I saw your internet storefront; business must be brisk.

Yes, I’m going to need a loan to help expand. I stopped by a branch of the Fifth Second, but of course, it’s no longer a bank, since there are no banks other then the government, all-electronic bank. The Fifth Second is willing to loan me money, but now that money will be coming out of their private funds rather than out of depositor’s funds.

Why don’t you just use one of those new internet sites, where they match up savers and borrowers? There’s a huge influx of savers, willing to lend out money, since deposits at the government bank don’t earn any interest. The small, riskier loans are pooled, to reduce risk, but with so many savers throwing money into these loans chasing yield, I wonder if we’ll see another bubble, like what we saw with housing and college tuition loans.

But there’s a difference. Weren’t the housing and college tuition loans insured by the government?

Yes, now there is no government interference and the private markets will very quickly set proper rates. I don’t think we’ve ever seen purely market determined interest rates before. Now, there will never again be any federal or municipal debt to crowd out the credit markets. And the Fed, together with its interest rate manipulations, are gone forever!

Wasn’t the sheer size of government debt considered the largest bubble in history?

That’s what happens when debt is considered risk free. And there is theoretically no limit to the amount that can be issued, when interest rates approach zero. But how could anyone think that passing more and more debt onto future generations, could be considered risk free?

Now, exactly how did they defuse the bubble?

The entire government debt was eliminated. Large portions were written off. Some was paid giving away government property. Special tax assessments were made, using net worth taxes wherever possible, and some were allowed to pay by giving away ownership of properties, businesses, and other assets, where it might have been difficult to sell them to raise money. Lengthy negotiations were required. But the choice was between either a controlled settlement, or a catastrophic, uncontrolled collapse.

I’m glad our leaders had the foresight and courage to make the right choice.

Even the right choice was extremely painful. So painful that it was decided never to let the government issue debt again! At the same time, they questioned why the government should even have its own money. Instead of depositing tax money into a government account and then spending it, they could instead spend instantly created money and then retire that amount of money through taxation. This way all money could remain in private hands.

How could we trust government to generate the right amount of taxes to match government spending?

Taxes needed to be scalable and automatic, without the type of delays caused by debating wealth reallocation issues. That’s why simple rules were chosen, using the net worth tax where possible, since this is the only type of tax that does not reallocate wealth.

Gee, I’d like the power to create money out of thin air every time I want to buy something.

Actually, government spending will be much more constrained than before. If the President announces we’re going into another war, he better have a very good reason, because people will know that taxes are about to rise!

Duration : 0:3:36

Technorati Tags: bank, economics, economy, finance, financial, Government, inflation, money, news, politics, tax, taxes, wealth

The Short and Simple Story of the Credit Crisis.

By Jonathan Jarvis.

Crisisofcredit.com

JonathanJarvis.com

Duration : 0:7:32

Technorati Tags: animation, CDO, credit, Crisis, documentary, easy, economy, explain, finance, financial, graphic, graphics, how, money, mortgage, motion, news, securities, simple

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Duration : 0:4:49

Technorati Tags: advanced, african, American, angry, answering, black, call, cenk, Center, civil, collectors, commentary, cotton, county, court, dallas, debt, fields, jury, lawsuit, lawyer, machine, man, mental, messages, news, opinion, profanity, punitive, racial, racist, recorded, settlement, slurs, suit, swearing, technologies, Texas, turks, tyt, uygur, video, voicemalis, vulgar, won, young

Duration : 0:4:1

Technorati Tags: analysis, boyce, calloway, card, college, commentary, credit, debt, interview, money, news, sanyika, students

Duration : 0:3:13

Technorati Tags: CNN, CNN TV, debt, default, education, loans, Lynnette Khalfani-Cox, news, Student loan debt, student loans, Terry Savage, Zero Debt for College Grads

Insurance and investment firm LV= has released new figures that show the cost of raising a child to the age of 21 now stands at £201,000 that’s almost £10,000 a year (£9,610).

The study has found that the cost of childcare has risen by nearly half (43 per cent) in the last seven years.

Childcare and school fees are cited as some of the biggest financial hits when raising a child. The report found that these rising costs have forced parents to make cutbacks in other areas of life to fund daily living expenses.

Mike Rogers, chief executive of LV=, says “in an environment where everyone’s feeling the strain, it’s more important than ever to try and save little and often as it can all add up over the long-term.”

For parents struggling with the costs associated with raising children, now could be the time to get your finances on track perhaps by investigating the benefits of a debt management plan with a company like EuroDebt.

Duration : 0:1:4

Technorati Tags: news

Can you believe people use credit cards to pay the minimum payments on other credit cards! We are in for some major economic trouble.

Duration : 0:2:34

Technorati Tags: card, credit, crunch, debt, NBC, news, nightly

Duration : 0:4:33

Technorati Tags: analysis, boyce, calloway, card, college, commentary, credit, debt, interview, money, news, sanyika, students

Duration : 0:6:3

Technorati Tags: ABC, agency, bad, care, CBS, collections, collectors, consulting, credit, dateline, debt, FOX, high, housing, low, money, MSNBC, NBC, news, raise, repair, report, reporting, score, Scores

New research from moneysupermarket.com found that fewer people were permanently overdrawn in 2009 than in 2008 but the comparison site warned that rising inflation could see this group finding their personal debt harder to cope with.

The cost of childcare is rising too, according to insurer LV=, making it more important than ever for families to get their debt management plans in order.

Despite the failure of the unfair bank charges case late last year, Moneysavingexpert.com is urging who are still angry with their banks not to give up hope. The Financial Ombudsman Service offers a free and relatively successful way of getting bank charges back for people in financial hardship.

But for people facing insolvency and bankruptcy things look to be getting harder. The government has announced that the costs of declaring bankruptcy or winding up a company are due to go up in May.

And we saw the Financial Ombudsman Service in the news again at the end of the week releasing figures that show Lloyds TSB and Bank of Scotland to be the most complained-about of the high street banking names.

Duration : 0:1:18

Technorati Tags: news