Debt nation, post one

This is the first post in a ten part series I have been working on since July 22nd, 2008. 

The events of the last three weeks have forced me to make some changes to this ten part series.

This is a ten part post that will focus on the largest problem facing this country.  It is a problem that you have heard little or nothing about during the Presidential and Congressional elections; however, it is the largest threat to our children and grand children. 

The United States has incurred a tremendous amount of debt at the Federal, state, and local government levels while at the same time American consumers are racking up larger and larger amounts of debt.  This does not bode well for our economy in the long term. 

I have started to shift my investments away from domestic stocks and even more weighted towards international stocks.  Now do not get me wrong, when the United States economy plunges (And plunge it will at some point) the rest of the world will plummet as well; however, I want to diversify my investments as much as I can.  I strongly feel that we are headed towards a depression that will rival the “Great Depression.”  I feel that this depression will most likely effect the entire world.  I feel this economic plunge will likely come in the next thirty years.  I think there is a good chance that it will be during my lifetime; however, I am certain my children will have to deal with it. 

The economic problems we have are as follows

1. The amount of money the Federal Government owes on a cash basis.  (Post two)

2. The amount of money the Federal Government owes on an accrual basis.  (Post three)

3.  The amount of money various state governments, city governments, school districts, etc. owe or have committed to spending.  (Post four)

4. Interest Rates.  (Post five)

5. The deteriorating financial condition of the “average” American household.  Our culture has changed from a “Layaway culture” to a “charge it now” culture.  (Post six)

6. The rising US Trade deficit.  (Post seven)

7.  The plunge in value of the dollar.  (Post eight)

8.  Both of our major political parties have turned a “blind” eye to the problem and are more worried about being re-elected then worrying about future generations.  (Post nine)

9. What you can do to prepare your family for the consequences of America’s growing debt situation.  (Post ten)

These problems are only getting worse and there is no doubt in my mind that we are heading towards a crippling economic recession at some point in the next thirty years.

Mike Sylvester