November 24, 2015 at 4:19 am #45262
Note: below is a financial blog about how different Millenials are from their parents in terms of money and spending habits – notably that 63% don’t even OWN a credit card. My question: what kind of sea change does this portend as those Millennials find their spiritual identity and come into “power” over various economic, religious, and governmental institutions? – Michael
Cash is King for Holiday Shopping; 63% of Millennials Have No Credit Cards; Millennial Attitudes and Deflationary Trends
Posted: 23 Nov 2015 12:32 AM PST
As we head into the black Friday holiday shopping season, cash is king.
Cash will be the most popular payment method for shoppers buying holiday gifts, with 39% of Americans saying they plan to use it for most of their holiday purchases, in a recent survey of 1,000 shoppers personal finance website Bankrate conducted with Princeton Survey Research Associates International. This number was about the same as in 2014, when 38% of holiday shoppers said they planned to use cash.
Behind cash, the most popular choices for payment were debit cards, with 31% saying they would pay this way, followed by credit cards (22%) and checks (3%).
Younger shoppers were especially unlikely to use credit cards; 48% of millennials said they would do most of their holiday shopping with debit cards, and 36% said they preferred cash. Mobile payments are still unpopular; only 14% of U.S. adults with smartphones or similar devices plan to make even one mobile payment during the holiday season, according to Bankrate.
Millennials in general tend to avoid credit cards more than previous generations have done; 63% of millennials dont own a single credit card, according to a separate Bankrate survey in 2014. They grew up in the Great Recession and saw what happened with their parents, Cetera said. They dont ever want to be in a situation where theyre in debt. Theyre shying away from high-interest loans, essentially.
That stat on credit card usage by millennials is precisely in tune with statements I made in 2008 if not before.
Kids will be competing with their parents and grandparents for jobs that do not pay a living wage.
Children whose parents are being destroyed by debt now, will keep those memories for a long time.
Demographics of aging boomers
Millennials overpay for healthcare
Low family formation rates
The Fed, the ECB, Bank of Japan, Bank of China, etc., are fighting major deflationary forces.
Attitudes are the key force actually. It took two generations for memories of the great depression to go away.
And it will take at least a generation for millennials who saw their parents lose their homes or get into huge fights over money for those memories to vanish.
To top it off, the Fed (central banks in general) has spawned another enormous asset bubble that will hugely add to deflationary woes when it pops.
Mike “Mish” ShedlockNovember 24, 2015 at 5:39 am #45263
They don’t have credit cards because they don’t have credit, prospects, jobs, security, or value hard work.
They enter a society falling apart, and have no place.
So … they hang around together, and on Facebook everyday are another hundred “campaigns” appear on 38 Degrees to save the world. Everyone click “Like”.
And then nothing happens.
What can such people do ?
How can they come into power ? At the moment you have 0.1% of humans controlling the entire planet, they are well aware of how to disenfranchise people and keep people from power.
The normalization of “homosexuality” is just an example of not being embodied, of not respecting the design of your body … and so you start to fragment, with your body, subconscious, consciousness and ego all doing and wanting different things.
You fall apart inside. Tattooing your body … because … well what is the body for anyway?
This fashion of guys with their pants round their ankles walking, tripping, stumbling around … is interesting, because they have no self-respect. They don’t care if they can’t walk in a straight line, it’s all a joke. What are my legs for anyway.
In the past fashion was about looking healthy and strong, Cary Grant. Tall powerful, capable. Howard Roark.
Someone who IS, and CAN.
Babies who aren’t loved … eventually die. In orphanages, and I was shocked to find out, but about 30% of children die in orphanages. Why ? Well it has long been known that this happens, simply because they are not looked after.
And they die.
What is it that gives people the power to BE, and DO ?
You have to be loved. And you have to be helped to work towards goals. To have real goals in the world, and learn how to harmonize your body and emotions and get the job done.
That is why spoiling is called ‘spoiling’. Because those youngsters who do not learn how to work towards their own goals, end up as baby-adults who cannot do anything. They don’t have that part inside themselves that can do anything.
So … they float around and become the natural victims of the consumer culture. They have no Earth to ground them. No values. No tradition, no history.
There is nothing connecting them to reality so they look at the internet and do what it says.
And underneath all this is a simple and long-lasting illusion that mankind has leant on for thousands of years :
“And that is the only reason you are not free is because someone is pushing you down.”
Like you are a victim, and if only someone took their foot off your throat you would be free.
But that is not true.
You have to grow, you have to learn, you are not free .. because inside there is not much. Just a seed.
You have learn to grow, you have to earn your freedom internally. You have to work for it, to climb mountains.
You see with the Syrian refugees flooding into Europe that these Millennials don’t understand the first thing about life. About how to create something. To build something.
It’s an idiocracy and Disney stories.November 24, 2015 at 10:45 am #45265
I agree with all your theories on life and self-love. Well said.
But the question is: are you profiling a small subset of Millennials, the ones who still live at home, or its mainstream?
I know many that ARE working and have high self-esteem. They just aren’t as materialistic, their ideals matter more to them. Those are the ones that by default will come into power. The Grim Reaper will harvest the current power-brokers…will the next generation be more idealistic?
I don’t know the answer – just raising the question about the evolutionary function of soul waves in human history. Yes, the dark side is immortal in its own sphere and will continue its strategies of sowing self-doubt and victimhood. Maybe its a case of three steps forward, and two back. Or maybe some more powerful catalyst and possibly catastrophic will occur to shift the cycle into hyper drive.
-mNovember 24, 2015 at 1:01 pm #45267
This is going to be a little bit of a political post, but it is entirely relevant to the situation and discussion at hand . . .
It’s easy to not be materialistic, when you have no actual money to spend.
How many times do you hear the lament from folks, millennials or otherwise, “I don’t have any money?”. NOBODY has any money. People can’t get money from their customers or clients, because the customers/clients don’t have any money either.
The scarcity of money is quite evident also by the fact we have virtually zero inflation, despite having 0% interest rates for 9 years and rounds of QE, which theoretically is argued by some to pump money into the economy. Despite these “accommodating” efforts, we see no inflation and we have deflationary threats.
Why is this the case? Because money is so scarce, the value of any dollar holds great value.
You might ask, with all the accommodating efforts of money pumped into the economy, why is money so scarce? Why is it the lament of every person, “I have no money.”
The answer is simple mathematics.
All of the money is being held in the bank accounts of the billionaire class. Like Scrooge McDuck, a mountain of wealth is being hoarded, and thus effectively, all that money is taken out of the economy. It creates scarcity. The 0% interest rates and QE don’t actually pump money into the economy, because it all goes to sit in bank accounts of the ultra-wealthy–a small handful of billionaires, e.g. the Walmart family and a few others.
When nobody has any money, nobody can spend any money. A consumer-based economy only works if people have money to spend and then they spend it! Money only has value when it is actually in circulation. When it is hoarded into a bank account, it effectively doesn’t exist anymore.
We basically have the opposite problem that what we had in the 1970s. Remember back then, there was double-digit inflation despite sky-high interest rates. Do you remember this? And why, back then, could inflation not be curtailed? The answer was that the availability of money was too high. If money is so available, it isn’t worth much, thus diminishing its value, creating inflation. How was this fixed? As everybody knows, Ronald Reagan got elected and slashed tax rates on the billionaire class from close to 90% down to 30%. What did this do? It allowed the ultra-wealthy to hoard more of their money, and thus effectively remove it from circulation, creating money scarcity. As money became more scarce, the value of each remaining dollar now got a lot higher, and inflation went away.
Unfortunately, the boom this had to the economy, created the Republican worship of “cut taxes on the rich” to stimulate the economy. The problem is, like with anything, moderation is key. More is not necessarily better. There is point when it goes too far, and things go to excess. We are now at that point. We’ve now swung the other way. Now so much money is being hoarded by the billionaire class, that money is so scarce, that no one has any money to spend. The whole consumer-based driven economy is on the brink of collapse, because no one can afford to consume. No matter how low interest rates go and stay (9 years) and no matter how much QE occurs, the value of a dollar remains ridiculously high with near-zero inflation and deflationary threats. The economy is struggling along, and no one has any money.
How do we solve this problem?
Easy. Just do two things.
1. Increase dramatically the tax rates on the billionaire class. I’m talking about people that make one, two, three or more million dollars per year. We need to get the billionaire class to cough up the money that they are holding, so we can get it back into the economy.
2. Increase drastically the minimum wage, so that bottom wage earners actually have money left over to spend after they pay for rent and food. Then they will actually be able to spend money in the economy, consume, and stimulate it. The fact this hasn’t been done in a long time is a second contributor to the money scarcity issue.
Look, I know that sounds “socialistic”, but it is actually capitalistic if you understand the mathematics of it. For a capitalistic consumer-based economy to work, people need to have money to be able to spend in the economy and drive consumption. Too long we’ve had a redistribution of wealth, but in the opposite direction–from the middle class up to the billionaire class. This needs to be stopped and reversed, immediately.
Monopoly–the capitalistic board game–is an extremely fun game, and the most enjoyable liberty-based model of how an economy should be run. But we all know the endgame of the board game Monopoly. Eventually, a few people–and then just one person–ends up with all the money–hoarding it all–and it chokes off everyone else. The only thing you can do at that point, is say “game over”, and either start fresh with a more equal distribution of wealth, or forceably get the hoarders to cough up their dough so the game can keep going.
I find it deeply ironic that the current front-runner of the Republican party is Donald Trump, a billionaire. Not unlike the previous election cycle when billionaire Mitt Romney was the nominee. If you are a billionaire, obviously you want to keep hoarding your money, so you should vote Republican. That’s who they represent. Unfortunately, the Democrats have been rather soft in understanding the economic problem. Instead as in Obama’s years, they have been focused too much on Obamacare and other social spending that does nothing to address the real problem, and in fact, often acts as an irritant to the middle class. Best scenario we could have is if Bernie Sanders (I-VT) gets the Democratic nomination, and gets elected. He’s socially liberal and I think he gets the economic problem well.
If not, if say we get Trump as president (or some other Republican), then we get worst-case scenario, because I’m sure tax rates on ultra-wealthy will be cut even more, which will exacerbate the problem. We’ll move more toward a feudalistic society. Eventually, not necessarily in the next decade, but eventually, there will be a key moment, ala like historically Marie Antoinette’s comment “let them eat cake”, and the people will rise up in revolt and cut the head off the billionaire class in some huge catalystic change. It may mean a redistribution of wealth, or it may mean a completely new type of society emerges.
From the Daoist point of view, it may even be better if the latter happens. Sometimes the old needs to be completely destroyed for the new to emerge, although it is not usually too pleasant in the transition.
Personally, I’d just prefer we fix the tax rate problem, so there is not a lot of life upheaval, but that’s also me, and not wanting to have too much altered in my life.November 24, 2015 at 1:56 pm #45269
When I was 21 I worked for Greenpeace in London in the political section. After 9months I arrived early for work one morning and pigeon-holed the entire company with a little pamphlet I had made explaining why they had no chance in hell of saving the planet because the media controlled people’s minds. (I had been reading a lot of Chomsky). Greenpeace didn’t like it much I can tell you.
All these political cultural and social ideas are useless, that is my view now. I see the human society as a garden of darkness which goes through cycles, and occasionally a spire of light emerges through some haphazard fortune, and through that light a few escape. Before that light is pulled into the darkness.
The cycle is very powerful and those with a small amount of light will be churned back into the substrate like a farmer turning over the earth … they are not ready.
And so it goes.
It takes great strength to reach escape velocity, that is why we remember those from thousands of years back. Only a few have through fortune or effort got the right makeup to avoid all the traps, to work in spite of fear, and press on into the light.
Can we do something for others ?
In my view the most important thing is to press on, without your own light there is nothing to give anyone. When you do what is required to grow, it is for yourself, your family, your country, your people … it is the most important thing you can do. Let that be inspiration.
The merging of East and West is quite radical … amongst the superficial teachers going on … there are some who have merged the conceptual models of the West with the depth of the East. I have seen several teachers, and it is radical.
Mankind has been missing some keys, the paths of the past have been very poor.
As a whole our species is inching up a mountain, blind. It is very brave actually.
But this whole reality is unstable, there is no guarantee we will make it.
Our species is mostly subconscious with a touch of consciousness … it’s not a great place for a species to be. Very unstable. Everything is just beyond reach.
What a story !
In any case, my understanding is that if you really are ready and sit sincerely in front of the light, it will open to you and you will have your “salvation”. So, nothing is kept from you if you are really ready. And if not, don’t worry you are in the right place, go round again and this time make it bigger !
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