Finance and Refinance

Market economy is the social division of labor based on private ownership of means of production.

It is a cooperative system in which each individual is included in and to their interest. The state does not intervene in the subject market. In Mises’s view, the virtues of market economy are:

1. is based on private ownership,
2. consumer sovereignty (the essence of capitalism is the economic output of the available consumer)
3. capitalism, through competition to ensure their social stimulus (competition catalactică)
4. freedom sits at the base of building economic and social (the individual is able to choose how it wishes to integrate the whole society, economic freedom includes the freedom to err)
5. make profit and the pursuit of the driving force pushing a perpetual,
6. dynamics and ensure its vitality through an ongoing selection process.

The market does not mean a place, but a process, the manner in which the sale and purchase, through production and consumption, individuals contribute to the overall running of the company “(Ludwig von Mises,” capitalism and its enemies “)

A vision of Mises is opposite that of Karl Marx

After this crisis, I think that the next movement will be CASH FINANCE

What is CASH FINANCE
There is paper/electronic finance and cash finance. Now since the invention of the credit card, in the past 100 years we are living in an electronic world, where 90% of the money does not exist in physical world, only in computers. So, after living with so much money only in electronic format, and living on debt, I’m sure that capitalism, as we know it it will change. That means a more attention on present, on consuming what you are producing. That means a (more) cash oriented economy, not plastic, like now. That is cash finance.

What are the chances that cash finance will kick in?
Even I wish to come, I believe that humans, in their infinit stupidity they will prefere the easy way. And the easy way means living on credit, like they are use to. How to a ask a cauch potato to live based on what it’s producing? You can’t

Where it will be implemented cash finance?
Well, I think that it will be implemented in less developed countries (because they are now at this cash stage:) ). And some smart people from US will start be more rational about spendings. Cash Finance helps you keep expenses under control. With the plastic credit card, you cannot feel that you are spending. You are not feeling the effort. Is statistically demonstrated that you are spending more slow cash then credit

Credit cards are the banks response to monetize people stupidity.

So, we see that for the past 40 years, credit cards were using by virtually everyone. The public and private debt skyrocketed, everybody is consuming more than they earn and everybody is mortgaging their own future. So, what will be the future of credit cards?

1. RFID chip – there are already some cool, fashionable locations where you can pay via a RFID chip implanted under your skin. It’s the same thing with the credit card, but only more cool

2. virtual payment will be more used then cash in all world, not only in developed states. Did you know that only 10% of the money exists physical? The rest 90% exist only scriptical?

3. nations credit cards – now, that every individual person has enslaves themselves from financial point of view, there will be the nations turn, to use the nation credit cards. Imagine how easy will be to furter enslave nations, by provinding them no limit spending limit on national credit cards. Imagine how easy it will be to spend more and more, just like a normal stupid individual, who spends much more then it earns

Future of credit cards looks very promising. As humans are always looking the easy way out, credit cards seems to offer this easines. If you look in the future, you will see that debt will continue to increase, until everything it will break. This way of live is not sustainble. We cannot keep use debt to feel good. So, on short term, the future of credit cards looks ok, on long term I think it will be recalculated.

The entire world is in debt. Every individual is in debt. Every company works on debt. The financial teachings say that you must use other people’s money to evolve.

Cash only strategy is one that can save you right now. I read nowadays that with this crisis, the old school capitalism is dead, and it will be followed by an era of savings. I personally think that the image of the crisis is too fresh in our minds, so people will be cautious with their expenses only on short term.

On middle term they will be lured to enter again in the marketing/buying spiral.

Cash only strategy helps you make a safe heaven around you and your finance. The credit card is a bad invention, which let simple, stupid people (which count for 95% of Earth population) to enslave themselves, buying on expense of their future life.

Actually, is a comparison that you can make with selling your soul to the evil one . You get instant reword on the expense of future life

Using cash only can help you detoxify of this un-useful habit. Try for a week to pay everywhere only with cash. Sensing the hardcore cash, will make you more responsible, will make you more aware of the limits of your financial strength.

Try hiding your credit cards somewhere in the house and fighting the instinct to use them.

Also, using only cash, you will make a lot of savings. You will not pay interest rates and commissions, and you will spend less. Because it will be more difficult for you to VISIBLY spend, versus credit card spending, which are thin air…

USE CASH ONLY for a week. And then use cash as much as possible. And after that, use a debit card, not a credit card, because debit card will not let you spend more then your limit

CASH ONLY strategy is good to survive during a recession, like this one, and make you a happy life.

Statistics say that an average employee have money savings to keep him/her alive for an average of three months. Some barely live from one paycheck to another, some succeed in saving more money, so in case of emergency, they could live  for a longer period of time until they look for help.

Paycheck loan is a form of credit that offers an amount of money to the employee until the next paycheck. The cool thing is that credit cards with their ever stretching limits are a good replacement for the paycheck loan. First, the paycheck loan is usually no bigger then the salary itself. And on a credit card you can borrow/use the money for a much bigger limit.

The paycheck loan is designed to help people to have a bigger mobility in times of shortage. However, my suggestion is to use it carefully. Don’t take a paycheck loan just to go on vacation or to spend it on stupid things. After all, it a month from your life thrown away for… what? For a new stereo? Or for spending on some clothes, with absolutely no reselling value?

Try to use the paycheck loan only for smart spending. Basically in investing. And investing in things that brings you FUTURE SOURCES OF INCOME!!!! This way you can evolve from financial point of view. And only if the earnings you get are higher then the interest rate you pay for the paycheck loan

When I will have more time, I will put a list with this kinds of loans and more details about each ones. Until then, good luck.

American CreditCard. We, in USA, are the center of the creditcard industry. An industry that told our minds that we DESERVE to spend without a limit, we DESERVE to buy thinks even we don’t have the money.

American CreditCard business is a multi trillion dollar one. And a very lucrative one. It allows people, who usually are stupid, to enslave themselves, spending without a limit. The system is corrupt and the creditcard habit must be reduce.

The capitalism is based on consumption. If we reduce consumption, like this crisis is doing this to us, we suddenly see that we can live very well with only a fraction of what we had before. We don’t need all these stupid stuff, that we were keep buying.

Don’t you think is something wrong when you go shopping just for fun? Or for relaxation? Common. This is a behaviour of a sick society, that put malls and american creditcard in the center of the human universe.

If you search on Google “American Creditcard” you will see zillions of results. Every bank, every financial society have their own american creditcards. Just take a creditcard from us, use it, and we will own a piece (smaller or larger) from your future.

Evil, isnt’t it? And based on our stupidity.

American