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The Number One Tool Of Financial Enslavement

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Today there is a great awakening going on across the United States and all around the world.  Tens of millions of people are becoming aware of the growing tyranny of the global financial elite.  Yet millions of those same people willingly enslave themselves to those very same financial powers.  So how is this happening?  It is called debt.  The financial powers of the world use it to enslave individuals, corporations and governments.  For thousands of years humanity has been taught the proverb that “the borrower is the servant of the lender”, and yet today hundreds of millions of people around the globe willingly have run out and have made themselves servants of the money powers.  You see, when you borrow money from a financial institution, you not only have to pay that money back, but you also have to pay a significant amount of interest.  In fact, often the interest ends up being much more than the principal of the loan.  Thus the borrower ends up devoting a great deal of his or her labor to earning money for the lender.  Certainly there are times when it is necessary to borrow money.  But what Americans have been doing over the last 30 years goes far beyond “necessary” borrowing.  In fact, the massive debt binge of the last three decades has been nothing short of a huge percentage of the American population entering into willing financial enslavement.

Do you think that is an exaggeration?  Just consider the chart below.  The word “insanity” does not even begin to describe the growth of household credit in the United States over the last 30 years….

So why is debt so bad?

Well, there are a lot of reasons.  Debt strips you of your freedom and slowly drains you of your wealth.  It puts the fruits of your labor into the pockets of others.

Getting others enslaved by debt is how the most powerful financial institutions in the world got so dominant.  It is one of the most profitable ways of making money ever invented.

What many people don’t realize is just how much interest they end up paying on some of their debts.

For example, if you go to, you can calculate the amount of interest that you will pay over the life of your home mortgage.  According to that calculator, someone with a $250,000 mortgage at an interest rate of 6.5% over 30 years will end up paying over $300,000 in interest before it is all paid off.    

So when those 30 years are over, you have bought a house for yourself and you have also bought a house for the bankers.

But there are many forms of credit that are far worse than mortgage debt.

So what are they?

Just look in your wallet.

Do you have a credit card in there?

If so, and if you carry a balance each month, then you are “feeding the monster” and you have financially enslaved yourself.

But you are far from alone.

According to the United States Census Bureau, there are approximately 1.5 billion credit cards in use in the United States.

In fact, 78 percent of American households had at least one credit card at the end of 2008.

So it is a rare person who does not have at least one credit card.

But not only do the vast majority of us have credit cards, we are using them at unprecedented rates.

At the end of 2008, the total credit card debt piled up by American consumers was more than 972 billion dollars.  That is an amount that is greater than the GDP of the world’s 122 poorest nations combined.

So why is credit card debt bad?

Well, because it can drain your wealth faster than almost any other method ever created.

For example, according to the credit card repayment calculator, if you owe $6000 on a credit card with a 20 percent interest rate and only pay the minimum payment each time, it will take you 54 years to pay off that credit card.

During those 54 years you will pay $26,168 in interest rate charges in addition to the $6000 in principal that you are required to pay back.

That is before you include any fees or penalties you might accumulate along the way.

Are you starting to get the picture?

Do you really want to repay over $30,000 for a $6,000 purchase?

Of course not.

So what should you do?

Stop feeding the monster.

They are getting insanely wealthy off of your financial enslavement.

It is time to get out of debt.

One of the most common financial questions that people ask today is what they should do with their money.

Well, the answer to that question is a lot more obvious than people may think.

After purchasing all of the food and supplies that are needed for the hard times that are coming, people need to get out of debt.

There are very, very few investments that will add to your wealth faster than debt is draining it.

So don’t let your money sit there and earn a couple of percentage points if you are carrying any debt that you can easily pay off.

Paying off debt will reduce your living expenses and will give you much more flexibility.  It will also put you in a much better position to weather the very difficult financial times that are coming.

When you get into more debt, you are playing the game that the Federal Reserve, JPMorgan Chase, Morgan Stanley, Citigroup, Bank of America and Goldman Sachs want you to play.  There are always going to be financial predators that are ready to drain your wealth.

But you don’t have to play that game.  Work to get yourself free.  You will be glad that you did.

  • Colin

    I have been reading your articles and am concerned about what you write. I am not sure whether the is going to be all the gloom you talk about but what I would like to ask is what are your qulifications to make such claims? Are you economists? Because there are people that will act on your advice. Then what if your wrong? That would make you worse than the people your are condeming. And even if you are right, how do you know for sure how it will play out. The facts are that you dont know and you shouldnt be talking as if your claims are facts.

  • Spencer

    Very much agree, good piece

  • kolchack

    @Colin – Seriously?

    This advice to pay off your debts is the BEST FINANCIAL ADVICE YOU WILL EVER RECEIVE, ANYWHERE. I have a sister-in-law who would be considered upper middle class by any outside observer unaware of her financial balance sheet. Unfortunately for her, she let her spending get away from her and is now drowning in a sea of over $100K in credit card debt.

    But go ahead and ignore this advice. Run up all your credits cards and buy yourself a McMansion and a fleet of SUVs. Then let us know how that works out for you.

  • Tristan

    Colin, you don’t have to be an “economist” to understand that debt is a tool of enslavement. And even if the writer is wrong, it still greatly benefits a person to make debt elimination a priority.

  • roadrunner

    How can anyone question what was written in this article ? It is all truth and common sense. The fact of the matter is, more people are using credit cards to purchase the most mundane things such as gas for their car,and, groceries. This is because at the end of the day, our employers and our pensions,generally, are not paying us enough to get by with all the things we have to buy to just live. Be sure however that the “big boys” get “theirs” up front, before you even get any. How so ? An example is a typical auto insurance company. “Pay by automatic pay plan. Money for your policy premieum is automatically deducted from your checking account”. There…two or three hundred dollars is already spent/lost, and heaven help you if you need a car repair too.

  • Jason

    @Colin – So you think being in debt is a good thing?

  • Colins Dad


    This website can be a little full on. I don’t know if the disaster scenario is going to play out as described here. Although it is more likely now than any time I can think of in my life time.

    In this particular piece the author is talking about debt. And in particular interest and its effects.

    You don’t need any qualifications to figure out how it works and why it works and why it is often a negative effect. The main advice is ‘aim to have less debt’. Why? Because you pay less interest. It’s pretty simple – and good strategy, especially when interest rates for saved money are practically zero.

    The only point the article doesn’t touch on which is significant is inflation. I may end up paying twice as much money, but if the value of money has gone down (due to inflation) in terms of spending power I didn’t lose that much.

  • Spencer

    Colin – I can’t speak for the author, but really at the end of the day people should be able to decide for themselves. Whatever information exists, it’s out there and the author can’t decide what they should be or shouldn’t be reading, that would be morally presumptuous. Kudos if you know the quote.
    No one needs qualifications, just read the news…they’re the worst at spouting opinion as fact.

    As regards to this article, the author is quite right, there is a very real debt problem in America. All other issues in the economy pale in comparison to this simple fact. People spend more then they earn, expect their governments to do the same, and expect more pay then they’re worth. This is a bad recipe, and will yield bad results. The end is sure: either America will default, or it will hyperinflate their dollar…both will cause a depression….everyone (including banks) will lose. What is not known is which one will happen, or when the timing will occur. Personally I think the author is a little more doomsday-est then he should be, and I think he makes bigger deals then he ought for certain issues (oil spill, honey bees, bank mergers), but for the most part only a fool can look at the world debt situation and not see a major crash coming ahead. If there’s one post from this blog you choose to heed, choose this one

  • Theo

    @ Colin: After analyzing your posted comment, I have come to the conclusion that you are either a troll or someone who is grossly naive, ignorant, and lacking in common sense. Hmmm, it’s those last three sentences of yours….. 4:45am huh? I guess trolls don’t get much sleep.

  • Mark

    Well written and very sound advice. Dept will drag you down and make you a slave to the machine.

  • tyler

    How is telling people to get out of debt a bad thing. You don’t have to be an economist to have common sense and see what is coming. Colin your a weirdo! Go visit cnbcs website.

  • ParLay

    Colin – pieces of this information have been recommended by others, i.e. buy gold, stock up on food, pay off debt and don’t spend a penny you don’t have too, be prepared.

    Countries like Argentina and Brazil which had hyperinflation and currency devaluations didn’t starve to death. But obviously the people with a couple months of food in the cellar, no debt and tangible assets which the govt couldn’t depreciate (gold?) didn’t suffer near as bad as the masses during this period.

    Just realize that the oldest currency in the world (gold) keeps bouncing around record prices. I’m not an economist but know enough this is a not a good or indicator we’re in recovery mode.

    If want some hard economic indicators on the economy then subscribe to Shadowstats. Here’s their headline captions today:
    Gross Domestic Income Continues Showing Slower Growth
    Than Gross Domestic Product

    Massive Revisions to Durable Goods Orders

    Employment Set to Retrench Anew
    (Net of Census Impact)

  • Something Wicked This Way Comes


    I want to point out the errors in your statements.

    Labeling information as “gloomy” is an assumption you make. An opinion. It reminds me of the rhetorical question wherein either answer is a bad option. “Joe, are you still beating your wife?” Your label is merely an opinion- not a statement of fact and not particularly useful.

    The second question is one of “credentials.” Telling the truth and citing sources, does not require a degree in the dismal science. As a matter of fact, that is what my degree is in. And other than lawyers, I can think of no other profession that is more “opinion” laden than the world of economists. Opinions are never statements of fact. They are beliefs. And the only economist that shoots straight, time and time again, is Peter Schiff. His opinions were grounded in facts- facts being ignored by virtually every economist. And he was ridiculed by hundreds of morons with the same degree you think gives one credibility.

    Lastly. We have beliefs. That’s all. In fact, if you based your opinions on some facts- you might find that what Michael writes here is very truthful. Unfortunately, guys like you never get it. And compounding that problem is the millions of people just like you.

    Initially, truth is ridiculed. Then it is violently opposed. In the last stage, truth appears self evident. What stage are you at, Colin?

  • Debt was always one of the most powerful tools of enslavement. You would simply need to read the history books to get a good answer on that.

    While I’m an advocate of the good debt/bad debt yin-yang, credit cards are by and far the worst.

  • Our monetary system is depended on new debt. If there is no debt and then there is no money.

    If you do not understand this, then read a chapter from Jesse Ventura ‘American Conspiracies’

  • whoisbiggles

    The difference between yourselves and a panhandler is access to credit (debt).

    There are times in everyones lives when debt is essential, whether in be to buy a business, home, tools, work clothing, etc. In these instances debt is calculated risk that what you have borrowed to purchase will lead to a net gain in the longer run.

    We live in times where far to many people have come to see access to debt as a right that requires no responsible action on there part. For them I feel no pity for the reckoning to come.

    I personally believe in paying debt off as fast as possible because I don’t want to waste my hard earned readies on interest payments.

    But howabout promoting some personal responsibility – credit lenders do a job that needs doing – and if some moron wants to buy a (insert consumer object here) on credit because they can’t wait until they have saved for it – well a fool and their money are soon parted.

  • saysaysay

    Aree with the article – lenders make money off borrowers who don’t have it but want/need it. Live within your means to minimize your dependency on the lender.

    Two key items that impact the borrower are interest rates vs. inflation. The borrower does not want to hold debt with escalating interest rates BUT debt is better to hold than money during times of escalating inflation.

    Question is which will take precedence? Which will have the greater impact? What would be like death to the borrower is increased interest rates and deflation – not totally unrealistic in the current conditions.

    The governments are no better than the average consumer. They are racking up debt at unprecedented rates.

    The problem is they are really less and less able to use monetary and fiscal policy to control the economic conditions (other than printing fiat $ ~ except for Euro nations who do not have their own currency which is why Greece was so screwed).

    So what is the result of printing more money? The postponment of inflationary pressures and/or interest rate hikes. Lenders come knocking at some point and the borrower has to come up with the money somehow – whether printing it from thin air or attracting new lenders by increasing interest rates.

    Tricky to call what will happen b/c inflationary pressures are offset by deflationary pressures (foreclosures, joblessness). IMO interest rates will go up but will it be coupled with inflation or deflation???

    As the article indicates, best to stay as liquid and debt free as possible. The future ain’t so bright for shades.

  • LaughingatU

    Ummmmm…… off debt? At this point it’s moot, if the system is going to crash…why bother? What are they going to do? You’ve already admitted that the greater majority are being manipulated into debt anyway so while I do not argue against personal responsibility at some point the entire arrangement exists because of the scheming of the very people who are owed. It’s like telling a prostitute that since she agreed to work for a pimp for one year she’s morally obligated to complete that commitment. LOL!!!!!! Yeah okay, hey everybody pay your debts, do the right thing.

  • Jim Em

    20 years ago I ripped up my credit cards, payed them off and have lived debt free every since.

    If I don’t have the money to purchase something I need, then I save. I never found I needed something so bad that I had to take out a loan. It really is that simple.

    Debt is slavery.

    I have been aghast at how the banks drummed it into our heads we needed to live in debt. That everyone had to have a credit score.

    The way I feel about banks and credit cards can not be printed here, but those words do start with F and S.

  • In slavement only by the u.s. gov. Paying there bills for many ears to come. An the only way out of this is to Call it quits now. A massive default by the u.s. Gov. The people must all agree an make the gov default before they drain all the blood an what is left of america. This wouldnt be all that bad. If the gov defaults on it debts. Then no otgher country would invest in it an the gov would have to live within in its yearly means. An the economy would trive again no more debt to pay no interest either. All the land an gov offices be sold to pay the bills. Oh yes a masive down sizing of the gov.

  • How about this….Go out and lease yourself a nice, shiny new Jeep Grand Cherokee. You get 5 years of payments of $600. You must not drive more than 60,000 miles in that time, or it’ll cost you when your lease is up. At the end of 5 years, you’ve paid $40,000, you give the Jeep back to the dealer, (who then turns around and sells it for another $15,000) and: YOU HAVE ABSOLUTELY NOTHING TO SHOW FOR YOUR PAYMENTS ON THE VEHICLE FOR THE LAST 5 YRS.

  • Aaron

    I have to say that I think LaughingatU made a great point. If it weren’t for the greedy lending practices of the pimps (excuse me, lenders) and their cronies in the media and goverment pushing the “Credit is wonderful” mantra, while keeping the masses ignorant to the fact otherwise, we wouldn’t be in the predicament we’re in. It seems getting a lot of something (interest) out of a little something (principal) is the entire goal, and to keep the masses ignorant to that fact is what allows it to continue. Does “loansharking” seem like a fitting term, only on a global scale? When one has to take loans to buy neccessities, while slaving away at sometimes more than one job, while others can be lazy and get government assisstance for doing nothing but sitting at home, something is wrong. Is not the janitor that keeps the hospital sterile, as important as the surgeon who works in the sterile environment, the janitor created? What would happen if all the garbage workers decided they couldn’t do it anymore because they couldn’t afford to live? I’d hate to live in THAT city (happened before hasn’t it?) People tend to forget little things like that because of this class separation that’s nutured by this system. How many of you ask the janitor how they’re doing with real interest? How many even acknowledge their existence? How many snub their nose like a god among a mere mortal? Thus is the fatal flaw of the “free market”, the lack of regulation, or should I say “uncorruptable regulation” when there is some attempt at it. When a tiny fraction control the majority of the “money”, it’s bound to end badly. Greed, jealousy, envy, and pride, all are unstoppable beasts, unfortunately. Stock up on guns and precious metals and jewels. Move to the mountains. Grow your own gardens and raise your own livestock. Protect your family by any means neccesary. We might see another civil war in our lifetime. Gaping class divide was a big part of the first one. I hate to sound so dooms and glooms, but people aren’t waking up from this nightmare, they’re trying to fight in it instead.

  • born2trade

    And also i think the key question people should be asking is that who gets to print money and lend? The federal reserve, which is a privately owned enterprise, gets to print money out of nothing (except paper and ink) or in most cases, dont even need to print any physical money, but put in a few keystrokes in their system and automatically the banksters can lend these to you and they call this credit or liquidity. Once u borrow this thing that they created out of thin air u start paying interests to them and essentially becomes their slaves. Of cos, in order to be very successful like they are today, they will need u to borrow, therefore they will need to work with advertising companies and pr firms to create “neceessities” that are unnecessary so u get to use your credit card to buy these junks. this is the 21st Century slavery system, the idea behind it is really the same but dressed in new clothing thats all.

  • Student loans, which cannot be discharged in bankruptcy, have become a larger and larger part of people’s debt. A great many people face a challenge–if you want to have a chance of upward mobility you have to take on this student loan debt, but if you cannot find a career job in your field after you graduate, you could be saddled with that debt for decades.

    The most egregious example of this problem right now is in the legal profession where law schools have been producing two or three times as many new lawyers as what the nation’s economy can absorb for decades. (Today the number is probably closer to 10x.) Today, law school can easily cost $120,000-185,000 after adding $15,000/year for living expense onto the cost of tuition (which can be as high as $46,000/year at some places). Since the vast majority of new lawyers will not find work in their profession but will be overqualified and unemployable in other fields (where hiring personnel will regard them as losers for not choosing to be rich lawyers), most of these graduates will be saddled with this huge amount of debt for decades.

  • jeff

    Why pay your usurious loan off at all. I agree the house of cards is about to crumble. Bankers have lent credit out of thin air to the masses AND HAVE RISKED the process. Stop making credit payments and use your newfound freedom right now to purchase essentials only. The world will soon be an as you used to know it place anyway.

  • Eric

    I very much agree with this article and for sure to anybody who knows simple mathematics. My paycheck is not really that much, but after so many years of staying out of debt, I have much advantage over those who make debt as their only way to manage their household finances. Who says Credit cards are bad? I use them everyday, but i pay the full amount at the end of the month without paying any interest and it also earn points that are redeemable. Lenders or loansharks must be avoided as much as possible if you dont want to be a modern day slave.

  • Lisa

    I was taught that in order to exercise critical thinking, it is important to examine the author – his credibility, biases, etc. I think that Colin raises some good questions as to the background of this author. Information shouldn’t just be taken at face value, but rather considered in a thoughtful manner. Google “critical thinking” to understand my point. I don’t think anyone would disagree that it is a good idea to get out of debt. I think that what Colin is questioning are some of the other claims that the author makes regarding the future of the US economy. Knowing the author’s education and credentials would help in determining the validity of his claims.

  • Vulcan

    The debate is laudable on all fronts. The biggest issue is how to attain a sense of perspective in order to make more rational decisions about the impending changes coming to us all. Youtube has the entire Money MAsters series about the hisotry of central banking, fractunal lending going back three centuries. I personally believe the book the 4th Turning by Strauss and Howe details the chronology best which traces the 80 to 120 cycle to before the Romans. It continues today and is not within the power of anyone or any organization to prevent its march. Educate yourself to what has been missing from the education of the masses.

  • Jim B.

    I have been in every conceivable financial situation that you can imagine except being deep in debt. I have had to go to credit to buy a set of tires in the early years. I am almost 75 yrs old now, have been saving very hard for about 10 years and have no debt and quite sum in my bank and credit union. I will not be able to spend my savings in this life time, so what have I accomplished? I don’t owe that sucker of life at the financial institutions a single dime. Let me tell you it soes feel gooooood!!!

  • Professor G

    Yes, as a political economist, I say make a five to ten year plan to pay off debts. The only reasonable debts are financed automobiles and a mortgage.

    It is not impossible, I am doing it. I have a credit card, but I don’t use it. I got rid of all the other ones.

    Think strategically about bankruptcy. There is nothing immoral about it, if your calculations show that it is not possible to pay off unsecured debt within five to ten years.

    You have to know a little about judges and trustees perspectives on bankruptcy. The judge and trustee have a lot of power (minus modifying mortgage payments)and act completely on experience; i.e. a subjective assessment. If you have run up debts for frivolous outings (casinos, cruises, etc.)you won’t get off easy. The truth is people do run into spats of really bad luck at some point in their life and judges know that.

    If you are in a really bad situation, take out a refi on your home and pay as much as you can off with it, provided you have equity. After that wait one to two years or right before the refi resets if it is an ARM, etc. Do not run up frivolous debts in the meantime. I would prioritize the equity towards students loans first, your kids if that is the case, because these can never be discharged. I would also try to pay the secured loans (auto) first. An auto is indispensable. After one or two years or if the ARM is about to reset, forclose the house and enter a Chapter 7. Prior to the filing of the chapter 7 reduce your income to the extent possible. The C-7 will be predicated on the last six months average of your income. Yep, that is primarily what matters. If you make too much, then you are forced into a C-13. A C-13 is hellish but better than being in perpetual debt. A

    My advice is don’t rush it, plan it.

    Times are going to get hard, you do not want to be in debt over your head.

  • Professor G

    If reducing your income means eating beans and rice for a year, then do it. You will survive. C-7 is predicated on a income means test. If you are under the mean income, you will get the C-7. You can be back on your feet creditwise in less than three years.

    Do the arithmetic and see if you can pay the unsecured debts in five to ten years. If not, then follow the plan I noted. Make your kids earn their way through university if that is on the horizon. If it takes them five or six years instead of three or four because they have to work, then so be it. Actually, most higher education is a waste of time and money. However, I understand the role of status in the U.S.

  • Bill


    One of the keys to entering a profession such as law is to go to a city where you have decent chances. I graduated from one of the most elite universities in the world ( I do not intend arrogance) and then moved to Orlando, FL. because my wife was there. After much wrangling, I managed to teach some courses in the university, but have been told directly that I will never be hired, etc. I did not want that anyways. I tried to find other positions somewhat related to my area of study to no avail.

    I am saving money to move back to a metropolitan area. It should not be a problem to find something there.

  • Flyer1

    Be a lender!

  • My blog is dedicated to walking away from this debt. Just consider it. Grab these banksters by the balls. There is no other way, but of course to stay out of debt in the first place.

  • Fredrick Johnson


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