- We become what we love and who we love shapes what we become.
- St. Clare if Assisi
Recently
We have talked about debt and the serious danger that hovers over our economy and nation because of it. We failed to mention one big reason why the global community has not put the reserve status of the dollar to the front page. There is no good answer. Everyone is playing the monopoly game of money with their fingers crossed.
China would be logical to assume the position except it has demonstrated to everyone that it cannot be trusted. In addition, the EU is also deep in debt. The community of nations have failed to abide by their membrship constitution. There are many cracks in their union. Politicians everywhere love fiat. Spending to be reelected has shaped their life. The love of pseudo money is their life. Governments have no substance and no truth. They seek only to placate the masses.
Seeing is believing...
The following list of nations are the leading force as to why world debt is now over $100 trillion. If you combine their GDP, it does not reach the debt total. It means that you do not make enough to pay your rent. The world average is 95% of their GDP. Keep in mind, these figures may not spell out the whole picture. It is worse like LBJ keeping the Viet Nam war off the books. You will also see what we know about the following nations. Many of them cannot meet their rent as their GDP is over 100% of revenues.
Russia: Claims its debt is only 21.4% of GDP. S. Korea: Admits to 54.5% of GDP. Sweden: Nation has a strong standard of living and provides citizens benefits with 33% debt to GDP. Indonesia: 41% debt ration to GDP. Mexico: 60% ratio and rising. Germany: 65.4% and spending to build up their defense. Argentina: 73%. This is one nation where we question the figures. Spain: 100%. They had a bailout from the IMF and they need another. Scary. Brazil: 92%. We fear that there are off the book problems. Snubbed by China and Russia for BRICS. China: Admits 96.3%. There are many regional banks that are insolvent and off the books. India: 80.4%. This is a growing economy. Canada: 112%. It has tariff problems, but it is a resource rich nation. France: 116%. Government seeks tariffs to stop China from hurting its economy. Italy: 137%. It should leave the EU and form an alliance with the Mediterranean nations. Japan: The worst! 234.9%. Don't understand. Everyone buys their cars. This cannot continue. US: 122.5% and rising. We have violated our reserve status. We see a crisis in world currency coming.
Fiat's Curse
This is an American problem. We are spread out with poor public transportation. Europe has a higher standard of living with good public transportation. The point? CARS!
In the US we need a car to shop, work and live. However, fiat destroys the value of money. You can clearly see this in buying a vehicle. Auto payments are spread out on average to 84 months or 7 years. This is done so people can afford to make the payments and still pay rent, food, etc. The average loan now runs $750 per month. In the 1980s, you could buy a house with a lower payment. Car financing is now 12% of all financing. Needless to say, this is a record. Hope your car is running well...Peace
