Facts About debt
- Five 43 percent of all American families spend more than they earn each year.
- After adjusting for inflation, U.S. college students are borrowing about twice as much money as they did a decade ago.
- Mortgage lenders now have more equity in U.S. homes than the American people do.
- For households that have credit card debt, the average amount of credit card debt is an astounding $15,799
- Approximately 41 percent of all working age Americans either have medical bill problems or are currently paying off medical debt.
Slavery: not over yet
"Do you need a car? Just get an auto loan. Do you need a house? Just get a mortgage. Do you need to fill up your house with stuff? Just get a credit card. Do you need an education? Just get a student loan." -says Michael Snyder describing our sentiment towards debt.
the average person believes that if everyone works hard and pulls their weight can create value and move into the positive within our current financial structure. Unfortunately, the Fractional Reserve Banking Method makes it now mathematically impossible.
Our money is loaned from the Federal Reserve to our Government AT INTEREST... which must be paid back on top of the amount loaned using the same money loaned. Because the amount owed back is greater than the amount loaned, the interest can only be paid back by taking out another loan. This is the first reason it is impossible.
Our financial system is based on something called the Fractional Reserve Method. According to the New York Federal Reserve Bank, in a publication that has now been conveniently deleted (http://www.newyorkfed.org/aboutthefed/fedpoint/fed45.html) fractional reserve banking can be explained like this….
“If the reserve requirement is 10%, for example, a bank that receives a $100 deposit may lend out $90 of that deposit. If the borrower then writes a check to someone who deposits the $90, the bank receiving that deposit can lend out $81. As the process continues, the banking system can expand the initial deposit of $100 into a maximum of $1,000 of money ($100+$90+81+$72.90+…=$1,000).”
Meaning that for every dollar on reserve, 9 dollars can be generated out of thin air, blowing up the money in your pocket to potentially 9x more money than actually exists in hard paper currency. This is the second reason.
Unfortunately, there is not any hope of winning within our present monetary system.
Freedom is multifaceted with a lot of moving parts but there are some general areas that are essential.There is not one easy solution for getting out either. The best approach is to gear every aspect of life towards achieving it and get in and out as fast as possible.
- Come up with a plan to reduce and/or consolidate the debt you do have. Start with debt that carries a high rate of interest first (such as credit card debt). (find resources below). Debt consolidation and relief can provide relief in the short term, but this alone is not enough.
- Once you are out of debt, from now on only make purchases you can afford and not on credit. If you need to build credit, learn ways of doing it without going into debt. (see below for resources)
- Grow and make what you can yourself instead of buying it. (see sustainability page)
- When possible barter, trade, and exchange local or alternative currencies not on the fractional reserve banking system (see alternative currencies page).
- Produce your own Energy. to cut costs and gain independence in that area (see sustainability page).
- Invest in things that they cannot inflate. (see alternative currencies page)