"........ Think about it this way, if you were to ask a relative, perhaps your Uncle Sam, how he was doing, and he answered with the following; “I just took out a second mortgage on my house, maxed out all my credit cards, cashed out all my retirement funds, and raided my kids college funds”, would you assume that he was doing well? Would you congratulate him on his success? What if you asked a friend how he was doing and he replied “I just paid off my mortgage and all of my credit cards, fully funded my retirement accounts, and pre-paid all my kids college tuitions." Would you feel sorry for this individual? Would you assume that paying off his debts was somehow a sign of economic distress? Would you refer him to your Uncle Sam for financial advice?
Proving that truth is stranger than fiction, on a recent trip to China, an American delegation actually gave economic advice to the Chinese. This is analogous to an F-student advising an honor student on how to improve his grades. Our recommendation; save less and spend more, is akin to what the F-student might advise an honor student: study less and party more. I’m sure the Chinese will give our advice all the consideration it deserves. ................"
Read the lot at http://www.financialsense.com/fsu/editorials/schiff/2005/1104.html
...... and then consider buying some silver and gold, just for yourself.
