It’s ugly out there, the world is flooded with fiat currency and in debt to its eyeballs.
Global governments have done an excellent job hiding their insolvency and keeping the people they represent in the dark.
Remember, the government is technically ‘the people,’ so the gold at Fort Knox (if there is any) is our gold and the debt the government has accumulated, is our debt.
We find it sad that so many Americans go to the government for help after the government is the very entity that put them in a personal mess. Prior to the government entering our housing market, the max you would see for a home mortgage was 7 years, however, in order to make homes more affordable, the government started backing 30 year loans. The government’s definition of affordability is you making a payment for life and not actually having ownership. Every government program designed to help has driven costs up through inflation, direct taxation, regulations, and or course the redistribution of wealth.
Recently, Lew Rockwell posted some ugly facts about Americans’ personal debt. Please note that it is the Federal Reserve that sets interest rates, this is the key factor in what a debt payment will be, so the lower rates are, the more Americans are encouraged to load up. If the rates aren’t low enough for you, state and local governments have special deferred payment plans and government backed loans.
The result of all this help is 16.5 trillion in official national debt, over 100 trillion in debt liabilities, and an entire class of debt slaves.
- Student loan debt in the U.S. is nearing 1 trillion dollars
- With government support, colleges can raise tuition to whatever they want, and they have. The only thing rising faster than college tuition is our government health care system.
- Two-thirds of all college students graduate with student loan debt
- Borrowing for college students is up 100% in the past 10 years
- Today, 46% of all Americans carry a credit card balance month to month
- Americans have 600 million active credit cards in the U.S.
- Consumer debt has increased over 1,700% since we dropped the gold standard and went 100% fiat
- 45% of cars are now being financed for 6 years
- 70% of ALL car purchases in the U.S. involve an auto loan
- 45% of auto loans are subprime
- Right now 8 million Americans are at least one mortgage payment behind
- Mortgage debt as a percentage of GDP has more than tripled since 1955
So who stands to profit from all this debt?
U.S. Banks have more equity in U.S. homes than the American people do, the government has a highly motivated class of workers (need to keep making payments), and lastly, what better way for the powers that be to keep people ignorant of their government than to put them in a situation where they are literally living in a rat race.
Seriously, look around the next time you are on the freeway or at the mall, everything from cars to clothes is financed.
Fixing America’s debt problem starts with each of us changing the way we think and teaching others to do the same. Instead of focusing on the quantity of life, how much stuff can we get our hands on, focus on the quality of life, the peace of mind of a real ownership society.