I cannot tell you how often the issue on the top of my economic and financial worry list, within short order, is the feature article in the Financial Times! I keep worrying the world, particularly China, is going to stop buying ( or start selling ) US Treasuries. Things are already bad, very bad, and not getting any fundamentally better any time soon, but this debt thing is a big problem. I am sorry but I do find it ironic that at the same time we are telling individuals that they were irresponsible and need to work hard to pay down debt, the leadership of this country is doing the opposite on a historic scale. I do understand the many arguments why we NEED to spend out way out of a problem caused by too much spending, but it is still ironic. My husband has been talking about the “China Issue” forever and this article summarizes the key points he has been talking about it a very worthwhile read. He thinks one of the answers is for them to buy GOLD – a lot of it. Who knows, maybe they already are.
The financial markets? I have continually written about the deleveraging process that has taken hold. It is not over and will not be until asset prices find some sort of bottom. What will it take to find a bottom? Consider reading these two pieces (below) by folks a lot smarter and more connectect than I am. Oh… and they also make more money, at this point, likely more than any other person on the planet. What YOU CAN DO is basic financial prepardness. On how to do it, click here. Please consider sending that link around to everyone you know that you think needs help during this historic and difficult times.
Bill Gross of PIMCO – BEEP BEEP. Paul McCulley – Saving Banking.
(if you did read Bill’s piece click here… maybe Bill should hire me?)