The Credit Goes To…

Posted: 07/06/2009 in Uncategorized
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Remember the old adage “what goes around, comes around?” That isn’t necessarily true of course, and its rooted in an old mystic religious philosophy called the circle of life. But occasionally it does happen in an offbeat sort of way. Take the credit industry, for example.

There’s lots to talk about in the area of credit today, not much of it good, and it seems that most of the talk is leaning towards putting the lid on the rampant abuse of usury we’ve all seen happen. It’s about time. I know one thing I’d like to see gone is that fine print that nobody reads. That’s where most of the problems come from today in credit, and that’s only because we fail to become fully cognizant of what we are agreeing to when we use credit.

Don’t get me wrong here, credit can, and should, be used as a great tool in your financial toolbox. But the bottom line is that we should never owe more than what we have. Until recent years, it has always been that way. You could never get a loan for a car unless you had 20% of the cost as a down payment. That supposedly meant you owed less than the car was worth, so if you sold it you would be able to pay the loan off. How many ads have you seen for no money down at the dealers? Almost all of them on one Sunday papers read as I counted a few months ago. Zero percent financing for six or twelve months is a favorite ploy of electronics, appliance and furniture dealers. Easy terms plastered on the front windows, and no money down! As if that were really true.

Well, it looks as if the Feds are finally taking a good look at the credit industry, one recession going into a depression after the fact, unfortunately. And I’m guessing that what we’ll end up with is more of the same, only with more government controls in place. We did ask for it, remember? Sure we did. Back in November of 08 when we freely elected Barak Hussein Obama, our first Gay, baby killing, Socialist Moslem President to power. We all knew what was coming, even if we didn’t want to look at the freight train as it was rolling down the tracks at us. If we had stopped and looked, we’d be looking at the McCain-Palin Presidency today. Probably wouldn’t be much better as McCain has Socialist tendencies as well, but Palin was at least a strong conservative as a balance to the ticket.

Even while these new controls are being put into place we should remember that at the heart of the mess, we are still the ones at fault. Our greed for more only fed the credit industries practices of taking advantage of the unwary. If we hadn’t jumped into the shark tank, we wouldn’t be struggling to avoid being eaten by the sharks, right? But I for one have learned my lesson. No more credit, except for maybe a house for me. we should all be the same. Shed ourselves of debt and build up a reserve of cash by way of savings and solid investments. It’s the only way to go.

But in the waning days of this nation, we may not have time to build up anything of value. War will be coming soon, and we will be no more.

Much of our wealth comes from the strength of the dollar, and as our dependency upon what is known as fiat currency increases, the value of the US dollar against other world currencies declines. Therefore, it costs us more to buy from other nations. This is not only true for oil and other fuels, but produce and manufactured goods as well. And since we gave away all of our manufacturing capability to China and other nations, we have to get everything we need, for the most part, from other countries. Funny how nobody kept track of the old rule that a nations trade balance had to go along with a positive GDP for a country to be wealthy. In other words, for our currency to be strong we had to export more than we imported. When was the last time that happened? WWII if you have any recollection.

Prices on the retail end of the supply chain should start seeing some appreciable rise in about 4 to 6 months from now, if current indicators are anything to go by. Gasoline at the pump will start to climb at a steady rate, food will go up, and so won’t everything else. We’ll be seeing unprecedented trends as a precursor to what is in store for this nation. It ain’t going to be pretty, either. Mark my words, for the prophet of doom has spoken.

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