The Borrowers Burrowing Their Heads in The SandsteemCreated with Sketch.

in money •  6 months ago  (edited)

Hey Jessolvent

Some time ago some white dude in a puffy ass wig Alexander Hamilton decided that we should have a central banking system that issued promissory notes called fiat money and use it as the medium of exchange for goods and services. At the time it was a good idea and helped us built vibrant economies and innovations that brought us where we are today.

However, as with all power comes greed and any centralised system can be bastardised with time. As we outsource our funds and medium of exchange to a select few they would look at ways to benefit themselves by moving the goalposts.

stop borrowing money
Image source: - moneynuggets.co.uk

Consumer borrowing

We borrow money for things like homes, cars and other consumer habits and banks are willing to give us the money for these purchases which very few of them bring in any return. All you are doing is leveraging your life to the bank and saying for the next 20 years I commit to working for you and splitting my income with you.

This behaviour has become so normalised that even though these bad loans are destroying our retail economy banks can't stop handing them out and people are willing to leverage it for things they really can't afford for some or other physiological fulfilment.

Corporate borrowing

Then we get companies borrowing money and what they do with is create goods and services for us to take advantage of and we pay back their loans through our purchases. Then from that profit, they use that to buy back their own stock inflate the value of their companies so they can borrow more money and the cycle of extracting money from consumers can become more widespread and continue to snip off more of your disposable income.

Government borrowing

Then we have the government, the borrowed money to help create a society we can all live in be safe, pay for infrastructure, stimulate business and assume liability for the medium of exchange, fiat money. Governments borrow money from investors and who pays it off? You do, remember that paycheque I mentioned earlier?

Well, it gets a little smaller through things like income tax, VAT, Sin tax, capital gains tax and more.

The borrowers

The world works on borrowed time and the hope that there will be enough suckers in the middle class to produce more people who will continue to be suckers and feed the Ponzi scheme of an economy we have today.

We've all borrowed so much money, cheap money, money that keeps getting cheaper and losing its purchasing power. We've used this money to prop up industries and create bubbles instead of creating wealth and innovation that help the people. The world is so over-leveraged that we have so much debt future generations need to work off its pure insanity.

We say we want a better future for the next generation, for our kids but we keep adding more debt for them to work off, how will they ever get to have a better life?

Let's connect

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If you borrow to a house in your Country- What Will the % be ?
We can get 1.3% ... With inflation at 1% it is ....nothing.
Soon we get paid to loan money...

Posted using Partiko Android

To buy a house here you're looking at around 10.25% and we have an average inflation rate of around 4.5%.

Negative interest rates for consumers is one of the biggest scams, they effectively stealing from savers to give to the borrowers, that makes no sense. It would maybe be okay if the money was going into production but its not, its just another financed home or car.

10,25 ! OH .....
Yes we have negative intrerest. A Swedish bank said some weeks ago that "soon you have to pay money to keep money at our bank" (we will see if it happen)

But 10,25% that was high. If I borrow without safety I get 5%. But as you say - you have a high inflation too.

BEER! 1

Lol well if I have to pay you to keep my money then I would be taking my money elsewhere. Is there a possibility of you using another countries bank? How do Swedish people feel about this or do they not care?

10% is insane but our money isn't worth a lot and with all the unemployment and people continuing to default the banks are trying to extract as much as they can while they can

No worry for us. We have a lot of banks and it was only one that said so. In Denmark one bank has "you have to pay if you have more than 90 000 USD at our bank" So even if that rules comes to Sweden I have no problem - I do not have so much money.

We can also easy open up bankaccount at other countries in EU.
Time to work - Writing about "loan for consumtion" :-)

That's very cool that you can shop around for banks, we don't have that here all 5 banks are basically the same.

I think I should move to the EU and do SEO there and store my money in a South African bank account and get my 6.25% on my savings :P

Maybe I should just try it out for a few months, see how good Swedish SEO's are!

So glad I have no debt.

Posted using Partiko Android

Sadly you're one of the minority and on top of that, we still paying corporate and government debt through the various fees they lay on our everyday lives! Money clearly doesn't make the world go round, debt does!

@tipu curate

Upvoted 👌 (Mana: 24/28)

Why thank you kind sir

You had me at white dude in a puffy ass wig LMFAO!

Lol glad my humour is appreciated I try to post about serious things but also take the Micky out of it! I can't trust anyone or take them seriously with fashion decisons like that

Taxes are my biggest expense taking slightly more than 50% of my income in a variety of taxes, fees, levies, green initiative charge, surcharges, carbon taxes, GST, PST, recycling fees, innovation fees, transit levy, premiums, etc.

Posted using Partiko Android

Honestly reading that is scary, I don't know how people do it! I guess I'm not cut out for the first world! If that were here we'd have lost our minds long ago and civil war would have broken out, well not that we're not on the brink of it every day but I know damn well all those fees would be a trigger.

How does the average Canadian survive with so much of their disposable income already spoken for?

It forces Canadian consumers to borrow money to maintain their lifestyle of consumption. Canadian household debt, excluding mortgage, is 170% of after tax disposable income in 2018. Each after tax $1 earned is also in debt to $1.70 in unsecured consumer debt. I however live debt free of credit cards and any Rotating credit. I live within my means, modest or frugal. I do not own a car. So I am an exception.

Posted using Partiko Android

Surely that is unsustainable unless wages are keeping up or defaults would be going through the roof or is the influx of working immigrants now helping take on the debt burden? I read there was a big drive to recruit to Canada!

So if you're not frugal and you lucky enough to meet your mortgage and retire at 60 you will be in debt which your pension will have to cover and then be a burden on the state?

And as expected, credit defaults, accounts arrears, personal bankruptcies are way up. Just wait until Interest rates have to hike for institutions to attract liquidity. Immigrants, that's a whole bizarre situation where there are already English speaking skilled workers awaiting immigration only to be trumped by Syrian refugees at the cost of 50k per year.

Posted using Partiko Android

Oh, it does sound like thats a recipe for a perfect storm, I'm just wondering where the breaking point will be for you guys. Isn't it elections too? These problems should be front and centre right now

That's what I found very strange there's been quite a bit of advertising lately this side about moving to the US and Canada and I have friends who are engineers in software, electrical, civil, chemical and myself we all went through the process and it was such a pain doesn't look like they were interested in getting us in at all. lol

Yes we have an election in progress, bribing us with our own tax money, lots of irrelevant social justice issues, promised spending with the usual low ball cost that will turn out to be far over budget later, overestimating revenues, equals more deficit therefore more debt. Retail and consumer economy is suffering because most Canadians have little disposable income left after expenses. Parties are on the left except the one genuine conservative party that I'm voting for.

Posted using Partiko Android

You paint a pretty bleak picture, but I appreciate the honesty and the chance to learn what goes on on the ground. Things are bad here, and we're always sold the first world dream but it sounds more like empty promises now.

I am low key freaking out the more I learn and I feel like everyone is asleep at the wheel. What will it take for people to wake up and say this is no way to live?

What do you think your chances are of shifting the government to a more conservative approach? We're very much left-leaning this side since they're the party that gave us democracy and granted us civil rights so they're still running on that even though they've run the country into the ground

Hey :) nice article also with some information about decentralization! I also want to das thank you again yesterday i published my first Post through travelfeed it really helps my Account growing Up :))

Posted using Partiko Android

Thanks! Glad you took the time to check it out. If we had more decentralised finance and hard money we could limit this preditor and reckless lending and people can live within their means.

Awesome you took my advice, :) Hope to see you become a minnow real soon, let's get you to 500 SP

Yes thats so right! I think decentralized currencies are at this point the right way and a good option, not including libra ;)
Yeah i try it lets see :)

Posted using Partiko Android

Do you own other cryptocurrencies other than steem? It may be small now but it's important to own a little bit of Bitcoin and if you find others you like. LOL at "not including libra", i like your style

Haha yeah but its true libra isnt decentralized ;) yes i own Bitcoin and Ethereum and some other cryptocurrencies but almost Bitcoin. I think thats a safe way to store your money. What so you think or do you own some?

Posted using Partiko Android

Lol yeah it's just a way to scam people out of more money and control along with data mining for more intrusive ads.

Yes I own Bitcoin, Litecoin, Ethereum, DENT, NULS, Kucoin, MCO coin, Doge, STEEM, Cardano & TRON. It's an exciting space to play in and hopefully pays off in the future

Thats so true! Thats just to get more and more data. Thats interesting even when i own other currencies. But i also have a little Bit of litecoin. I think it will we have to give them just 2 or 3 more years to have a new bull cycle end 😊

Posted using Partiko Android

If we let them they will milk as much as they can out of their users. So glad I stopped using traditional social media sites. What's your favourite coin? I hope theres a bull cycle again someday and see the price skyrocket but before then I'll continue to pick up "cheap" cryptocurrency

Hello!

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Haha welcome..

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