and its record of a continually growing economy, the U.S. has become — almost unconsciously rather than through set policy — the biggest and most successful wealth-storage economy in history. It exports wealth-storage facilities in exchange for net imports of goods. A recent calculation by the American Enterprise Institute shows that foreign storage claims of U.S. assets are $13.5 trillion, or about 25% of U.S. wealth (about 10% of global wealth). However, as with Jimmy Goldsmith, this borrowing has enabled the U.S. to become richer and richer. The U.S. also invests abroad and now holds about $11 trillion in foreign assets. That leaves net foreign claims on U.S. assets of about $2.5 trillion. But this is only 20% of one year's income for America's enormous GDP. Moreover, while wealth stored in the U.S. is mostly in short-term assets, American wealth stored abroad is chiefly in long-term assets, and those will grow in value — and grow faster — than wealth stored in the U.S. The fact is, in the international economy there is no such thing as absolute borrowing or absolute lending; they are intertwined. As an individual, however, I prefer to stick with my father's advice, for I put peace of mind before other considerations. But for a giant nation like the U.S., the Goldsmith approach may make more sense. Every weekday JewishWorldReview.com publishes what many in in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here. BUY THE BOOK Click HERE to purchase it at a discount. (Sales help fund JWR.). Eminent British historian and author Paul Johnson's latest book is "American Presidents Eminent Lives Boxed Set: George Washington, Thomas Jefferson, Ulysses S. Grant". Comment by clicking here. Previously: 08/22/06: Don't practice legal terrorism 08/08/06: A summer rhapsody for a pedal-bike 08/03/06: Why is there no workable philosophy of music? 07/11/06: Historically speaking, energy crisis is America's opportunity 07/06/06: The misleading dimensions of persons and lives 06/06/06: First editions are not gold 05/23/06: A downright ugly man need never despair of attracting women, even pretty ones 04/25/06: Was Washington right about political parties? 04/12/06: Let's Have More Babies! 04/05/06: For the love of trains 03/29/06: Lincoln and the Compensation Culture 03/22/06: Bottle-beauties and the globalised blond beast 03/15/06: Europe's utopian hangover 03/08/06: Kindly write on only one side of the paper 02/28/06: Creators versus critics 02/21/06: The Rhino Principle © 2006, Paul Johnson

Arnold Ahlert  Mitch Albom  Michael Barone   Dave Barry  Tony Blankley  Andy Borowitz  David Broder  Stratfor Briefing  Mona Charen  Linda Chavez  Ann Coulter  Greg Crosby  Larry Elder  Suzanne Fields  John Fund  Frank J. Gaffney  Lloyd Garver  Jonah Goldberg  Julia Gorin  Jonathan Gurwitz  Paul Greenberg  Lewis Grossberger  Victor Davis Hanson  Betsy Hart  Nat Hentoff  David Horowitz  Laura Ingraham  Cheri Jacobus Jeff Jacoby  Paul Johnson  Jack Kelly  Ed Koch  Ch. Krauthammer  Michael Ledeen  John Leo  David Limbaugh  Kathryn Lopez  Rich Lowry  Michelle Malkin  Jackie Mason  Dick Morris  Bill O'Reilly  Jim Mullen  Clarence Page  Kathleen Parker  Dennis Prager  Wesley Pruden  Tom Purcell  Jonathan Rauch  Celia Rivenbark  Robert Robb  Cokie & Steve Roberts  Pat Sajak  Debra J. Saunders  Culture Shlock  Roger Simon  Michael Smerconish  Thomas Sowell  Mark Steyn  John Stossel  Cal Thomas  Bob Tyrrell  Diana West  Dave Weinbaum  George Will  Walter Williams  Byron York  Mort Zuckerman  Robert Arial  Chuck Asay  Baloo  Chip Bok  Dry Bones   Lisa Benson  John Branch  Gary Brookins  John Cole  J. D. Crowe  John Deering  Brian Duffy  Everything's Relative  Mallard Fillmore  Jake Fuller  Bob Gorrel  Joe Heller  David Hitch  Jerry Holber  Steve Kelley  Jeff Koterba  Dick Locher  Chan Lowe  Ranan R. Lurie  Jimmy Margulies  Rick McKee  Michael Ramirez  Kevin Siers  Jeff Stahler  Ed Stein  Danna Summers  John Trever  Gary Varvel  Kirk Walters  How 2  Lori Borgman  The Savvy Consumer  Elder matters  Fixit  Dr. Peter Gott  GET A JOB! by Marty Nemko  Richard Lederer  Tech Maven  Every Monday Matters  Nutrition Myths  Bookmark These  Bruce Williams  How Stuff Works