Thursday, March 15, 2012

Things you don't admit on a blog


I am tight.  Not in the "girl's tight"/hot kind of way but I am frugal/cheap/stingy... I just don't like to spend money. I don't.  Don't get me wrong I love stuff... I mean more than I should. I think that most things I come across are awesome for some reason or another (save for trinkets, bobles and other things that just don't speak to me).

Beneficially for a lot of reasons, both personal and business, this "cheap" nature as allowed me to keep out of debt.  Though raised in a family without money one thing I walked away with was a deep desire to be out of debt. To have a budget and work within it saving as much as possible for those times when you really need it.

One other thing about me you probably don't know and is going to sound odd to bring up since it is one of those topics never to speak of publicly but I am political.  I like to be aware. I am totally cool with people not agreeing with me and the only thing that makes me upset is when I hear people basing their votes by the appearance of a candidate... for any office.

How do these two ideas come together?

The US debt deficit.

I am not sure you are aware but the US Government owes a lot of people a LOT of money.  This year the government has to borrow $0.40 on each dollar. It would be like buying everything in your life on a credit card and then sending the credit card company a nickel each month and thinking it would be able to pay it off... ever.

Did you know that the US dollar is the world's global currency? I'm sure you were smarter than me and knew this and what this means but just in case:

Simply put right now most countries in order to money for goods, the country has to have US dollars. Ie: if Mexico wants dolls from China they would have to take their own currency and put it into us dollars before making the trade.

The US Government is so in debt the only way it can pay even the interest on the loans is by printing more paper money: this devalues the dollar.  Not just for you and me but for the world.

This devaluing has been going on for years!  And so many so much more intelligent and brilliant than me see that the US dollar will not be able to maintain it's value and thus will no longer be the Global currency.

What does this mean?

Simply, the dollar will become worth very little.  Right now you know what $100 dollars means, the concept, what you can buy but when the $1 is no longer worth anything... it is hard to conceptualize.

Look at Germany after it's collapse after WWII, people started burning their currency because it was worth more as paper then money.

Look at England in the 60's their government got broke enough that they couldn't pay government workers to take care of trash.

I say all of this because it is scary. The prospects of what could happen and the fact that at my age of 25years most people I know do not even know that the US Government is in a lot of debt let alone what that means.

It is scary for those I love. It is scary the scenes from books I've read and movies I've watched pop to mind...

If you don't believe me there is a long but worth while video you can watch:

http://pro.stansberryresearch.com/1202ENDOFAMR/6PSIN316/

I man much smarter than I am walks you through what he knows. It is long but worth you while.

Written by Rachel Abi


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