By Kerwin De Matas
Something is happening, I cannot clearly say what, but with the scary rise of inflation worldwide, and out of control deficits, prudence must be exercised as to how we manage our money these days. A large percentage of countries today do not have sufficient savings, because of the huge spend drift mentality, which most of them have adopted, financing projects that were not necessary in the moment, but upon which substantial funds have been concentrated.
The U.S as my example is a super power that is in need of a miracle right now, requiring more loans to assist a soon to be cash strapped and overburden economy to help save them from crashing down into a failed financial heap. It is an exaggeration right now, but if a solution is not decided upon immediately, then 2008 would be a year to remember. It would be a year to remember when: Motorola, Sears holdings, Citi group, Ford, Yahoo, Sprint, fell in step with Lehman brothers once a very influential investment bank which had a lot of swing on Wall street ending the 158 years of existence. Eventually they will join the other ex-huge and traditionally rich companies like; Firestone, American motors, Texaco, Pan-Am, which all went bankrupt or sold off.
The gigantic war effort that the U.S instigated, and is presently financing with no liable monetary returns, is causing huge deficits in this country with difficulty of reining in this economy gone out of control. This unfortunate and very expensive war is causing huge death tolls on both sides and of which there is no turning back. A domino effect on the weaker economies where major trading and dependence on the U.S dollar in the past, is creating inflation on an alarming level in these partner countries which have close trading ties with the United States .
So how can I help my situation in these times? Simple, spend less and save more!
Most of us are living in countries where government spending was/is out right irresponsible. Therefore, their negligence in managing our countries interests, and protecting our resources for which they were entrusted to do, have left us average citizens nothing more but to manage what little funds we have remaining and hope for the best. Be forewarned now, because for those who follow my blog will remember me later on…. The banks are restless right now, they are like vultures just circling and waiting for carnage to prey on. All the credit packages would start coming on full force in all forms and fashions, because after all, they have to save the skins on their backs also.
Therefore, for all the sorry souls copying the Government’s form of spending and having a jolly time during the so-called booms, would eventually find themselves just like the countries that they live in: No savings, and possibilities of precarious conditions to come.
What is the solution then: depending on the banks to help us out of our delicate situations, or in other words, falling for the credit packages!
Results: Opting to pay the high interests that the banks offer with their credit packages as no other alternatives comes by, soon finding ourselves more in debt than before.
I am not an economist, therefore I will be the last person to look up to for a solution, but I still think I can put in my two cents. Very well, when I was in my crisis, I had to take out a credit to pay off my credit cards, so that I could therefore go on paying off my credit with minor problems. Of course the rest depended on me, I would just tighten my belt more, stay away from things which before I would pay for just because I could, but of which were not necessary.
For example:
A new pair of jeans to go to a special get together, why, if I already have a pair… they might be old, but they are still useful.
Do I really need to hang out every weekend with my friends at the pubs…what about just hanging out at the homes of my friends or my home even?
I live very close to my job and I use the metro, the fare is not low either… But then I have a bike, and I am physically fit, so what’s up if I use my bike to go to work, the only thing I’ll pay is my own energy, and of course I feel very good afterwards.
On the job, I am on my lunch break and I need to eat, the mini-market is right around the corner… However, I know how to cook, and my creations are eatable, so there you go, my lunch in my bag, paying next to nothing on the ingredients needed to prepare it.
Are you seeing something familiar here? In other words, most countries have resources but prefer to import products that they already have, especially in the agriculture sector, instead of reviving it, the authorities are just leaving it to stagnate…
These are just a few of my personal efforts in trying to put my cost down, so that at the end of the month, I can actually walk away with something in my pocket after paying my bills i.e. Electricity, water, gas, telephone etc. There is a huge possibility that a large majority of citizens can improve their situations if they were to sit down and review their spending habits also, adding, and eliminating where necessary to manage extra cost. Remember that as workers, most of us find ourselves living month by month, pay-check by pay-check, in an economy affected by inflation and the salary staying the same… we need to watch out.
Now the two major opponents for the 2008 U.S Presidential elections, Mr. John Mc Cain and Mr. Barack Obama suspending their campaigns due to this crisis that is presently plaguing the U.S, should really say something. Just a small reminder though, this was not the first time that Mr. Obama suspended one of his campaign activities. In 2007, because of the Virginia Tech shooting, he cancelled a very important foreign policy address, which was supposed to help his campaign describing how the U.S. could re-establish its leadership role in the invasion of Iraq. Of course the main reason behind those crucial decisions is totally and politically motivated, and not because of guilty consciences. However, I will admit though that I am a little bit anxious to know exactly, how much the United States economy was damaged and exactly how grave is it.
Imagine after coming out of an Olympics that was totally faultless and going down in the history books as the most expensive games ever, demonstrating a grandeur that would be incomparable to any other, and to reminiscence for a very long time. Sometimes I felt as if this was China’s way of introducing its self again after centuries of being dormant, the new number one super power to be contended with as a modern society, and they were not afraid of showing it. It’s as if this country was just waiting patiently, just going about recuperating their losses after the Asian crisis years ago, and just holding on for the right moment to make its debut as the world’s number one developed economy. Who knows, maybe the time has come for one to bow out, and the other to come walking in…Remember that this won’t be China’s first time as a world dominating factor, after all, this was the continent that ruled over many and maintained a lot of respect with their many dynasties before and during the Medieval times. All we can do now is speculate and try coming up with answers, most of us worried as to what the new future will bring under a new super economy, and a communist one at that!
Well, we will not really know what is going to happen until we know the fate of the United States of America. I am not a citizen of that country, but it still feels sad when I wonder as to this great country’s fate. I just hope that this will not come to some sort of tragic finale.
For now, as countries living in the Western Hemisphere, we should just try to walk this thing out, try working out our personal financial problems, and hoping for the best in everything that is playing out right now. Good economics and luck...That is just what we all need now, bless.
