What is Capital?
In short, it's cash. it's savings. It's your fuel. It's your ammunition.
Given how many people are in debt with a negative net worth, and not just people but also businesses and corporations, do we really have capitalism anywhere in the world today?
What we currently have is socialism for the wealthy, and pseudo-capitalism for the poor. The wealthy lend capital to the poor with interest, and if the loans go bust then the government (i.e. the people) bail them out. The poor often have no capital of their own, and borrow the capital of the wealthy to run businesses and fuel the economy.
While some of us do have a positive net worth and aren't up to our eyeballs in debt, we are the minority, and sound investment opportunities are far and few for us. The safe havens of yesteryear are no longer present. Savings accounts are a joke, as are mutual funds and other retirement savings. Escaping inflation, especially now, is nearly impossible if you keep you wealth in the system.
This socialism for the wealthy is a moral hazard that puts all the risk in our laps, and none of the control. This won't end well. Many in the lower 99% of society still believe they live in a capitalist system, yet most have no capital of their own. Most small businesses would go under within months without a steady income stream, or if they don't go further into debt. Again, this won't end well.
Capitalism doesn't really exist, yet young people today are blaming it for all the problems. They don't understand that the wealthy have all the capital, and have none of the risk. In effect, the oligarchy runs the show, and anyone not swimming in debt is their enemy. If you keep your wealth in your national currency in a bank account, they will find a way to take it eventually. either through inflation or confiscation. After all, it's their currency and not yours anyway.
As I've been preaching for years, get out of debt. Having nice toys impresses nobody but the people in your head. Your neighbors don't care, your family and friends don't care if you have nice things. The people on your facebook feed don't care either. If the price you pay is debt slavery, was it worth it?
The herd will be led to the slaughterhouse eventually, and you don't want to be there. Wealth isn't about having lots of currency in your bank account. That's just a waste. wealth is about having choices, and if you're in debt then your choices are few. You don't realize this while in debt, but once you get out of debt it becomes painfully obvious how many opportunities you were missing in life.
I've been there. I've made all the mistakes. I've had student debt. I've had credit card debt. I've followed the herd and being sheered like a dumb sheep gets old after a while. It took a lot of work to get rid of the burden and become free, and its worth it. You aren't truly free if you are in debt, and you'll look at those who are with pity once you are free. You'll see the stress on the face as they're forced to devote half of their waking life to paying off debts. You'll hear the hopelessness leak through their voice when they try to be positive about life. Don't be them, be free and be in control of your life.
Be safe. Thanks for dropping by.
