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I think you have it backwards. A red flag should go up in your brain every time you hear or read that the MSM thinks the economy is getting better because consumers are borrowing more and spending more. Borrowing and Spending on credit is what GOT US into this mess. Doing MORE of it only makes things WORSE. Get it??? We can't even pay off what we've already borrowed. The answer is certainly not to borrow more.
Think of your own household. When you run out of money do you keep spending on credit? Of course not, you wait and save your money until you have enough to spend it on what you need. That is what we need to do as a country.
Very good accurate answer. We are in this mess, because of borrowing more then we can chew.
Nice to borrow and nice to spend spend spend, then you pay pay pay.
Wait, some will pay, and some will walk away.
It remains to be seen. A huge upswing in borrowing happens before the 2007/2008 crash and it was reckless lending and borrowing that led us there. I hope this is a good sign, but it may not be. Time will tell.
That chart explains the upswing in borrowing/debt. It's not a sign of recovery; it's a sign of desperation as more and more people are having to use credit to cover living expenses.
Very good accurate answer. We are in this mess, because of borrowing more then we can chew.
Nice to borrow and nice to spend spend spend, then you pay pay pay.
Wait, some will pay, and some will walk away.
Yes and even worse, everytime we spend without having savings to pay for it, the money supply is expanded. A larger money supply means that each dollar will buy fewer items.
I love to go back to 1967 which was the last year one dollar bought one dollar's worth of stuff and see how irresponsible the Federal Reserve has been since then. Back then a loaf of bread was 28 cents (and we still had a Gold Standard). Today isn't it more like $2.50 to $7.00? Today you get less whole bread and more preservatives and chemicals or genetic engineering for your purchase too.
Moral of the story is DON'T BORROW. Why reward the banksters even more? Instead pay CASH for everything you can or don't buy the item.
If our economy was getting stronger we'd see prices actually go down.
The dollar would strengthen and buy MORE NOT LESS and LESS.
When President Jackson finally was able to shut down the last Central bank we had before the Federal Reserve was created (which was the Bank of the United States) in the 1830's, we had nearly 80 years of REAL PROSPERITY. (He also oaid off the National Debt by the way and was the ONLY President to ever do so.)The dollar gained purchasing power to where it bought as much as $4 worth of stuff! You could actually get more stuff than what a dollar would buy after the Revolutionary War in the late 1700s.
Imagine being able to pay just $1 and buy 16 loaves of bread. If this country was doing well, that is what costs would be like. We'd all have boatloads of money left after buying food and paying for utilities and housing.
One thing we would not have would be a status quo Federal Reserve supporting President like we've had since Kennedy. We'd need a Ron Paul or the equivalent to turn this country around and make it truly great again.
Romney's entire platform is not turning around the economy. A good portion of his platform is restoring glory to this country by fending off a President whose only real intent is not love of country, but transformation of a place he has abhorred since he became a Young Radical.
Not sure how increased borrowing is good for a country as indebted as the United States of America. Business borrowing is healthy. Household borrowing not so much. With what income will they pay it back with? Did people not learn anything from the past 3 years?
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) could have done a better job, got us turned around quicker... but that's hypothetical, isn't it?"
