And now, in its frantic efforts to stave off deflation and bring back prosperity, the remedy the US has chosen is to push consumers toward over-spending again. But the consumer's reaction to the current recession is to cut back on debt and to save.
"No, no," says the government, "forget saving, forget paying off your debts, you've got to spend more. You've got to save the nation with your spending." The consumer retorts, "But I can't spend more. I've lost my job, and I don't have the money." "No problem," answers the government, "If you don't have the money to spend, we'll give you the money. Buy a car, and we'll give you a $4500 deal. What's that, you're losing your home? Call us and we'll work it out. In fact, this is a great time to buy a foreclosed home. Why not go for one?"
And the Russell question -- Can government-sponsored spending get us out of a recession that was brought on by consumers over-spending? Can a government push consumers to spend us out of a recession? On the face of it, it sounds illogical and kinda crazy. Any way, that's what I've been wondering about.
In the new world of Green Shoots, "less bad" is the new good. "Hey, thank God, -- At first, I thought I had cancer, but it just turned out to be a heart attack."
That's the answer to the country's economic problems: encourage people to go into debt to buy a new car ... the one consumer item that loses about $10,000 of it's value as soon as the consumer takes possession.
Are they totally insane?
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Never take for granted your debts and try to prioritize them first. Create a debt management plan with your creditors so that you can fairly settle your obligation.
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Avoiding, Understanding and Surviving Bankruptcy
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