Announcement

Collapse
No announcement yet.

"The Fate of Debt"

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • "The Fate of Debt"

    This essay by Karen Hendry on the Survival Sullivan blog is quite simply, EXCELLENT! I highly recommend it!

    For me personally, it goes to the very reason I am a 'prepper'. After the GFC hit I was quite impressed about how the world's leaders co-operated and consulted to evert the obvious disaster from coming to pass.

    It took a couple of years for me to realise that all they had done was vastly expand debt in order to solve an unpayable debt problem. NONE of the top 20 economies on this planet are in any sort of surplus, either in annual expenditure, or in debt liabilities. BOTH are out of control, and after filtering out the pure BS in economic data we are left with the sea of red ink we are all drowning in.

    This has NEVER happened before in human history!

    Thus we are left with the question, what now? what will we see in the next months and years? What do we do about it?

    That is why we are all here!

    JMO


    OC

  • #2
    ....and if anyone is wondering - "WHY?"

    IMNHO, I blame US - the VOTERS of the world who have lost the spirit of Free Enterprise, the concepts of Personal Responsibility, Self Reliance, and Accountability.

    When our polies promise all that "free stuff" we vote them in, and when we find out they have lied we vote in another liar to take his place!

    We are ALL going to pay the piper soon!

    OC

    Comment


    • #3
      An afterthought,

      The TRUE "fate of debt" in such a serious economic collapse situation is that debt goes BAD! In due course the lender accepts the reality and the outstanding amount is written off, very often so much of it that it causes the lender (a Bank or a CC company) to go bankrupt themselves. And so it goes!

      In the world's banking system today, the major banks are living in a fantasy world where much of their loan book on their balance sheet is valued at so called 'book value', NOT the real market value which in many cases is NIL! In other words they are BANKRUPT!

      JMO

      OC

      Comment


      • #4
        Agreed! Let me just post a link to the article here, for those who've stumbled across this thread and want to read it: http://www.survivalsullivan.com/fate...omic-collapse/

        What amazes me is people spending every dollar they make without giving it a second thought. The moment the minimum wage goes up a little bit, they start spending like crazy. For example, 19 US states have increase it starting Jan 1st 2017: http://abcnews.go.com/Politics/19-st...ry?id=44501349

        ... and i remember reading a news about certain companies raising their prices for this very reason. They know people are going to start spending, instead of doing something useful with that extra income.
        Always stay safe,

        Dan

        Comment


        • #5
          Our son is on over $200,000 a year and has hardly saved a cent except for his retirement account.

          I have tried to teach him the economic and human nature rule, "Expenditure rises to meet income".

          No luck so far!

          OC

          Comment


          • #6
            Then he might learn it the hard way. If he were to lose that income.. I hope he doesn't but, sometimes, lessons are learned the hard way.
            Always stay safe,

            Dan

            Comment


            • #7
              I have told him more than once that his retirement account is invested on the Share market and on the Bond market. He may well get a letter one day that says, "Sorry but we lost the lot in the crash!

              Remembering that Wall St went down 90% from 1929 to 1933.

              OC

              Comment


              • #8
                I really feel for the younger generations, they don't get it..I keep telling my kids to stop spending and pay off their homes, but I'm just talking to the hand.

                Comment


                • #9
                  As has already been discussed in the Financial Survival thread here, http://www.myprepperforum.com/forum/...-dump-the-debt the single best thing one can do for their financial future is to GET OUT OF DEBT. Having said that, it is also true that inflation and new tariffs placed on imports, will make stockpiling harder. Things are going to cost more in the coming days and we need to stock up NOW. If we don't, we might find it hard or even impossible with the possible, upcoming trade wars. So what you spend today, will be well worth having bought now because after the imports are taxed, they will cost much more and you will have already bought them.

                  Comment

                  Working...
                  X