I read a great short article this morning which outlines one of the major causes of our financial problems (and interestingly, why living in a younger part of the world might be better for economic opportunity).
The author, Robert Samuelson points out immediately in this article the hypocrisy of politicians who cry “let’s do it for the younger generation” then turn around and basically screw the younger generation (think GM and social security).
Next time you see policy discussions, look at them with an eye toward who is the ultimate beneficiary – is it everyone? or is it primarily one age group – I know this is tough to hear but understand this point: throwing future money at current problems with bail outs and handouts means we (or, some of us) will pay dearly later on – just ask Japan. And you can be sure there will be generational conflict!
From a financial standpoint, this is a very good reason to diversify away from the US dollar and US assets in case these politicians destroy our currency by printing too much bailout money (search Jim Rogers in my search feature for discussions on this topic).
Chris Grande
