Debt and Other Devious Angels
Imagine that you have a lot of debt; credit cards up the wazoo, a big auto loan and student loans totaling in the tens of thousands of dollars. In other words, add all that debt together and you are one broke-ass-sum-bitch! Then, you get out of school, but there are no jobs available in your chosen field. So, you head off to McDonald's to flip some fries, cause that's all there is. Oh, and one more thing, even that's part time.
But there are other problems, your rent is sky-high, as well. Why? Because the Government, through The Federal Reserve has lowered interest rates to virtually zero for member banks, in the hopes that these banks can get you to borrow money and buy a house and other big ticket items. All of this is being done in an effort to help drive a turgid economy—and, its been going on for decades. Unfortunately for you, you're already leveraged to the max with debt, so you can't borrow shit, forcing the banks and the government to lower interest rates even further, and then rewrite the laws so it's easier to borrow money with even less collateral. “Thank God we can print money.” You think. If not, we'd really be screwed. Still, it's just a slow motion suicide, even if there's a picturesque view on the way down. But, no worries, cause some asshole with a placard says, people have less debt than in years gone by “Vote Democrat or Republican,” it doesn't really matter, both parties love to spend your money. And, it is your money they’re spending. What they aren't telling you, though, is just how many bankruptcies and debt-right-offs had to occur to get the average Americans debt load to a manageable level, so Americans could start borrowing again. You see, in this the new economy, it's your responsibility to spend, whether you can afford to or not. It's like reincarnation, with the banks as god and politicians as their high-priests resurrecting debtors for a new round of borrowing and spending. (or high priestesses, sorry for the sexism, the gender bias, blah, blah, blah.)
Here's the problem, the average American's housing costs are increasingly about 50% to 60% of their gross income, maybe more. This is not good, let me tell ya. In the good ole days housing was generally about 1/3 of your income. Now, it's more than half of every dollar made. And, with the price of food rising faster than a hot-air balloon, inflation—I mean real inflation—is eating them alive. People also have 6 and 7 year auto loans, but their car is devaluing faster than a rocket car trying to break a land speed record. So, by the time they pay it off—if they pay it off—it's essentially worthless. There are also fewer auto mechanics working, which makes repairs of any kind precipitously expensive. But hey, they got a zero down loan and borrowed the max, so they can have that car they always imagined themselves driving. After all, illusions die hard. Add the housing loans, the student loans, the credit cards back into the mix and you have a financial catastrophe in the making.
Where does this all lead? In an ever narrowing circle, like a dog chasing its tail while chained to a pole. There's only one thing that can happen, and it should be obvious. If it isn't obvious, well, what can I say.
But, this stops no one, because no one knows what the hell is going on. Or, at the very least, few do. They look to their shrinking pocket-book and begin to pray “Help me Jesus, Buddha, Allah, The Universe, The great pumpkin, whatever. Somebody better do something and do it fast.”
But, there's hope. It's election time. Things are shakin'. Politicians are politicking. Slogans and memes abound. Shorthand verse filled with lofty rhetoric soars like an eagle. Is any of it true? Who knows. It only matters that a dedicated few believe it deeply enough to work their asses off to compel others to vote on behalf of their guy or gal. The rest, it just bounces around in a vacuum of thought, tied to nothing more than a few verses, a catchy slogan, a compelling meme. The how, the why, the what, well, that's just the arcane and thorny, fine print, too fine to be acknowledged, in fact. “Let others deal with the angels or demons within” you say. “The rest of us, we'll sit and wait for a good rain to wash the ground clean, then we'll plant again—a new Visa, another MasterCard, a new car—and won't it be swell.”
Mark Magula
But there are other problems, your rent is sky-high, as well. Why? Because the Government, through The Federal Reserve has lowered interest rates to virtually zero for member banks, in the hopes that these banks can get you to borrow money and buy a house and other big ticket items. All of this is being done in an effort to help drive a turgid economy—and, its been going on for decades. Unfortunately for you, you're already leveraged to the max with debt, so you can't borrow shit, forcing the banks and the government to lower interest rates even further, and then rewrite the laws so it's easier to borrow money with even less collateral. “Thank God we can print money.” You think. If not, we'd really be screwed. Still, it's just a slow motion suicide, even if there's a picturesque view on the way down. But, no worries, cause some asshole with a placard says, people have less debt than in years gone by “Vote Democrat or Republican,” it doesn't really matter, both parties love to spend your money. And, it is your money they’re spending. What they aren't telling you, though, is just how many bankruptcies and debt-right-offs had to occur to get the average Americans debt load to a manageable level, so Americans could start borrowing again. You see, in this the new economy, it's your responsibility to spend, whether you can afford to or not. It's like reincarnation, with the banks as god and politicians as their high-priests resurrecting debtors for a new round of borrowing and spending. (or high priestesses, sorry for the sexism, the gender bias, blah, blah, blah.)
Here's the problem, the average American's housing costs are increasingly about 50% to 60% of their gross income, maybe more. This is not good, let me tell ya. In the good ole days housing was generally about 1/3 of your income. Now, it's more than half of every dollar made. And, with the price of food rising faster than a hot-air balloon, inflation—I mean real inflation—is eating them alive. People also have 6 and 7 year auto loans, but their car is devaluing faster than a rocket car trying to break a land speed record. So, by the time they pay it off—if they pay it off—it's essentially worthless. There are also fewer auto mechanics working, which makes repairs of any kind precipitously expensive. But hey, they got a zero down loan and borrowed the max, so they can have that car they always imagined themselves driving. After all, illusions die hard. Add the housing loans, the student loans, the credit cards back into the mix and you have a financial catastrophe in the making.
Where does this all lead? In an ever narrowing circle, like a dog chasing its tail while chained to a pole. There's only one thing that can happen, and it should be obvious. If it isn't obvious, well, what can I say.
But, this stops no one, because no one knows what the hell is going on. Or, at the very least, few do. They look to their shrinking pocket-book and begin to pray “Help me Jesus, Buddha, Allah, The Universe, The great pumpkin, whatever. Somebody better do something and do it fast.”
But, there's hope. It's election time. Things are shakin'. Politicians are politicking. Slogans and memes abound. Shorthand verse filled with lofty rhetoric soars like an eagle. Is any of it true? Who knows. It only matters that a dedicated few believe it deeply enough to work their asses off to compel others to vote on behalf of their guy or gal. The rest, it just bounces around in a vacuum of thought, tied to nothing more than a few verses, a catchy slogan, a compelling meme. The how, the why, the what, well, that's just the arcane and thorny, fine print, too fine to be acknowledged, in fact. “Let others deal with the angels or demons within” you say. “The rest of us, we'll sit and wait for a good rain to wash the ground clean, then we'll plant again—a new Visa, another MasterCard, a new car—and won't it be swell.”
Mark Magula