Renting Everything And Owning Nothing

As a millennial myself, I see first hand the struggle to build a stable life for yourself when fiat is so hard to save in, and debt is your only option to keep up with everyone else. Home prices are at all-time highs, bonds are at all-time highs, stock markets are at all-time highs, and there are very little obvious places to put your money that will generate enough for you to build wealth.

So millennials turn to student loans, credit cards, home loans and auto loans to finance their lifestyle and then hope they can pay it off with cheaper fiat as it gets devalued in the future.

The idea behind let’s say a home is to take debt, purchase something that increases in nominal value and pay it back with money-hat inflates purchasing power away, that way you’re using cheaper fiat to buy for something that holds value better.

However, with flat wages for most of us, cheaper fiat doesn’t exactly help as much as it should, and we’ve started to see the limit or range of this arrangement.

Selling more years

Believe it or not, but there was a time when cars were purchased with cash, now you can finance them up to 5, and even 7 years on a depreciating asset, that is nuts. Yet, it’s become the norm as financial institutions continue to push for more credit creation to hit targets.

Home loans have moved from 10 years to 20 years, 30 years, 50 years, eventually, at this rate, it will be 100 years. You realise when they give a criminal a life sentence that only means 15 years.

There are now students who have left university and are in their late 30’s still paying off debt, 10/15 years later.

We’ve taken the concept of debt and pushed it so far that it has become servitude. It’s gotten to a point where even if you have the ownership rights; you’ll never own that home because you’ll be paying it off for a lifetime.

We’re moving into a world where few people can own things outright, and they will be forced to rent everything. You won’t own your home, your car, you don’t even own your money since you’re living on credit.

All you’re doing is promising more of your life force and productive capacity to a 3rd party, be it a bank or a government.

Proof of ownership

Humans are very self-centred, they like to own things my kids, my husband/wife, my home, my job, my business, my car, mine mine mine mine mine. Ownership is an integral part of society and the human condition. When you strip people of the ability and right to ownership, you take away their humanity, their pride, their willingness to contribute to society.

When you don’t own anything, you are the one that is being owned; you have owners, the government owns you, the bank owns you, anyone you owe money to owns you.

What is an economic issue, became a social issue and now becomes a psychological issue that is damaging an entire generation of people who will pass on this fear, debt, indecision and hardship to the next generation.

We cannot continue like this; we need to move towards a world that is equity-based, where people have provable ownership. Where they can see and own 100% of the fruits of their labour.

Source: Leofinance