Let Them Eat Cake

What do you do when your empire’s population has lost their purchasing power because of low wages? Why let them have credit. Link As this linked commercial emphasizes, actuality having real money just holds up the economy! Having real tangible assets is just too hard to liquidate. Herding sheep, carrying sacks of gold dust or shuffling through pieces of paper and coins just cannot keep pace with our expanding economy. Increase the rate of transactions and you increase the profit rates. If you’re running a Ponzi scheme Link this ever increasing purchasing fervor helps deflect attention from the sustainability of the inflationary bubble. Unfortunately the entire credit card sector is as I’m sure you’ve heard, a house of cards just waiting to collapse. Just as the main economy relies on a steady growth rate to maintain services, pensions and reinvestment, consumer credit companies must have an ever increasing base from which to profit and high unemployment rates are a death sentence to this industry. We can expect a lessening of credit limits and increases on service fees and interest rates as companies try to mitigate losses. It’s a fact that many people are falling back on their credit cards to help bridge the gap in these hard time not realizing this gap is more of a canyon. They will crash before they reach the other side. I’m sure many have discovered a sobering fact not covered in most media circles; you cannot absolve credit card dept by going bankrupt. How could this be true? Large companies and corporations who acted irresponsibility or just couldn’t make it can declare chapter 7 or 11. Why can’t I? Answers could come from Vice President Joe Biden. Link But they won’t. The dawning fact here is that we cannot have our cake and eat it too. While we likely will not be herding sheep to market any time soon, a slower pace of consumerism will happen. All is not lost for credit card holders though, credit cards are quite rigid and well constructed, they are ideal for jiggering the sheriff’s lock on your foreclosed home….