Posted by
peripheral on Wednesday, July 23, 2008 6:08:22 AM
From My
Perspective - - -
USA Today projected a financial reality in October, 2004 as it
pertains to 2008. The authors, Dennis Cauchon and John Waggoner state the
following: “The long-term economic health of the United States is threatened by
$53 trillion in government debts and liabilities that…come due…when baby
boomers begin to retire. The ‘Greatest Generation’ and its baby-boom children
have promised themselves benefits unprecedented in size and scope. Many leading
economists say that even the world's most prosperous economy cannot fulfill
these promises without a crushing increase in taxes — and perhaps not even
then. A USA TODAY analysis found that the nation's hidden debt — Americans'
obligation today as taxpayers — is more than five times the $9.5 trillion they
owe on mortgages, car loans, credit cards and other personal debt. This hidden
debt equals $473,456 per household, dwarfing the $84,454 each household owes in
personal debt….”
This
projection is frightening when one considers the Mortgage and Investment
Meltdown occurring in the markets. Escalating Food and Fuel Costs are only the
tip of the iceberg. Some banks are closing and people have been lined up to
withdraw their funds. Uncertainty will always stir a measure of panic. There is
an interesting presentation by Steve
Scalici is a Certified Financial Planner. He highlights some unexpected
events of the past decade that result in economic uncertainty…
2000 -- Tech
bubble bursts in March, 2000
2001 -- World Trade
Center attacks on 9/11.
2002 -- Enron, Arthur Andersen, Tyco, Qwest,
Global Crossing, ImClone, and Adelphia-- hiding debt and misrepresenting
earnings
2003 -- War waged by the U.S. and Britain
against Iraq begins; North Korea
withdraws from treaty on the nonproliferation of nuclear weapons
2004 -- Spain rocked by terrorist attacks; UN Atomic
Energy Agency tells Iran
to stop enriching uranium
2005 --
Hurricane Katrina; Rising interest rates
2006 --
Political corruption scandals; Interest rates rise; Housing market starts to
slump
2007 --
Housing market meltdown
2008 --
Credit crisis hits financial sector, oil prices drastically rise…
Steve
Scalici goes on to state some principles of personal management that should see
most people through the various crises that may arise…”. I have found that
there are five basic principles that you can apply that work in any economic
environment – (1) Spend Less Than You Earn; (2) Avoid The Use Of Debt; (3) Save
Money For Provisional Purposes; (4) Set Long-Term Goals; and (5) Believe That
God Owns It All. He also shares some basic Biblical Principles and Guidelines:
Proverbs 6:6-8, “Go to the ant, you sluggard; consider its ways and be
wise! It has no commander, no overseer or ruler, yet it stores its
provisions in summer and gathers its food at harvest.” A basic truism is found
in Proverbs 22:7, “The rich rule over the poor, and the borrower is servant to
the lender.”
Many years
ago, someone stated: “If your outgo exceeds your income, your upkeep will be
your downfall.” One would be wise to follow the Biblical principles of
stewardship. At the end of the day – if these principles are embraced and
implemented – one should be able to identify with The Psalmist and echo his
words in Psalm 37:25-29, I
have been young, and now am old, yet I have not seen the righteous forsaken or
his children begging for bread. He is ever lending generously, and his children
become a blessing…For the Lord… will not forsake his saints. They are preserved
forever…The righteous shall inherit the land and dwell upon it forever.” God is
always faithful – He can and will do this for you.
Think about this with me - - -