The problem that Mr. and Mrs. Dinkly had, was one many of us have experienced at one time or another in our lives. They lived beyond their means. They spent more each month then they had coming in. It was burying them. Their security was gone. They had no real wealth though they maintained an illusion of it through over extending themselves on a consistent basis. Thy didn't just borrow money to deal with an unexpected expense or even a child's education. They borrowed money EVERY MONTH and made it a part of their operating budget. Today the Dinklys are in their 70s, both still working. They have no hope of retirement because they never accumulated any REAL wealth. They spent their adult lives pretending they had more than they did and in the end it cost them far more than money. Many readers might well identify with this scenario. I know I have certainly known more than a few Sam Dinklys over the years. The story always ends the same way.
Not many people are aware of this, but in 1925, less than a century ago, it was almost unheard of for a bank to "hold a note" on a person's home and or land. If your family was under a mortgage at the bank, you were in fact the pity of your community, looked down upon like someone who frankly, didn't pay their bills. Certainly no one to be depended upon for stability. Families on the wrong end of that situation soon found that they weren't so well received.
Somehow, over the last eighty plus years we have gone from being a nation and people who pay their bills, to a nation and people who accept debt as a financial tool to be used for some perceived personal gain. Yet how many of us had Dad's like mine who would tell you that if you don't have the cash to pay for it you can't afford it, but then here he comes with a new car he just financed. Sure I loved Dad's new car, but where did that leave me in terms of deciding whether or not it was ok to in fact buy what I didn't have the cash for? Dad had a mortgage at the bank. Heck it was the 1980's everyone had a mortgage except the coke dealers in Miami. He borrowed to buy his car, then his boat, then my step-mom's truck and on it went like every other family on our block. He didn't go nuts with credit and never put himself in a pinch by over extending himself the way old Sam did, but in 1988 he left this world at age 55 and had literally nothing. Credit life insurance (one of the biggest scams running) paid off his truck. That's it. A truck. Age fifty-five and all he had before he died was a truck that wasn't paid for.
Businesses across the country use credit EXACTLY the same way Sam Dinkly did. You need a half million dollars to open a restaurant, more or less depending on your part of the country. So what do you do? You go borrow from everyone you know INCLUDING the bank (second mortgage on the kids) and you throw it all into the new business. If the business works, great! Congratulations! How long do you think you are gonna have to sling spaghetti before you pay off that half mil? Guess who is 70 something and still working? If your lucky your truck will at least be paid for. The point is that it has long since become standard practice in this country to spend more than we make from the White house down to my house. We have been conned into believing that one of the first things we need to do when we graduate is to get our credit established. Make sure you get good credit established. How else will you buy a house? A car? A spaghetti dinner at Tamuccio's? I will tell you how else. Cash. Pay cash. Do what Daddy said even if Daddy wasn't smart enough to follow his own advice. If you don't have the dough the answer is no. Simple as that. Look at the people you know who do in fact have real wealth. I will lay odds most of them buy everything in cash... no payments.
So here we are as a so-called "nation that pays our bills" according to Treasury Secretary Timothy Goobner and we just raised the debt ceiling so that we can borrow even more money that we can't pay back. As it stands already all we do is pay the interest due on the outstanding debt. We aren't paying the debt down. Have you looked at the debt clock lately? We are chasing are tails and the whole world is getting dizzy. How dizzy?
The DC fiasco last week and the raising of the debt limit was done with a budget plan that doesn't really "cut" anything. It simply allows the Federal Government to continue the charade for, according to the Standard & Poor, another twelve to eighteen months, which of course gets all the DC crime bosses through election season and hey, that is what REALLY matters!
Why does anyone in this country look at this situation and think as Obama has stated, that this problem is fixable? How can the HMFIC in the White House stand there and say that the United States will always be AAA regardless of what some rating agency says? Wait a minute? Isn't this one of the primary ratings agencies we use for practically every financial institution in the country? And now the White House is basically saying, "Ah, they're full of @!$%#. Our credit is still good!" Well you can climb up on the roof of the Capitol building and scream it from the flagpole Mr. Obama but it seems the rest of the world kinda disagrees. Asian markets plunging.
European markets plunging. US markets plunging. Gold now over $1700 per ounce! When I was in kindergarten an ounce of gold was worth maybe fifty bucks. Five years ago it was worth right around the $300 mark. Gold panning is getting more and more lucrative by the week.
So why is all of this happening? Because we are not a nation that pays its bills. We have spent until the accounts are dry. The smart money knows this. They are bailing and not just on the stock markets. Many are LEAVING the US for places like Ecuador and Belize. The United States of America is in its death throws and it is time we wake up to that fact.
I have been talking to career bankers and investment professionals for the last ten years about this stuff and folks, to a man every one has told me EXACTLY how this was going to shake out, the only thing no one could put a finger on is when? Well today you will get the "when".
This is not the explosive annihilation of a country through use of bombs and other weapons of mass destruction. If it were like that, I suspect many trend-masters and financial analysts could pinpoint "when" quite easily. No, this is the implosive destruction of a country from within using weapons of mass deception and it began long before any of us were born. That is the "when". The Marxist Lenin said from the steps of the Kremlin that he would take down America without firing a shot. Today we live in a country where even if you are able to pay off your home mortgage, you will NEVER truly own your home. You will either pay a corporation or the government but you are going to pay someone to live in that home for the rest of your life and if you don't, make no mistake, you will be evicted. Welcome to Russia!
Nothing lasts forever, not even the once great nation most commonly referred to as "America". If you want liberty, you had better be ready to exercise it with or without permission from someone who says they are in authority over you. If we are to be free then no man shall be in authority over us and if that is not what this country is, it is what I am prepared to fight, fist to fist, gun to gun, to provide it for my grandchildren. I swore an oath, as does every young man entering the military, to protect and defend THE CONSTITUTION of the united States of America from ALL ENEMIES FOREIGN AND DOMESTIC. If it ain't in the Constitution, I will from this day forth, staunchly defend against it. No man will infringe upon my right to be free.
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