Discovering how to be debt free is not about paying the money you owe but it is about learning how the pyramid money system works which is the key to removing the credit monsters fangs from your financial neck. Once you understand the basics which are really simple, strange stuff happens and the process becomes fun? Yes, fun!

At the top of the financial food chain you have the Federal Reserve which is actually privately owned banks that control the governments’ money supply. The “Fed” tells Uncle Sam how much money he can print from thin air, the interest rate that banks will charge for this “just created” money which in turn regulates how much tax “we the people” will pay in order to repay the bankers who have really loaned no money.

Kinda makes you want to open your own bank however it’s totally unnecessary because us little sardines with our pitifully small debt means nothing to the financial appetite of the whales at the top and actually makes our escape from the jaws of debt very easy when you understand the money pyramid scheme.

We’ll combine the next third of the pyramid to government entities such as health care, defense, Social Security, entitlement programs, grants to states and even government employees as a big sponge that absorbs billions of dollars which Uncle Sam has to pay and he must occasionally borrow from the bankers to make ends meet.

Now the big section that occupies the space above the “middle-class” are the giant corporations such as energy, food, transportation, entertainment, housing and the like which we can collectively call Wall Street. These big corporations understand the money pyramid very well and they attempted to use that knowledge to produce more profits than a bank. It didn’t work!

We all know the story of the “busted bubble” on Wall Street and Uncle Sams’ bail out for those too big to fail corporations which will create instant tax debt for your unborn grandchildren so the saying “nothing is certain except death and taxes” will probably hold true in the future.

Now we arrive at the bottom of the pyramid where we the people, sometimes called consumers are responsible for collectively feeding all of the above mentioned entities by actually doing real work to produce goods which are taxed along with our payroll checks and that money evaporates back to the top to keep the bankers living the life of the rich and famous.

If you haven’t gone to sleep yet or your brain is trying to assimilate this one page doctorate on how to be debt free then you truly deserve an answer and here it is. The constantly changing pyramid of money is in perpetual motion. You may have a 401K today and it may vanish in a few hours or your life savings tied up in the stock market and suddenly it’s gone.

The same holds true for your unsecured debt or even your mortgage in our here today and gone tomorrow society. The key is making the pyramid work for you. To do that you must stop thinking you owe the bank real money and are obligated to pay no matter what. Consider yourself as a “share of stock” in the market.

Your value goes up, down or has no change when suddenly you get the big “pink slip” and your value drops dramatically but your banker doesn’t believe it so you now must prove to him your value in his 401(k) has dropped considerably. If you were listed on the Wall Street ticker-tape there would be no problem and you would cease to exist in the banks’ portfolio.

In the constantly moving pyramid of debt there is a common thread that keeps the entire system from collapsing and it is the rule of law. Bankers are accustomed to being at the top of the food chain so when some little shrimp doesn’t want to be eaten for lunch a bit of law rubbed on his lips might sour his taste for you.

Bankers hate dirty work so they employ microbes to infest your life and devour what remains of your finances. You will be harassed on the phone, mailed collection notices and threatened with lawsuits or in the case of your mortgage, foreclosure notices.

The Fair Debt Collection Practices Act will allow you to easily and legally end your unsecured debt and a forensic loan audit will reveal violations of federal law in your mortgage agreement making the banker sweat blood when he sees your mortgage going up in smoke.

Understand the system and use your legal rights to become debt free without ever considering bankruptcy or borrowing more money to stay afloat. Remember the last time you were on the phone with some government office and got a big run around? Well, they just got a pink slip due to government downsizing so even though they were “in the system” they don’t know about the system but you do, hopefully.

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