Sounds ridiculous? But this is the idea that our politicians and central bankers are trying to drill into our heads. They want to tell us that by pumping trillions of borrowed money into global economy will help us to get out of crisis. They are trying to tell us that the problem of budget deficit can be solved by borrowing more. Big debt can only solved by bigger debt. Very interesting! If families tried to organize their budgets as our politicians do all of us would be living in the fields, because we would not be able to pay off the amount of debts that we have borrowed.
It looks like ordinary people are much smarter than expert economists and analysts are! To say nothing of politicians and central bankers! It looks like they do not seem to understand the real causes of booms and financial crises that are repetitive throughout the history of the nations. In fact, they are trying to solve the problems by the very same things that really were the causes of those problems. Borrowing and lending has brought us where we are today and if we really want to solve the problem we have to search for answers by trying to identify the real causes.
If we fail to do that we will only increase the chances of a second wave of crisis. And the second wave can be more devastating and unpleasant than the first one was! What will the officials do if the second wave comes? Most probably they will try to solve it by borrowing even more. Ok, it is time to learn from past mistakes, decrease spending, find more solid foundation for economic growth than pumping money into economy through loans and learn how to save money.To tell the truth I think we will go through that second wave. The only difference will be that some will be ready for it and others not. It’s time to get rid of as many debts as you can, save up a little and curb your spending habits. This will help you to survive the coming economic collapse. Most people lose their money during these events, but if you put some of your capital into precious metals this will help you to preserve some of your wealth. I think it is much better than keeping money in the banks and waiting for it to be inflated through more injections of printed money into economy.