.
|
|||
More "Stuff" this ChristmasLarry LaBorde Years ago I had the pleasure of hearing Don Aslett, lecturer and owner of Varsity Cleaners, give a talk about the clutter in our lives. As the owner of one of the largest cleaners in the US he said that a cluttered house was almost impossible to clean. He went on to say that we have not only cluttered our homes with "stuff" but that we have cluttered our lives with "stuff" as well. Anyone interested in reading more about Mr. Aslett can buy one of his old classic books including my favorite, "Clutter's Last Stand." In this book he takes a look at the clutter in our homes and our lives and tells us how to get rid of it. Years ago comedian George Carlen did a routine where he poked fun at our "stuff." In the routine he said that a marriage was a union of two people's "stuff." (It was funnier the way he said it). All of us here in the US love our "stuff." From last week's sales figures it seems that most of us like to buy our "stuff" at Wal-Mart. Unfortunately Wal-Mart seems to get lots of its "stuff" from China. This is not an article to bash China. On the contrary, I wish them well in their move towards a free market economy. The recent history of China's past 300 years is a fascinating one. Anyone interested in learning a little about how China arrived in its current state would do well to read Clavell's books, "Tai-Pan" and "Noble House." While they are good fiction, they are based on factual events. They go into the political upheavals of that time that helped to shape modern day China. Back to our "stuff." The US has been called The Mouth of the world. We consume more than anyone else on the planet. I am all for consumption and a high standard of living (especially my own high standard of living). The problem is that we are borrowing from our "poor overseas cousins" to be able to continue to purchase our "stuff" (most of which we do not even need). Only in the US would someone charge an ugly sweater that no one will ever wear on their visa card and then finance it for the next 10 years long after it has been donated to Goodwill! I believe a person or a country can spend its money any way it sees fit to do so. I just think that a person or a country is far down the road to ruin whenever it has to borrow money from others to buy useless "stuff" that it can not afford to pay for out of its own wallet. How many of us have seen ATM's in fast food restaurants and movie theaters that allow the customer to get a cash advance from their visa card to pay for their purchase. If you do not have the cash in your wallet to afford the burger or movie then perhaps you would be better off staying home and eating a sandwich and reading a book. There is good debt and bad debt. Almost all "stuff" purchased on credit is bad debt. E-Bay has even made quite a business out of recycling our "stuff." As a matter of fact, if you have any "stuff" you are not using then dust off the old digital camera and start selling it on E-bay. Turn the clutter in your life that you do not use into family capital and become a capitalist. After September 11th we were told it was patriotic to continue to spend and consume. If we cut back on our spending we were informed that we were letting the terrorist win. Some of my friends certainly tried their best to be "patriotic" during that period. While it is not my intent to bore everyone with a discussion of the velocity of money and how it impacts the economy - consumer spending is only a part of the equation. WE CAN NOT CONSUME OURSELVES INTO PROSPERITY WITH BORROWED MONEY ON FOREIGN MADE GOODS. The ultimate result of that policy is a falling US dollar and lower standard of living. In order for the US to become a great country once again we must save capital and reduce debt. Capital is used to build new factories that increase our productivity and allow us all to live better. The first part of saving capital is to stop borrowing money. The next step is to pay off debt. Lastly, we must live below our means so that we can save capital for investment. Unfortunately there are no commercials for saving capital. Commercials are only for consumption - and we are doing that just fine without help from Madison Avenue. During the Christmas season we are bombarded with commercials to spend more than we can afford. Before you go shopping look around your house at all the "stuff" you already have and do not use. I have told my wife that she can not bring anything else home until I measure and weigh it at the door. She will then have to go inside and find something of equal size and weight to dispose of before she can bring the new item inside. Without this precaution I am scared the place will explode. I do not recall anything in the Bible about exchanging gifts during Christmas. Only the gifts of the three Wise Men are mentioned. Perhaps we should follow their example and limit our gifts to God. It's his birthday after all. I am pretty sure that He does not want anything that you can charge on a visa card. Think twice before you buy that ugly sweater at Wal-Mart that no one is going to wear. Save your family's assets. There will come a day when you will wish you had done so (like when the January visa bill comes in the mail next month). Just remember not to save in a depreciating, unlawful, deceitful medium such as federal reserve notes. Trust in 5,000 years of history and save in gold and silver bullion. Larry LaBorde 321gold Inc |
