Financial Crisis: The Problem is Not the Solution

The “economic crisis” is complicated, yet simple enough for the average person to understand. So here it is: There’s no money. Simple, eh? lol Well, there is a bit more to it than that.

More accurately, there is less money. Our economy has been based on credit for 25 years. Manufacturing, real estate, commodities–sales in every sector have been driven by the availability of credit.

Credit is supposed to be temporary, but the absence of responsibility in our society has allowed us to borrow money to pay off debt. Much of the collateral used was valued based on continual growth in real estate. Eventually, the market ran out of buyers, prices collapsed, those who were allowed to purchase with no down payment or were approved for a mortgage they could not afford lost their homes, then the market crashed and many banks found themselves with a bunch of worthless homes that they had used as collateral to borrow money… The bill is due and now we are all going to wash dishes for a very long time…

What has been called a “credit crisis” and “economic crisis” is really a spending crisis. We purchased things we didn’t need with money we didn’t have. Now we are being told that the solution is to borrow a huge amount of money and invest it in dying technologies and sectors of the economy. The solution to the problem is not more of the problem, especially when most of the money will go to the people and corporations that drove our economy to ruin.

The plan is that billion dollars will be borrowed, plus interest on this new debt, and interest on the huge debt we already have, to “stimulate” the economy. So, they are going to borrow from the next generation to pay for the mismanagement of this generation.

Our economy does not require financing to continue the materialism and consumerism that have created an ecological disaster. If we are going to go into deficit, then every dime should be an investment in our future that aims to correct the misguided ways that got us into this mess.

In difficult times for individuals and nations, we should remember where our happiness comes from, and separate wants from needs. “The economy” can mean many things, in times of economic depression, we should measure the success of the economy by our ability to provide a quality standard of living for those hurt by our collective denial.

Save your money, spend wisely, reduce your expenses. We”ll get through this ; )

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5 responses to “Financial Crisis: The Problem is Not the Solution

  1. So true Dan.

    I am appalled but not surprised. Conservatives have completely taken the word ‘conserve’ out of their party. This new type of conservatives will never ever get it. They are criminals serving the corporations and sooner the Canadian public realizes this and gets rid of this cancer, the sooner we will be on our way to recovery.

    Excellent post, really enjoyed the way you put it in perspective.

  2. As much as I disagree with some of the ruling CPC ideology, at least they might have stuck to their belief in not incurring further debt on the backs of future generations. But no. Staying in power by offering a spending spree that has no underlying value-based compass is all we got. President Obama has a declared set of values and objectives. For once I am wishing we could just look South for inspiration and ideas – who would have thunk it?

  3. This is a great analysis. Unfortunately, the concept of living beyond your means is so entrenched in this society. The idea of easy credit has turned the populace into a new form of slaves to the corporations. It’s going to take a massive re-education for everyone to realize that living simply is preferable and okay. I think it should start with the student loan scam. Young people have unwittingly become indentured servants for life. To have such large amounts of debt when you are starting your adulthood is morally wrong. Post-secondary education needs to be available for those who want to learn. Many countries see this as an investment in the future.

    The corporate governments need to be stopped. The only time in the Bible that Jesus became enraged was when he saw the money-lenders in the Temple. Whatever your personal beliefs, this is a lesson that we can all take to heart.

    Corporate bailouts, payday loans, easy credit and student loans – all of these should be reprehensible to a thinking person. The best way of ending the madness is to vote for a government that is based on the philosophy “Live simply that others may simply live”.

  4. Agreed. As we learn to balance our own budgets, we will start to elect people that can balance the government’s budget. Until that time, stand up and tell people to live within their means. Yes We Can Change.

  5. Pingback: Rise of the Green Tories « The Quantum Buddha’s Blog

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