Yesterday the economics writer for Associated Press, Martin Crutsinger wrote an article about statistics figure that just went out saying the borrowing in the US recorded it biggest drop in 65 years of recorded history.
Consumers cut back on their borrowing by a record amount in dollar terms in November, another sign of trouble for the rapidly weakening economy.
In contrast to what mr. Crutsinger and the article wants us to believe, Americans cutting their borrowing is actually greatest news imaginable. It means people are finally deciding to start saving, paying off their debts and live without them.
That also means they will stop filling the banker's pockets with interest, which is perhaps why mr. Crutsinger calls this a 'sign of trouble'. It surely is a sign of trouble but for top 1% of the richest. It's something that needs to be celebrated on the streets !
Now if you came here looking for WordPress tips, I know how you feel.
So hopefully these news still bring a smile to your face, one way or the other.
More :
Interpretation of the news on Youtube by Don Harrold.
A revealing insight on US economy in a video by Ed Griffin.
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Posted in: Rants
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Hi! My name is Vladimir Prelovac. I am a computer engineer by profession and an adventurer by state of mind.
4 Comments
you are SO right about this. our economy is in tatters because of the myth of perpetual growth, and the idea that by spending and spending and spending you are actually contributing to this mythological growth -- rather than mortgaging your freedom and your future, which is in fact the case.
fire shoots out of my eyeballs whenever i recall the mantra back in 2001, after the WTC attacks: "if americans stop shopping, the terrorists have won." oh yeah? well, maybe if americans hadn't been doing so much pointless shopping in the first place, the terrorists would never have arrived. but none of our leaders at the time had the balls to suggest anything like that.
and now here we are, in a corner where every choice comes with built-in consequences.
Ron have you seen the video interview with Ed Griffin and what is your say ?
It'll end in failure FOR SURE, as every linear system does. There's a great video which shows that (not brand new, but more current then ever).
Indeed, yet the challenge is the transition from a debt based economy to a saving based one, and the associated pain of said transition. Currently, there is still a lot of momentum to keep the debt based economy functional, certainly as you stated the banks and very wealthy will be serverly hurt if debt is reduced. Yet, for the average citizen, and business, if debt becomes less of an issue, or perhaps removed for the most part, the ability for growth and success is huge, albeit it will be drastically different.
The problem is the short term... nearly every business, and every citizen depends upon credit. A lot of things are going to come crashing down as credit continues to go away, and that is the problem, and its not an easy one to solve by any means. The whole bailout idealogy had a couple things behind it. First to prevent massive bank runs and a collapse of the wealth of the rich, and secondly, to provide for an orderly unwinding of the debt based economy. On the first count, it has been a miraculous success, no bank runs, and for the most part, the wealth of the very rich has been kept intact. (sure some folks lost, but most are still quite whole on average). On the second aspect, an orderly wind-down, that is not happening on any scale... too many are focusing on keeping the whole debt based economy afloat, which imho, will eventually end in failure.