Personal Finance Meltdown Makeover – Take the Long View
Americans on Main Street have been urgently asked to make the leap with Treasury Secretary Paulson and Ben Bernanke to bail out Wall Street’s bad debt to the track of $700 billion and counting. We had been advised that this must manifest on the way to not only stabilize Wall Street, however, the monetary gadget itself. Or else! As of this writing on 9/29/08, the House has voted to reject the bailout.
If a bailout invoice does, in the end, get exceeded, it might not be a magic bullet, and we as a kingdom will keep floundering in uncharted monetary waters. But perhaps of greater importance, hundreds of thousands war to maintain their equilibrium regarding family finance.
Personal finance authorities have taken front and middle, weighing in at the news and communication shows. They beat the drum of “whatever you do, do not liquidate,” and please live calm. Stay calm?
My concern is what the personal finance professionals aren’t telling Americans. Their recommendation to John and Joan Q. Public regarding the friendly approach to decision-making in mild of the present-day financial meltdown is flawed. Why? Their solutions do no longer replicate the elephant-in-the-residing -room-root reason. Instead, we are told that the monetary disaster is because of the sub-high loan crumble, mortgage defaults, and the subsequent nationwide downturn in housing charges. Yawn.
The Emperor’s New Clothes
It’s the mainstream media that has served up this handytale. As inside the Hans Christian Anderson tale of The Emperor’s New Clothes, even though the king is maximum indeed bare as he parades down the road, definitely all the spectators of the royal parade see the king as he desires to be seen; wearing impressive gowns. Only while a child inside the crowd declares the king’s nakedness is the mass delusion of the townspeople shattered.
Thanks to the Internet, the “youngsters” with eyes to look and ears to hear the truth approximately money are developing in variety. As a result, many cracks exist inside the good tale line about why we are inside the financial mess and what we ought to do to get out of it. There are tons more significant to realize.
The actual root reason goes again to the time of sizable expertise of ways interest-based money lending, additionally called usury, corrupted the material of relationships and society. In cutting-edge times, usury has become considered enterprise as usual thru a worldwide community of relevant banks. Almost no one nowadays gives it a second thought.
The central-banking gadget is international and changed into cautiously designed to be a debt-primarily based in nature: Money is issued into lifestyles on the time it is loaned at the hobby. The interest that compounds over the years will become both sales for the system’s shareholders and inflation inside the cost of dwelling for you and me while debt service receives brought to the fee of products and offerings. To the general public’s amazement, The Federal Reserve, the U.S. Significant bank, isn’t truly even part of the government but a personal for-profit corporation with shareholders. However, as in The Emperor’s New Clothes, do not count on TIME magazine to run a cover story on this any time soon.