Everything is twisted and unreal.
Debt is a peculiar poison, it does not kill our bodies, but our souls. It eats at our integrity and wares down our sense of hope and ambition, one’s future becomes a promise of enslavement, rather than one of dreams being accomplished.
This period in our history is a strange one indeed, debt is seen as so normal, as to be essential to business, any sort of economic growth and run of the mill shopping trips. It seems there are many who borrow hundreds and sometimes thousands of pounds to go on holiday, others borrow thousands to do up their kitchens or gardens and governments borrow billions to pay our bloated public sectors, the unending tide of immigrants, single mums, free health, welfare and all the other goodies our parasitic brothers and sisters have come to see as their God-given right.
Well, not God-given, as very few actually believe in anything above their own selfish lusts. But it stands, that we are a peoples enslaved to debt, addicted to it. I have previously wrote that the one thing in our power is to get out of debt, for many of us it is the only thing we have within our power and it is something you can do and start to do now. It is quite simple, first you decide how much you absolutely need to live on, you see what can be cut, things like cable, satellite, mobile phone contracts, cars(if you live in a city). Once you decide what to cut, you can then aim the extra money at the highest interest debt, mostly credit cards, once these have been paid off, you can then go onto unsecured loans and so on. It is a process that may take years, but it is one that will leave you richer, and more in control of your life then before.
It was through my own reading of the economic situation in 2007 and 2008 that made me come to this conclusion myself, I had credit card debt, about £300 worth, a personal loan, about £3000 and a mortgage on a house worth about £100,000. It’s not much compared to some, but it has an effect on one’s outgoings, and on one’s spending power. Because of this I was tempted into more debt, should I save up for something? Well I can barely save, so maybe I should just get it on credit? And this is how most people end up with lots of things, but not much time to enjoy those things, being in a constant struggle to pay installments and get overtime if they can.
So, I paid off my credit card debt, no more late penalties hanging over me, then I put the house up for sale, but the 2008 crash put an early end to that, I had to put it on the market one year later and got just enough to cover the mortgage and bills. Then last year I finally paid off my personal loan and now I am FREE!
It feels great not to be in debt, it is a wonderous thing to see money pile up in savings accounts and I no longer need to worry about paying bills on time or being able to afford something when and if I want it.It is also comforting to know that I no longer pay the parasitic bankers their bonuses, well I do in a round about way through taxes, but I don’t pay them directly through my loan repayments and the tonnes of interest paid.
This is one thing all of us can do, we can keep our integrity, we can remain honest, in spite of the very real temptations to abandon ourselves into the vortex of dissipation that surrounds us, we can free ourselves from bankster enslavement, we can refuse to feed the wolves in sheep’s clothing that are amongst us, we can refuse to be their playthings and we can keep what is ours.
The present circus surrounding the Great American Default, is telling, it reminds me that the MSM have no idea about economics, or if they do, they are keeping quiet about it, and they are creating a very weird and quite unhealthy attitude to government debt. From what I can read, the MSM is united in condemning the American congress for not agreeing to raising the debt ceiling yet, no one asks where this money is coming from, how much it costs to borrow it and no one in the MSM seems to have any moral qualms about politicians enslaving their people through onerous debt. No one!
I have yet to hear or read anyone in the ‘lame stream media’ condemn governments taking out debt. The only thing the useless MSM is talking about is the necessity of raising the debt limit, that’s it, no alternative views, no probing questions of those people demanding that the debt ceiling be raised, no exposes of the effects of rotten governments and the damage they do with ridiculous levels of government debt, no, nothing from the MSM except the usual Obama worship and snide remarks about the ‘Tea Party’, because anything the Teabaggers want is evil, how dare they criticise our Messiah Obamamamamamamama!
What can we do about this insanity?
Number one, get out of debt!
3 thoughts on “From The Depths of Debt”
It was easy to declare budget surpluses when all you did was inflate the currency. Clinton appears to be the one that took the most advantage, begun by Nixon when he took the US off the gold standard, to new heights. In 1972, we had about $500 Billion in total currency (according to the St. Louis Fed) Today, we have about $10 Trillion according to the same source. Others paint a much larger number some to over $16 trillion.
While Nixon took us off the gold standard, the real increases started with Carter, the Fed continued back funding the banks (printing money and borrowing) under Reagan, but it was Clinton that really drove it up. They had to do something as the entitlements were draining the federal coffers and everyone who was in the loop new that this was unsustainable. Social Security was soon destitute, and the extension to social security, Medicaid and Medicare, had accelerated the drain even further. This was not a new idea. Wilber Mills, who in 1964 some considered the foremost expert on social security’s impact warned President Johnson that the great society program was going to break the economy. When the democrats swept the house and senate, Mills, a democrat, got the religion and supported Johnson’s initiative (listen to the Johnson tapes available on line for some fascinating “inside baseball”)
The method to cover the inflation of the currency, that the Fed and Clinton chose was the elimination of the savings and loans (never let a good crisis go to waste – and if you don’t have one make one), long a thorn in the side of the Fed and the banks, using a change in asset valuation to the Mark to Market Rule, and then the elimination of Glass Steagle Act to facilitate more leverage over the base assets of the banks in the U.S. Then, the piece de resistance was the creation of Fanny and Freddie to stimulate (read as back end fund) low income home ownership, really bringing the science of currency inflation to a new level.
In the world of unintended consequences, this was the ultimate doozy! Over time, the inflated currency bubbles all burst (stocks – dot com crash, other smaller scales, then the big critical one Housing) The chickens came home to roost. Everyone forgot about the “Mark to Market Rule”! While it had a crippling effect on the S&Ls, it didn’t affect the banks in the 70s because they could practice fractional reserve lending at a ten to one ratio. As the leverage, on the derivatives (over 1,000 to 1 in some cases) exploded, and as the calls on the hedges against the default of the derivatives came due, the insurers, like AIG, began to collapse. With the hedge collateral gone the banks were soon to follow. The US and some others had to start to flow more money to back the insurance protecting the banks hedges or it all collapsed. And right alongside they needed to shore up the banks’ balance sheets as all the phony collateral eroded. Now you understand why the government purchased AIG and still is back end funding the underwriting of the defaulted collateral.
If the numbers are correct we should really have a $4 to 5 trillion economy today not a $10 to 16 trillion one. If we are that overvalued, along with most of the other western nations, then the problems are catastrophic. The increase of the debt limit is not the issue, the underlying valuation of our entire economic system is the problem.
Congratulations to you, sir!