Debtors Anonymous, Part I: Awareness

In the mid 2000’s, when asked about the housing price bubble – Ben Bernanke said, “What bubble?”  That piece of brilliant economic understanding provided the platform for Ben’s ascension to the top national banking job of the world’s largest economy.  This observation is a peek behind the curtain of the new “meritocracy” that dominates federal government bureaucracy – the bigger the screw up – the further up you go.

Speaking of going up, did you know that one can be addicted to debt?

Perhaps the most well known of all addiction rehab programs is “alcoholics anonymous.”   AA is very reasonably priced – but the rehab program has this one first step requirement – having to say:  “I am an alcoholic.”

For the sake of our discussion, let’s call that first step “awareness.”  Is Ben an alcoholic?  As far as we know, no.  Ben’s addiction involves you, me and the fellow/gal next door.  It also involves the fellow at 1600 Pennsylvania Avenue and his congressional cronies and his millions of bureaucrats and his many millions of special interest folk and their voting members.

Ben is addicted to giving them something for nothing – by funding new debt that can never be repaid.  Ben is showing no signs of awareness of his addiction.  He is rationalizing – making excuse after excuse, usually worded as follows – after 2015, we will get the house in order, stop printing US currency and unwind the trillions of dollars of debt we have put on the nation’s banks balance sheet.  Sounds like – I will change after the first of the year – go on a diet – stop drinking – it’s under control – I know what I am doing – just give me a little time.

If Ben were to attend a meeting of “Debtors anonymous” – yes, there is such a group (see:  http://www.debtorsanonymous.org/ ) – here is what he would face:

“15 Questions

1. Are your debts making your home life unhappy?

2. Does the pressure of your debts distract you from your daily work?

3. Are your debts affecting your reputation?

4. Do your debts cause you to think less of yourself?

5. Have you ever given false information in order to obtain credit?

6. Have you ever made unrealistic promises to your creditors?

7. Does the pressure of your debts make you careless of the welfare of your family?

8. Do you ever fear that your employer, family or friends will learn the extent of your total indebtedness?

9. When faced with a difficult financial situation, does the prospect of borrowing give you an inordinate feeling of relief?

10. Does the pressure of your debts cause you to have difficulty sleeping?

11. Has the pressure of your debts ever caused you to consider getting drunk?

12. Have you ever borrowed money without giving adequate consideration to the rate of interest you are required to pay?

13. Do you usually expect a negative response when you are subject to a credit investigation?

14. Have you ever developed a strict regimen for paying off your debts, only to break it under pressure?

15. Do you justify your debts by telling yourself that you are superior to the "other" people, and when you get your "break" you'll be out of debt overnight?"

 

Reminder - you have to answer honestly.   #11 is our favorite but #'s 3, 5, 6, 9, 12 and 14 sure strike close to home.   Actually Ben and Barry, both, need to answer these questions.  But then again so does congress and all those public servants – literally millions of them and their union masters.

The fact is they don’t care.  They are addicted to debt – they are not even close to admitting it and the closest thing we, the people, had to an intervention opportunity last November turned into a big kumbayah moment for the “zero interest rate – run the printing presses 24/7, “what debt?” group. 

What is the first step of the debtors anonymous rehab program?   

“1. We admitted we were powerless over debt--that our lives had become unmanageable.”

Powerless over debt – America is powerless over debt.  Try these words on for size: “ I, _________  __. ____________, am powerless over debt.  My life has become unmanageable.”

There, you just took the first step toward dealing with our problem.  Too bad you’re not Ben Bernanke or Barry Obama.  Ben and Barry - may sound catchy to some - but if you have any basic beliefs; any foundation in common sense; any fundamental financial responsibility you recognize these two for what they are - common, run of the mill, debt addicts.