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interestrateripoff

Lies Across America - In The Land Of Austerity

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http://www.zerohedge.com/article/guest-post-lies-across-america

.........

They now proclaim that it is time to spend again. It is the patriotic thing to do, just like defeating terrorists by buying an SUV with 0% down from GM was the patriotic thing to do after 9/11. Defeating terrorists by going further into debt was the brilliant idea of those Ivy League geniuses Bush & Greenspan. Let’s critically examine the facts to determine how austere Americans have become:

* Consumer credit outstanding is $2.41 trillion, the same level reached in early 2007, and up from $1.5 trillion in 2000. This is a 60% increase in ten years. Personal income has risen from $8.4 trillion to $12.6 trillion over this same time frame, a 50% increase. Americans have substituted debt for income in order to keep up with the Joneses. The mass delusion lives.

* The MSM declares that the reduction in overall consumer debt from its peak of $2.56 trillion in 2008 to $2.41 trillion today proves that consumers have been cutting back and paying off debt. This is another media lie. Non-revolving debt, which includes car loans, education loans, mobile home loans and boat loans sits at $1.6 trillion, an all-time high matched in 2008. Credit card debt has “plunged” from $957 billion to $814 billion, not because consumers paid down their balances. The mega Wall Street banks have written off $20 billion per quarter since early 2009, accounting for ALL of the reduction in credit card debt. Clueless consumers continue to charge at the same rate as the peak in 2008.

* Average credit card debt per household with credit card debt: $15,788

* There are 609.8 million bank credit cards held by U.S. consumers.

* The U.S. credit card default rate is 13.01%

* In 2006, the United States Census Bureau determined that there were nearly 1.5 billion credit cards in use in the U.S. A stack of all those credit cards would reach more than 70 miles into space – and be almost as tall as 13 Mount Everests.

* Penalty fees from credit cards added up to about $20.5 billion in 2009.

* The national average default rate as January 2010 stood at 27.88% and the mean default rate is 28.99%.

* Total bankruptcy filings in 2009 reached 1.4 million, up from 1.09 million in 2008. Bankruptcies in 2010 are on pace to exceed 1.6 million.

* 26% of Americans, or more than 58 million adults, admit to not paying all of their bills on time. Among African-Americans, this number is at 51%.

........

The Little Lies We Tell Ourselves

“Our ignorance is not so vast as our failure to use what we know.” – M King Hubbert

When Jimmy Carter gave his malaise speech in 1979, Americans were in no mood to listen. Carter’s solutions were too painful, required sacrifice, and sought to benefit future generations. The leading edge of the Baby Boom generation had reached their 30s by 1979, and the most spoiled, pampered, egocentric generation in history could care less about future generations, long term thinking, or sacrifice for the greater good. They were the ME GENERATION. The 1970s had proven to be tumultuous episode in US history. M King Hubbert’s calculation in 1956 that U.S. oil production would peak in the early 1970s proved to be 100% correct.

A rather lengthy but interesting Zerohedge post.

Luckily it's all contained so you might as well continue spending money you don't have. And if you don't the govt will happily spend it for you and if you do spend money you don't have the govt will tag on a bit more for good measure.

Spending only ever goes up.

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“Our principal constraints are cultural. During the last two centuries we have known nothing but exponential growth and in parallel we have evolved what amounts to an exponential-growth culture, a culture so heavily dependent upon the continuance of exponential growth for its stability that it is incapable of reckoning with problems of non-growth.” – M King Hubbert

From the same article.

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A rather lengthy but interesting Zerohedge post.

Luckily it's all contained so you might as well continue spending money you don't have. And if you don't the govt will happily spend it for you and if you do spend money you don't have the govt will tag on a bit more for good measure.

Spending only ever goes up.

So It's a spending recovery......spend it makes you feel good, feel rich....then start again. ;)

http://www.youtube.com/watch?v=p-GPvngnCZ8

Edited by winkie

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The inevitable pop at the baby boomers again!

Baby boomers are guilty of one thing: they're human.

If you said to anyone at any time at any point in the whole history of the human race:

"look here's a large amount of dosh. If you take, you will make life harder for the generations that come after you, including your own family".

90% of people would take it. Maybe 80% of women (being kind).

It's the nature of the beast!

The difference for the boomers was only that they were the first actually to be offered an opulent lifestyle they couldn't really afford. The 'new paradigm' for life.

You can only chuck mud at them if you can, hand on heart and in all honesty, say you definitely wouldn't have behaved the same.

And there are very, very few human beings who can resist temptation.

Here endeth the lesson.

PS I am not a boomer.

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The inevitable pop at the baby boomers again!

Baby boomers are guilty of one thing: they're human.

If you said to anyone at any time at any point in the whole history of the human race:

"look here's a large amount of dosh. If you take, you will make life harder for the generations that come after you, including your own family".

90% of people would take it. Maybe 80% of women (being kind).

It's the nature of the beast!

The difference for the boomers was only that they were the first actually to be offered an opulent lifestyle they couldn't really afford. The 'new paradigm' for life.

You can only chuck mud at them if you can, hand on heart and in all honesty, say you definitely wouldn't have behaved the same.

And there are very, very few human beings who can resist temptation.

Here endeth the lesson.

PS I am not a boomer.

Well, I am a boomer. Trust me on this, there was NO wall of money coming at us. All the character defects in the article may be attributable to us (although I beg to differ), but we never had the access to the credit to sell our children's future down the swannee.

When I was young (25) I spent some time in the USA. I was astonished at the outright greed and rapaciousness of the generation born ca 1920-1930. As you say, this isn't a generational thing. Opportunity, means, motive. It's always the same.

The real boom and bust only started, what, 15 years ago? The villains of the piece are nearly all boomers, as they were the ones in control of the banks by then, but that's only a tiny subset of a generation, and they are desperately trying to paint us all as avaricious ******** (can't think of a suitable word, strong enough for what I think of those people).

Edited by corevalue

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The inevitable pop at the baby boomers again!

Baby boomers are guilty of one thing: they're human.

If you said to anyone at any time at any point in the whole history of the human race:

"look here's a large amount of dosh. If you take, you will make life harder for the generations that come after you, including your own family".

90% of people would take it. Maybe 80% of women (being kind).

It's the nature of the beast!

The difference for the boomers was only that they were the first actually to be offered an opulent lifestyle they couldn't really afford. The 'new paradigm' for life.

You can only chuck mud at them if you can, hand on heart and in all honesty, say you definitely wouldn't have behaved the same.

And there are very, very few human beings who can resist temptation.

Here endeth the lesson.

PS I am not a boomer.

The problem isn't that they were greedy in taking what was offered - as you say, we all would have done the same. Who wouldn't vote for a bunch of generous social programs if you're made to believe it can be funded by fantasy tax rates? The problem, in the US at least, is when those generous social programs are revealed for the ponzis that they are, the boomers refuse to share the blame/pain. They fight tooth and nail against any reductions in Medicare or Social Security. They think they're entitled to the best healthcare in the world, free of charge, unlimited, for 30 years of retirement. Mention any kind of rationing and their heads explode. And the boomers who managed to retire early off the back of the 90s equities boom or the 00s housing boom also fight tooth and nail against any suggestion that Social Security be means tested. "We paid into it so we want our fair share back, screw the next generation!" It's attitudes like that which make them fully deserving of the contempt, because they refuse to see that while they did in fact put something into it, it wasn't nearly enough to pay for what they expect to get back.

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The problem isn't that they were greedy in taking what was offered - as you say, we all would have done the same. Who wouldn't vote for a bunch of generous social programs if you're made to believe it can be funded by fantasy tax rates? The problem, in the US at least, is when those generous social programs are revealed for the ponzis that they are, the boomers refuse to share the blame/pain. They fight tooth and nail against any reductions in Medicare or Social Security. They think they're entitled to the best healthcare in the world, free of charge, unlimited, for 30 years of retirement. Mention any kind of rationing and their heads explode. And the boomers who managed to retire early off the back of the 90s equities boom or the 00s housing boom also fight tooth and nail against any suggestion that Social Security be means tested. "We paid into it so we want our fair share back, screw the next generation!" It's attitudes like that which make them fully deserving of the contempt, because they refuse to see that while they did in fact put something into it, it wasn't nearly enough to pay for what they expect to get back.

The social security system in the US was never funded as such, it was to be funded out of future tax revenues, which of course got spent on other items meaning they had to find the money from somewhere so they just borrowed it. Or course this borrowed money was to be paid back out of future taxes, which either then gets spent on other items or has never materialised meaning the money has to be borrowed.

There could be a slight flaw in this cunning plan.......

Edited by interestrateripoff

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From the [excellent] article:

"I bought a Honda Insight Hybrid six months ago. It gets 44 mpg and will save me $1,500 per year in gasoline costs. I put 20% down and financed the remainder at 0.9% for three years. My payment is $450 per month. I will own it outright in 2 ½ years. I could have leased a 2010 BMW 328i with moonroof, bluetooth, power seats with driver seat memory, lumbar support, leather interior, iPod adapter, 17″ alloy wheels, heated seats, wood trim, 3.0 Liter 6 Cylinder engine with 230 horsepower for 3 years at $389 per month. At the end of 3 years I’d own nothing. In 2 ½ years I’ll be able to put $450 per month away for my kids’ college education and I’ll be saving more on fuel as gasoline approaches $5 per gallon."

But I'd still probably go for the Beemer. And my kids would rather borrow it on a Friday night than waste 3 years on a worthless media studies college degree...

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  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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