Filing Bankruptcy Is Quantitative Easing For the Consumer

Most Americans don’t even know what quantitative easing is. Yet many have heard the word as it is loosely thrown around by the dinosaur media. What most people don’t know is it is a form of Keynesian economics that has been used many times in the past followed up by failure. Let’s face it, you can’t spend your way out of debt. How the US is going about it is their ability to print money at will since the dollar is the global reserve currency. Over the last 50 years, the world has traded in dollars allowing the US to keep the value up even though they’re watering down the currency with massive printing. Over the last five years with QE1, QE2, the twist and QE3, which actually should be called QE infinity because there is no set term to stop it, the US has admitted to printing $4.3 trillion. When George Bush left office there were only $800 billion in existence. If the dollar was worth a dollar in 2009, then using simple math this dollar would only be worth around $.17. But then again, I don’t have a fancy education from the Fabian Society’s London School of Economics. This is where many of the global banking elite have gone to learn how to make the numbers add up in their favor. Since us common folk don’t have the ability to print our own currency, one of the only things we can do is to protect our own financial assets is using our legal system if necessary. This means if we become over encumbered and have no way out, filing bankruptcy should be on the top of one’s list to recover quickly. The corporations do it, why can’t we?

Back in 2007, the economy went into the tank because banks loaned on real estate that had no true value and to people that used a false stated income to qualify. Everyone knows what happened and the government had to step in to avoid an economic disaster. Instead of filing bankruptcy, these banks were bailed out to the tune of $1 trillion. After the money was blown through and the economy has still not recovered, they said they needed more money and quantitative easing was created. For the average Joe things are not getting better but worse. Unemployment was over 8% for almost 4 years and as the talking heads say it’s getting better Americans are beginning to feel the pain. They recently announced that unemployment is now down to 6.7% but where are all the jobs. The debt ratios are continuing to rise and incomes are continuing to decline. Most Americans feel guilty about exercising their right of filing for bankruptcy. I believe this stigma that was created about bankruptcy filing had to be created by the credit industry. They are the only ones that really have something to lose.

Six years have passed since the too big to fail banks almost collapsed. The scary thing is, nothing has really changed. People ended up in foreclosure and walked from their homes leaving a huge shadows stock of homes nationwide in the banking portfolios. Instead of dumping these on the market and allowing the free market to work, the majority of these homes were sold to the big players for a song and a dance. Because of all the liquidity that was pushed to the market from quantitative easing, the housing market rebounded to similar highs we saw back in 2007 before the bubble burst. This has been driven by the Keynesian economic model that says if you lower mortgage rates more homes will be bought, sold and built. Today’s mortgage rates are at levels that would have caused house buying frenzy 10 years ago, are now seeing home sales, home building and mortgage originations flat lining. Many experts believe that when people become too encumbered with too much debt, they don’t feel comfortable borrowing even at these historic low rates making the new inflated prices harder to support. This consequently sucks all the air of the economy causing a reverse reaction.

After all this negative information people need to protect their family’s future even if it means filing Chapter 7 bankruptcy. Filing Chapter 7 will wipe out all unsecured debts and in many cases leave the individual debt free from all credit card debt. It’s almost like Congress knew what was to come when they made the changes to the bankruptcy code back in 2005. Americans need to look at bankruptcy filing as their economic stimulus. After trillions of dollars have been injected into corporate welfare through the banks, the middle class has received nothing. Instead of feeling guilty about filing for bankruptcy, people in financial trouble should be seeking the advice of a bankruptcy attorney.