Thursday, September 15, 2016

Leaving the Blessing of Esau

I wonder about the kind of society I am going to be leaving my son.  I grew up in the late-80s and the 90s, where the US was prosperous, despite being is decline in comparison to the 1950s and 60s.

My children have been born in the midst of a depression.  Yes, the economic numbers indicate that we had a recession and that we have recovered.  And certainly, in the area I live in, there is some decent levels of prosperity.

But when I travel I notice many things.  Going to various small towns in the US is a depressing thing as many people appear to be living in a much lower quality of living than they could be.

The wealth of our nation has been eaten up by debt, inflation, and taxation.  Meanwhile, wealth is shifted from the wealthier classes to the lower classes via welfare collections at the behest of the crony corporations.  You see, when most of your necessities are paid for by government money, what little money you do make tends to be more disposable than the average salaried worker.

Meanwhile, inflation is triggered by debt which, in turn, triggers inflation.  The prices of many major goods, such as housing and cars, are largely purchased via debt these days.  As such, many people who are way too qualified for loan approvals are buying homes and cars they can’t afford using bank notes.

This spiraling of debt cannot be sustained.  Sure, there will be artificial controls by the banks and the government in order to try and keep it all from crashing down at world-ending speeds.  But it will crash.  When you can’t afford a house or a car payment because you have to pay your college debt payment, suddenly the prices of these things drops.

Deflation is inevitable and with it comes collapse and unemployment.

There was no recovery from the 2007 housing crashes.  A real recovery would have seen reforms in the mortgage approval processes, no bailouts, many banking executives serving extensive prison terms, and a relaxation of banking regulations.  We also would see housing prices drop even more as a result and more people able to buy houses without having to go 30 years into debt.

I know I didn’t have much of anything to do with any of this.  The worst thing you can say about me is that I loan money to banks via my checking and saving accounts on their terms.  I have struggled to save money and to ensure that my family has adequate things.

But I’m nearing 35 years of age and I still live in a two bedroom condo with my wife and two kids.  If all Americans managed their finances the way I do, ensuring that savings are done first, we wouldn’t have seen such high inflation in the past decade and a half.  We wouldn’t see housing prices skyrocket.  And cars would be much cheaper overall.

I know, it is arrogant of someone like myself to say that everyone should manage their finances like I do.  No, you shouldn’t do everything that I do.

But doing what you’re doing now just dooms your children to the blessing of Esau:

39 Then Isaac his father answered and said to him:

“Behold, away from the fatness of the earth shall your dwelling be,
and away from the dew of heaven on high.

40 By your sword you shall live,
and you shall serve your brother;
but when you grow restless
you shall break his yoke from your neck.”