Since When Did Financial Freedom = Going More Into Debt?

Watch this funny video:

This video really highlights the nonchalant attitude there is to the debt situation. It really personalises it home, to an individuals perspective for people.

The scariest part about this, is that even though it’s in humour, it is FACT. Everything in this video is fact.

The US debt situation IS really this bad, and with the attitude of “let’s just prolong this pain”, we’re desperately looking for ways to just kick the can down the road further, increase debt, in any way possible, and just go on having the lifestyle we’ve enjoyed.

This is a serious problem, what happens when we can’t borrow more?

What happens when we realise that financial freedom DOES NOT EQUAL just going into more debt.

What happens? And more importantly, how do we change it? How do we make people understand the seriousness of this? How do you think this is going to affect YOUR world in 10 years? Answer in the comments…

– Minesh Bhindi.


Paul Cahill

March 11, 2013 at 11:46 am - Reply

Hi Minesh

If only the politicians of the western world could be force fed this kind of stuff. The video was funny, but sad and scary too. Self help, its the only answer, but even then what sort of a world are the self helpers going to be living in.

veronica brand

March 11, 2013 at 11:53 am - Reply

Great video to bring home the reality.
Exuse my ignorance on the matter but who does the US owe the money too ?
Who is lending this money to the US ?

Paul Cahill

March 11, 2013 at 2:04 pm - Reply


The largest US creditor is the US government itself – the Federal Reserve creates new money ($85 billion a month at the moment) and buys government bonds with it, therefore enabling the government to run a massive budget deficit. Its the same arrangement in Britain with Quantitative Easing – Alice in Wonderland economics. China and Japan are the next two largest creditors, having invested their trade surpluses with the US in US government bonds.

Andy Coates

March 11, 2013 at 3:29 pm - Reply

Brilliant, but very scary because in reality there is nothing we can do, its all part of a much bigger picture that were not privy to as long as everyone has there 52 inch plasma watching their soaps or watching the latest series (with top actors) on sky then all the people (well the 95% ers) are content, sleepwalking, but content!

Like Paul states below, awareness and self help are the way forward.

Ps on a side not I’m not surprised that the guy behind the desk is there, as he was the nervous computer guy from Ocean’s Eleven !! so he must have money to lend right 🙂


Like Veronica says below if the U.S owes and Russia owes and china owes! Then who the hell is the lender …… Aliens??

Andy Coates


March 11, 2013 at 7:03 pm - Reply

Hi Minesh
To answer the part about making people aware of the debt situation, the answer is sadly that people will notice it only when it comes knocking on their doors. Till then they’ll ignore it because all of us feel, even if the situation is really bad, how can I help to turn it around?
How will it affect is in the next 10 years? Well they say necessity is the mother of invention, so I think the situation will force us to think creatively about wealth creation and maybe in the process also open up ways to use to our natural talents and capabilities.
Once we get secure in feeling that we can always create the wealth that we need, we’ll probably move into a world that is less materialistic and more functional than today. Instead of hoarding up financial resources, people might actually encourage it’s free flow, so that everybody has the resources that they need.

Vaughan Moody

March 11, 2013 at 7:06 pm - Reply

While I do like the video, (the basic maths makes sense, the debt is massive & concerning), and I’m no expert, I think this professor of economics who writes for the Roosevelt Institute makes some good points when he explains several reasons why the federal budget is not the same as a household budget, here:

Rob Puzo

March 11, 2013 at 8:02 pm - Reply


Who do the US owe all their debt to?
Why do they have to pay it back?
I can’t think of any country that would dare to stand up to US.


March 12, 2013 at 12:02 pm - Reply

The very essence of the “Social Contract”, right there. Sickening.

As for who owes what to whom, the Adam Smith Institute released a Web-o’-Debt pictogram and an accompanying paper on how much countries owe to each other and how much lighter the burden would be on those countries if blocks entered into mutual debt forgiveness agreements. It seemed like a pretty workable solution to me at the time, especially when you’ve got Russia making comments about how the US isn’t treating it’s dollar right; any loss you recognised would be instantly offset by a similar burden evaporating pretty close by.

Moves like this would actually make those holding the debt that WASN’T forgiven that much better off, (deflation = increased purchasing power) but seeing how governments use economic prosperity as collateral for further borrowing, we’d simply end up right back here again. And all the countries are in a race to debase anyway. Somebody build a proper space station already so I can get off this rock ffs. Although knowing my luck, it’d end up like Rapture.

Speaking of debt forgiveness, the only sensible thing I’ve seen come out of the Occupy movement has been that crowdsourced debt forgiveness/rolling jubilee/people’s bailout idea that was floated at the tail end of last year.

Kevin Blythe

March 12, 2013 at 2:47 pm - Reply

Hi Minesh,

Thanks for the blog, I found yesterday’s (this one) very enlightening. If governments really did represent the people, they would create the jubilee system as per the bible where debt is forgiven every 7 years. And (excess ?) interest is considered to be usury (google usury in the bible).

Thrive Movement have some useful information on this. We can all do something simple – take our money from the banksters and hold it in a Credit Union. Perhaps Co-operative Bank is OK, I need to do more research on that.


March 15, 2013 at 2:24 pm - Reply

@Kevin Blythe

The problem with a scheduled jubilee is moral hazard. This wouldn’t even be all that conscious, but people would automatically spend stupidly, because they know it’d end up being evaporated. And why would anyone lend under such circumstances? What I like about the Occupy idea is that it’s a fantastic educational opportunity for those whose debts are forgiven to see the nature of the system they exist within. Also in its own little way it’s helping deflate the currency supply, giving us more time to stack.

This thing about usury, though; there’s a reason why payday loan interest is 5 digits long, log book loans are 3 and credit cards are 2, and it’s because of RISK. Your name links to an accountancy practice, I’m sure in your professional sphere you see patterns of spending behaviour that correlate to certain financial outcomes, but also you see rare exceptions to those rules. On a wider scale, order has emerged to account for those variables and we have the lending system we have today. I bet pay day loans are the closest thing we have to the real price of lending today. After all, how difficult is it for small businesses to get financing, even with proven track records and sound business plans? Personally, I have used pay day loans in the past, and made sure not to need to do so again. But there’s a reason why the interest was so high, it was the same reason why I needed the loan in the first place; I’d messed up, and as a sum of previous poor decision making had nothing to offer up as collateral therefore I was a risky person to loan to.

I agree with you about taking money out of banks, a bunch of bankrupt monopolists that are part of the problem we’re all here to try to solve for ourselves. I think that other good alternatives to credit unions and building societies are those p2p lending services; zopa, thin cats, ratesetter, squirrl and funding circle, though I’ve heard mixed reviews of funding circle. Bear in mind, of course that what you’ll be getting back from these places is more currency, which like Minesh and others’ve said, is being inflated away at a massive rate (and offer nowhere near the rate of return you would’ve gotten simply holding gold and silver over the later 5/10 years).

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