Five Unbelievable Figures Regarding the Student Loan Debt Bubble

 





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You may have heard about the student loan crisis in America. Millions of college graduates cannot repay trillions in loans. Their wages, or lack thereof, seem to inhibit their capacity for servicing their debt. This lack of repayment, while inconsequential in the near-term, will at some point become catastrophic for the nation as a whole.

The fact that student loans cannot and will not be repaid will have two inescapable ramifications: 1) impact upon the broader economy resulting from former students being burdened by excess debt, and 2) impact upon the national debt, adding to the black hole that is US Finances.

When people cannot afford to pay back student loans, they cannot even think about purchasing homes. This effect appears to have already begun to take hold within the real economy, as evidenced by the fact that the rate of home ownership has been tanking for over a decade now, reaching recent lows not seen in almost fifty years. Startling as that last fact may be, it does not constitute one of the five unbelievable figures about the student loan debt bubble. To begin:

 

  • 3 Trillion USDThe size of the bubble to date. It seems like just yesterday this number had only surpassed the trillion mark. Those trillions represent the lives and dreams of millions of people who “invested in their futures” by borrowing for an education. Now that education has failed to produce a return on investment.
  • 100%The amount by which public, in-state university tuition has increased over the last ten years. When compared to the increase in cost of tuition for out-of-state and private schools, this appears tame. Many observers note that this meteoric rise has only been made possible by government intervention. Government-guaranteed loans can be secured for any amount, regardless of market value. This results in increased costs for diminishing quality products. Again, we see similar lending dynamics that took hold during the housing bubble that took center stage during the 2008-2009 financial crisis. Could the student loan debt bubble enter the spotlight during the next stage of this crisis that seems to never end?
  • 293,029 – The number of Master’s Degree holders on food stamps. Take a second to soak in that figure and grasp its significance. Hundreds of thousands of people in the land of opportunity can no longer afford to feed themselves, despite having worked so hard they managed to achieve a level of education that only about 2% of human beings who live today will ever achieve in their lifetimes. How can anyone believe that “everything is awesome”?
  • 40% – Rate of delinquency on student loans. You read correctly – over forty percent of all student loans remain in delinquency today. That means that almost half of all graduates cannot afford to make even a single payment on their loans. And somehow people still insist things have not deteriorated. How anyone can perceive this situation as normal will forever be beyond the scope of reason.
  • Student loans cannot be discharged through bankruptcy. This last one may not be a figure, but it overshadows all of the grim statistics. Student loan debt can be considered the most sinister form of all debt, for it can never be discharged. That translates to a lifetime of debt servitude for all who bought into this most epic of financial scams. Most were never educated on the far-reaching consequences of these loans. Some didn’t even have a clue that loans were being taken out in their name – or even what a loan was!

 

In short, this bubble will have to burst one day. Some indications exist that it has already begun to do so. For instance, in 2011, a form of mass loan forgiveness was introduced – income-based-repayment. This plan allows students to make payments no greater than 10% of their income. For many, this amounts to a payment of zero.  So millions can be in default indefinitely.  The meaning of freedom involves being free of debt.  Austrian economics dictates that debt deters savings, which inhibits economic growth.  Therefore, further debt expansion will always be needed…until the bubble finally bursts.

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Freedom & Preparedness

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Growing up in California, one becomes aware of the potential destructive capacity inherent within nature. And when nature strikes, it often does so with little to no warning.
Earthquakes, wildfires, and landslides all happen within a moment’s notice. A wildfire or landslide can be anticipated to some extent – e.g., smoke in the distance or heavy rains – though they still tend to catch people off guard. Earthquakes, on the other hand, have a far more sudden and unpredictable nature.  No natural disaster better reminds one of the importance of preparedness.
During the 6.7 magnitude Northridge earthquake of 1994, many people found themselves unprepared. For several days, everything was shut down. Electricity was out. Roads and bridges had collapsed. Business and commerce in the region ceased altogether for a short period.
The above paragraph may sound extreme, yet it all happened for millions of people just twenty-two years ago. Yes, most survived (tragically, some did not). And most found a way to get through in the end. That doesn’t mean they wouldn’t have benefited enormously from a little foresight and preparation. Many lives can easily be spared unnecessary trauma and hardship with even minor measures beforehand.
What’s more, one becomes more able to assist one’s neighbors and loved ones. When you ensure your own safety, you increase the odds of being able to help someone else who wasn’t able to, at a time when they will need it most.
In recent days, the world has become aware of two major natural disasters, one real and one imminent: 1) the epic blaze in Alberta, Canada, and 2) the pressure building among the major fault-lines in California.
The fire in Canada has been said to have the potential to burn for months. And scientists say it’s only a matter of time before another large earthquake strikes California – perhaps as large as a magnitude 8.0 mega-quake.
The meaning of freedom involves non-reliance upon external authorities in any situation. Therefore, being prepared remains essential to pure freedom. That’s why you can find several links to food storage and other preparedness products right here.
Survival expert James Wesley Rawles has written in his books that the three most essential items include beans, bullets, and band-aids. In other words, long-term food storage, weapons & ammo for protection, and health + first-aid supplies for emergency. That includes any necessary medicines.
In the end, the more freedom one desires, the more one may feel it necessary to prepare. Don’t take it from me – just ask some of the billionaires who invest large sums of money in their extravagant doomsday preparations. And that’s not to mention the extensive preparations the USFG has undertaken itself – FEMA in particular. Entire articles, books even, can be written on these subjects alone.

What are your thoughts?  Feel free to share them in a comment below.

Collectivism Growing – Freedom Threatened




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America was founded upon the ideas of limited government and individual liberty.  These values and many related to them gave rise to the most independent, prosperous nation in history.  Today, as those values decline, so too does America and her standard of living.

How do we know America continues to inch closer to the same dystopian fate befallen upon countless countries in the past?  Simple: individuals who have lived through such dystopias note the parallels between what’s happening in America now, and what happened in their home countries then.

One such individual is Agustin Blazquez, Cuban-American filmmaker.  In a recent interview with The Daily Caller, Blazquez expressed his concern about the rise of socialist candidates such as Bernie Sanders:

” For Blazquez, watching American youth embrace avowed socialist Sen. Bernie Sanders for president, strikes him as “absurd.” It is the end result, he says, of the cultural marxist education and media propaganda that has anesthetized too many Americans who do not defend the values that made America exceptional. “
Read more:  http://dailycaller.com/2016/04/30/cuban-american-filmmaker-warns-america-is-morphing-into-communist-country/#ixzz47WQTKuMW

It does come as a shock to see socialism being embraced with open arms.  It seems people have forgotten the millions upon millions of victims of tyrannical socialist regimes throughout history.  They seem to assume they will be immune, that somehow this time will be different, and this government will be nice to them, unlike every other force- backed government throughout all of human history.

Communism has been responsible for more death and destruction than anything else in recent history.  The 20th century, for example, saw about 94 million murdered under communist/socialist regimes.

And it doesn’t matter what we call it – communism, fascism, socialism, or any other “ISM”…different terms for centralized control.

Of course, the term “socialism” gets used more today, in order to avoid the disastrous past the word “communism” conjures within the mind.  A time will come when no words will suffice – everyone will see through this madness and demand their freedom back.

As Patrick Henry once said, “Give me liberty, or give me death!”

The masses will issue a similar declaration in the near future.  In many ways around the world, they already have begun to do so.

What do you think? Do you see your liberties eroding? Will you support socialism as the proposed solution? Feel free to leave a comment below and share this post on social media.