Posts
So every time the government spends more and prints more money, your saving is devalued in your bank account. Keep in mind that the money is basically created out of thin air. There is no gold standard to back up the value of the money.
Now is where it gets tricky. When the Federal Reserve pumps more money into the economy by loaning money to banks who in turn loan money to corporations and individuals, they are in effect stealing from us. Because the banks can then recycle that money and loan it 65 times.
It is the addiction to debt that is going to destroy this country in a slow death, if we don't change our ways as a society. Debt especially as a long term policy simply does not work. This economy is actually running on deficit spending. When the cost of goods and service go up, the terms of the loans are getting longer. It use to be you could only finance a car for five years. Now you can find loans for a car from 7 to 10 years. A home use to be 20 years and now can be financed over 40
Not to mention the people that are being scammed to refinance their homes for a lower interest rate.
Why is it a scam? Well because the interest is paid in front of the mortgage. So you pay all you interest up front and when you refinance you haven't paid off much of the principle yet. So you wind up borrowing the same money again. Plus, the banks charge you points and closing cost to boot.
I see a high inflationary period coming down the road. With all these bailouts designed to keep the economy running the way it is rather than fix it, you and I should be cautious. How? By simply refusing to play the debt roller coaster game. Refuse to get into unnecessary debt.
That is how the rich are getting richer and the middle class is diminished. If we want to have control of our life we need to hold onto more of our wealth. Borrowing money is not the way to a care free life. It is in effect the way to servitude, not freedom.
