Wall Street Change offers simple, logical solutions to tough economic problems
that appear to have been caused by Wall Street Investment Fraud.

Wednesday, December 9, 2009

Time to END ALL Interest Rate Charges on EXISTING consumer credit card debt and reduce ALL home mortgage interest rate charges to four percent.

A couple of decades ago when I was just starting out in the film industry I worked for a film company that was in merger talks with two other film companies. Our company was 10-15 million dollars in debt and it appeared the only way to save ourselves was by merging with two stable companies so that the overall debt percentage would be minimized. Our company had already made a name for itself so combining with a financially stable company (aka too big to fail) would result in better times.

But then reality hits. It turns out that all three companies were hiding their own 10-15 million dollars of debt. Each company assumed the other two merging companies were debt free. After the merger the three companies realized they all had brought their own debt into the merger. The new and improved too big to fail company actually had 30-45 million dollars of debt and went out of business less than a year later. 

I bring this story up now because I see my microcosmic job experience is actually recreating itself on a much grander scale.
Most of world is in debt, and nobody really has a solution other than to try and hide their own debt from others.
I have a solution to the hide the debt game that is being played and since I am a nobody, I may be correct when I say "nobody" has a solution.

Gargantuan consumer debt and the destructively high interest rate charges that accompany the consumer debt has destroyed a critical component of a sustainable worldwide economy. Consumers all over the world have less money to spend because more and more of their income is going towards repetitive, revolving interest rate charges that are so onerous they have become unreduceable.

While the actual amount of worldwide consumer debt may not seem like a substantial amount of the overall worldwide debt, it is having a profound affect in many insidious ways. The bottom line is the amount of disposable income that each and every consumer is able to create is dramatically shrinking, and in the process, disposable income no longer first travels between consumers and local small businesses within local economies, disposable income now goes directly to pay a bank debt or some type of tax, and this is a huge problem.

We have reached an economic tipping point where the absolutely profoundly rich are now draining the worlds resources by expecting to get the best return on obscene amounts of savings. Money that should no longer be receiving interest payments is actually siphoning more and more capital away from the everyday person who is just trying to make ends meet.
Banksters worldwide keep stalling the inevitable. The longer the banksters wait to severly reduce interest rate charges on existing consumer debt and decrease home mortgage interest rates to an across the board 4%, the worse things will be for the worldwide economy for an ever expanding period of time.
Too much emphasis is being placed on maintaining interest rate profit margins even when those interest rate profit margins are actually spiraling every country into deepening debt that is devaluing real estate values everywhere.

Countries need to transition to alternative forms of energy that they can generate on their own land, for their own needs, or wars will increase. The key stumbling block to global energy self sufficiency is it needs to happen within the cost parameters of existing oil supplies and prices, and there in lies the parallel problem.
It takes petroleum to create alternative energy infrastructure, but petroleum is being used in a "one time and its gone" methodology.
The longer we wait to deputize oil for the primary purpose of ramping up other forms of energy as quickly as possible, the less likely we will be able to make a successful alternative energy transition while also being able to concurrently service the energy requirements of 6 billion people worldwide (and growing).

What does the world's inability to harvest new sources of energy have to do with interest rate charges? Interest rate charges enslave people to work longer and harder just to maintain their same level of debt. As consumers work longer and harder at their jobs they consume more and more petroleum and energy sources at a time when that petro should be used to create alternative forms of energy.
One example of the reallocation of petroleum to create alternative forms of energy is the idea of completely redoing the electrical grid infrastructure. Actually re laying every bit of electrical wire in the entire United States with the most efficient forms of conductive wiring could significantly reduce the amount of power that needs to be generated, but the petroleum to drive such a project is being diverted to simply driving our gas guzzling cars.

Unfortunately, there is no mechanism in place to create a public works program to make the revamping of the energy grid a likelihood. Instead, the interest rate trap is contributing to consumers working extra hours (assuming they can find work) at jobs that drain our energy resources, which in turn requires our government to fund military installations all over the world, which in turn provides all that extra petroleum which we should be weaning ourselves off of.

Consumer Interest rate charges on EXISTING credit card debt is creating an indebted, enslaved society that will do anything to be able to pay their bills. Most of the work that is being done simply perpetually repays repeating revolving consumer credit card debt and those nasty interest rate charges that prevent the debt from ever being paid down, which further removes us from the urgent energy goal of replacing petroleum as the dominant energy supply source on the planet.
What the world needs to do is DECREASE the amount of hours the worlds workers need to work to maintain their present lifestyle. Each work hour reduction creates more flexibility and more time for actually improving the energy infrastructure of our planet while also reducing energy consumption as well.
Any banker or politician that thinks it is a good thing to create more work hours so consumers can keep repaying repetitive interest rate charges on existing consumer debt is actually helping to accelerate the global population towards a possibly preventable economic and ecological global catastrophe.

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