[quote=SD Realtor]I agree about the day of reckoning. Make no mistake, it will come. Hard to say if it will be a high speed wipeout, like a full on collapse of the bond market, or a slow painful squeeze of the monetary supply contracting and rates rising over a 5 or 10 year span. Where I disagree with the doomsday sentiment is when. I do believe that we can kick the can down the road for many years. Maybe 2, maybe 5, maybe 20. If the world keeps wanting to play then there is no problem.[/quote]
I don’t think anyone would deny that there will be some severe “day of reckoning”. Definitely we won’t see it in the near term (of a few short years).
The USA is very fortunate that it’s essentially the World’s Reserve Currency. That buys the USA quite a bit of time. People don’t realize how much we depend on China. For all the talk about things changing and another currency taking over the US dollar. The reality is it won’t happen most likely for decades. And China is in a catch 22 position. They can’t afford for the US Dollar to fall apart. It just won’t happen in the short term. And it’s not like China doesn’t have it’s own problems to deal with. Because they most certainly do.
The reality is there really is no alternative. Forget Euros, Sterling, etc. Europe still has TONS of problems.
By no means am I saying that there aren’t problems on the horizon because I’m quite confident they are. But there are problems all over the world. I think the best you can do is think worst case scenarios out and be prepared.
For me, planning for worst case scenarios includes having real estate/assets/bank accounts/credit cards/etc. in some other countries besides the USA. As well, getting permanent residency status or even picking up another passport from another country is something that would be extremely wise.
No one likes thinking or planning for a worst case scenario problem but it’s probably wise to consider it.
