World Recession now Inevitable - Assume the Crash Position!
You can hardly have failed to notice the massive consumer-fuelled boom across most Western economies the last 5 years or so. In the wake of 911, decisions were taken at the very highest levels that a recession at this point would be disastrous, and so it was 'put off' with the panacea of low interest rates.Interest rates, in fact, have been hovering at or near 50 year lows since that time in most developed nations including the US and UK, and have only recently begun to rise back to historical norms in the face of worldwide economic pressures.The 'optimistic' among us seem to think the current situation can continue indefinitely, with a 'new paradigm' of low interest rates, easy credit, and massive house price inflation in what is otherwise a low inflation environment. They are, of course, wrong, as the key phrase 'new paradigm' should have alerted you. Whenever anyone says 'it is different this time' you can safely bet your very last dollar that it isn't!But why can't the current 'perfect' situation continue? There are 2 explanations, an easy one and a difficult one. We'll take the easy one, of course.
Imagine you lose your job. You still have bills to pay. So you max out your main credit card buying those little luxuries like food, and mortgage payments. The next month, you still have no job, so you apply for another card, and max that out too. The third month, however, to your horror, you discover that not only do you still not have a job, but the credit card companies won't advance you any more money, as they are aware of your previous credit binge, and the fact that those debts are still outstanding.
You have become a 'bad risk'.So what do you do? Go bankrupt? What choice is there? If you have no income, and have no source of borrowing, yet still have outgoings, you are bust. Period. In fact, even if you do find a new job, it must now pay MORE than your old job, because you now also have the interest payments on your new debt to support.For 'You' read 'America'. For 'bankrupt' read 'recession'. The US, and most other Western states have relied to an incredible degree on cheap credit, happily supplied in the main from the Far East.
This situation just changed, with the Chinese 'warning shot' across the bows of the dollar, and the smart money is already exiting greenback positions, even though relative to the other main currencies, it should in theory be an attractive home for cash.The resolution of the current credit bubble may take another year or so to truly unwind, but when it goes, the bust will be BIG. What should you do? Go to cash, and in more than one currency!For the technically minded, the reason why the coming recession is inevitable, and may even be a 'depression', is simply that countries relying on credit to sustain themselves incur 'carry costs' of those debts. The more they borrow, the bigger the regular payments become to support just the interest on the debt. There are only 2 ways to pay that off - devalue your currency so the debt becomes worthless, or inflate your economy so your GDP rises at MORE than the growth in carry costs on the debt.The US cannot devalue the currency deliberately, without obvious severe socio-economic results that will be punishing painful to the American citizen and industry. Politically, of course, this would be suicide for the incumbent US Leader.The alternative is to spark increased internal economic growth, and this is usually what credit binges are used for - to create new industries, employment etc.
In the case if the US, however, the unprecedented sums borrowed from Chine and Japan have been spent on... you guessed it, Chinese Plasma TVs and Japanese game consoles. Oops.The carry cost has been rising at a rate almost 4 times as fast as the internal US growth for some time now, and has already passed the point where any conceivable US growth schedule can comfortably cope with it. As the Far East just decided the Dollar isn't so great anymore, there really only is one way out now. Down.
Don't say you weren't warned!.
Peter Parsons writes for www.nodebtever.com the free site full of advice on debt.Pay Day Loans - Can you do without?
Pay Day Loans - Can you do without?
Do you really need to take out a Payday Loan or other short-term cash advance loan? The question must be asked before you act, and the answer must be for all the correct reasons, not solely, because you can justify it in your own mind. What effect will a payday loan or short-term loan have on you in the next few weeks or on your family?
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Could you have borrowed of a family member...
Cash advance > Pay Day Loans - Can you do without?
CellForCash.com Puts out Emergency 911 Call
OCALA, Fla. (ContentDesk) July 5, 2005 -- CellForCash.com, which pays cash for used cell phones and then re-markets them around the world, put out a call today for more cell phones that it can donate for free to law enforcement agencies and affiliated groups through its successful 911 Cell Phone Bank program.Individuals can go to the www.CellForCash.com website, print out a mailing label and then send in their phone.CellForCash.com now donates around 1,000 cell phones each month under the program, but demand is on the rise. Besides the phones, the program also provides participating agencies with much-needed cash. The agencies also provide the emergency phones to shelters, victims of abuse, and senior citizens in need."Since we started this program a little more than a year ago, law enforcement agencies have enthusiastically partnered with us to get emergency cell phones into the hands of people who need them," said James Mosieur,...
CellForCash.com Puts out Emergency 911 Call
Cash advance > CellForCash.com Puts out Emergency 911 Call
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Lawsuit Loan Saves the Day for Auto Accident Victim
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Joel Teo
By Joel Teo 2005 All Rights Reserved http://www.quickinfo247.com/7613018.3000/FREEDid you know that it is possible for you to break out of the poverty trap and become debt free. For many people who have very bad credit ratings, such a statement would be totally out of their contemplation. Becoming debt free is a real possibility and not merely just some puff or dream. This article will tell you how by starting and seriously working your home business, you can help yourself become debt free within the next few months if you are serious in doing so. Firstly, why are you in debt? The reason is that you are in debt is a lack of an alternative income source into your pocket outside of your job.
An internet based home business can help you become debt free by helping you generate a second source of income into your pocket. Plus you can avoid having to talk to cold prospects as people who signup for your business are qualified and want to know more about your home business. Secondly...
Joel Teo
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New Discovery May Lead To More Effective Acne Treatments
Scientists Discover Genetic Make-up of Acne BacteriumScientists have long known that the bacterium Propionibacterium acnes (P. acnes) plays a leading role in the development of acne vulgaris, the scourge afflicting some 80% of teenagers and many adults as well. A normally harmless microbe that lives in the hair follicles of every person, P. acnes helps cause acne when the follicles become plugged with sebum, a natural oil produced by the body.Recently a team of German scientists, led by microbiologist...
World Recession now Inevitable - Assume the Crash Position! New Discovery May Lead To More Effective Acne Treatments Cash advance
Cash advance > New Discovery May Lead To More Effective Acne Treatments
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