Current Events — HabitableZone

Current Events » in reply to Re: State of the Union?

The economy does suck

>Americans are buying Lexus's, Rolex's,
>Bimmers', plasma TV's, clothing, and all sorts of foreign made consumer goods.
>
>But the economy sucks and everybody's unemployed. What's wrong with this picture?

This pictures people maxed out on their credit cards along with most of their home equity spent through home equity loans. America is in debt up to its eyeballs (both in public and private debt). Remember the story that America could convert from an industrial economy to a purely "service economy"? This was another "new economy" lie. We've been staying afloat with smoke, mirrors and other people's money. One of these days the foreigners holding assets in U.S. dollars are going to realize their money is evaporating.

Is it time to start buying gold? The Swiss Franc has been doing pretty good lately.

Gary

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