The Real Score of the Economic Ouch

Why is it that when uncle Sam's (referring to the country USA) economy is sick, the rest of the world's economy also crumbles? Somebody asked me this question.

My human chips inside my head started to process something. Searched a very important key point to start with my argument. Then pop the information that it is the biggest economy in the world. Most, if not all economies of the world are exporting to uncle Sam. Take Japan for example. How many cars and electronic gadgets are being exported for uncle Sam's consuming public? It is too much to count. And there were lots of other countries, which exports their products and agricultural produce to uncle Sam.

Now, if uncle Sam's economy becomes ill, the most logical result is, like any person who is also sick would lose his appetite. Otherwise stated, the consuming public spending will be affected, hence lesser consumption of those exports from the rest of the world.

But why has uncle Sam's economic health became sick lately? Now this same person followed up this question. And my quick answer is their dependence on credit.

The aspect of credit that, in my opinion has greatly affected uncle Sam's economy is the over-emphasis of the plastic money, in lieu of the the legal tender that it issued--the green bucks.

The reckless usage of credit cards and other consumer loans offered by financial institutions created a great deception as far as economic movement is concerned. This plastic money or any consumer loans allows anyone to spend more than he or she earns. It made spending easier and more difficult to track or even stop because it will just create a habit in most of us.

Uncle Sam's economy started with the saturation of the consumer loans defaults. The result then is an economic imbalance.

Now 1 Timothy 6:6 "godliness with contentment is great gain" should be seriously considered if you do not want to become part of that economic imbalance.

Some advise to live within your means. But, I say live below your means and set aside something for the rainy day.

Caveat: I am no economist. The above narration are my very own humble opinion. These may be inacurate, but I am confident that they made a very good sense.

God bless everyone!!!