The current economic paradigm do not reward caution and thrift; quite the contraire: It punishes it. Some of our most praised institutions happen to be the most leveraged ones and there is a belief out there that if those " bedrocks of capitalism" fall, the entire world should flounder in the abysses of depression. How paradoxical indeed!
So why should the common " dude" act responsibly when the governments are bailout out counties, cities, States, countries, and even...private individuals? Why work so hard when the purchasing power of your dollar, Euro, Yen, Yuan, Peso is falling and your living cost rising? For the average individual, things just do not make any sense and shockingly, the most indebted are also some of the richest!
Since the real estate debacle of 2007, the " too big to fail" financial institutions on Wall Street have dispersed billions of dollar to their employees while the average salary of the common american has dramatically shrunk on the back of an higher rate of price inflation.
Rightfully then, to pay your bills in time " appears to be" a sign of utter stupidity!
-What? Are you blind buddy? Don't you see that the world has changed? The more debt you carry, the more likely you are to be bailed out? Just follow our leaders, what is wrong with you you goddamn " irresponsible" unleveraged fool!
So, for those who understand the unsustainability of our financial system, they might be tempted into amassing as much debt as possible in order to purchase hard assets; that is real value that are better fit to endure through a potential stagflation as they did in 70s during the oil/dollar crisis!
The formula is therefore pretty straightforward:
Borrow dollars to buy gold and silver and repay the bankers in debased paper over time!
This sounds like a good idea if you can pull it out! But should you?
Oooh dear! Here you go again with your moral nonsenses! Should you what?
I don't know! It is an issue every given individual should weight in personally and study carefully! Personally, I would rather try to increase my earning ability in order to maximize my income and then invest in hard assets. I do not believe in shortcuts, even if our current economic paradigm seems to be built on nothing else. I am a rather conservative person, especially given my history with " debt" and the ravage that they have caused in my life! I wouldn't take on any debt even in my dead-bed! But, that's just me!
. But, if you have the know-how, the courage, and you are willingness to take on risk for potential higher returns in the future, go on and take that paper from the bank and convert it into gold and silver. That will be a stroke of genius when reality sets in for the system is really really bankrupt and we cannot go on like this indefinitively.
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