The Coming Economic Meltdown?

[Jack Ryan]

Years of government spending out of control has put the US federal deficit at approximately $8.9 trillion (thats $8,900,000,000,000). With a population of about 300 million in the US this averages out to about $30,000 per person or for a family of 4 a tidy sum of $120,000. In addition, to this there has been a over supply of liquidity conisiting of high risk mortages that we are just now beginning to see the economic impact from. Lastly consumer savings rate in the US is at (or close to) an all time low even dipping into negative terrirtoy in 2006.

The US dollar has also continued its slide versus other currencies. All of this leaves the US in a very precarious position. During the depression era of the 1930s the government was able to spend large sums of $ to help jump start the econmy and keep people working. If we were to have another significant recession or depression we likely will not be able to rely on Federal Spending to help us since we are already significanltly in the red. The full impact of a strong recession on this country and the world is unkown although we can be sure it wont be a pretty picture. Hopefully we will not be around to witness the coming economic meltdown. :ohno

[HSmomto4]

You know, I hang my head in shame on this...

My father taught me from the time I was a child to save and not to buy on credit. He put over half his salary into savings! When his car payment was up, he still made a payment to himself so when he needed another car he could pay cash for it. My father made almost $100,000 a year and we lived very modestly. He has been driving the same car for over 10 years and will drive it till it just won't go any more. When his friends were refinancing and taking out second loans for 2nd homes and new cars and toys, he wouldn't budge! Even today he only lives off of his retirement and social security even though he has enough money to play it up for the rest of his life! But you know what, my Mom and Dad today don't have to worry about a thing! There is no wolf at the door, no worrying about how they will by groceries and no worrying about having a roof over their heads. They take one or two nice vacations a year and still live a simple life. I'm very proud of them...of him; Mom isn't as good at it :)

Me? Well I haven't done too badly. I have a big house payment, more than I should have but I have no car payments and only 2 very low credit cards that could be paid off at anytime. My problem is that I am not saving. I need to save more. I need to start being more like my Dad so I don't have to worry about the economy either. I think post like this are a reminder that I need to start watching dimes and to stop wasting like I have endless money.

[babylonrising]

I've been saying for years that eventually our credit will run out and America will literally be "broke".

I read an article on CNN that stated in each of the past two years, Americans have spent 101% of their income. The average American is falling further and further behind in their debt to income ratio. People have to rob Peter to pay Paul. When a credit card balance comes due, they are transferring the balance to a new card to avoid the monthly bill, or taking out a new line of credit to cover their current debts.
My ex had a major issue with credit. When we divorced, I was stuck with about $30,000 of debt to pay off. That was ALL in credit cards. I paid it off and will never use a credit card again. My goals now are to save, save, and save some more. The time is coming when we will need the cash and it will not be there.........

[HSmomto4]

Our goal also is to get out of debt. It is so hard though when you need every dome to live.

[jda303]

As I have posted before, I am a bankruptcy attorney so I have seen the economic meltdown coming. On an individual level, there are a variety of factors leading to financial ruin. There are those factors that are beyond an individual's control, such as health problems, or loss of employment. However, many times a person's financial difficulties are a result of their living beyond their means, having little economic literacy, and possessing a sense of entitlement. I can tell you that there is almost no concept of the maxim "actions lead to consequences." Couple this financial irresponsibility and lack of economic education on the individual level, with the government's over spending, the devaluation of the dollar, and the looming mortgage/real estate bust, and you can see how perilous things are. Not to mention the fact that our borders are wide open. I expect there to be a suicide bombing on U.S. soil at any time, which could be the lead domino to topple our economy.

[Veillifted]

Laws are in place to keep the middle class continually in debt. It is a form of control through perpetual debt, how else do the banks get away with it. Greed and power in play as always:)

Our trade deficit with China alone will cripple the US & chinese economy.

Interesting article on China and US interdependency, how we cannot live with or without each other. Unsustainable market dependency.

[keylan]

One thing Ive learned in over 50 years is that God is smarter than me, and not heeding his advice puts me and my loved ones in peril. Paul clearly states that the only debt we are to have is the debt of love.

Our culture incourages indebtedness, commercials tells us we deserve this and that. Coveting is the national norm. When we are not content in the state that we are in and we dont have the funds to buy what we think we need or more likely want, credit comes to the rescue.

Using your home as a piggy bank has been a national pastime the last few years. But it appears that the time has come for the reckless easy credit culture we have been living in to pay the price. All of us will suffer for the fools who have lived above their means. Johns words will soon ring true it appears. Hopefully those of us in Christ have been good stewards and will be able to weather the trouble that will come upon our country because of its culture of fooishness. We are called to live differently, Joesph lived his life knowing that at anytime the rug could be pulled out from under him. He learned to save for that rainy day. May we all use Gods wisdom in our daily economic activity. I have learned that before I make a purchase I shoud prayerfully consider it, I was surprised at first how many purchase I would forgo when I applied pray to the equasion.

[Old 33]

Laws are in place to keep the middle class continually in debt. It is a form of control through perpetual debt, how else do the banks get away with it. On the other hand, for the most part no one makes anyone take on debt. The debt that gets most people into trouble...people choose to take on that debt (mortgage, car payment, credit cards).

You don't have to buy a house. You can rent, or save up and pay cash.

You don't have to buy a new car. You can save up and buy a used car, or pay cash.

You don't have to use credit cards.

Our culture incourages indebtedness, commercials tells us we deserve this and that. Coveting is the national norm. When we are not content in the state that we are in and we dont have the funds to buy what we think we need or more likely want, credit comes to the rescue.

This is true. But it's still a personal choice to go along with the culture.

[Free in Christ]

This is one of my passions that God has given me. I have helped many couples straighten out their finances and perspective. It takes time, effort, and obedience to God. It is not easy but the freedom is so worth it!

There are many good resources out there; however, I have found that Crown Financial to be one of the best.

http://www.crown.org

[Logicon]

What if you save all your money and then the dollar crashes to about worthless? That is certainly a possiblity.

Saving is a necessary thing, but most people don't get paid enough to save money. They can barely exist on what they make. And rent is much more expensive than a house payment. Rent never stops going up to ridiculous amounts. My house payment is half the cost of a one bedroom apartment.