Debt Can Lead to Slavery

Pinnacle Digest writes: Axel Merk’s latest article discusses the freedom that is lost when a nation or individual takes on too much debt. Regardless of what some may say, debt is something taken on by choice, not necessity.

Merk states “We don’t want to downplay the horrific crime of slavery, but want to provide food for thought: debt is often taken on voluntarily; once taken on, however, one is forced to work to pay off one’s debt. To be unshackled from banks and creditors, investors may want to consider living debt free and owning gold.”

Merk elaborates on the fact that credit gives people the opportunity to improve their lifestyle (via a mortgage or car loan), but there is a fine line. Nowadays people are buying mattresses, TV’s, new tires and many other small-ticket items on credit – living beyond their means while shackling themselves to the creditors (the banks). If the individual loses his job (post purchase) or interest rates start to rise, he is left at the mercy of the banks (hence the slavery reference).

The greatest investor of all time, Warren Buffet, said that he would never allow his firm to be at the mercy of the banks; if only individuals and nations around the world would take the same approach.

When an individual takes on too much credit, it is the individual and his family who suffer. When a nation takes on too much credit, it is the people of that country who suffer as they are forced to pay off the debt (unfairly and against their will). While referring to huge debt-loads as a form of slavery may be viewed as rather harsh in the western world, it isn’t a dramatic reference at all in other parts of the world. Consider what Merk says in his latest report:

“One cannot be a truly free person with debt. While bankruptcy may have been downgraded to a mere business transaction in the U.S., some countries continue to put those that can’t pay into prison. The neighborhood surrounding Dubai’s airport has seen thousands of abandoned cars, often Ferraris or other expensive vehicles, as the formerly rich fled the country after their fortunes turned to avoid debtors prison.”

In his latest article Merk goes on to explain his strategy in preventing debt-slavery.

Click here to read Axel Merk’s article titled ‘Gold: Escape from Slavery’.