The one-cent solution!

The Bible teaches that debt removes freedom. “Solomon stated that “just as the rich rule over the poor, so the debtor becomes a servant to the lender.” 

US Secretary of State Hilary Clinton said the same regarding national debt; “It poses a national security threat in two ways: it undermines our capacity to act in our own interest and it does constrain us where constraint may be undesirable.” Spending on essential services for social and health care is at risk. As we have recently seen, investment in a nation which is addicted to overspending is considered very risky and the economy will suffer. Other nations demand influence in domestic affairs and a nations people lose the right to determine their future.

As the government borrows more and more money, interest rates for business and home owners increase, businesses will be hindered in their development, jobs will continue to become scarce and the economy suffers. We are leaving our children and grandchildren a burden which they should not have to bear!

There is only one solution. When you are in a hole, stop digging and find a way out!

Some US Christians have come up with a novel programme, called the One Cent Solution’ to US problems. This comprises spending one cent less in every dollar over a period of six years. In that time, the national debt will be halved  (…) from 14 trillion now to 7,5 trillion and the federal budget will be balanced in 2019.

Spending less is a lot easier way to earn disposable money than earning more!  Doing this over  a long period of time will seriously help you to get out of debt and regain freedom to use your money as you would like.

The impact on our daily life could be this (as quoted from the web site www.onecentsolution.org)… it is not a pretty picture! It is happening right now!

Imagine driving to the grocery to get bread and other essentials, but the shelves of the store are picked clean because the store has lost the line of credit it uses to purchase its inventory. You then travel to the gas station to fill up, but there’s no gas. Without credit, the gas station owner was unable to fill his tanks.

The “For Sale” sign you have had in your front yard will be there for much longer, because with interest rates high and rising, and banks pulling back on their lending, finding a qualified buyer is now next to impossible. Because of the credit squeeze and the rise in interest rates, many of your neighbors can no longer make their mortgage payments. They will soon put their homes on the market, causing the value of your home to drop quickly.

And the value of your retirement account sinks by the day.

At home, you turn on the news and learn that Congress has just enacted an “Emergency Deficit Reduction Act” to address the fears of creditors and the financial markets. Because it failed to act sooner, spending reductions make up only a small part of the package. It takes time for spending cuts to take effect, and Congress doesn’t have time. In their place, your taxes are going up. Way up.

You call your spouse and decide to cancel this year’s vacation and use the money to pay down your credit card debts instead. After all, the interest rates have become unaffordable, and with your taxes going up, something has to give.

Other families do the same, and the resort you booked goes out of business, causing several hundred people to lose their jobs and apply for unemployment benefits. As this occurs across the nation, the cost of the federal government’s safety net explodes, putting even more pressure on the deficit, interest rates, and the government’s ability to borrow.”

 

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