You can't borrow your way out of debt

I know, I know, this is common sense. But I just wanted to share and article of the same title with ATS because of a section it contained named; "The Fiscal Sanity Movement."

You can't borrow your way out of debt

This section is located toward the end, but it is all worth reading. The idea proposed is that we need to get all those people who are fiscally prudent in America, who bank with the most insolvent institutions(i.e. the ones who received bailout money for their misdeeds), and convince them to move their money into small, local banks that never made a bad loan. There are thousands out there, probably in many of the towns and cities in which you live.

If enough people do this, these banks will die slow deaths, and their power will be taken away. A very empowering concept for those who have been smart with their money.

reply to post by ludaChris


Well, you could do like I do, Not get into debt in the first place...lol, well except the two payments I had left on my vehicle that I defaulted on, but that was very miniscule amount they probably got back when they resold the vehicle, I'm sure, but have no incurred debt for the last about 8 years. Thank God for Charity care though, Or I'd have some debt.

I agree, the first step in getting out of debt is not creating any new debt. I have proudly gone hungry and walked - because I was out of gas - before I would put anything on a credit card or even borrow from my parents. Things are much better for me now, but it's easier to go "without" when you know you're working towards a greater good. I urge everyone, stop borrowing now. I laugh at those who say you have to have some credit to maintain your credit score. I don't need a credit score because I will not borrow - ever.

You know what the biggest item in the Royal French Govt's budget was in the 1780s right before the French Revolution? It was interest payments on debt owed. We are heading fast in that direction ourselves.

I encourage everyone to study the French Revolution for several reasons:

1)Its a model of a highly indebted collasing government and ensuing chaos and anarchy.

2) After the 30 Years War, France became a unipolar "hyperpower" in Europe because all the other contenders were wiped out by the horrors of that war, from which France had remained aloof. The result was imperial overstretch and a number of expensive, cumbersome wars in far-flung parts of the world, funded mostly through debt.

Sound familiar?

Like the man says, history never repeats but it often rhymes.



[edit on 6/29/09 by silent thunder]

I'd like to see a post from an Obama supporter that can argue this from the other side.

I know you can't dig yourself out of a hole but would love to hear how they can justify it, explain it, rationalize it.

reply to post by mikerussellus


I can't argue this from an Obama supporter's side. I try to understand their side, but I can make neither heads nor tails of it all. I was not a GHW Bush supporter . Something slimy about him. A kind of sissified tough guy I thought. Didn't sit well with me. Clinton? Yikes. Another slimeball. Actually quite a toad. GW Bush? At first I gave him a pass. He didn't seem slimy. He was "folksy" and I hoped for the best. Oops. What a sleaze bag her turned out to be. And now Obama, I saw he was a well spoken and a much loved creep. Yuck. I like to think that Obama means well, but something just tells me this is not so.

I ask my sisters and mom, what do you think about this stuff Obama is doing and they say in unison, "He's great! He talks good. He's trying and damn that Bush he spent more money in his 8 years than all previous presidents combined. Somehow it will all work out. He means well. It's not his fault. He was thrust into this dire situation"

Uh, yeah. I came upon a problem in the 1970's. I bought a car and I couldn't pay for it because I lost my job. Um. No, I didn't borrow more money to pay off the loan for the car. I willingly gave up the car and got a good deal out of it. I know, this is not the norm these days, but all I had to do was give up the car and all was forgiven.

There's a saying that when you find yourself digging a hole, you eventually have to stop digging and find your way out of the hole, that doesn't include digging yourself deeper. It's freaking common sense. Something that is too uncommon these days.

I, too, would love to hear intelligent responses from our present government supporters for all this way out of control spending.

By the way, Germany's leader is now saying she wants to lower taxes. You get growth from more money in people's pockets than in government coffers.



[edit on 30-6-2009 by kyred]

The intent of this thread was really to discuss the possibility of a movement of banking consumers to remove their money from the big banks and put it into the smaller, more fiscally responsible local banks. The article does give an interesting analysis of the governments numbers that they are projecting. It's almost laughable that they think any of this creative accounting will work.

Good to hear personal experiences, and the lessons learned.

[edit on 6/30/2009 by ludaChris]