How About Our FIAT MONEY????

Paying down debt

We’re not there yet, but it’s getting closer and closer. To what do we refer? Paying the tab for all the reckless spending by our governments and bureaucracies of course, because the day of reckoning in this regard is indeed getting closer and closer by the second based on exploding debt levels both in America and abroad. Because ‘we the people’ will never be able to pay back all the debt our politicos and bankers continue to borrow / pile up on our behalf, and eventually the game of pretend and extend will stop when the cost of printing new money rises past a critical mass that deficit spending will no longer be able to hide. But still, such knowledge does not answer the question ‘when’, does it.

But is the ‘when’ really that important in the bigger picture in knowing it’s coming at some point in the foreseeable future. Perhaps not if one is not concerned, right? Of course for these types, who are also likely heavily indebted and would suffer if the cost of money were to rise dramatically, such worries will not come until it’s too late because that’s their nature – don’t worry be happy is their motto. But for the rest of us who prefer to remain well grounded in our views, and realize that such an outcome (profoundly rising interest rates) would cause an equally profound dislocation in both the fiat currency and real economies, it’s important to realize what’s coming, where obviously paying down debt should be the first thing one should be doing these days.

Because although the debts of governments and key institutions seen as systemically crucial in maintaining the status quo might receive further bailouts in the future, over-indebted individuals will most likely not, nor would a Jubilee be declared either as long as central bankers are still pulling politician’s strings. So again, for the individual, paying down debt should be central in one’s financial plans right now because interest rates could begin rising uncontrollably sooner than even the pessimists think, meaning such an outcome could grip the macro later this year as world events spin out of control. And in the case of the US, as unthinkable this might be to most, this would be when the sovereign debt market begins discounting the eventuality of a breakup of the empire – again – believe it or not.

(lu pikir la sendiri -renung-renungkan dan selamat beramal)

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