Greetings members and readers,
Once again, we have decided to try one more time to relate to our readers just how much we are losing internationally daily by NOT governing our spending or at the very least govern from whom we buy.
The Fed wants us to keep spending because it props up our ability to service our government debt, it keeps the economy spinning (government cash flow) and personal credit spending keeps us in check to the extent that we become voluntary indentured servants to our individual/family debt. The lack of financial independence often affects the decisions that we make, determines whether we make a career change or consider self employment, affects our credit score and often forces less and less available cash available thus increasing the need to further use our credit cards. There are some credit cards that charge 10% but the average cost of credit card purchases are 22%, which means that purchase will cost you almost double in 4 years.
It is simply very different to buy a $1500.00 mattress on a credit card rather than to actually lay down (thirty) $50 dollar bills. There is no immediate pain experienced when using a credit card but that mattress purchase could cost you $2800.00 down the road when considering interest and how long you pay a “minimum” payment.
We all know this stuff, we are just spoiled rotten and looking for instant gratification. How about the guy that bought a $40,000.00 bass boat and now can not find the cash to put gas in it or buy bait, or pay his boat insurance premium. Overtime looms, boat trips postponed, and depreciation is clocking down the boat value. There are two things really bad for a boat — Using it a lot or not all.
Credit spending is often a one way ticket to losing it all after you have invested more that the items cost over time. One may easily lose his house because the furnishings were purchased on multiple credit cards.
Enough of that!
A larger consideration is the flow of cash that leaves this country daily when we purchase goods that are made elsewhere. China, Asia as a whole, etc. This cash exit rarely returns to our country and deflates the value of our dollar on the international money market simply because their are just too many of them. One way the dollars do return to our country? We (the Fed) borrow it back from the likes of China daily for short and long terms and that seems ludicrous, borrowing our own dollars (so to speak) from our number 1 economic and political enemy.
They (China) are buying up our farmland, deploying industrial holdings, and exploiting our country in almost every way. Their farmland purchases are always near one of our military installations all over our country and lately, in middle America. It is no secret why the mysterious Chinese balloon did loop de loops for a week over middle America some few months ago. It is almost embarrassing that a communist country is kicking our capitalistic butt while we religiously, rush to Walmart with our credit cards in hand to buy one more round of inferior goods from China. They are buying this stuff with the proceeds from our purchases. In the long run, it is better but no so expedient to buy quality goods from anywhere but China. Better for us, better for the nation, and better regarding the longevity of purchasing quality goods.
This reality is only about our governmental and individual deplorable spending habits. Sometimes one has to tell it like it is.
Lastly, if we would consider the power of our purse, we, en masse, could reduce the cost of goods that we use often or daily by slowing our purchases of these goods. Tired of $5 egg cartons, just stop buying them for a month and the price will come down substantially. Tired of $4.00 paper towels, stop buying them and use a kitchen cloth for a month and those paper towels will come down to two bucks. Remember, bleach at $1.25 per quart, it is now, since COVID, 4 bucks. Why? Because we pay for it at any price. How about $35.00 per visit for a family of four to Burger King. One can prepare a decent family meal at home for four — $15.00! They say we are experiencing a %4 inflation rate and we are trying to figure out how they came up with that number. Most items at any decent grocery store have increased on average 100 percent, some 25%, 50%, some 200%. How a $5 coffee at Starbucks, ($0.20 at home plus $.30 for splash of Bailey’s) equals $.50.
Please know that among the larger nations of the world, China, Indonesia and India, cumulatively add up to almost 5 billion people and we, the consumers of the USA (330 million) spend more annually than those three countries do, combined.
We are a psychologically manipulated consumer base that spends frantically. It seems that when times get tough, the tough go shopping in the USA. All of this perpetrated by the largest consumer debtors in the world that live in the largest debtor nation in the history of mankind. US! This house of cards will collapse if we do not take up a hitch or two in our git-along.
In regard to our national debt, this is not a Republican or Democrat problem — both have lost their minds in may ways and especially in spending. Note: This is a number one problem in our country and the world is laughing their butts off watching us bury ourselves. Right now, every US citizen owes about $98,000.00 as their share of the national debt or said differently, the working people in our country, not the takers but the earners – payers, owe $285,000. each.
It is rare that I can make a recommendation to cure some of our ills by simply drawing you to a consensus of using the power of our purse and making a plan to implement that power.
We can lower the costs of goods, we can shift the direction of our international cash flow and put the big hurt on China’s wallet. Ultimately, we can begin to earn a more comfortable life with less credit use, less debt and a less aggravated psyche.
With concerted effort from us all, with displayed displeasure shown by us all and a desire shown by us all to curtail our spending especially with those that are still clinging to Covid over-pricing, we can see results by end of summer.
Bud Light learned their lesson recently selling sexual confusion instead of beer, Disney has learned their lesson in Florida by selling social dictates rather than entertainment to little and big people, et al. And Nike is soon to find out that it is not a good idea to launch a national or international Ad campaign with a man modeling a female one piece bathing suit, anything to make a buck! Crotch bulge and all.
And women are learning that they are now on the list to be canceled so a transvestite can show that he can still out swim them all even hampered with new breasts and long hair. Folks are raising hell all over the country discovering immigrants housed in our elementary school gymnasiums – one was shut down in a day due to a loud gathering of parents — Just shows that unity is more powerful than equity or irresponsibility or panic.
Beware: there is nothing wrong owning lots of stuff, But only if we really own it.
Be aware: It is more fun to enjoy a ham sandwich picnic in the back yard or on the porch than charging a $45 dinner at any fast food restaurant — probably less calories, better quality foods, good interaction with family and 65% cheaper. Try it. That simple action will begin to cure a lot of presently experienced ills in our country.