Sooner or later, you pay

Sooner or later, you pay 

You run up your personal debt. You can stall off the day of reckoning by moving your debt around. As it gets worse, the moves become more frequent and desperate. Business runs into this when they are failing. If the fundamentals do not change, sooner or later comes a day of reckoning. One day the business is doing just fine, (At least from the outside) the next day they are out of business. Personal bankruptcies can eliminate that debt. Business can sell off whatever assets they have and the investors take the loss. (Not to mention the workers who are out of work) But governments are different.

Governments can print money. When they get into financial trouble, they just print more money. The problem is, this is just another desperate move to prevent the inevitable. (Unless the FUNDAMENTALS CHANGE) The United States has not entered this phase yet, but we are getting much closer.

I have been watching for signs of inflation for years now. The spike in the price of gold is a classic indicator. Now I am seeing reports of how car prices are going to start going up. Food prices (caused mainly by the drought) are also expected to rise. I am seeing banks beginning to charge fees for letting account balances drop below a minimum amount. These were common in the late 1970's when inflation was reaching for 20%. Remember how gas stations were charging more for use of your credit card? The new regulations that went into effect will enable ALL merchants to charge for the use of credit cards. It has not begun yet, but it just may be an early indicator.

I am watching for these signs. So maybe I am just seeing what I want to see. What is unsettling is that I know that sooner or later, no matter how well you move to put it off, when your finances are poor and you are spending more than you produce, the day of reckoning comes. Unless you implement fundamental CHANGE. President Obama is NOT doing this. In fact, he is speeding up the process. Think that the gap between the haves and havenots is large now and growing? We have not seen anything yet.