America's Descent Into a Third World Country Has Begun.

The credit Score or FICO is the biggest scams out there it only gives you a false status like you are worthy or something where in truth it just helps the lenders select suckers that want to borrow and they trap you into borrowing. I have a 783 FICO, I could borrow more money than most, but guess what...I have $0 debt and everything I buy I pay off immediately. Why give the interest to creditors when I can earn interest on my earned money? I understand you have to borrow for somethings, but I say never borrow or spend more than you can afford. If you can not afford a new shiny car buy a used car cash just to get you from point A to point B. Try to avoid borrowing at all cost and you will sleep at night without worries. Don't get me started on the value of the dollar, people have to realize that for every action there is a reaction, we are collectively responsible for what is coming to us, thats what happens when we advise people to spend, spend, spend and consume, consume, consume. We are only seeing the early signs of the epidemic, and I think it will get worse, much worse if we do not change course and habit.

 

I would rather live in a shack that I own than a mansion that is owned by someone else, where I'm in debt for hundreds of thousands and have to make payments every month or lose the mansion.

When you look at it this way, in truth, people in "poor" nations are richer than Americans in a lot of cases. I mean, if you're broke, and you make money, you can keep it, you don't have to pay it to anyone else. But when you're debt, a portion of your income has to go into the pockets of someone else.

 

Hey Guru SEO I want to ask you what you think of this: In the first chapter of the book "Why We Want You To Be Rich" By Donald Trump and Robert Kiosaki, they say that "saving money is obsolete." What do you think about that statement?

 

I have had these same exact thoughts many times before...

 

Thats a loaded and good question Tesla and I think I can some it up in one word. DEBT (growing trade deficit, national debt, a depreciating dollar and baby boomers without savings). I have not read this book yet but I have "Rich Dad, Poor Dad" and I loved it and I highly recommend it to those who have not read it yet. Also other contributing factors of course are inflation, rising cost of living as a result of it and loss of value of the currency, so while the average American works more they are making less in a way when you account for inflation and cost of living, the rate at which inflation and cost of living grows dwarfs the ability for people to save. While the richer get richer the poor get poorer and the middle class disappears and we all know what happens when the middle-class vanishes. So I'm thinking that when they say "saving money is obsolete." they mean that average folk just can not seem to make enough money to ever save. I think they can if they have a good strategy in place though. And I speak from experience.

P.S. I think Robert Kiyosaki is a brilliant man and I read a lot of his articles on Yahoo. I find his way of thinking much in line with mine.
http://finance.yahoo.com/expert/bio/richricher/robert-kiyosaki

 

yeah but in a third world country if you have bad time you are dead

even poor people live pretty good in USA

Miami Beach is kind of nice , the rest of Miami is kind of debatable depending on what you are into

Anyone can go to auctions and anyone can buy foreclosures, I've gone to look at foreclosures

Why would the wealthy want BS houses where normal people live?

 

And how do they afford to do that? At the expense of the middle class.

We're moving towards a country where there are only two classes without a middle.

 

Not anyone can buy or get approved. With the credit crunch your average person is lucky if they get approved for a credit card with a $1,000 credit limit, let alone a $200,000 or $300,000 home loan in a declining housing market. We are in a recession and in a currency bubble and most smart financial wizards know that there is rough sea ahead and have tightened lending standards which unfortunately is making a bad situation worse, but thats what happens with a system like the one we have right now, it needs to collapse for it to be rebuilt the right way from scratch and correct itself. Its sad but thats what happens with boom and busts.

 

The economy is pretty good right now. I look at it like we are in the eye of the storm.

 

I say the economy is NOT doing pretty good right now like you say, and there is some pretty smart people out there that would agree with that. If I were to describe the US economy right now it would be the it is a boat with 21 holes in it and you've used both 10 fingers and 10 toes to plug em, but you still still have that one hole that will sink the boat. DEBT!

 

One of the biggest problems I see is the "Washington Bailouts" and runaway spending. High taxes are not necessarily evil but high spending is. With high taxes and low spending eventually the government would have reserves and reduce taxes. Now high spending is just plain evil.

The current housing bubble is just one symptom of the people. Hey, you can sell you house for 3x what you paid for it but if the price drops 5-10% then the government needs to bail you out.

Property taxes is another one. In the 3rd world you pay a few bucks. On the US Coasts it's normal that you pay $10,000 a year on a house. When you fail to pay property taxes the government is going to take your house. When you are in negative equity on the home and can't pay the taxes you will be on the street.

 

We are in the eye of the storm and it's certainly possible to make some money.

November consumer spending ia up by the largest amount in 3 1/2 years

http://news.yahoo.com/s/ap/20071221/ap_on_bi_go_ec_fi/economy_112;_ylt=Avdy.ffAIdtzV6tZ_RlSWMyz1g4B

What I fear is a 1980-1981 type recession. The US has not had a servere recession for 25 years and most people have no idea the world of hurth that they will be in.

 

You know why the government and congress spends more? BECAUSE THEY CAN BORROW MORE! And guess who pays the bill? You got it! We the people. We pay over $1 Billion a day on interest alone and at the rate we are at right now paying of the national debt is really impossible.

 

I fear that it might get worse than that. We are in a collision course and if we do not put the brakes on immediately and change things radically it will get very nasty, thats why I support Ron Paul, he has the right idea no matter how off the wall it might sound to the simple mind he knows what needs to be done and he is not afraid to implement it even if it hurts the establishment and the elite.

 

That's the problem. The government and candidates only talk about cutting taxes. Reducing spending is not discussed.

As you have pointed out borrowing is a back door tax sosting 1 Billion a day.

 

One solution is go South of the Border. Retirees are moving there by the millions.

 

The wealthy could acquire the houses, then turn around and rent them out to people. That is what I would do right now if I wanted to move into the real estate market, and had loads of cash. I would purchase a few properties at foreclosures, maybe even invest a bit to get them fixed up if they need it, then offer to rent them out to tenants. By doing this, I would automatically have new streams of residual income coming in. Hell, I could even turn around and have people rent to own the house. There are a lot of ways to profit from the subprime crisis.

By the way, what do you mean when you use the term "normal" people. Where exactly do "normal" people live? You make it sound as if normal and wealthy people live in different places.

 

A better solution would be to vote Ron Paul first. If that fails than we're all shit out of luck and start looking at expatriating and moving somewhere in South America in survival mode with whatever savings you got left. And if you have no debt to leave behind you are one step ahead of most.

 

I to have a lot of respect for Kiyosaki, more than Donald Trump, though I have a degree of respect for Trump as well. Trump was born with a silver spoon, so he can never truly appreciate what it means to build an empire from scratch........Kiyosaki understands, but Trump doesn't.

When I first read that sentence in their book, I admit that I may have taken what they said out of context. When you talk about the general public, you are largely right about saving money, though there are exceptions. I think I'm going to read Kiyosaki's books, I've heard a lot of good things about him.