Facing the Terror within Our Borders: The Democredit Way

CreditLearningCenter.com has released a special editorial feature on credit and debt in America. The following is part one of a two part series: Credit and Debt in America.

(LOS ANGELES) - It's becoming quite clear to most Americans that a serious credit and debt crisis exists in this country. From national budget and trade deficits unprecedented in human history to rising levels of personal and credit card debt, our nation is increasingly threatened by a culture of consumption and credit that is the terror within our borders. With the government leading the debt parade and citizens falling in line, the borrow-and-spend cycle has stained the democratic way of life we champion, with the red ink of the "democredit" way we live - and it is eating away at the foundations of a great nation. The Warning Signs are Unmistakable Like a family that spends far more than it earns, or consumes far more than it produces, the warning signs are unmistakable: In the last quarter century, to pay for our mounting obligations, the U. S. has gone from being the world's largest creditor nation to the largest debtor nation, borrowing heavily from foreign countries to stay afloat. Sadly, we are now forced to rely on the "kindness of strangers" at a time in history when conflicting monetary and political interests, even terrorism, tell us it's not wise to rely on this economic lifeboat much longer. Ignoring the numbers won't make them go away. The U.S. now is dependent on foreign governments to the tune of more than $50 billion dollars per month. The U.S. Treasury's Bureau of the Public Debt has grown to almost 8.5 trillion dollars. Who owes this money, more than $28,000 per person or $113,000 for a family of four? We do, and sooner or later we'll have to pay - by way of higher taxes, or worse, through runaway inflation that could virtually confiscate the savings of retirement-age Americans and blight the financial futures of an entire nation. Aren't we getting tired of all this gloom and doom? Haven't we heard enough about "unsustainable" budget and trade deficits, the housing bubble, the tidal wave of credit card debt, the endangered middle class, and the negative 0.5% savings rate of Americans last year - the first time that's happened since the Great Depression? Maybe we haven't heard enough. Maybe we need to pay closer attention to the growing number of economists who see our nation's mind-blowing balance sheet and cry out to all who will hear: "batten down the hatches, prepare for rough waters ahead!" While no one knows with certainty what's in store for the U. S. or world economy, and if our day of economic reckoning is imminent, one thing is certain: While the government hasn't been able to restrain its credit compulsion, we must control ours. We must each take responsibility for our financial futures. Heeding the Words of a Founding Father As citizens of a free country, we can choose to use credit sensibly, reduce our debt, and live within our means. None of us is compelled to follow the government's lead and the "democredit" way, Rather, we can build a bright future of true financial freedom, inspired by the words of Benjamin Franklin, "Think what you do when you go into debt, you give to another power over your liberty." These are wise words to recall, indeed, as we face the terror within our borders. ======================================================== Walter Burch is the Editor-in-Chief of CreditLearningCenter.com.

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Comments Leave a comment on this story.

All comments and messages are approved by people and self promotional links or unacceptable comments are denied.

-freetolive- October 6, 2006 10:11 pm (Pacific time)

No problem, Julian Edney is the author of Greed. This article is relevant to Walter Burches since it offers additional insight into these same issues. Along with promoting this article which anyone can easily find, it is quite possible that it may lead to the web site denied by the editor. I am not a scofflaw so I don't recommend anyone go there. But if you read Julians article, that will be enough for me. He is a really good author and we would all be benefitted by reading him.

-freetolive- October 6, 2006 8:44 pm (Pacific time)

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Editor's note... We don't have the comments section for people to promote Web sites unless they have a direct impact on the community and are non-profit. If this is something that truly makes a difference to people and you still think we should publish it, then send us a detailed email telling us why.

We do have an advertising department, feel free to contact us there.

-freetolive- October 6, 2006 7:36 pm (Pacific time)

I have to say that credit MAY be for better or worse, a part of modern life, because one need not participate in it at all. Even though all around you others get rich off the credit they build, you might not want to touch that golden calf because it's a cheat and people loose.

Walter Burch October 6, 2006 4:54 pm (Pacific time)

This article was written as a caution against being awash in debts, especially at a time when our country's monetary policy puts us in a situation where we can be greatly harmed by hyperinflation. I agree that credit is, for better or worse, a part of modern life. But, it can be used to achieve real benefits in life, such as a home, or a car, or a college education -- or it can be used to make impulse purchases that take a lifetime to repay. It is the wise and prudent use of credit that this report is advocating. More than anything else, you do not want to support credit card companies who are charging outrageously high interest rates and assessing penalties and rate hikes. Understand how to use manage, protect credit, and make it work for you -- to enhance your life, not bury you in debt as has been the case with the federal gov't. Be Credit Wise, WB

Anonymous October 6, 2006 12:01 am (Pacific time)

I agree with you Walter, in a sense we should be responsible with credit and then I have another thought. Major credit reporting agencies require we sustain debt in order to score our credit worthiness. Without it, we can't but the very home we live in. But also, we should borrow against our home to access equity to invest. The smart person who wants to remain debt free their whole lives would have to survive renting and saving for a lifetime to buy a house. Let's say a kid out of high school today gets a job for min wage or about $15k a year. If he got real lucky he might $1k, ok? Year one. So far everyones in the same boat no matter what. But 5 to 10 years go by and some people learn to use credit. They might have two or three houses and owe a mint while making it cash flow positive. The ones who plod along with no credit, live in those houses and pay rent, they also work for those landlords as maintenance helpers etc. It's hard for me to put aside the risk of credit and its promises for the more responsible creditlessness way. Democredit is the only way because it starts where we live, in our houses. Renters are slaves and only feed the landlords. What if the landlords get a little more hungry? Any use of credit is feeding the Democredit machine because the CRA's report on everybody who use credit. If nobody used credit, there would be no use for the CRA. The price to live would be cheaper because guarantees of repayment would be gone and fewer lenders would want to invest in homes for people. So, houses would have to be sold at a discount to those who could afford it. A sellers motivation might be a quick sale or not but with everybody saving like crazy to buy a house the race would be on and the banks would be full of savings not empty awaiting collapse.

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Facing the Terror within Our Borders: The Democredit Way

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