I haven’t, a clue where we are headed, I just hope the Government does, but I doubt it. Take this incredible debt that we are servicing, – credit cards, loans, et al. How much of it will inevitably be written off, and who will be the losers in the long run? To answer that, one needs to examine the commercial chain. What are we spending the money on, which is producing the debt? Answer – property, here and abroad; services, like call centres etc overseas: imported goods – practically everything, from cars to light bulbs; manufactured food in lieu of home cooked; entertainment which includes drink, expensive TV and packaged entertainment – much from overseas, and labour. I understand, the Citizen’s Advice Bureau is recommending, for a debt which is beyond help, that, in preference to using one of the highly advertised financial advisers to manage, one should declare bankruptcy, for the obvious reason that the former policy only gets you further into debt.
We are told the people with the greatest spending power are among the retired, they have secure incomes from the old system rapidly being dismantled. When we have all snuffed it and the annuities are recalled, another source of stability will be gone. We then have to ask where we are going to get the money to repay these debts? To provide a lot of these services we are importing labour from outside and we are trying to house all these immigrants – some illegal – creating more debt. It doesn’t seem the money is coming from manufacturing, the utilities are partially owned by other countries, so it would seem we are really paying each other high salaries and fees for services, and the money we handle is going round and round. – but surely on its way round a high proportion is siphoned off to repay for the imports of goods and services. Where is the rest coming from, or are we building an even greater debt abroad? Some say the Stock
Exchange – we have seen what a broken reed that can be in the past.
Who do we owe all this money to? If we are welshing on our debts, then the suppliers of goods will not be paid, and if sufficient people and companies default, the foreign manufactures will not be paid. For services we will owe the banks, the utilities, the building societies, and maybe some small traders. The banks and building societies will claw back through repossession, but then they have to sell the repossessed items – maybe solving the housing problem, or making it worse.
I just wish a high powered accountnt would explain the system slowly and simply so we all can understand, instead of me, at least, standing and wringing my hands for the worry about a future I shall never see.