80% of the citizens are indeed in their “hole full of debts”.In Belgium, people must have fully paid off their debts within twenty to thirty years after the debt has been entered into. The Netherlands is now tending to this same principle. This has to do with the housing crisis of 2008 in the Netherlands, which did not take place in Belgium.
The Belgians had less debts than the Dutch when existing legislation.So it has nothing to do with the way people deal with money, but with the legislation that forces people in a certain direction.
For the private persons in Belgium and the Netherlands, the date of entering into the last major debt is decisive for a ‘ yes ‘ or ‘ no ‘ answer to this question.
However, governments never pay back one euro borrowed.They have an unfailing hunger for money, no matter how much it enters. Their debts are now so large that the financial system can only be kept straight by artificially keeping interest rates as low as possible.
However, in most cases, governments are only doing minimal efforts to keep those debts manageable.That is worrying. On the one hand, these debts are pushed neatly to the next generation. But there is more to it.
Paying off debts can only be with money that is worth less than the money that has ever been borrowed.That is why the financial authorities are doing everything to have an inflation rate of around 2% per annum. Now they even hope for much more annual inflation, but the governments will never openly admit.
A rule of thumb says that the prices of about everything every thirty years double or that the money decreases by half each 30 years in value.People who save long-term in euros, automatically lose another purchasing power. Oh yes, if you haven’t yet, I’m talking about inflation.
In Another topic on Quora I have formulated it as follows:
What would you do if you got the choice from 鈧? million in cash or 鈧? million in gold?
Frankly I would not hesitate for a second.I would go for the gold. I explain why.
鈧? million is so much that it would take Jaaaren to spend the money if you are economical.
In the years ‘ 70 there was a television series called “The Man of Six million dollars”.It was about an astronaut who had survived a terrible accident, but with the help of advanced technology and a lot of money, rebuilt and changed into a super strong man who worked for the government.
What I want to say is that six million dollars at that time was an astronomically high amount, a bit like six billion today. Now it is “only” a large amount.
Inflation eats the purchasing power of the 鈧? million in cash.
On the other hand, no matter what they all tell about gold.In Roman times, in the 19th century and today, one can buy a hand made costume for an ounce of gold. Inflation has no effect on the purchasing power of gold in the long term.
Let’s say I could buy about 770 ounce of gold with the 鈧? million and that I estimate that I will use 100 years to spend that gold.That means I allow myself to sell 7.7 ounces of gold every year and that there will still be a lot of gold when I die. By the way, I’m old enough to make 100 years 50 years and spend 15 ounces of gold a year.
If the inflation rate rises about ten per cent for about ten years, as was the case in the 1970s, I can still have the same lifestyle today.With the 鈧? million in cash, it will be impossible.
I do not give any financial advice.You must act on your own responsibility.
Gold is the money of kings, silver that of nobles.Bartering is the money of the ordinary people and debts that of slaves.
Perhaps you mean what the government is trying to make us point at national and regional level.In that case: I do not feel addressed.
This is a Roman principle: divide and conquer.
- Many older people still prefer to make their children pay for their old days.
They do not go to a rest home because they cannot afford it and their children do not want to saddle up with the extra cost.
The state requires them to live but does not provide for free reception.
The then government has struck the greenhouse, because they could do a lot with that money and pensions would always be guaranteed.
I remember the roads were asphalted, motorways were laid out and TV was introduced.
And to be able to participate in Europe, I also had to pay a monthly crisis fee. And an index leap “corrected” our exaggerated wages. Of course we also had to pay a share of the wages before it was taxed. Never had a problem with it because Belgium also had good health care, free education, good roads… The government did ordered f16s. At a time when there were supposedly no pennies.
As raw materials expensive purchases in an own company located abroad so that the profit is not made in Belgium. They easily played countries against each other. Europe was certainly an improvement in this area.
Since they were progressively more taxed on higher wages, the companies found all sorts of tricks to “motivate” you anyway: a company car became standard. Meal vouchers were added, good hospitalisation insurance, other cheques were tried out (cultural, ecological etc.) There was even thought of the hairdresser, massage or childcare in the company.
And don’t forget the luxury that didn’t exist in our youth: central heating, hot water from the crane, ample lighting, a closet full of sweaters…
This is also a success, but it is not limited to costs. While many families seem to be able to do so. And history repeats itself: Even now the previous generation is the person who has souped everything up.