If you have debt, now would be a very good time to pay it off. Seriously, the dollar has been looking shaky for a while, and looks likely to undergo a rather large correction in the near future.
This sounds rather extreme, but wander this-away
and read what the head of investment giant Morgan Stanley has to say
His prediction: America has no better than a 10 percent chance of avoiding economic ``armageddon.''
America's record trade deficit means the dollar will keep falling. To keep foreigners buying T-bills and prevent a resulting rise in inflation, Federal Reserve Chairman Alan Greenspan will be forced to raise interest rates further and faster than he wants.
The result: U.S. consumers, who are in debt up to their eyeballs, will get pounded.
To finance its current account deficit with the rest of the world, he said, America has to import $2.6 billion in cash. Every working day.
That is an amazing 80 percent of the entire world's net savings.
Meanwhile, he notes that household debt is at record levels.
Twenty years ago the total debt of U.S. households was equal to half the size of the economy.
Today the figure is 85 percent.
Go read the rest - I've been reading similar stuff for about 9 months now, pointing out which way things are heading. But it really is reaching the ridiculous stage at the moment...