Education loans: the last failing straw in the collapsing debt Ponzi.

Today the news reports Obama's new plans to make students life long debt slaves.   I love the picture they used in the story as reproduced below.  It depicts a young woman with long flowing hair cheering at her graduation now that she has her useless liberal arts degree.  Sorry ladies, I know the face of a technical looking female and this ain't one of them.  These liberal patsies are the ones that Obama is trying to further bait into his debt Ponzi using financing tricks that are generally used to target the really stupid in our society. 

"Don't worry about the top line price tag of getting a useless education", sez Dear Leader Obama,  "Just focus about the monthly payment".

The message is that if he can lower the monthly payment then nothing else matters.  Too bad if it means you will be in debt to the government for another decade longer.  Too bad if your eventual out of pocket pay off is much, much higher.

Folks these are used car salesman tactics.  The whole notion that something is "affordable" simply because you can afford to make a monthly payment on it for the rest of your life is ludicrous and frankly insulting to anyone who has any kind of common sense.  No amount of Obama liberal propaganda is going to change this and kids are waking up to the fact that being in debt to the government is literally a form of slavery.  Government loans our kids something that was created from thin air and in return the kids are supposed to work part of each day for the the government for the rest of their lives.  Government put in literally nothing but the kids have to pay it back with real labor.  If it quacks like a slavery duck then its a duck.

Because of this, coupled with the new swing toward conservatism, I can say with high confidence that this news marks the peak of the education debt Ponzi.  This press release by the administration has nothing to do with helping people.  In fact, it is a completely self serving action by con man Obama.  This is the administration trying to stem the decline of student loans that is happening right now.   They know that student loans have been the only class of debt that has been increasing for the past few years.  If they lose that debt creation channel, the whole con can unfold rapidly as credit deflation takes down the debt Ponzi.

Keep in mind that student debt is a special kind of debt.  Unlike ordinary debt, it currently cannot be discharged in bankruptcy court.  Nope, once you sell your economic soul to the government credit devil, you are an indentured slave until the debt is repaid. At least this is the way the law currently reads.  I believe that it will change at some point and students will be able to discharge student debt in BK court.  Why?  Because what cannot be repaid will not be repaid.  It's as simple as that.  Most of these kids are getting their useless liberal arts sheepskins only to find that the job market really only needs engineers and other real kinds of producers.  Liberal arts starting salaries are paying like Chinese wages - $30k to start with a 4 year crap degree from Screw U.

The government can distort the path taken by the herd but it cannot change people for the long term.  The reversion to the mean will occur.  It always does and no it will not be different this time.