Actually, credit is essential in an active economy. For example,
suppose I want to start a business making widgets. Before I can get
any income from their sale, I have to buy the machinery and hire
people. This takes money up front, which must be borrowed. Once again,
this is not rocket science. The problem is not the use of credit, it
is the use of too much credit of the wrong kind. Normally the system
is self regulating based on a bank taking responsibility for the loan
and its repayment. This system broke down because a corrupt system was
allow to grow in the US, mainly by the Bush administration. Again,
this is a matter of fact, not opinion or liberal propaganda. Unless
people acknowledge reality, there is no hope for a correction.
Ed
On Sep 25, 2008, at 12:17 PM, Remi Cornwall wrote:
I asked a friend once: "How do things get their price?"
"The price of something is whatever someone is prepared to pay for
it."
A false economy of credit is a house of cards. To me, in my simple
way of
thinking, money must ultimately come down to some form of barter for
labour
or resources.
I just have the feeling that there are too many parasites,
speculators,
lifestyle gurus, interior designers, flim-flam and not enough people
being
rewarded for real work such as manufacture or agriculture - too much
service
sector.
That bartering provides a means of living on the planet, right, at
its most
fundamental level? I break a leg then I need a medic, I need some
food then
I need a farmer, I need a house then I need a builder. I give
something in
return they decide if they need it or not.
What happens when two pop music starlets need each other? - on a
cruise ship
imagine the cry, "someone is about to suffer a major rhythm defect,
is there
a pop musician in the house?"
In times of economic collapse people barter skills or cigarettes.
There's then a whole level of life's luxuries that we are willing to
pay for
- trans fatty acid cream buns, big SUVS, keeping up with the
neighbours,
sports stars or movie stars that inherently have no value.
Therein lies the problem of credit card applications dropping on the
doormat.
-----Original Message-----
From: OrionWorks [mailto:[EMAIL PROTECTED]
Sent: 25 September 2008 18:52
To: [email protected]
Subject: Re: [Vo]:Do do do doo. Do do do doo...
Sobering and provoking thoughts from Remi, Ed, and Terry. Gives me the
shudders.
I find it curious that the consumer credit card industry doesn't seem
to have been mentioned in this mess, or perhaps I missed that aspect.
Considering the huge credit card debt load that our population has
accumulated over the years, the practice of enticing customers to
borrow more and more money to the point that a significant portion of
the population is now barely capable of making payments on the
principal, I can't help but wonder if that isn't a significant
contributing factor to the mess we are in. I'm constantly receiving
credit card offers in the mail, typically two or three a week. They
only have one goal: To get me in debt with them. Unfortunately, too
many people have done just that. It's absolutely disgusting. I wish
there was better regulation of the industry.
We will pay for this mess.
Answering Remi's prior question, I hold no position in industry or
academia. Walking the talk is a highly subjective matter. Having done
anything worth recognizing is also a highly subjective matter. And
what good works have I personally done? Also highly subjective. It
would seem that the older I've gotten, the more I've come to a
personal realization that there is so much I don't know, or
understand. But it's a start.
Regards
Steven Vincent Johnson
www.OrionWorks.com
www.zazzle.com/orionworks
