Posted tagged ‘Debt Serfdom’

Charles Hugh Smith, Hits It Out Of The Park With These Articles.

May 6, 2013
Thinker

Thinker (Photo credit: dSeneste.dk)

Lets do some heavy lifting to start the week. Two weeks ago, Charles Hugh Smith, at oftwominds.com, had three outstanding articles that built on top of each other. For him they were relatively short, but as usual were filled with great insights. He talks about what politicians, bureaucrats, central bankers, and intellectuals not only think; but also talks about the incentives and constraints under which they are making decisions: Why their policies of counterfeiting money for funding stimulus programs, bailouts or for increasing their sacred GDP numbers, will continue until economic reality forces a change: Why China and the US are in similar situations, even though (more…)

Young People Get Hooked Into Huge Debt When They Take The Student Loan Bait.

March 6, 2013

Student Loan Debt

Student Loan Debt (Photo credit: Nastassia Davis [www.nastassiadavis.com

Students are being exploited by our benevolent Government, just like home buyers during the housing bubble. Home buyers went into debt purchasing a house, the price of which had been inflated by artificially lowered interest rates, and counterfeit money being pushed into the housing market. With little or no down payment, they had no built in equity. When the bubble collapsed, the principle amount of the mortgage was higher than the house was worth. These home buyers will be paying a higher percentage of their present and future production (salary), to the banks. Counterfeiting is theft, and the banks, with the help of the Fed, are stealing peoples production over time. Read previous post here “Government Intervention And It’s Consequences”.

Students are in a different kind of boat than home buyers were in, but they’re floating on the same river of debt which leads to the same place, serfdom. (more…)