I recently got an e-mail from reader Terrence G., who claimed that the national debt figure was "meaningless" because the Federal Government could merely "create" money, at will. But I have a dose of reality: That debt is real, it is increasingly held by foreigners, and debts must be repaid. Worst of all, it is growing at an alarming rate (See: The National Debt Clock.) OBTW, after you are done reading the rest of today's blog, hit "reload" at that same site, and see how much debt our nation has accumulated in just those few minutes. Someday, our grandchildren will surely want to throttle us!
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You will recall that I predicted sharply higher municipal bond rates in 2008. Here is a news story from Alabama about the first of what I predict will be a wave of muni bond crises across the US. (A hat tip to DV for sending us the link.) OBTW, just wait until foreign holders of US Treasuries smell blood in the water and demand similarly high rates.
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Michael W. sent this article link: Survivalism Goes Mainstream As Middle Class And Wealthy Fear Breakdown Of Society
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The Mother of All Bailouts (MOAB) grows larger: Senate passes housing relief bill
