Dylan
03-22-2010, 01:53 PM
The US gov must now pay a higher interest rate than Warren Buffet to borrow money.
To me, this is the most historical significant event this year. It signals the beginning of a potentially monstrous tidal wave.
No matter your debt, or our national deficit, on a day to day basis, its not the amount that matters but the RATE you have to pay it back. I believe today signals the powers of the world no longer trust the US gov as it once did.
The fact that this coincides with the health care bill doesnt concern me. I truly dont believe one has a direct large correlation with the other. However, someday, people will use it against our president.
As a direct result, I am going to recommend something that I shouldnt.
Please bare in mind, I have no professional degree to give this advice.
As your bonds mature and end, I would start recommending that you do not automatically roll them over. I would particularly start to watch our parents' money and make sure they do not have a huge sum in US gov bonds.
The reason is clear.
Solvency of the US government is no longer a sure thing. You heard it now with evidence.
If you dont want to believe me then believe the people that are actually doing the loaning
I predicted it over a year ago.
There is alot of time in a 10 year recession to roll money out of the US gov. Make sure you allocate and diversify your investments according to your objectives.
To me, this is the most historical significant event this year. It signals the beginning of a potentially monstrous tidal wave.
No matter your debt, or our national deficit, on a day to day basis, its not the amount that matters but the RATE you have to pay it back. I believe today signals the powers of the world no longer trust the US gov as it once did.
The fact that this coincides with the health care bill doesnt concern me. I truly dont believe one has a direct large correlation with the other. However, someday, people will use it against our president.
As a direct result, I am going to recommend something that I shouldnt.
Please bare in mind, I have no professional degree to give this advice.
As your bonds mature and end, I would start recommending that you do not automatically roll them over. I would particularly start to watch our parents' money and make sure they do not have a huge sum in US gov bonds.
The reason is clear.
Solvency of the US government is no longer a sure thing. You heard it now with evidence.
If you dont want to believe me then believe the people that are actually doing the loaning
I predicted it over a year ago.
There is alot of time in a 10 year recession to roll money out of the US gov. Make sure you allocate and diversify your investments according to your objectives.