I am researching the issues surrounding the state of the global economy.
My current sense is that we are witnessing the verge of a collapse of the consumer culture. The collapse would come from its own excess weight. It has become too obese for its own good, like a man who cannot get up off his couch because of his own unrestrained indulgences.
Here is one of the most lucid articles I have read about the state of the economy:
http://www.dailyreckoning.com/
Not for the faint of heart!
Some highlights:
"The country got into this mess by living beyond its means for more than a generation. That's the message from the debt that's burdening so many individuals; debt is proof that you're living above your means."
"The solution is for people to significantly reduce their standard of living for a while and start building capital. That's what saving is about, producing more than you consume."
"In fact, Americans refer to themselves as consumers. That's degrading and ridiculous. You should be first and foremost a producer, and a consumer only as a consequence."
"The way you become wealthy is by producing more than you consume, not consuming more than you produce."
To become a saver requires a new way of living, based on a new perspective. The new way of living can be summed up with one word: frugality. Of course, not everyone will choose to exit the sinking consumerist ship.
Here's a revolutionary tool for money management and becoming financially prosperous (which is relative and has nothing to do with the zero's after your bank balance).
Feel free to forward this post to your family and friends. Knowledge is to be shared.
Future blog posts: if a sink is shipping, what do you do? (answer: you get off the sinking ship, get on a lifeboat, and look for a seaworthy ship)
Have a great day.
P.S. I recommend subscribing to The Daily Reckoning. It is lucid, honest, and insightful. Accurate financial insight will be important in the year ahead.
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