Most people - those who don't have a fortune of billions - do what it takes on a year-to-year basis to improve their financial lot in life; working hard, taking classes to improve their skill set, going the "extra mile" to prove to their boss that they deserve the promotion they so desperately need. These people know well the importance of living within their means; well, at least some of them who have a grasp on basic laws of finance and budgeting.
The growing credit debt today has rapidly increased due to greater consumer purchasing with their "miracle plastic". It creates a temporary good feeling for most when they can get that item they "must have"; flat screen television, video console, etc. However, when the monthly statement comes the shock of the total owed instantly returns them to the reality for which only they are responsible; increased debt. Living within our means today seems to no longer be important as a responsibility because too many parents never bothered teaching their children any basic concepts about finances and budgeting.
However, this is also true at the international banking level of finance. The U.S. Treasury, International Monetary Fund (IMF) and World Bank have, for many years, essentially done the same thing, and once again this year, have continued the practice of increasing their allotment of funds beyond what is actually available in order to try and stem the problem funding poorer nations who depend on their loans. This is done not because any parent failed to teach them basics, but because they were forced to get creative with their policies of finance when forced to make a tough decision, and they made a poor choice which ignored the laws of economics.
Here's my question... How well did Pres. Johnson's establishment of the Welfare Act of 1964 work for eliminating poverty in the U.S. after five decades and several billions of dollars spent on giving subsistence to low skilled individuals? Answer.... it HASN'T!!! And now, further down the road of time, our own country's policy is to continue passing bills which further extend our national debt. (Recall the most recent Omnibus Bill which added another $1.2 TRILLION.)
With the U.S. continuously increasing its own debt - 21 TRILLION and climbing - and other nations around the globe with their own debts, anyone who understands that the laws of economics can not be ignored for long - just like the individual can't ignore their credit card debt forever - I believe the global economy is eventually going to have a "day of reckoning" where the whole system collapses and the whole planet goes into a financial Armageddon.
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