Just a short addendum:
Paying off debt doesn’t seem to make sense when the interest rate is practically zero. I know that. Especially if you have cashflow. And minimizing your credit exposure is contrary to what this country needs. It wants us to spend. So, if I was being a ‘booster’, I would say, borrow big, buy big and hold till inflation catches up. Cash in then and roll in dough. The old recipe.
But I can’t. There are too many other ‘soft’ factors at play here as well. First off, those who read this are close to my age. I’d guess the average reader (not counting my kids) is 50+. Waddya gonna do with more stuff, more worries and more debt load to service? I mean, really? Even Gretzky got out of the game. We should, too. And many are. Face it, folks! We are getting out one way or the other (pushed, shoved, retiring, dying, losing our energy and health, diminishing desires for stuff)…………we are getting out.
Also…..there are a few wild cards at play here. Our Western economy/society is on a gradual but steady downslope. We just don’t have the young consumer in any great numbers. Not in Canada, anyway. And the ones we have are poor. They are either immigrants or the Masters degree-holders-driving-cab generation. Undergraduate degree-holders who plant trees in the summer and go to Costa Rica for the winter. We are not nation-building much these days.
And our government is abysmal. But you know that.
The point: I am not trying to solve the problem. I am trying to survive the problem. We have a long ways to go down yet. And that is what I am talking about. Dismal Economics. Not growth. Not solutions. Not winning strategies. I am talking basic survival in an increasingly Orwellian world.
No, we will not likely see gangs-in-the-street anymore than we already see gangs-in-the-street. And cars will run, phones will work, schools will open. But unemployment will increase, prices will rise, assets will remain flat, cash will get tight and we will, as a nation go through continual episodic belt-tightening (higher taxes). We will be priced out of a lot of commodities (oil and gas) and government services won’t cope (hospital waiting lists will grow longer and use ever-increasingly depreciated resources). And unemployment will rise. Canada is NOT dynamic. It may be corrupt. It is definitely incompetent and we are run by Fascists but whatever the reason, we are not on the ascendancy as a nation.
I just think it will get worse before it gets better and it behooves you to know in advance.
But that is enough on politics for awhile. I do try to limit it.
I am going to write about something else…………….but I’ll ‘switch’ posts so as not to taint one with the other.