posted on Jan, 6 2008 @ 10:40 PM
I cannot see how the American economy can really sustain itself for too much longer. The national debt has gone 'through the roof' and it doesn't
look like there is any progress towards arresting this growing debt.
I look at the way people spend money and it really astounds me. People live, for the most part, way beyond their means. Most of my friends don't
have savings that could carry them past two or three months should something happen to their income flow. It is really quite frightening to consider
that this liberal attitude towards money is so widespread.
I'm certainly not a rich man. But being the product of Eastern European parents who emigrated to the US after WWII, I have had some rather rigorous
lessons about money management deeply ingrained. If I don't have the money, I just don't buy it. I simply do without.
Unfortunately, these days it would seem that the financial attitudes that I hold are considered to be draconian. These days, people simply
buy whatever it is that their hearts desire and they just "put it on the card". Don't these folks realize that they will all eventually have to
"pay the piper?".
Eventually debts will have to be paid. And so it goes on the national and international scale. At some time, the debts will have to be paid. The
"books" will have to be balanced. What is frightening is that I am old enough to have at least heard "tales of the great depression" from people
who actually went through it. Those were hard times!
At the present time, we are seeing what I believe to be the precursor to a new global depression. Just look at the increasing levels of home
foreclosures and bankruptcies (even though recent legislation made it more difficult to declare a bankruptcy). This is just the tip of the
I can foresee a time in the not too distant future when hard times, as experienced during the 20's, will once again be common place. People will
lose their homes, factories and buisness will close and unemployment will be widespread. The question is "when will a national or international
'financial correction' -- or depression -- occur?" In my own guess, I would have to say that I would not be all to surprised if things got really
tough within the next four years.
I know that some people will say that I'm being optimistic in saying that we still have four years before a major downturn and even disruption will
occur in the economy but that is my opinion. Thanks to creative bookkeeping and a global desire on the part of our creditors, this growing global
debt will be kept at bay for as long as possible. However, it can only be held back for so long. At some point, the debt will grow far beyond the
ability to repay it. At that point, all it will take is for one defaulted payment and the whole economy will collapse like a house of cards in a