Wednesday, August 11, 2010

Borrowed money , borrowed time

I read two articles on Drudge today about how the USA is basically bankrupt and doesn't realize it. I also read and article yesterday talking about a former Regan staffer talking about how republican policies over the past 40 years have lead us to financial ruin (he included the Democrats as part of the problem as well). I read another article on how the restructuring of the housing / home loan sector will probably be changing where it will be harder to purchase a home in the future. None of these articles really came as any great surprise to me but did resonate with me that big changes are heading our way very soon. The world is teetering on the edge of a great depression and financial collapse that is going to shake the foundations of society as we know it. It's not going to be the end of life as we literally know it but it will radically reshape the world.
The things we are probably going to see happening in the near future are the result of decades worth of assault on American society. Some has been set in motion by design and others have just been pushed along by society at large as we willingly take the road that is wide and well traveled. What can we look for happening very soon? #1 - Higher taxes ! - Expect to pay more in taxes to pay down the national debt. It is stupid to think that we can keep borrowing more and more money from the rest of the world without having to pay the bill at some point along the road. Ever since Nixon detached us from the gold standard and paved the way for printing our way into deeper and deeper debt we have been digging a deeper and deeper hole. Common sense tells you if you find yourself in a hole you need to stop digging down and start digging in a manner to work yourself up and out. Yes the hole will get wider but it will start to fill in and you will get to a point you can get out and fill in the massive gap you have created. To think we can get out of debt without paying more taxes is naive. The USA needs to get spending under control , give tax breaks for job creation in the private sector , bring production jobs back to America and yes , pay a little more taxes to get out of this mess. The Bible tells us the Borrower is the slave to the lender. Americans don't need to be slaves to anyone, we need to pull ourselves out of this mess we have helped create by living beyond our means threw credit cards and borrowing from foreign entities to run our country. #2 - Expect it to be harder to own your own home - Giving unsecured home loans to anyone so that the lender can sell bad loans off to someone else has to stop! It should have never been allowed to happen in the first place. When you have companies giving N.I.N.J.A. loans (No Income , No Job , No Assets) to people to buy houses there is bound to be trouble. Banks and Mortgage companies were loaning people money and flipping the loans to Fannie and Freddy and Wall street knowing they would probably default because they were loaning more money then the people could realistically afford to pay back! Personally I think banks and mortgage company's need to be required to hold on to the loans for at least 3-5 years before they can flip the loan to someone else. It would make the lenders hold responsibility and insure they were not doing bad loans to begin with. Don't expect the US government to keep backing bad loans! The downside of this is going to be the government is now going to start subsidising more rental incomes , another bad decision but one that will probably happen! It will put more people under the government thumb as they rely on Uncle Sam to take care of them! This isn't good and counter productive to the recovery as a whole. #3 - Social Security will probably fail! - Don't count on seeing your social security, the hand writing is on the wall and has been there for a very long time. It is prudent to plan for the worst and hope for the best in the long run. The boomers are about to overwhelm the system and the government has known this for quite sometime. The best thing you can do to try and insure retirement is try to own your own home and plan to live a modest life. Even this can be wiped out all to easy with an illness that puts your medical bills threw the roof. The safety net is soon going to be filled with many bodies and will stop giving the protection it one had! Don't think Social Security will help you to fulfill all your needs in the future, if you do you are going to be disappointed! #4 - Expect a massive shake up in the world financial structure and a leveling of many currencies. This is in the process of being engineered for a long time now. Strong currencies will weaken , weak currencies will gain ground and the process isn't going to be pretty. Food is your friend when this happens so stock up now and don't expect the store to always be there. If you only relied on the nearest store for your weekly supply of food what will you do if the shelves run dry due to a massive disruption in the distribution network. If shipping pauses while currencies are balanced and finances are straightened out what will you eat? Don't expect the government to feed your family when things go south and disasters strike. Be prepared to help your family and if you can your neighbors. We the people have more strength then the government if we chose to exercise it. United we stand , divided we fall, and if we fall, we fall into chaos and misery.
#5 - Expect false profits ,saviors , attacks on faith and beliefs. Expect people to push God away from people and at the same time exploit religion even more then they do now. Society and sound values have been under attack for a very long time. These attacks are going to get more intense as God and faith are driven from us and exploited! Remember - the Golden rule is "Treat others as you would like to be treated!" ....NOT!... "He who has the gold rules."
Until next time
Lasco X

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