reply to post by DChenO
You can't pay your mastercard. So you call visa and ask them to raise your credit limit.
They raise your limit.
Now you can pay your mastercard.
Isn't that cool? Everything is back to normal now. Right???
The only problem is, you owed mastercard a MINIMUM payment of $200.00 on a $10,000.00 overall balance. The monthly interest is about $150.00 per
month. So you only payed down the principal by $50.00.
However, you did a cash advance from your visa so in addition to what ever the balance is on that, now it's $200.00 more. Plus the cash advance fee.
Plus the higher interest placed on cash advances. As if your interest isn't high enough already.
So really, what progress have you made? None; you are now in worse shape then you were before you made a payment.
Your life will go on but sooner or later, your going to have an event that will make it impossible to continue even the minimum payments on these
In the mean time, you struggle to keep the cards in good standing. Meanwhile, the banks continue to raise your limit, which you go along with not
because you want to, but out of shear desperation.
So the issue at hand is whether to walk away from the debt now (default on it) or wiat until the debt is even more and walk away from it then.
And this, in effect, is the condition our country is in. The longer the DOW corporations "Enron" the numbers, the worse the end game is going to
Add to it that every country in the world, every single one, is plugged into our economy within two degrees. Which means when we go down, the ENTIRE
world economy will follow shortly after.
When you look at a world map when all of this is over, it won't look anything like it does today.
What happens if we have a 6.+ earthquake on US soil in the middle of all this? Or a war opens up on another front?
By the end of the 1st quarter, we'll all have a better understanding of were all this is going. But current indicators don't look good.
One last thing, after the first two weeks of 2009, only 2 banks had failed. In the first two weeks of this year, the number is already 4. There is
plenty of time for it to slow down but there is just as much time for it to speed up.
Right now, we are on the edge of the cliff. One of three things is going to happen;
1) We will make it back on firm land.
2) We will fall over the cliff.
3) The ground beneath our feet will fall and we will free fall with it.
My advice to everyone is to work as much as you can while you still can. If anyone in your house is able to work, get them employed with one or two
jobs as fast as you can. ANY job. Minimum wage if need be.
Also, if you have tens of thousands of dollars in cash sitting in a bank, take $10,000 of it (or 10%, whichever is greater) and put it in a safe
deposit box in the form of $20 dollar bills.
If your bank closes, the FDIC has you insured up to $200,000 right now. But they also have the legal right to hold off on repaying you for 100 years.
That's right. 100 years.
So put your money in a safe deposit box while you still can.
It's going to be bad but the sooner our nation defaults, the better it will be in the long run. Regardless, there will be no escape in the short
term. I hate being so morbid about it but the numbers don't lie.
In the meantime, they will keep printing money. And I already explained that effect. As for preparing, just do the best you can. Unless your
obtusely wealthy, it's not possible to prepare for this.
What I can tell you is this; you can stop paying your credit cards now; that's right, just walk away from it.
Yes, they'll call you but oh well.
You might think that will make the situation worse. We are way past that point. The federal government and the fortune 500 companies are using Enron
accounting practices to keep it going.
They will keep doing it, they will keep robbing the system, until there is absolutely no way to continue. Your default will only help pull the plug
on this sooner, making the effects shorter.
Why wait until the country is $24 trillion in debt? Why not do it now while our debt is only $12 trillion?
The world is going to be furious with us. Nuclear bombs may be the only thing that keeps them out. Unless they just let the international community
walk right in.
And why not? DC has done everything else to destroy this country.
America never wanted change. We wanted everything to stay exactly the way it was. That's why we kept re-electing the same morons over and over
The sooner they pull the plug on this disaster, the sooner it will be over.
With a $12 trillion dollar debt, if every American would be kind enough to pay $40,000 IN ADDITION to the 18% they already pay in taxes, we will just
That's if we commit today, tonight, right now.
So do you want to pay it off or walk away? Because you owe $40,000 per person in your house PLUS all the other taxes.
[edit on 1/17/2010 by Genfinity]