I cannot argue against the thought of not buying on credit. Since my wife and I employed that strategy more than 15 years ago, our personal lot in life has improved. I like being zero sum, or not upside down. If we had continued on our buy by credit way of life, as suggested and encouraged by every conceivable form of lender out there, we would have collapsed with my last few years of under-employment. At the same time we are the exception and not the rule.
I can see the appeal that cheap credit has on people. Why wait, you satisfy that desire to purchase, releasing the endorphins of happiness associated with having the new thing. Forget the bill, deficits do not matter. Take the lead shown buy most companies, states, cities, nations, kick that can down the road. I watch my stroke victim sister in-law make purchases she cannot afford or need, and then complain when she lacks the funds to treat her children to a night out. At least she is missing 80% capacity of a lobe, she has an excuse.
I probably do not fear/despise the Fed as much as some, as the Fed has been here and even if repealed or removed, another entity will certainly step into the void. My U.S. History is not as sharp as it used to be, but we have had a few versions prior to the one we have now. They may have varied in structure, but they did exist, and failed, as well.
As I see it the issue is more of over population exacerbated by the lack of gainful employment which is result of so many variables you cannot lay blame at any one place. The empty retail outlets you mention in other threads have as much to do with changes in trends of purchasing, as economic woes of the current pocket book.
I drove through Detroit last weekend on our way to some soccer games for my son. The amount of burned out buildings and blight are even more than my last time though a few years back. So many more buildings burned out or razed, truly sad, maybe some better planning will allow for the restructuring or even redevelopment of the area. But at the same time, while Detroit is in ruins, we continue on to our destination in Pontiac, driving by million dollar homes to get to our game at a complex called Ultimate Soccer Arenas,
http://www.ultimatesoccerarenas.com/ to play two teams ranked in the top 10 in the region, and yet one of the teams is only ranked 6th in the state. So a state in economic ruin has 6 of the top ten soccer teams in the region. Within a few miles of this complex, at least 5 more complexes that are of equal size. 15 full size soccer fields inside, air conditioned, heated, and busy. Somehow, the downturn of local car production that helped create the tragedy that is Detroit has not found its way to the uppers that live just minutes away.