Summary
I find it stunning that Alan Greenspan, who should know better, is
stating that household debt doesn't matter. The Bush Administration has
said the same thing about federal spending: national debt doesn't matter
either. So they just keep on spending our country into an economic tar
pit.
It's economic nonsense. Debt does matter because debts either
have to be repaid, or you have to reboot the whole system (declare
personal bankruptcy or national bankruptcy). And that's exactly where
the United States is heading, both on a personal and federal level. We
are a nation of spenders, not savers, and due to the fact that there
seems to be no fiscal discipline left in the country, the most likely
outcome will be, someday, a complete collapse of the U.S. dollar on the
world currency markets coupled with widespread economic ruin in the U.S.
Party while you can, folks, because this spending spree won't last
forever. You can't change the laws of physics or economics.
Original source:
http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/
Article_Type1&c=Article&cid=1077577808910&call_pageid=968350072197&
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Details
WASHINGTON---American households' finances are generally in good shape
even though consumers have built mountains of debt and bankruptcy
filings have surged, Federal Reserve Board chairman Alan Greenspan said
yesterday.
Decades of low interest rates and extra cash from refinancing have
given people flexibility to better manage their debt, the Fed chief said
in a speech to a credit union conference.
Consumer debt hit a record $2 trillion (U.S.) in December, according
to the most recent figures from the Federal Reserve.
When the debt-service ratio is high, households have less money
available to buy goods or services, the Fed chief explained.
About the author: Mike Adams is a natural health researcher, author and award-winning journalist with a strong interest in personal health, the environment and the power of nature to help us all heal He has authored more than 1,800 articles and dozens of reports, guides and interviews on natural health topics, and he has published numerous courses on preparedness and survival, including financial preparedness, emergency food supplies, urban survival and tactical self-defense. Adams is an independent journalist with strong ethics who does not get paid to write articles about any product or company. In mid 2010, Adams produced TV.NaturalNews.com, a natural health video sharing website offering user-generated videos on nutrition, green living, fitness and more. He also founded an environmentally-friendly online retailer called BetterLifeGoods.com that uses retail profits to help support consumer advocacy programs. He's also a noted technology pioneer and founded a software company in 1993 that developed the HTML email newsletter software currently powering the NaturalNews subscriptions. Adams also serves as the executive director of the Consumer Wellness Center, a non-profit consumer protection group, and practices nature photography, Capoeira, martial arts and organic gardening.
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Tuesday, April 06, 2004
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