I remember an often heard remark of long ago: The greenback dollar- as
good as gold.

But is it really? It's only recently that I began to question the matter.

It's not that I am against borrowing and owing money. I have used debt to
buy my houses and cars all my life. It's the rapid rate of growth of our
national debt which disturbs me.

Our country is borrowing money from around the world at a runaway pace

unlike any period in our history. Our political leaders appear willing to
increase its rate of growth of this debt load because it is so easy and
convenient to do so.

The sad thing is that the national debt and its awesome rate of increase
appears to be of little concern- either to Joe Sixpack in the hinterlands
of America or on Wall Street.

One often hears the financial experts on television who tend to dismiss the
national debt as an issue of minor importance with little, if any possible
impact on the lifestyle of America.

The talking heads, the financial commentators and gurus, and political hacks
express their optimism while usually dismissing the ever increasing size of the debt as being of little more than a blip on the financial radar.

Here's an unpleasant truth to consider: If the US were a household, many
budget experts would consider that 30% of family income for interest
payments would be approaching the status of a bankruptcy situation.

Do the math: 30% for interest payments plus a closely similar amount for
shelter, leaves only a pittance for everything else-food, clothing and
such. The future looks even more shaky as the interest payments will surely
soar ever higher in the next few years.

An individual citizen realizes that he is in financial trouble when
merchants stop accepting his personal checks. Unfortunately, it appears that
America would experience a similar situation if the world should stop buying
our country's debt instruments.

What others may do is entirely up to them, of course. As for me, I'm
thinking of putting as much of my investment dollars as possible
out of harm's way before the impact of America's runaway debt is realized by
the world. What I have in mind is the purchase of gold bullion which I would
store in Zurich or London. Its total value depends on the world price of
gold which looks to be promising. It's as safe as money in any bank and
perfectly legal if you tell the IRS about it.

END

Learn more about this author, Bill Allbritton.
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