The Economy, Debt and the Coming Storm
Posted: Thursday, March 02, 2006
by straight talk
It seems we Americans are oblivious to debt and the causes which are running wild today. The Keynesian theory that debt is good is in full bloom. Even many who are considered wealthy are in hock up to their eyeballs and still going. Credit cards at their limits, second and third mortgages and interest rates that continue are rising steadily. We owe money to most of the world on loans to support our national endeavors. Like our individual debt these debts eventually become due at some time and yes, we the taxpayers get to pay that back with interest and more. Much like the billion dollar loss in Katrina when the Insurance carriers did not hold up their end. The dollar is slowly becoming into question as countries see what is happening to our nations long gone industrial might. [ May 06- look at the dollar value against other currency?] Quite frankly they are starting to see and understand that they don’t need us much anymore, except for some more free money, aide or military intervention, which they will get with the overall Global program. We need to step up and understand we have mortgaged the farm to the hilt and have little to no means to pay it back. However, it really doesn't matter. Perhaps one might ask why?
If America becomes, or I should say we are, a third rate industrial power, then what does this bode for the American family? By journalists own words we have become a “service oriented society". By the way we are a society which does not know what the true meaning of the word service represents. Just what does this speak to? Think this is just fear or unwarranted concern? Well, look around at people in your age category and financial grouping and you will see and hear all of the same concerns being voiced. What does a college education, that costs multiple thousands of dollars actually get you? Our government promised not to raise these costs and guess what. Your right- they went up. You know - read my lips. Are there that many great jobs? Of course many are to blame with their live for now attitude because there may not be a tomorrow. Perhaps they are right, but what happens when the fall comes, and I‘m not talking about a season? Banks will own their property, they will have no real job, they will be as you see in other countries, living in poverty. The government will be a bust and the help that they cannot provide now, will be even less.
Sadly, we have not understood what our grandparents knew and experienced from the great depression. It is so far from our minds that we just cannot believe it could ever happen. But once again, to use that old saying- ask yourself, are you better now then you were just five or ten years ago? Do you have one of those 125% mortgages at a low rate that just might jump 4-5 or 6 points and can you afford the increase? What will you do when that happens? Do you have homeowners insurance that just might go up 100% or more or for that matter might be cancelled leaving you with additional problems? Have your taxes increased significantly? Has it gotten to the point you may actually have to sell to save what little you have left to survive and then where will you go? This is happening right now in Florida where the elderly, who are trying to live on a fixed income, can't keep up with the huge insurance and tax hikes. Has your auto insurance continued to rise along with your energy bills to where you have to monitor it close and cut your insurance to the bone - while mandated to carry such by the state? Has your telephone and cell phone and cable bills soared? What about health insurance, do you even have any? Do you see many walk in clinics around where you live and you can go to and what about Emergency rooms, who are thinking of closing down, and will give you life stabilizing treatment and then hustle you out their door. Then again how many American doctors do you know of? What about our elderly, which someday you and I may be part of? Who will be there to take care of us? Then ask yourself, what are you going to pay these bills with when you reach that age and the Medicare benefits are reduced or no longer there? Never mind getting older, what will you do now if sickness, accident or job loss hits? Look at the papers daily to see what jobs, and perhaps yours, might float out to sea. Unemployment claims they say are low but with no one accounting for those like me who remain unemployed and not counted in the stats. Thousand like me still not working and frankly don't exist - they have become a N.E.P. and please don't bother people with he truth, you might upset them and they might deem you a nut. Like I said, these government posted statistics always beaming with good news while you show up at the "career central" site with the over 50 crowd and they'll tell you the truth- but not in front of their bosses- business does not hire many people over 50....period, unless it is for minimum wage and no benefits or part time! Then ask yourself, how much of your pay do you save for tomorrow? I'll bet the majority will answer very little to none. We are too busy worrying about today and like most we are more worried if the NFL will settle with the players and if our star player will be cut then to worry about bills and collectors. Collectors by the way who can abuse and use with no one to put a stop to them. Don't talk about the F.C.C. and the law, your even a bigger fool if you think the laws do anything for the average person. Pay or else!
Now don’t get me wrong there are those making money hand over fist. But, these people really don’t care where or how they make it. Oh sure they give you the God and country pitch but in reality it is the profit and bottom line that drives their loyalty. They only see green and how much more money they can make, not where they will make it. Just look at the illegal situation. Try and find a business that uses these law breakers and you will find they support amnesty. Why, exploitation, low wages and profit. As for the “we are all the same family" bunch, who say we must learn that this is a small planet and we should all live together, tell that to a religious fanatic who wants to lop your infidel head off unless you convert. Tell that to those being exploited for larger and larger profits. The fact is that if America collapses it doesn’t matter because those in power and wealth have shifted their potential to other opportunities and investments. They call that good business sense and it really is for business. America is just another market to them and their objective is to continue to thrive regardless of where America is in the big picture. Just look at the richest man in the world and you will see where his interests are.
So what can we as average Americans do to protect ourselves? Well we better start to look at what our politicians really believe in and where our corporations are going. Just who they hang with and who and what they belong to and what is their philosophy? We need to match what they say to their record and if it don’t match we better start to get them out of office or seek alternative businesses, and fast! We better understand that because someone stands up and praises the Lord it doesn’t mean they do the right thing! It doesn’t mean because a specific pastor or church endorses someone they are good. We really have to get down to the nuts and bolts of our own beliefs and choices and what we hope for as Americans.
My opinion is that we have moved to rapidly in trying to spread a Global philosophy to a world who don’t always share our ideals. True they want our money and wealth but they really could care less about where we wind up. Now the theory is not bad it is just the pace that concerns me. In order to slow this conversion down we must start to shuck off our wild spending habits. We can force change through economic means. The dollar does make an impact! We must become educated about companies and do not buy from companies that shift their manufacturing totally off shore but truly build up opportunities for Americans and demonstrate it. Do not buy foreign goods but only if necessary. Pay off your debt and downsize. Get rid of those credit cards and that luxury gas guzzler car and get into something smaller. I would say buy American but there are no more American cars or for that matter products, only American assembled with American names. In fact there is little to nothing made in America except debt and bombs an we do both well.
If we do this we will then see the true nature of the beast in all of us. Can we live without that new I-pod, Cell Phone or SUV? I'll bet we can do just fine and not be bothered in the least. Perhaps only our ego's? What happens to us all and how business reacts and how it impacts us is yet to be seen. However, what we do will help all mankind in the long haul. It will temper exploitation, bring in fair wages and opportunity for everyone. That is the real test. It is just not about the accumulation of wealth for a few but the goals we all share as humans. I think the nation and our leaders have the potential to bring it about but they must get a handle on reality. In the end it boils down to you and I and what we do. Each of us has the power to make change. However, things will not get any better until we demand responsibility from those who take an oath before God.
In closing I present my own opinion. I feel that if things keep going as they are all will economically collapse or reach a major crisis point. As the wealth of the world becomes more and more consolidated into the hands of a few, as it did with the great depression, no laws on the books will stop that fall. Things will then be in total chaos as countries and peoples have to react. Certainly our nations fall economically will have major consequences for everyone. It will impact the markets of the world. However, the world will then need to adopt a new system. There will be no other choice since the old model will have failed. Hopefully, a new model will emerge if required. One would hope it is being considered even now as a possibility, but who knows if our leaders even look at reality, or feel all is well. Certainly, I hope and expect they know more than I and know exactly where we are heading. I just don't get a warm fuzzy anymore. However, if a change is needed hopefully it will be the answer for all our woes. Hopefully, all will accept it and Shangri La will return. The only question I have is should it be required, that it is the right system and we don’t have to repeat the process over again?
Robert T. Melaccio Sr. Copyright ©2006 Robert Melaccio
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