Last year Americans spent approx. $472 billion more than they earned after taxes

Call me crazy, but there’s something seriously wrong here…

“The federal government now has more than $8 trillion in official (on the books) debt. Only three years ago, gross public debt stood at $6 trillion. For those calculating, that is a one-third debt increase in only three years. The United States took 226 years to run up a debt of $6 trillion. In three years, an additional $2 trillion was tacked on.”

Full article from quote above can be found here:
http://www.cmi-gold-silver.com/gold-price-tops-500.html

Chicken Smith View:

And everybody just goes about their daily lives thinking their dollars are safe. They’re not, because when the bottom drops (ie recession/depression), the dollar will lose its purchasing power, so although oil won’t necessarily cost more in other currencies, it will cost more in dollars. There are tons of factors that go into a recession, but just considering the ramifications of oil prices potentially doubling overnight, that will affect every aspect of society. Higher transportation and delivery fees for everything and anything will force merchants to raise their prices. When people realize this, there will be a mad rush of people trying to buy up and/or steal everything before it gets any higher (ala Katrina).

And that’s on the societal front, on the business front, all foreign investors and even domestic investors will begin dumping American stocks, bonds, funds, etc. A falling Dollar means a loss in investments, regardless of how well that particular fund or stock is doing.

Ok, so after the first few weeks, the dust will settle and we’ll all return to our normal lives, right? Well, think about it. Our currency will be devalued and what’s to bring it back up? Time, lots of it. Our economy will come back, but only after we’ve been bruised, battered, and our funds have been depleted. America 2.0 will need to based on more than just credit and speculation, it will need to be based on that outdated premise of hard work and savings. You know that concept, it involves earning your money through personal effort, not spending what you don’t have, saving for a rainy day, and only buying what you can afford (aka, living within your means). In reality, not everyone can afford to be buying an iPod, yet you wouldn’t know that if you’ve taken any sort of mass transportation recently.

Here’s a quote and a link to an article on our negative savings:
“The savings rate was a negative 0.6 percent in October [2006, yes now]. In other words, …the typical American spent $100.60 for every $100 of take home pay.”
http://money.cnn.com/2006/12/21/news/economy/savings_rate/?postversion=2006122116

Here’s a link to an article on living within your means:
http://finance.yahoo.com/columnist/article/moneyhappy/2643

And don’t be fooled by reports that say “household net worth is up $2.8 trillion, or 7 percent, from a year earlier, even excluding gains in real estate.” As most of that is only on paper and is about to be lost during our forthcoming economic crash. BTW, please feel free to tell me otherwise, as I much rather be hearing good news, especially during the holidays. Merry Everything!

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