Prudence and Caution

The best gift we can give ourselves is to be objective and self-aware. This is very important right now around the energy of money.  Here are some recent statistics that you have probably read, but I want to emphasize:

* 70% of the $14T GDP depend on consumer spending.

* This country has around $13T in debt.

* 33% of homeowners are underwater (the media said 22%).

*   67% of homeowners have approximately 15% equity.

*   6M car owners are underwater (value of car less than the loan).

* 8.41% the is uncollectible debt from consumers reported by the banks 2/09.

*   10 banks send out 5B credit solicitations a year.

When you look at these facts and the amount of debt averaged over each person in this country, you can see that this market is rising from 'optimism' energy, versus looking at the financial foundation and the amount of debt that holds it up. We need to look back to see beyond today for the probabilities that rest on the horizon.  For example, look at a year ago and look at today. We have loaned approximately 11T to banks here and in the U.K., all from increasing debt. 

I am a patriotic person and that is my motivation for sharing my views. I want this country to pull out of this and not end up a debtor nation. Here's a quote that I put in an earlier blog that deserves to be reread by Thomas Jefferson in 1802.

"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers found."

I'll leave you with this thought from Henry David Thoreau. He believed in civil disobedience and less government. The recent 'tea parties' across the U.S. is heartening and shows that we as individuals have the strength and influence to make a difference. We need to stay awake and be independent when we get that nudge or gut feeling that the government has stepped over the line.  Be prudent and know that every thought and action counts.