Many times as I read an article I find a few sentences that capture the essence of the piece. In “Phrase-e-ology” I’ll post some thought followed by key phrases. As always I’ll have a link (in blue) to the original article.
The latest episode of Phrase-e-ology is from the business section and was startling in that it seems to be making the case for the sluggish recovery as the “new normal” rather than the direct result of bad economic policy from the Obama White House. As if this is now how we should expect recoveries to unfold. Even as Obama’s economic advisers abandon his ship for academia (they’re much better at theory than reality) the “new normal” may actually be some sub-standard level that he can actually achieve…as long as he can fool the electorate that they are doing better…
So why does the average American accept economic policies that are bound to bankrupt this country? Logic tells us in our personal lives tells us that if we spend way more than we make we incur debt. Anyone who has ever had a loan or a credit card balance knows that there are interest charges on that debt which must be paid on a monthly basis. When we still keep spending beyond our means our debt increases and so does our monthly payments which a greater percentage of goes to pay the interest on the debt.
Personal Finances: My wife and I have amassed some decent credit card debt by spending more money than we had available, or deficit spending. Since we are blessed with a good credit rating, the banks are always willing to raise our credit limit. They are just so nice about that. Rather than take advantage of those nice folks’ offer, we are in the process of reducing that debt through a number of means. We are going to have to spend less, sell some investments, and restructure some debt, but should have it eliminated within the next three months. Although it will be hard, but we feel that there is a need to eliminate this debt.