Friday, April 13, 2012

Why you are STILL struggling.

Remember when you had money?  I do.  It was nice.  Nice like the lady at the store.  Nice like your neighbor.  Nice like the misters that shower you with cool water on a hot summer's day...  Except the misters NEVER quite work right! A breeze here, a clog there, or just not enough darn water...  a frustrated Las Vegan digresses.  We're broke.  Why?  The blame game begins:  It's the real estate agents.  It's the mortgage brokers.  It's the ignorant buyers.  It's the investors.  It's the mortgage companies.  It's the appraisers.  It's the bankers.  It's the BIG banks.  It's the Fed.  It's the Republicans.  It's the Democrats.  It's the Pagans, the Christians, the Muslims, the Jews...  IT'S SOME PEOPLE'S FAULT!
THAT is the assumption that everyone believes and never gives a second thought to.  Blaming people, ANY people is why you have no money and why most misters suck. PLEASE turn on your brain HERE.  You're about to get the answer, but it's going to require that you   ...THINK!!!
For the sake of simplicity, let's say LV is the entire world.  Now, LV needs an economy if they're going to mirror the greatness we've achieved.  So LV Reserve Bank prints up $5,000 to create our economy.  To establish this new money system, LV Reserve Bank decides to LOAN Mr. LV Business Guy this $5000 and says use this money and all we ask is that you pay us back the $5k + $1k in interest, in even installments, over 6 years. In sum, Business Guy borrows $5k and pays back $1k each year.  Time passes...
After the first year Bus. Guy has been smart and has saved $1k for his payment and pays LV Reserve Bank $1k.
The second year, after quite a bit of Ramen, Bus. Gus again makes his $1k payment.
At the end of year 3, Bus. Guy is purse snatching at retirement homes to come up with his $1k payment.
Some time during year 4 Bus. Guy just disappears. (The rumor is "off to Mexico".) What happened to B. Guy and his booming business of year 1?
Those of you that have been able to follow this have probably noticed, at the end of year 3, only $2,000 remains in the LV economy!  No wonder he couldn't make money...  THERE PHYSICALLY WAS NEARLY NONE LEFT!.  In fact, had Bus. Guy somehow paid 5 of his 6 years of payments, he would have discovered, NOT A SINGLE DOLLAR REMAINS TO PAY YEAR 6 i.e. The Interest on the original $5k.
There's only one accepted solution to this problem: LV Reserve Bank must lend more money to other LV Players (& maybe B.-Guy too) so that people can buy and sell and consume and LV Business Guy can obtain the money to make his payments (incl. interest).  This "pickle" is thus self replicating (via the 2nd round of loans), requiring more loans to feed the 2nd loans and so on and so on and so on...
What if the bank stops lending money?  TA DA!  You're living it right now!  The Fed/Banks (I know the difference - work with me) certainly DON'T stop collecting payments and INTEREST on the loans they've made.  BUT they've stopped loaning the cash into the economy which is required to service the existing loans (as explained in the "LV Example" above).

ONE MORE TIME! - Money going out (payments). No money coming in (no loans).  Money dries up (you go broke, one way or another...).


Keep in-fighting, blaming, and acting like a bunch of morons.

Change? Eloquent speaking isn't change. Charisma isn't change.  Even a black, Democrat President isn't change.

People working together.
People not fearing "different".
People doing what's right instead of what's right for themselves right now.
People being who they really are instead of who they're TOLD they are.
People realizing that there are A LOT more of us than them and

Such things ARE change.

We aren't having "money problems".  Money IS the problem.  Show me a problem and I'll show you a problem that if you dig deep enough, you'll find money at the root.  I know it's hard to conceive of any other way, but there is a better way.  Much better.  Step 1 is "HOPE".

I post something to this effect every couple years in hopes it will help.

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