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.K/C SOLUTIONS ARMS CONSUMERS WITH CUSTOMIZED DEBT REPAYMENT PLANS
BIRMINGHAM, ALABAMA -- September 3, 2003 -? With the August 2003 launch of its website, K/C Solutions began offering personalized debt repayment plans to debt-ridden consumers. Plans are customized based on the consumer's current debt situation and are based on basic mathematical and financial principles. K/C Solutions believes that many debt-burdened consumers can avoid credit counseling or bankruptcy when armed with budget awareness and a focused debt repayment plan. "Many consumers, in an effort to make progress in paying down their debt, pay as much as they can on as many accounts as they can," states Kelly L. Cullison, owner of K/C Solutions.
"There is no focus to an approach like that. A well-crafted repayment strategy allocates available funds in a manner that achieves the most benefit for the consumer. The beauty of a focused repayment plan is that many consumers do not even need to increase their current payments."K/C Solutions' results are dramatic: one customer was...
K/C SOLUTIONS ARMS CONSUMERS WITH CUSTOMIZED DEBT REPAYMENT PLANS
Debt consolidation > K/C SOLUTIONS ARMS CONSUMERS WITH CUSTOMIZED DEBT REPAYMENT PLANS
A Guide To Federal Student Loan Consolidation
Federal Student Loan Consolidation is a financing facility that allows a borrower to merge his several federal student loans into a single new loan, and thereby bring them under one repayment plan. Federal student loans are generally issued or guaranteed by the United States government and comprise loans from the US Department of Education as well as the Department of Health and Human Services. These do not require any collateral security, and in contrast to private student loans, have low rates of interest. The Stafford loan is one of the most popular federal student loans.
When a borrower consolidates federal student loans, the original federal student loans are paid off by a loan consolidation company or by the Department of Education.
Then, a new loan is created with one monthly payment. One of the prime advantages of federal student loan consolidation is that it lowers one's monthly payment by up to 60%. Low fixed interest rates, reduced monthly payments, and...
A Guide To Federal Student Loan Consolidation
Debt consolidation > A Guide To Federal Student Loan Consolidation
K/C SOLUTIONS ARMS CONSUMERS WITH CUSTOMIZED DEBT REPAYMENT PLANS
BIRMINGHAM, ALABAMA -- September 3, 2003 -? With the August 2003 launch of its website, K/C Solutions began offering personalized debt repayment plans to debt-ridden consumers. Plans are customized based on the consumer's current debt situation and are based on basic mathematical and financial principles. K/C Solutions believes that many debt-burdened consumers can avoid credit counseling or bankruptcy when armed with budget awareness and a focused debt repayment plan. "Many consumers, in an effort to make progress in paying down their debt, pay as much as they can on as many accounts as they can," states Kelly L. Cullison, owner of K/C Solutions.
"There is no focus to an approach like that. A well-crafted repayment strategy allocates available funds in a manner that achieves the most benefit for the consumer. The beauty of a focused repayment plan is that many consumers do not even need to increase their current payments."K/C Solutions' results are dramatic: one customer was...
K/C SOLUTIONS ARMS CONSUMERS WITH CUSTOMIZED DEBT REPAYMENT PLANS
Debt consolidation > K/C SOLUTIONS ARMS CONSUMERS WITH CUSTOMIZED DEBT REPAYMENT PLANS
Debt consolidation ringtones World Recession now Inevitable - Assume the Crash Position!
Snoring- a Small Change Can Make a Big Difference
We all know how annoying snoring can be, both for the snorer and the partner. The effects and seriousness of snoring are becoming more apparent with snoring being linked to conditions like high blood pressure and coronary disease. The different types of snoring, range from a simple puff to a full on roar and there isn't one school of thought on the reasons behind snoring. Snoring, I believe, is a signal that the body's systems are out of balance. Finding which system is the difficult part....
Debt consolidation Snoring- a Small Change Can Make a Big Difference mattresses World Recession now Inevitable - Assume the Crash Position!
Debt consolidation > Snoring- a Small Change Can Make a Big Difference
Wholesale Designer Handbags
If you have an eye for detail, you can save a lot of money while buying wholesale designer handbags for resale. At an auction, it is imperative to read the descriptions carefully, in order to bid appropriately. If you are planning to resell the handbags, it is also important to know if you are bidding on authentic or imitation ones. This information would keep you from being taken advantage of and would also aid you to appropriately price the handbags once you put them up for sale.
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Debt consolidation > Wholesale Designer Handbags
Debt consolidation
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