Twas the Night Before Default

Written by Margaret Johnson | Thursday, 15 December 2011

Twas the night before default, when all through the bank vault,
Not a super committee was meeting to bring it to a halt.

The cookie jar was empty and the cupboards were bare,
No presents from St Nicholas just tidings to beware.

Parents and children were sleeping in their rented beds,
Can I have my vision back danced in their heads.
And mamma cried in her handkerchief, where did all the money go?
Down the chimney, down the drain, out the window and into the snow.

When out on the lawn a bailiff made such a clatter,
I sprang from the bed to see what was the matter.
He hooked up the car, the boat, the trailer in a flash,
See what happens when you run out of cash.

Get an action plan that will finally clean your slate.

 It was announced with enthusiasm today (November 22^nd 2011) in the Vancouver Sun that Canadians will spend more on Christmas gifts this year according to a new Royal Bank survey. No kidding. I could have told you that. Not only are people likely to spend more this Christmas, but they will end up getting less because of inflation.

For example, according to the survey, gift-givers are planning to spend an average of $640 on gifts, an increase from the $624 reported last year. That increase simply matches the reported inflation rate or 2.3%  but not consumer price index increases such as energy that were up 18.2 % and food 4.4% in 2011.

They then boldly declare that the majority of Canadians surveyed said they expected to cover the cost of gifts by using available cash in their savings accounts, while just over one-third said they plan to use their credit cards.

This really makes me wonder who they surveyed. For sure there were no unemployed because they wouldn’t have a surplus of cash in their bank account. Seniors dependent upon pension income would likely fall into the empty to near empty bank account category. What about all of the existing debtors that owe $481 Billion in consumer credit? How about young families raising children? Perhaps the best question of all is this. How many Canadians have a budget of any type? And then how many would have a realistic budget that meets all of the essential expenses over 12 months without dipping into credit reserves? How many actually budget for Christmas expenses? Finally, how many of these shoppers will use cash and not credit cards or lines of credit at the point of sale?  

I offer the above poem to commemorate Christmas and honour a world clutched in the cold grip of a very real debt crisis.