"The borrower is slave to the lender." (Proverbs 22:7)
No beating around the "financial bush" with this post. No clever introductions. No watered down feel good grabber to read here. Just truth. I invite you to read at your own risk.
Now to the point: Our nation now carries an excess of $14 trillion of debt! Not billion. Trillion! To clarify the magnitude of this debt, lets take the total national debt
($14,171,000,000,000) and divide it by the number of American citizens (an estimated 310,000,000). The leaves American citizens holding a $45,700 share of national debt! Startling, isn't it? Here is another astonishing fact: The National Debt has continued to increase an average of $4.09 billion per day since September 28, 2007!
Does that make your stomach knot up? It should. Listen folks, regardless of what the media pundits may say (or fail to say) about our economy, debt simply does not disappear. And we think the state of Wisconsin is in bad shape? Wisconsin doesn't even scratch the surface of what is happening nationally.
So what does our federal government do in light of this massive, ever growing debt? Get this--they PRINT MORE MONEY!!! Print. Print. Print. And, print some more! They do nothing to stop the bleeding. This amount of growing debt simply has no politically correct solution. So, our government leaders just do nothing. And with every cartridge of ink that dries on newly printed currency, the value of the dollar continues to decline. It declines the purchasing power of every hard working American's dollar. It declines the value of American currency on a global scale. It makes it more expensive to import oil, drives up the price of gasoline, and leaves the American consumer footing the bill.
Without question, we live in a day and time where people are depending on the government for their welfare more than any time in our history. A handout here. A bailout there. Life is supposed to be easy. And when it's not, the government MUST step up and do something about it. "Feed me Seymore!" Our appetite for ease and politically correct thinking is slowly growing into a financial killing machine! And the appetite for more grows with each feeding.
What about the consequences? We simply don't like to consider consequences. But, make no mistake about it. There are consequences of such a floundering way of governing. I'm no economics expert. I'm no dooms day theorist. I simply call it like I see it. With that in mind, let me encourage you to take a few simple steps in your personal life:
1) Save more, spend less.Our parents, grandparents, and great-grandparents knew much more about how to handle money than we do today. They have been through the hard times before. We need to learn from them.
2) Stop incurring new debts. (cut up the credit cards and only buy what you can buy with the cash you have in hand) (i.e. don't finance anymore new cars, don't take out any new installments for home improvements--fix it one room at a time and save until you can fix the next room, etc.)
3) Strive to pay off existing debts as soon as possible. (paying minimum payments on the largest balance and focusing the rest on paying off all of the smaller debts until you can focus 100% of the payment on the higher balances--this is known by many as the "debt snowball method")
I hope that we take this information seriously, on both a national and personal scale. If you find yourself in a hole, stop digging. And remember, "the borrower is slave to the lender." (Proverbs 22:7)