Tag Archives: savings

THE TRUTH ABOUT BANKS+

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When an individual spends money like a drunken sailor this leads to personal bankruptcy and they have to start over from scratch. When a business spends money like a drunken sailor the business is forced to raise prices and if they are not a monopoly then they go out of business or undergo refinancing bankruptcy proceedings.

When a big bank makes too many risky loans then soon it begins working in the red and bankruptcy threatens. The central bank or government can bail a bank out as it did after the real estate bust in 2008 because the bank was considered to be too big to fail. In a national crisis the central bank may take over failing banks and start running them in a more responsible way or permit one big bank to take over most of the remaining ones. There is always a way out of a financial crisis because money is the only issue and the money counterfeiters have all the power.

When the central bank begins to spend like a drunken sailor the national debt increases rapidly, it leads to a financially sick economy of big spenders, and ultimate bankruptcy of the entire financial institution threatens.

A bust after the unrealistic boom of money in circulation is the only cure to the spending crazies in the nation and world. Unfortunately a tightening of the money supply causes many business failures and the economic state of the nation deteriorates rapidly causing massive unemployment and further debt, this time worldwide.

I don’t fear the collapse of the worldwide profligate financial system because debt can be forgiven or refinanced as a solution so the humans in charge of the money supply are really the ones to blame if the world plunges into a worldwide depression. If the world money bags are too greedy and want to consolidate their power even more with a depression then they will and rule more and more of the world by bankrupting profligate individuals and businesses.

Money can be controlled rationally or irrationally and if the world is in a sick financial situation then irrational over speculation is the cause and it must cease or become less prevalent. New money rules may have to be instituted if the current financial system turns out to be a bust.

Banks should make relatively safe loans and incentivize humans to save some of their money for emergencies and retirement with decent returns on savings accounts. They are not doing so today, are encouraging profligate behavior, and are themselves becoming profligate investors of the nation’s money. Irresponsible money management on a small scale is unhealthy procedure and on a big scale it can be catastrophic and result in a hardship depression. I guess it is human nature to wildly speculate when times are good financially but unfortunately a bust is usually around the corner sooner or later as a result of such irresponsible behavior.

 

If you liked this evergreen truth blog then read more of them, about 1300 so far, or read one or more of my evergreen truth books, especially COMMON SENSE, rays of truth in a human world filled with myths and deceptions.

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THE TRUTH ABOUT SAVINGS+

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Save: v. to prevent with an event(s) and/or action(s) possible (injury and/or death) and/or (damage and/or destruction) and/or (embarrassment and/or usage) and/or error

The analogy of personal savings and fat in an animal’s body is very appropriate. When an animal is sick, suffers and injury, or is starving from lack of food then it can burn the body fat it has stored to survive until the body heals itself or finds more food.

Humans have emergencies. It may be a chronic health issue or loss of a job or need of money in retirement and with savings to rely upon you can weather the storm. Going into debt is another possibility for emergency situations but if the economy is in a depression or if your credit cards are maxed out then the possibility of getting financial help may be out of the question. OK, personal bankruptcy is the option in the modern world but the hardship it can cause can sometimes bring you to the verge of suicide.

Businesses are in the same situation. If they have savings or a financial reserve then they can weather an economic downturn when banks are not lending any money that easily. If their reserves are inadequate then severe financial downsizing or even bankruptcy threatens.

Banks and central banks also need savings or financial capital reserves because going into debt or working in the red for too long spells financial disaster. Sure, counterfeit money can be printed to bail out banks during a financial crisis but the national debt grows along with it and ultimately the debt has to be repaid unless there is debt forgiveness or restructuring or refinancing.

Banks wildly speculating with derivatives and other non tangible assets in the trillions of dollars have incredible potential future debt or obligations which no amount of money printing can save in a severe liquidity crisis.

International banks are increasingly becoming profligate wild speculators making riskier and riskier loans not backed by capital reserves. It is just a question of time before the governments of the world will start putting the brakes on this incredible bank Ponzi scheme with a new more rational financial system for the world and new financial rules for the banking world.

It may take a worldwide depression to shock the nations of the world into financial reality but the day of reckoning is coming sooner or later. The nations of the world which will come out of depression on a sounder financial footing will be the ones with rich natural resources and a large GDP and GNP.

Ruling justly with money is potentially possible but when the financial system loses touch with reality and tangible assets it is doomed to implode eventually. Gradual financial change is preferable to shocking sudden change but I doubt that humans on a spending addiction will be able to make the necessary changes in small increments with more just financial laws.

Inflation and ridiculous interest on savings accounts is not encouraging wise saving for individual family units and ultimately the government is a reflection of the budgeting ability of its citizens. Encourage private profligacy and national profligacy is the result. No inflation or a decent return on savings which keeps pace with inflation is one of the fundamental solutions necessary in a just banking system.

Budgeting is not taught in elementary school and that is one of the biggest failures of the educational system of any nation!!!!!!

If you liked this evergreen truth blog then read more of them, about 1300 so far, or read one or more of my evergreen truth books, especially COMMON SENSE, rays of truth in a human world filled with myths and deceptions.

For a complete readily accessible list of blogs and titles go to twitter.com/uldissprogis.

Enjoy!!!!!!

If you enjoyed this blog then here is a list of my most popular ones which you may also enjoy!!!

https://uldissprogis.com/zlist-of-my-most-popular-blogs/

THE TRUTH ABOUT THRIFT

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Thrift: n. being efficient and utilitarian with money

If you are an impulsive shopper who buys what you want and not what you need, if you have no money saved for emergencies or retirement, and if you don’t budget your money then you are not being thrifty.

Society no longer encourages thrift by not paying decent interest on savings accounts and no longer having safe investments for the long duration with the exception of real estate. It no longer pays to be thrifty with your money. The result is personal bankruptcies and nations teetering on the verge of bankruptcy not being able to balance their budgets.

China, Japan, Germany, Austria, and Switzerland are still examples of relatively thrifty nations but profligacy with money is also threatening them in the long duration.

Nature is thrifty with energy and has fat reserves for emergencies. It is time for humans, organizations, and nations also to become more thrifty with money or the symbol for energy. Live within your means or suffer inevitable personal, organizational, or national financial collapse.

If you liked this evergreen truth blog then read more of them, about 800 so far, and one or more of my evergreen truth books, especially COMMON SENSErays of truth in a human world filled with myths and deceptions.

For a complete readily accessible list of blogs and titles go to twitter.com/uldissprogis.

Enjoy!!!!!!

THE TRUTH ABOUT FRUGALITY

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Frugality: n. economically efficient with saved up money for emergencies and/or retirement

Being thrifty or frugal is no longer being promoted by western cultures and this misguided philosophy will lead to inevitable bankruptcy of too many individuals and nations.

 

Inflation, national counterfeit money, illogical large credit line limits, credit forgiveness encouraging profligate spending, and a poor return on investments or savings accounts is making planning for the future impractical and unreasonable. There is little incentive to save for the future because inflation eats away at your savings and the result is that individuals and nations no longer have a safety fat reserve of money to rely upon in emergencies or crisis situations.

 

The financially profligate and irresponsible are being rewarded at taxpayer’s expense and wealth is being concentrated in fewer and fewer hands rapidly destroying the middle class of hard productive tax paying workers.

 

The solution is rewarding individuals for saving their money with a decent percentage return and cutting the inflation rate to zero so that money does not lose its value over time.

Energy does not decrease or increase in value over time but stays constant so why should money lose its value over time? The value of money worldwide should remain constant for just world government. Now each nation or economic unit with the same currency is trying to steal from each other by playing with the value of their money to try and get a competitive edge. We desperately need one constant value world currency tied to tangible assets worldwide for distributional justice to exist for all nations.

All individuals, organizations, and nations have to balance their budgets and have some saved up for emergencies. The world money supply should also have some money in reserve for emergencies and it should not be counterfeited at will and distributed to politically favored nations who can’t balance their budgets due to irresponsible financial management and absence of population control whose increase makes  both physical and financial survival less likely.

 

Big money of course does not want to do that because they are too busy raping and pillaging those who work for a living and try to earn a living wage.

 

Investment and innovation will not cease but improve in quality and not quantity in the long duration if frugality is encouraged.

 

Frugal money management leads to sustainable just financial living which is then reflected in sustainable living in the environment too. Nature is efficient with its energy usage and has fat reserves for emergencies. Humanity must also learn to be efficient with its energy or money which is a symbol for energy and must ensure that each human economic unit functions frugally or sustainably within the greater whole.

 

Frugality is a measure of the justice in society for everyone and the absence of frugality rewards the unjust, inefficient, and frequently immoral in society with an unjust distribution of money within the society.

Frugality and morality can be thought of as necessary conditions for a potentially just human society. Destroy frugality and morality and humanity becomes a chaotic mess polluting the environment with deviant human forms and byproducts.

If you liked this evergreen truth blog then read more of them, about 800 so far, and one or more of my evergreen truth books, especially COMMON SENSE, rays of truth in a human world filled with myths and deceptions.

Enjoy!!!!!!