The Great RESET For the People.

 

The Great RESET

For the People.

Not for the big wigs, not for the fat cats, not for the uber rich, who, no matter where they are at, they have the skill and talent to pull themselves out of any hole that the govt might dig for them. (and if they don’t, they didn’t deserve to be there in the first place)

Sure, they’ll scream and shout, as they should, its part of human nature. 

We warn Society, the banks, ‘this is going to happen, you have no ability to stop it, the human race needs this to happen.

All credit cards are frozen. you can pay them down, but you can’t buy anything on them any more. No more personal credit. Its strangling society, it’s been strangling us since we invented it. Borrow tomorrow's money to buy stuff today. Steal from your tomorrow, and hope you have no ‘needs’ then? HA!

Next, we spin a wheel, of the top 5 banks. one takes the hit. everyone in that bank loses their jobs, all the money in that bank pays off the credit cards. clean slate. if its not enough, the next bank in the list does it, then the next, until eventually all debt is wiped out, and all the big money lenders are destroyed. All the debt those banks have? are distributed to the other banks : You get to survive? well sure, but you have to take on the debts of the one that died.

Let that stew for a month, then we start looking at the rest.

Car loans: If you car earns you money, that is a good investment. If not. repo, you do not want average Joe spending money he doesn’t have on a car he doesn’t ‘Need’. If he wants it, he buys it, no loans. save up. 

There are a few million university papers on why this is better, why saving for items, decreases the prices. people will willingly spend someone else’s money (including their own future self) on something they want, but will be reticent to spend their own money, now, unless they need it.

So the manufacturers will bring down their prices in order to sell their goods.

Then also, people will want goods that last longer, get their moneys worth.

So the manufacturers will ensure the goods have a longer shelf life.

Its a vicious cycle we’ve gotten into, ‘free money’ = poor decisions = cheap quality goods = throw away goods = new appliances every 2 years = constant trap of paying down debt from having to rebuy all your household appliances every 2 years, because nothing lasts anymore.

I still have a 1979 Westinghouse fridge that works. nothing past 1990 still works. It all dies, on purpose. we know they do this on purpose. They can sell everyone a new fridge every 5 years, even though we have the technology to make fridges last 50 years.

Do you see how we spiral the drain? How we need to correct?

The Last one is the Mortgage.

In Australia, housing prices have gotten far out of control, the rest of the world is up there, I don’t understand how Australia has it the worst other than this:

At some point in the late 90s and early 00s, we convinced ALL kids they needed a university education. Looking at the American system, we can see why this is a very bad idea. The lack of Trades people, with skill, is hurting.

If all our ‘smart’ kids go off to be office workers, and we leave the trades jobs for people who a) didn’t fit the schooling system (square pegs in round holes) b) didn’t have the socio economic ability to attend Uni, and chose not to, or rarer c) were not smart enough. They entered the trades.

Because of the negative connotation of being a tradesperson, the smart ones had to ‘dumb themselves down’ to fit in or move on to other jobs.

So the lack of skilled and smart tradespeople is rare.

Housing requires trades people, poorly skilled ones take more time to do the job, and make mistakes, which cost money. So, the building industry starting costing more. people demanded better skills, so the builders' unions started certifications. which cost money. lots of money.

Housing prices reflect the costs of building.

But, since prices were starting to go up in the 80s, people started doing their own work. this meant shoddy workmanship, which mean accidents which meant insurance costs, so those insurance guys got together with those unions, and now its illegal to do your own work in many areas.

So you HAVE to have licensed contractors, under a properly qualified builder. and the demand for that increases as more work needs to be done, and less qualified people to do it. 

Low supply, high demand = higher prices.

Long story short, trying to find builders to do your house in 2 years? = premium prices = everyone is doing it = higher prices.

For 1000s of years, people could build their own house to live in, staked out some unused land, built it over 3 months, more if you had friends & family. cost you 500 man hours. 

You used that shelter to survive and built a better house over the next year or two, 2000 man hours. 

Your kids used that shelter to ‘live’ and build a better house, but still was only 2000 man hours. 

Now, the average house requires a person 60,000 man hours. not because it ‘needs’ that much, but a 30 year mortgage is a lot of office work.

This is a hard pill to swallow. trying to reverse the whole mortgage industry is near impossible. people need a place to live to be able to go to work. they need running water, gas, electricity, on top of shelter from weather, and enclosed for warmth.

Halting Mortgages, forcing people to 'save' will take years, and the suffering for people to attempt this would create massive unrest and riots. Its not tenable. there is no replacement, Halting Car Loans means more people catching the bus until they save, reducing the bus 'costs per person' and increasing employment of transport workers, people can use the alternative. But halting New homes? where will the next generation live? with their parents? Who will be able to save enough to buy? and when?

Banks also, pay interest on accounts, based on money they earn on business loans and mortgages. Without mortgages, the pinch will be so much, storing money in a bank will be practically useless, and since now we've become so reliant on electronic banking,  how could we even consider this.

The Only Solution I see is recreating the building industry, allowing people to do courses, for free, online, so they can build their own house, for themselves. They can't sell it, they can't insure it, but they should not be blocked from building it. If you can build a decent house, following the rules, inspected to be sound, you can insure it and sell it. You can spend 20 years, adding, refining, tweaking, and making sure its compliant. it'll cost you man hours, and not much more.

People in Europe are building their own houses, properly, filming it on youtube, making enough money to help pay for the house, yet still build a house for $50k. You can't even get a single room renovation for $50k in Australia. I've had my bathroom, laundry, toilet and kitchen quotes to be renovated in a proper style, not cheap IKEA crap, (which by the way, an IKEA kitchen which will fall apart in 10 years, costs $10k) a Proper kitchen for $55k, a proper bathroom for $45k. Yet in France, my friend did an even bigger kitchen in the same style for $5k. wtf!?

So, once we can 'build' a 50k home, on (sadly this wont likely go down) $200k property on the edges of the nearby towns of a capital, the demand on those million dollar places will go down, then maybe in 50 years, things will settle to a more realistic 3x income prices.. 

Eh, maybe I'm dreaming. of the old days, after the WWII reset