Many Americans Are Living In A Financial/Economic Nightmare, by a subscriber to Mining Stock Journal.
Real living standards for ordinary people in the West haven’t risen since the 1970s, though fortunately technology keeps on improving. The productivity gains have been mainly captured by the finance system, which in 1971 was freed from ties to gold and thus able to create paper money/debt as demand required. People and areas of the West that were the beneficiaries of the new money benefited, but those that didn’t have been stagnating for a long while now. The middle class is being hollowed out.
This story obviously comes from one of the stagnating areas, somewhere in the northeast of the USA:
Our family has been in business here for over 100 years. Presently we run a collection of consumer-based businesses, including a hotel, restaurant and an apartment complex. We have very well run businesses with tight controls. All my top managers have been with the company for well over two decades.
Because of the nature of our businesses and related customer base, I have a first-hand, “front row view” of the economic condition of the average household. I can say with direct knowledge that the average American has entered an income and debt nightmare.
I’m writing you because the entire area where I live and work has finally hit a wall of debt. It’s gutted our customers, our businesses, and the entire economy in my area…Everybody including small and mid-size businesses use debt to maintain their daily existence.
Which is excellent for banks. The main business of banks is to create paper money out of thin air and lend it people at interest. Paper money and debt arise together, and paying off your loan extinguishes the money. The success for the banks (and their interest income) is measured by the amount of money and thus debt out there.
It finally showed up in ALL of our business starting this spring…our customers are BROKE and not coming thru the doors. Everyone up here lives by increasing their credit card balance each month, except for the very few that have their entire life savings in overvalued stocks. Before I wrote this, I asked my managers about their friends, family, and our employees. All are broke, living paycheck to paycheck.
Even in the alt-media, there is plenty written about the consumer being tapped out, but few are mentioning small and mid size businesses. Most are in the EXACT shape as the general public – just the numbers are bigger.
The drug use…heroin/meth is OUT OF CONTROL, a huge percentage of people up here can only survive with State and Federal assistance.
Central banking and the way money is currently created confer benefits for some, but are worse than the previous system for most of us. Yet the media hardly ever talk about it, or even how money is created (it’s hardly a secret). So it’s never a political issue, even though it is about the largest economic issue around. Curious.