These links are NSFW.
People talk about the virtues of frugality, without considering the world we NOW live in.
Here is a question-
What happens to your ‘saved’ money?
Ever wondered where your saved money goes and what it does? Unless you are stuffing your ‘saved’ money in the proverbial mattress, it is reinvested in some form. Many brainwashed morons still believe that the money banks lend (aka credit) has some relation to the money deposited with them (reserve). However that has not been true for decades.
The majority of ‘credit’ created nowadays lacks any non-governmental reserve to back it up.
I have news for those who rail against the fractional reserve system. Guess what, the system as it has existed since the 1980s creates most of its credit without a cent of money to back it up. Yes, we live in what is effectively a ‘zero reserve’ financial system. Credit is now backed by central bank fiat, not private savings or investments.
So where does most of your saved money really go? Your saved money is used directly, or indirectly, for ‘speculation’ by financial types. Let me explain in brief-
Saved money is used by financial types for various types of financial speculation where various transaction fees skim off the gains, and even some of your initial capital. Unless you are lucky or an early withdrawer – there is no way they even return you ‘investment’ after adjusting for inflation. Printing more money can give late withdrawers the impression of gain, but that money is now worth much less.
You will lose money in most ‘wealth building’ schemes because they are meant to separate you from your money. Most of you are not supposed to win, but a few lucky ‘marks’ have to “win” for the purpose of perpetuating the sheeple’s belief in such scams.
In a ponzi scheme, only those who run it and those who withdraw early will end up with more money than they invested.
Saving more money than you will require for a rainy day is the easiest way to lose it and make those shysters rich. High rates of savings ensure that you won’t be able to enjoy your own money. It also create fewer new jobs and often causes a net job loss, aka real world deflation.
The ultimate irony is that speculation facilitated by your ‘saved’ money will cause selective inflation and thereby decrease the purchasing power of your ‘non-saved’ money.
Still want to fund the lavish lifestyle of shysters who look down on you? That is your choice- but remember that is a choice not an inevitability.