Free trade causes higher personal debt

Contradicting Vox:

There is certainly a correlation between increasingly free trade and private debt, but I doubt the relationship is a causal one. For one thing, the decline in private debt which began in 2008 was neither caused nor echoed by a similar decline in free trade.

The economic logic also doesn’t support a causal link. Private debt is mostly linked to big-ticket items such as homes and cars. Free trade in goods is mostly neutral on the former and negative on the latter with regards to debt. While the free movement of peoples would tend to increase debt, more people being able to take out more loans, that’s not going to alter the debt per capita rate much, for obvious reasons.

One of the major components of private debt is education-related debt, and that has nothing to do with free trade. So, I would say there is no meaningful link between free trade and private debt.

Vox Day
Mailvox: Free trade and private debt

Disagree, because immigration. The point of taking on personal debt is social competition, and free movement of peoples means higher income stratification and disparity. Therefore more competition, therefore more debt.

Another commenter jumped in to back me up with his experience:

My day job is a loan officer for a major chartered bank, and I can tell you from experience, “free trade” has caused a lot of personal debt for many of my clients. The number one reasons people borrow are as follows:

1. Education – when you factor in there’s absolutely no individual collateral for this type of lending, from a debt to service ratio perspective, people lend more for “education” than anything today, even more than housing. As already pointed out, the free movement of people generated from free trade is causing a lot of demand. Jobs requiring less education are being shipped out, but what a lot of people don’t realize is that isn’t the primary source that’s driving the demand. Immigrants are driving the demand for education. The grand majority of people who call me up asking for education loans in the 100K+ range are immigrants in fields like engineering and health care. Quite often, their 3rd world credentials don’t meet the cut when it comes to being a doctor, so they have to retrain. So not only are the immigrants driving down wages through increased supply by coming here – they’re also directly contributing to education costs by having to retrain to meet regulations. Hence, overall personal debts for everyone.

2. Housing – free movement of people coming from free trade has put so much pressure on housing stock in the West. Simply put, we’re importing lemmings faster than our technology permits us to build housing to meet the demand. As a result, housing prices have skyrocketed, causing people to take on more debt to get entry into the housing market. While you could argue it balances out due to increasing equity – this is a Ponzi scheme. You can’t create more land. There’s a real limit as to how many people you can fit into one geographical location – free trade doesn’t respect this law of nature at all.

3. Consolidating other debt – In a world were the debt scales get higher and higher because of stressing demands due to immigration (free trade), suddenly paying that 2000$ fine to break your contract with a previous lender makes sense for a 0.5% decrease in interest rate. And to make matters worse, people often pay the fine by taking on more debt. See where this is going?

4. Moving expenses – This is probably a surprise to most people, but this is starting to become an increasingly popular reason people borrow. In this “free trade”/”free movement” world, people have to move where the jobs and promotions are. Unfortunately, moving is expensive. If you’re say, lower middle class, and need to move half way across the country to get your first solid middle class job, chances are you’re going to need to take out a loan.

5. Travel – thankfully, most white people, young and old, still traditionally save up for a vacation. Unfortunately, I can’t say the same for the immigrants. Did you know that your average middle class Canadian immigrant travels back to his/her home country an average of FIVE TIMES in a year? So much for loyalty! All of this traveling increases the demand for personal lending once again. And it’s all related to the free movement of people. Even the most staunch Muslim who swears against usury will take out a loan if it means it’s the only way he can visit his million and one inbred cousins in Qatar come Ramadan.

6. Cars? Cars? Auto loans are old school. A distant sixth. Young people and the immigrants don’t buy cars. Old people, based on deteriorating health conditions, probably shouldn’t buy cars.

So if you’re read this far, this is just an “on the ground” view of personal lending from the only white guy in a sea of Jewish and Chinese bankers. Jewish and Chinese bankers that alas, wouldn’t even be here in the first place if not for “free trade.” To say “free trade” may indirectly cause personal debt is an understatement. I would go on to say the goal of free trade is to BURRY EVERYONE under the shekels of personal debt!

MegaAvalonn

So that was pretty cool, and I got a post out of it.

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About Aeoli Pera

Maybe do this later?
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15 Responses to Free trade causes higher personal debt

  1. bicebicebice says:

    free trade means you as an individual are free to compete with the entire world at the same time while only white people were dumb enough to not secretly enforce tarifs/currency manipulation/regulation of ownerships/supporting your own/back scratching at large etc etc, and then the foreigner arrives to do your job for less, we call that a double blow in swedish —> lose your factory to china —> the factory that remains employs the same foreigner now in your country for less wage while he also buys your home for the money he saved up when the first round of sell offs began to the second world from the first world, think sweden and canada at the same time

    it is a vicious cycle that starts civil unrest, all foreigners suck ass

  2. Heaviside says:

    Accounting identities mean that in order for one person to save, someone else has to dis-save. Asians (and Germans and Gulf Arabs) are saving, therefore Americans have to borrow.

  3. Akuma says:

    No! Irrational boomers lying to Xers and Millenials causes higher debt.

    • Aeoli Pera says:

      Social competition was their reason for lying though. Checkmate! :D

      • Akuma says:

        No. Social competition is controlled by laws. Which are controlled by natural laws. If Gen Xers werent afraid to put their elders in their place and Millenials werent obsessed with equality boomers would be hanging from lamp posts. They are fucking atrocious.

        It’s hilarious when one goes to an office and everyone is over 40 (in one case I saw a 92 year old lady) and they are bitching at millenials for not being able to get jobs. Well no shit boomer scum. None of you will retire because you didn’t prepare for retirement. Dont psychologically project please, or our fists are gonna project through the air to your face.

  4. Akuma says:

    Woot! You almost got my real name. We need an Eden one with three or more people.

    • Son of Distant Trebizond says:

      Cool beans.

      It’s interesting to see another form of altruism in evidence in the edenosphere. It’s a phenomenon that manifests according to a taxonomy, apparently.

  5. Aeoli Pera says:

    I doubt this was on purpose, but “Energy Momentum Focus” is the most concise possible description of my leveling method. At level 1 you do anything you can to increase energy, which gets you to level 2, and so on.

  6. Akuma says:

    My cranium. Those Melon Pharaohs can send the saps away now with this tech. Now they can just 3D print their busts.

    • Ophiuchus says:

      Hint: itz cro-mag.

      This picture may actually be the first time in history that Thal has outnumbered Cro-Mag.

    • bicebicebice says:

      Cool, I have the same upwards slope with the same side bumps and back bump! Judging by others comments and feelin yourself up. This is the kind of thing that should be ones ticket to the supper seekkret klub.

      No saps allowed.

  7. Ophiuchus says:

    @MM Finally got around to listening to this. Dank as fuck. I know I like to post autism in your comments section and whatnot, but I must say that between your blog and this podcast you really are doing the Lord’s work.

    @Trebizond I believe that Altruism is usually obligate, but that it can also be elective. Aeoli has mentioned that humans in general trend evil and I tend to agree, but the silver lining of this is that where there is a trend towards evil there will also be outliers who will choose good.

    I will quote the Ascended Master of Wokeness himself, Alex Jones: “Powerful consciousnesses don’t want to dominate other people, they want to empower them, so they don’t tend to get together until things are really late in the game; then they come together and evil’s always defeated because good is so much stronger.” In other words, free will is not an illusion.

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