FSO Market commentator, Mr. Tony Allison has written a timely reminder, A Sea of Debt.
Prepare for the Ebbing Tide
The solution is not to go the ostrich route and ignore the problem, but to take prudent action while you go on about your life. The drill should be familiar. While Uncle Sam can’t get out of debt, the average citizen would be well advised to do so, or at least lower one’s debt profile. Next would be to invest in areas that will mitigate against rising inflationary trends, such as the natural resource sectors and other tangible assets. Thoughtful, ongoing preparation is the key. It’s somewhat analogous to getting punched in the mid-section. If you know its coming and prepare yourself, the punch may hurt a bit, but it’s manageable. If you are totally blind-sided, you end up writhing on the ground, gasping helplessly for oxygen. If you believe inflation will be a major issue in the years ahead, now is a good time to get started on protecting yourself.
Noting the aforementioned wisdom of Warren Buffett, when the great global tide of liquidity finally ebbs into reverse, make sure you are one of the forward-looking swimmers dressed for the occasion.
“No generation has a right to contract debts greater than can be paid off during the course of its own existence.” George Washington to James Madison, 1789.
U.S. NATIONAL DEBT CLOCK
The Outstanding Public Debt as of 14 May 2007 at 10:13:53 PM GMT is:
The estimated population of the United States is 301,880,797
so each citizen's share of this debt is $29,225.94.
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