Posts Tagged ‘Debt’

“For the first time in decades, neither party is even giving lip-service to balancing the Federal budget anymore. They simply don’t care…. The thing that matters to policymakers is how much the debt costs to maintain, not how much it costs to repay. That’s why you haven’t heard anything about it…. This problem will get exponentially worse as interest rates rise. Meanwhile, the government continues to add insult to injury by borrowing even more.” -Justin Brill

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“Washington’s $523 billion in debt service costs this year was the highest on record. That’s more than Belgium’s entire economic output (or GDP) this year.” -Chris Lowe

“The U.S. 10-year bond yield rose to a seven-year high of 3.24% – nearly 2% above its bottom in July 2016.

This 2% increase, imposed on $68 trillion of debt, is equal to an extra $1.3 trillion in interest charges….

To look at it another way, the typical working person who works an average of 33 hours per week earns $26 an hour. His percentage of the total debt is about $500,000.

At today’s interest rate, he will have to work 558 hours – or three and a half weeks (not including taxes) – just to keep up with the interest payments. Clearly, this is impossible…” -Bill Bonner

Lethal Debt

Posted: September 13, 2018 in Debt, Thought for the Day
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“Debt is dangerous for everyone, but it’s lethal for the not yet wealthy.” -Mark Ford

“According to data from Experian’s File One and Credit.com, Americans die with an average of $62,000 in debt… mortgage debt, credit card debt, auto loans, and more.

Some people think that when you die, your debt dies with you. But in most cases, that’s not true… That debt will need to be paid….

Creditors for secured debt – like mortgages – get first dibs on your estate. Once all that debt is paid off, anything remaining goes to unsecured debt… things like credit cards and medical bills.

Planning for your own death might be uncomfortable, but proper estate planning is important…. So make sure you’re thinking about everything you’ll leave behind… debts included.”

-Laura Bente

“Traditionally, inflation has been defined as ‘an increase in the amount of currency in circulation’….   Unfortunately, in recent decades, even dictionaries have been offering a revised definition of inflation, as ‘an increase in the price of goods and services’….

The purpose of bank-created inflation is to extract wealth from the populace.  By regularly increasing the amount of currency in circulation, banks create an environment in which the concept of debt appears to be beneficial. As a result, virtually everyone in today’s society not only has debt; he actually believes that he couldn’t improve his life except through debt….  In essence, the inflation concept was invented by banks as an invisible tax—a means by which they could extract wealth from the populace.

In effect, the individual is used by the banking system as a milk cow. For his entire working life, inflation is carefully adjusted to extract as much monetary value from his labours as possible, whilst still leaving him capable of continued production….

Refuse to borrow money for any situation. Yes, it will mean that, as your friends show off their new cars, you’ll be driving an older model. They’ll also live in nicer houses than you and they’ll ‘own’ their own house before you do. But, at some point, since you’re free from debt, you’ll pass them by and eventually retire well.

By understanding inflation, and acting on that understanding, the odds of living your life as a milk cow can be greatly diminished.”

-Jeff Thomas

Debt Trend

Posted: June 5, 2018 in Debt
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“We’re seeing people carrying much more debt than in previous generations into retirement.” -Ron Rhoades WKU

“Younger people are taking on debt at a higher rate and paying it off at a lower rate.” -Lucia Dunn  OSU

Money Magazine