Today, I am writing a check to the IRS.
The other bad news, the S&P put the US on a 'negative' watch this morning amid rising debt/deficit concerns. The credit rating agencies have been warning of a downgrade for well over a year so this really isn't that surprising. Bill Gross of PIMCO recently sold all of their US debt holdings and even went short on some. Then there is the timing of the publication...just days after Obama and the GOP announced their deficit reduction plans. What conclusions can be drawn from this...?
1. Gold is good. Why? Because it's timeless, unchanging, pure. Governments have been destroying currency, so it is important to have something to demonstrate its relative value.
2. Awareness! This should bring the debt/deficit issues to the forefront of the political spectrum. I am shocked to learn from friends and clients how little people understand about our fiscal situation. It all seems like monopoly money; how much is $1 Trillion? And what about the $100+ Trillion we owe? Why should we care? Until we understand it, we won't be able to hold our government responsible. Here is a great video if you want to learn more: http://www.iousathemovie.com/
Sean
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