I posted this on facebook and deicde to blog on it as well:
In the US, for example, the government does not collect enough tax revenue to cover even the most basic services that society deems sacrosanct: defense [offense], social security, and Medicare.
In 2010, the federal government collected $2.2 trillion in tax revenue and spent north of $2.5 trillion just on those three programs– already $300 billion in the hole. Everything else– the post office, Homeland Security, the FAA, the FDIC, even the light bill at the White House– is funded by debt"
This fact is why I tend toward the pessimistic side of things. It is not too late, but since Republicans and Democrats are in denial, it will take another crisis to force action. What will that crisis be? I would guess an inability to find purchasers for our bonds. If nothing changes, this is 5 to 7 years away.
The author of the above quote expects chaos and asset seizure. I doubt this. He recommends immigration. I doubt this is a viable option for most people.
Leave Dodge behind?Do you have the needed linguistic skills? Most Americans do not. Do you have a connection with a foreign country? If you do not, and there is a crisis, the gringo will be the first target.
While the adventure of foreign living appeals to me, for most Americans this would be worse than just remaining in America and riding the crisis out with the support of friends and family.
Yes a crisis is coming. But the hard money types have predicted 5 of the last 1 depressions.
Getting out of debt and building a cash reserve is the best way to prepare for the prolonged crisis I am expecting.