Sunday, July 9, 2017

the dollar, the dollar bill yo!-------'People don't think about it as debt'----"If it involves a willing lender and a willing borrower, and the terms of the agreement are being maintained, people don't think about it as debt," he said. As people acquire debt, Lea has found, they also change their attitudes towards indebtedness.-----It's not just that Canadians are comfortable with debt, according to licensed insolvency trustee Doug Hoyes. In recent years, he said, the ability to borrow at low interest rates to buy homes that see outsized annual price gains has actually rewarded the most indebted homeowners among us. "The banks will lend me the money, and interest rates are low so I can service it, and even if my monthly payments are kind of high, and even if I have to then get into other debt to furnish the house and pay for other expenses, it doesn't matter because house prices go up 20 per cent every year," said Hoyes.


https://www.youtube.com/watch?v=sXJXLq1lN7U
Wyclef Jean - Sweetest Girl (Dollar Bill) ft. Akon, Lil Wayne, Niia


Lyrics:

Some live for the bill
Some kill for the bill
She whine for the bill
Grind for the bill
(and she used to be the sweetest girl)
Some steal for the bill, if they got to pay they bill
(and she used to be the sweetest girl)
Tonight Wyclef, Akon, Weezy on the bill

High school she was that girl that make me do the hula hoop around the gym
(Just to get a peek again, she's a 10)
High school she was
That girl that make me do the hula hoop around the gym
(Just to get a peek again, she's a 10)
Never thought that she would come and work for the president
Mr. George Washington (where my money at?)
She thought he'd call (where my money at?)
She had a good day, bad day, sunny day, rainy day
All he wanna know is is (where my money at?)
Closed legs don't get fed, go out there and make my bread
All he wannaknow is (where my money at?)
She ended up in a road car, bruised up, scarred hard
All he wanna know is (where my money at?)
She thought he'd call (where my money at?)

See I'mma tell you like Wu told me
Cash rules everything around me
Singin' dollar dollar bill y'all (dollar, dollar bill y'all)
Singin' dollar dollar bill y'all (dollar, dollar bill y'all)
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**********************************************
It is as it is. We have a system of money that we all believe in that essentially is based on our faith. It's paper and metal. We work for it. We go into debt for it. We toil our time away for it. And in the end we may work more than we need to because we are fooled into buying status, love and admiration via objects that cost us big time.
Ultimately money is an imaginary matter that is used to get us to work for consumables some of which are essential such as housing, food, and taxes.
We don't however need to go the debt route excessively.
We simply say no.
Discipline is built climbing a ladder of steps of refusals.
Don't waste the time of your life chasing after stuff.
Work for as much money as you can get from your work.
And then responsibly use the money to buy you a life of experiences that you can look back on with happiness and contentment.
It's all about the dollar, the dollar bill yo!
But we can see the money realistically as something to use and not be used by it in terms of debt.



Since we're a frugal family it has been a big thing for me to pay off debt and not incur more than we absolutely need to in terms of interest charges from said debts.

Debt is a way to work more for what you buy and why do you want to work more than you have to?
It's dumb.

As a family we have been able to avoid major debt simply because we want less and do less. It's not fashionable to live like clams on a clam bed but there you go.


My parents were very frugal and I grew up with some understanding of the costs of their work. I went through a period where I wasted money but there you go-every young adult has to lose money at some time. It's when you get through young adulthood to later life and you're still wasting money -that's the trouble.

Money is nothing really. It's faith in a system that is essentially corrupt. But we have to think of the system as it is and not as we want it to be.

Since the corrupt system of money and politics will not alter best to deal with what is.
It is what it is.
Political parties are simply in the business of getting our votes to take control of the public bank for their own purposes. We're just here to be the cows that are milked for our labour that becomes taxes for them.

Best to accept what is and do what you can to teach your kids well. The system is pretty much taken over and we're all that we have.
In terms of debt, best to use debt to buy what might be considered investments. Then make yourself as independent of the system as you can.
It's your money. It's your time. It's your life. Don't waste it chasing imaginary things like money but still make sure you have enough to defend yourself if you need to.

This article indicates the problem of debt:

http://www.cbc.ca/news/business/ignoring-debt-warnings-1.4179540

'People don't think about it as debt'

**
People don't understand that not only is borrowing money debt but also life energy that is being squandered unnecessarily.  Why should you work more than you have to? It's foolish.

http://www.cbc.ca/news/business/ignoring-debt-warnings-1.4179540

ANALYSIS

'We used to be savers': Why Canadians ignore warnings about debt

Financial ignorance, incentives to borrow, and the psychological effects of debt may all play a role

By Solomon Israel, CBC News Posted: Jun 29, 2017 5:00 AM ET Last Updated: Jun 29, 2017 5:00 AM ET
Despite constant warnings about personal debt levels, Canadians continue to borrow money at rates that alarm government policymakers.
Despite constant warnings about personal debt levels, Canadians continue to borrow money at rates that alarm government policymakers. (Simon Dawson/Bloomberg)
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About The Author

Photo of Solomon Israel
Solomon Israel
Solomon Israel is a producer and writer for CBC News, based in Toronto. He's been on the business news beat since 2011, with stints covering technology, world, and local news. More recently, Solomon has been covering issues related to marijuana legalization. He can be reached at solomon.israel@cbc.ca, or on Twitter: @sol_israel.

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Canadians have heard the message over and over again, from the Bank of Canada, the Parliamentary Budget Office and even the credit industry itself: Personal debt levels are alarmingly high, especially in light of interest rates that are only poised to increase.
Why aren't those warnings convincing Canadians to borrow less? The answer may lie in a combination of blissful financial ignorance, economic incentives to keep borrowing and complex subconscious attitudes towards debt.

'We're comfortable carrying debt'

Credit counselling experts say many Canadians simply don't understand how precarious their finances truly are, especially as ballooning home prices and a stable economy make people feel wealthy.
"As long as people are out going to work every day, earning an income, it's easy to perceive that they're managing their finances," said Laurie Campbell, CEO of non-profit Credit Canada Debt Solutions.
Until the fallout from high debt levels leads to a collective economic crisis such as a recession, said Campbell, individual Canadians will continue to ignore the risks.
"We've kind of morphed into what U.S. citizens used to be," said Scott Hannah, CEO of the Credit Counselling Society.
"They used to be really comfortable with having a car payment and having other debts, where in Canada, we used to be savers and somewhat debt-averse. And we're not anymore. We're comfortable carrying debt."
It's not just that Canadians are comfortable with debt, according to licensed insolvency trustee Doug Hoyes. In recent years, he said, the ability to borrow at low interest rates to buy homes that see outsized annual price gains has actually rewarded the most indebted homeowners among us.
"The banks will lend me the money, and interest rates are low so I can service it, and even if my monthly payments are kind of high, and even if I have to then get into other debt to furnish the house and pay for other expenses, it doesn't matter because house prices go up 20 per cent every year," said Hoyes.

'People don't think about it as debt'

Economic incentives are relatively easy to understand, but the psychological forces that allow us to feel comfortable living with debt are more complex.
Mortgage rates
Interest rates near historic lows, combined with huge annual price gains in some hot Canadian real estate markets, have actually rewarded those Canadians who borrow huge amounts of money to buy homes, according to licensed insolvency trustee Doug Hoyes. (David Donnelly/CBC)
"One of the difficulties about debt is that its everyday meaning doesn't quite correspond to its technical, economic or accounting meaning," said Stephen Lea, an emeritus professor of psychology at the University of Exeter in the U.K. who has decades of experience studying the psychology of debt.
For example, an objective observer would define a mortgage, a credit card balance or a car loan as debts — money is borrowed up front and paid back with interest over time.
But Lea's research shows that individual debtors actually modify the definition of debt subconsciously.
"If it involves a willing lender and a willing borrower, and the terms of the agreement are being maintained, people don't think about it as debt," he said.
As people acquire debt, Lea has found, they also change their attitudes towards indebtedness.
"People who don't have any debts tend to be strongly opposed to debt… but if you put them into a situation where they are forced to acquire it, their attitudes change in the direction of toleration," Lea said.
That's an example of what psychologists call dissonance reduction.
"If you find your behaviour is inconsistent with your attitudes, it's often easier to change your attitudes than to change your behaviour," Lea explained.

When information isn't enough

Psychological research like Lea's seems to fly in the face of neoclassical economic theory, which holds that people make rational economic decisions based on the information available to them.
Payday Lending
Research shows that as people become more indebted, they take a more tolerant attitude towards debt. (Doug Ives/Canadian Press)
"People are not totally rational, they don't have perfect self-control, they don't have perfect knowledge, they're not able to do the kinds of calculations that economists think they can make," said Saul Schwartz, who has studied personal debt as a professor of public policy at Carleton University.
Government messaging that tries to warn Canadians about their high debt levels can't overcome our biased view of our own finances, Schwartz said.
"There's no evidence that providing information, which is the government's standard prescription, has any impact on people's behaviour."
Instead of encouraging borrowers to change their ways, Schwartz argues that government should focus on policy actions that would rein in the lenders who are enabling all of our borrowing.
But here the government faces a quandary. Cracking down on lenders and making it harder for Canadians to borrow money risks having the unintended effect of deflating the real estate market and causing the very economic crisis the government is worried about.
If heavy borrowing does play a role in the next economic recession, Canadians might be less interested in reflecting on why we borrowed so much money in the first place and more interested in figuring out who to blame.
"If the inevitable happens and real estate prices stop going up, and as a result our debt levels become a problem, then we can certainly blame the government for inflating the bubble. We can certainly blame the banks for going along for the ride," said Hoyes.

"I guess you've got to blame the borrower, too — but it's very hard to resist [borrowing] when everyone else is doing it, everyone else is getting rich. It takes a very disciplined person."

Julie Ali
1 min

While some debt is necessary as few of us have hundreds of thousands of dollars sitting around to buy a home or a car, I doubt that we need to go into debt for consumables unless we aren't getting a living wage.
When we were graduate students we brought everything second hand. We lived on what we got. Now that we are earning more certainly we spend more on food, gas and taxes. But we also try to save more.
It is hard to do. It's easier to go the immediate gratification route. But if we did that we would not have been able to help our older son with his education. We would not have been able to help our younger son with his education. Since education is our top priority we are motivated to defer gratification.
It all boils down to the wages you are getting and the self discipline you are able to cultivate.
If you are poor as students you don't have much in terms of money but you can also downsize wants.
If you have more money you don't need to buy junk.
It's all about the plan.
What sort of plan do you have?
My plan is for my sons to be educated sufficiently well so that they aren't earning beans for the time on the job.

Canadians have heard the message over and over again: Personal debt levels are alarmingly high, especially in light of interest rates that are only poised to increase.
CBC.CA

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