So many people these days live in debt, it has become normal, a way of life. We are indebted either through personal, government or corporate debt. We pay though interest, taxation or as a hidden cost in the consumer products that we buy.
As far as personal debt goes, we’re all made to feel that we have an absolute obligation to repay this debt, we live in fear of the shame of default and bankruptcy: we have an emotional involvement to our personal debts.
For the vast majority of people, their debt is accrued through the purchase of fashionable junk products, keeping up with the Jones’s and so on. If these people default, they are often ruined, their lives in tatters with nothing left of value, even their homes are forfeit as security.
Not all loans are secured though, what of the man who has run up his credit cards to buy, perhaps, gold and silver or other tangible assets? These assets are then unsecured, can be hidden away to start a new life after debt. This man is in far better shape, he just needs to lose his emotional attachment to his debts.
Corporate debt is a different story; emotional attachment to debt is rare, at least for successful businessmen. For the CEO and other board members of large limited liability organisations, they have no personal responsibility for the debt of these organisations. Bankruptcy is just a business decision; the real skill is how the bankruptcy is managed.
Banks will have a claim on secured assets but future success for these businessmen will depend on just what some of this debt has been spent on. Will the company disappear forever or will it rise like a phoenix from the ashes, probably under a different trading name in different premises?
Entrepreneurs are particularly good at this, They very rarely succeed at their first attempt, often going bankrupt several times before they finally succeed. People like this have no emotional attachment to their debts, they will walk away from them, having set themselves up for a new business venture, keeping key assets and contacts from their previous failure.
To many people, the above may seem unethical, dishonest even, but life is a ruthless game. Consider that the most ruthless people are the bankers themselves. They create currency from thin air – in today’s computerised age, they don’t even need to print it anymore, just tap a keyboard – this money is then lent out with usurious interest, see this: “Usury: the Science of Shylock.” We owe the bankers nothing.
Donald Trump is an entrepreneur that has declared Chapter 11 bankruptcy protection six times, meaning that his company can remain in business while wiping away many of its debts. Although many will try to use this fact to smear Trump, this is just normal business practice. Now Donald Trump is the President of the United States of America, a country that despite still being the greatest military and economic power in the world, is deeply in debt and is now racking up an additional trillion dollars a year in debt just to keep ticking over. Trump is an expert at handling bankruptcy and I must thank a recent X22 report for crystalising my thoughts on this: “BJ Has The Backing For The BREXIT, Trump’s Economy Gains Strength – Episode 2045a”.
At a time when the US is so deeply in debt, Trump is spending money on building walls, infrastructure, industry and bringing jobs back to the US, all with borrowed money of course. We all know that that in a world with out of control debts of around 250 trillion dollars, it can never be repaid, all we can do is use it while we’ve got it and Trump is doing just that.
China too is suffering from bank runs, it banks and the country generally are ridden with debt. Yet still China is spending trillions of Yuan on developing its one belt one road initiative.
Both Presidents Trump and Xi Jinping are preparing their countries for a life after debt. Of course the US and China will have a trade deal and Britain should have a trade deal with the US and we will. I’ve already written about this a few years ago in my article: “The wrong direction”.
In 2009 when Greece was faced with a government-debt crisis, the then Prime Minister Alexis Tsipras promised his people that he’d stand up to European bankers and threatened to default on his country’s debts. All to no avail; Tsipras was soon brought into line by the Eurocrats.
This is how doing business with the European Union really is, it is a banker-driven technocracy that uses debt as a weapon to subdue its member countries; conquest by another name. The Eurocrats have dreamt of a Marxist world where we’d all be enslaved in their debt prison, even while so many of their banks are on the brink of collapse and their accounts haven’t been audited since God knows when.
I once watched an old friend die of cancer. As the cancer grew, it drained his body’s resources until, before he passed away, he was just a husk of skin and bone. This reminds me of the European Union and what it will do to us if we don’t break free of it.
The world will face a serious debt crisis soon enough. There will be winners and losers, I’d prefer to win and I’m sure you would too. Our best chance of survival is to break away from the EU and join others that are preparing for a life after debt: the EU has squandered its resources pursuing the Marxist dream. It will fail.
Let’s hope that Boris Johnson knows all of this, perhaps we’d better be ready to give him a push in the right direction.
The British government debt will only cease its meteoric rise when foreigners who buy much of the debt issued consider we are unable to service that debt. There is no sign of that ending soon as globalisation plays a great part in underpinning the issuance of Western debt. Foreign nations continue to buy our debt as long we buy their exports. When the price of gold rockets then we know the game is up.
I have never got my head around the debt issue as described by some. Yes I can understand how clever people can duck and dive and find ways around a system, any system and make things work for them. The City of London must be full of such people wheeling and dealing, gambling on failure and success, the highs and the lows. The derivative market, the stock market, carbon trading or options it is above my head because like so many I have never tried to understand it. My guess is that it is corrupt. The financial system has become top heavy.
You must be right Flyer perhaps it comes back to the banks and the ‘printing’ of money. But then it keeps everything going as they say, ‘the lubrication’. What is the ordinary person supposed to think let alone do? My answer is to have co-operatives. They can exist outside the system with their own currency and trading. That way if the global thing collapses groups have some chance of survival. There is easy money to be made for sure, but then one becomes a part of the scam, and there will always be someone who will pick up the tab. If something like Localism succeeds then those participants may be safe from this madness. Perhaps it is madness to assume small groups can succeed.
Is there not a case for abolishing limited liability ? That would improve creditors’ chances after bankruptcies.
Spot on ‘flyer’ and Mike. May I quote you?
I think it was The Midland Bank, well before it dropped into the pocket of HSBC. – Their slogan for the Credit Card was, – ”Take the WAITING out of WANTING”. ….. So many of us fell for this, and started a life of living on Tic !
There was nothing new in the concept. – Nations had been doing this for generations, with the raising of National Bonds against loans ! The only trouble for People or Nations, is that if you BORROW, then INTEREST is charged for the service.
Home owners do it via a Mortgage, and some of the mortgage holders proudly state that they would never use credit cards ! – We all face an Army that is dedicated to taking our money ! Then their is a further Army called Accountants, who fall into two distinct divisions. – One division just prepare statements or balance sheets for tax to be charged. – The other lot ‘Interpret’ tax law with international involvement, in order to legally side-step taxation, but this is for the very rich and Corporations !
Oh yes, just in passing, do you remember our Bank Notes ? – ”I promise to pay the bearer the sum of ### pounds” and signed by the head numpty of the Bank of England ! – Pounds of what ? – Originally it was gold, but that is going too far back in our history for this poor guy to keep a straight face !
MM – Next you will be reminiscing about pounds Sterling!
And banknotes? When I was a boy . . . (ha!)
Funny thing isn’t it. A lot ofpeople buy bonds and think they have bought something. My dad bought some in the 30’s he could have bought 4 cars or 2.5 houses. When I finally cashed it in the 60’s ( My 30 th Birthday.) it bought me a watch A nice one , but.!
OK.