Friday, June 4, 2010

What do you do when the money runs out?

We all have this problem at one time or another. Sometimes we live from paycheck to paycheck. Sometimes we borrow from friends or family. Sometimes we suck it up and hold off on that next purchase.

But what happens when the money runs out?

ALL the money!

Looking at the financial instability of nations borrowing from other nations with assets of air, what would happen if some day they all stopped and said, “Pay Up!”.

Just like a bank, would they sent bill collectors to the door to harass each other?
Would countries print more money to cover the bills with worthless paper? Would they invade the others privacy with armed bullies to pillage the physical property which indicated wealth?

Or would they just throw away the books and start all over again?

Reading about foreclosures and bankruptcies of families today, even with the excuse of over borrowing against income, many are throwing in the towel and starting over. This leads to depression, alcoholism, destruction of core families, drop-outs, homelessness, and even suicide. The banks are stuck with property that is lower in value or sometimes worthless. Cities are filled with abandoned buildings, warehouses full of reprocessed items, and increase crime and health problems.

We can all look back and point fingers, but it was pure greed that made all this happen. When my house was assessed for over five times of it’s worth, the writing was on the wall (literally).

Did we always think “That next raise will put me over the top and I can pay off some bills”? Was our thinking that if we bought something with plastic money we didn’t have and couldn’t pay back, the bill collectors would just go away?

What happened to “pay as you go” or “live within your means”? I just we were having such a good time, we forgot the lessons of the recent depression our parents endured. Did our consumerism overtake our common sense?

So what would happen if we threw away the books and start all over again?

When the debt balance disappears, businesses start to experiment, expand and hire. People would become more productive and happier without the worry of debt. Banks and lending establishment could start with fiscal policies that are reasonable and regulated.

We all started working at some point with nothing and we pride ourselves on our accomplishments and hard work by displaying our homes, cars, clothing, and other material signs accepted by society as wealth.

And deep within the psyche, our real wealth is having provided an effort for the necessary monetary reward to provided for survival.

Taken with a grain of salt, I’m a simple person with simple needs. I do not have vast fortunes of stocks and bonds and piles of cash. I do not want more than I can use. I’m do not value myself on my worldly goods or concerned for not having the latest gizmo.

I have no debt and a little bit of money that I will spend before I go, but I contemplate.

“What would I do if ALL the money ran out?”

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