C Thomas discusses the state of the economy and shares how to let Starbucks pay down your credit card
“Creditors have better memories than debtors.” Benjamin FranklinGood Morning! I’m Austerity Jones. Today we are going to talk about financial markets with C Thomas.
C Thomas: If the Federal Reserve continues with rate hikes and quantitative tightening, and judging from the inflation print with 8.6%, it looks like there will be a restriction on credit in this country. More debt will come due and have to be paid back, which is always painful. When this situation gets too restrictive, then we will likely go into an economic recession which is when we have no growth in the economy, and sometimes negative growth. This is why we have the C Thomas Printer Cooperative. This is when our practice will begin to be important. We have practiced grace, sacrifice, and kindness. We are practicing these skills so that we may develop character. Character is only tested in tough times, but we can develop our character during the easy and good times. Character is doing the right thing when no one is watching, character is doing the right thing when it is difficult, and character is doing the right thing even when we don’t want to. This brings us to the word of the week… Character.
Character- a person’s good reputation.
A reputation can be built over a long period of time, but it can be thrown away in an instant. That’s why building the muscle memory of skills like grace, kindness, and frugality is so important. Quantitative tightening while inflation is so high… Austerity, what’s your gas price?
Austerity: It’s $5.69 a gallon.
C Thomas: Holy Crow, that is crazy. As I was saying, we will have quantitative tightening and the Fed is raising interest rates, a true economic double whammy and then combine that with inflation. This is not a good situation that we are in. So, we might not be able to control the external country wide situation, but we can certainly control our own. First up is frugality, if the money is going to be tight in the future and inflation is going to make sure that our money is worth less, then we need to start paying off our debts and tighten up our spending. Austerity has talked to us about being practical and being frugal. Let’s think about how to combine both into a practical task that we can act upon.
This week’s Have More Grace Challenge is to be more self-sufficient by taking financial action in your own life. Imagine something that you do each week. Let’s use the idea of getting a cup of coffee at Starbucks twice a week. It might be $6 with tip, that is $12 a week and about $600 per year. That is money that you can save for a rainy day, maybe you want to build an emergency fund in case of being laid off at work or having to care for someone that did, or maybe that is money that can go to paying off your credit card. This is all advice that you can get by linking on blog links all across the internet. Well we have added our little spiel to the blogosphere, and now let me tell you where the wild goose goes.
Let’s talk about credit cards because in all our history lessons I must have missed how the Great Depression was because of credit cards or the Panic of 1837 was caused by the fall of Visa. No, no no! This is the newest, latest, and greatest danger to the American citizen that our bankrupt consumer culture has managed to devise. We spend now, and work, and pay later. This is exactly bass ackwards. You work first, and pay later. There are these new “buy now and then pay back in chunks later” which are kind of a bastardized layaway plan, but again it’s the getting first and earning later. This goes right back to my discussion about delaying gratification. Like I said then, Credit Cards are like Tinder- if you use them you will get screwed quickly!
Austerity: I don’t believe you actually said that regarding delaying gratification…
C Thomas: Well they will… So, let’s get back to practical. If you have credit card debt, I want you to start a two step plan, first you go to the store and buy a red can of Folgers Coffee, that’s right, freeze dried and vacuum packed Folgers or Hills Bros if you like, but
Austerity: C Thomas, that is kind of crappy coffee isn’t it?
C Thomas: That’s the point Austerity. It’s supposed to be crappy coffee, actually I kind of like it, but my point is that it isn’t expensive. You can have coffee and not spend $6 per coffee. The second step is you are going to take all the money that you would have spent on your choco loop frappucino with the extra whip and caramel drizzle and you are going to open up your credit card website or app and make a $6 payment on your credit card instead. You are going to start paying down your credit card now. Like the Warden Norton says, “Not tomorrow, not after breakfast, now!”
Austerity: That is a little bit harsh don’t you think?
C Thomas: I again quote the fiendishly clever Warden Norton by saying, “I believe in two things, discipline and the Bible, and here you will receive both.”
Austerity: While C Thomas is bringing you fire and brimstone this week, I want to offer you a bit of Austerity practicality. If you have a punch card at Starbucks, every time you make a credit card payment, write your own initials on the card. When you fill out your card, treat yourself to a Starbucks. That way we are aligned with C Thomas’ ideal of earn first and then receive later. Surely you don’t oppose such an idea now, do you C Thomas?
C Thomas: If you like, but the point I’m trying to make is that it is time. It is time to start making those changes in your life. When we see the markets go down 1500 points in two days, we need to be ready to act. There needs to be a sense of urgency to your actions. If you don’t believe me, just watch the pump go up at the gas station, and ask yourself this simple question “Are your wages or salary going up that fast?” If the answer is no, then it is time for change. Debt is a four letter word and you must work to reduce, and eliminate it. I am speaking of high percentage debt of course. If you have a fixed rate of interest on your home then paying it back with cheaper inflated dollars make a bit of sense, but make sure that any variable high rate debt is paid off first.
“Today, there are three kinds of people: the have’s, the have-not’s, and the have-not-paid-for-what-they-have’s.” Earl WilsonSincerely yours,
C Thomas
We have a winner of the Have More Grace Challenge this week: Best thing I’ve watched lately is a Youtube video called the Most Wholesome Moments in sports. The purpose, is to show acts of kindness in sports.
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Also born on this date:
The no new taxes switch George H. W. Bush,
The man who found his niche Jordan Peterson,
The Women Basketball’s Bill Fitch Pat Summit,
Succumbed to a snitch Anne Frank,
and the writer of “Bitch” Meredith Brooks.