Rounding up Keynesians and shipping them to Gitmo.
ping
Americans always overreact.......bankrupting the country.
Future wars will be fought from home ........push the nuke button.
Did you forget to tell everyone to buy gold?
Who is the author?
Key question. Where is "elsewhere?" The US economy is the best bet in the world, which is why we can have so much debt at so low interest. Yes, we've been spending like slightly inebriated sailors, but it turns out the Europeans and the Japanese have been spending like drunken sailors and have far less in the way of GDP growth to show for it. You could go to China or India in search of growth, but if you are looking for monetary stability, forget about it. You have to come right back here. Which is why we have no trouble auctioning off government debt by the trillions to foreign investors.
If you would prefer that your country's investments were less attractive to foreign capital, you could always move to Europe or Canada. The world is betting AGAINST them. I don't see any great advantage, given their double-digit unemployment and 50% GDP in government spending.
The prudent thing now is what it has always been. Diversify. Don't own cash, except what you need for your short-term needs. Own some bonds, some stock, some real estate, some gold, some investment-grade antiques. And avoid debt for anything except the acquisition of appreciating assets with positive cash flows. Then sleep well as the alarmists keep publishing the same tired charts they've been publishing for decades.
Remember, up until now every optimist in history has been right. Now place your bets.
Face it, NOBODY knows "easing the money market" like Helicopter Ben, the Printing Press Man!
Fear, Complexity, & Environmental Management in the 21st Century
http://www.michaelcrichton.com/speeches/complexity/complexity.html
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Culture of Fear
Reason ^ | February 17, 2006 | Ronald Bailey
Posted on 02/20/2006 2:08:56 PM EST by neverdem
http://www.freerepublic.com/focus/f-news/1582266/posts
Will it be available from other sources?
ping
I have to tell you that as a financial professional and an MBA, I am not impressed with that blog, "The Prudent Investor." Anyone can start a blog these days, but that doesn't mean they know what they're talking about.
Just one last comment: I think the country is starting to suffer from information overload and major distortions of information because of too many uninformed and unprofessional news sources. Everybody thinks they're qualified to write about geopolitical events, politics, and economics, and not everybody is qualified. There's so much distorted, inaccurate information being tossed out by bloggers, radio shows, and especially left-wing activists. People write stuff in their blogs and publish it immediately on the web before they've even studied the issues. For example, Michelle Malkin is a great lady and very corageous but I don't think she understands this UAE port deal in detail and she's publishing commentary based largely on emtion without understanding that acquisition.
I don't get the relevance of the first graph. I'd like to know the burden of servicing our debt on our budget, compared to historical debt burden. I bet it's low/average.
This is a stupid chart. It double or triple counts some debt. If you take out a car loan from GMAC and GMAC sells a bond to pay the auto seller, that debt is counted twice. And why no chart of assets? And why compare this debt number against a yearly number?
If I make $50,000 a year and get a 30 year mortgage for $200,000 my debt is now 400% of my GDP. Is that good or bad? I guess it depends on whether I want to sell you a big ass hunk of gold!!