Your advice is salutory and offers wise warnings. In Australia most of the public now believe that the worst of the global financial crisis is over.
However, the problem is not only the degree to which the FED and the Obama Administration have tried to inflate the US economy; it’s where this money has gone, that is damaging. Finance and Banking still account for over a third of the US GDP. They constitute a bigger slice of GDP than they did prior to the sub prime crisis, which they caused. So incompetence has been rewarded with bail out money.
It seems that the facts point to worse future outcomes than the worst years of the great depression. The great depression began in 1929 but by 1932 there was more pain and unemployment than in 1929!
What are we in for in the journey to 2012?

Jim

I am amazed and surprised that so many people can be fooled so much of the time. The United States government was bankrupt in 1969 as it could not have paid out on its paper money if there had been a run on the banks.
Traditionally all governments belonging to the World Bank, keep their finances set up basically in 1/3’s. One third in government paper (issues, bonds, etc.), one third in gold and one third in paper money and this is the part that we, the public, use. The reason for this is that regardless of what happens, the government is always liquid because they hav 2/3’s of their finances to cover a run on the remaining 1/3.
In 1969, the US government had 53% in government paper, and 41% in paper money and the final 6% in gold. What this means is that if there had been a run on the treasury, by the public or corporations attempting to cash in on due bonds or certificates, there was not the wherewithall to pay them. if there had been a run on the paper money that we use, the same thing.
In their wisdom, the Treasury simply printed more money and swept the rumours under the carpet. Don’t forget there was an expensive war in Vietnam to pay for and the government couldn’t afford to lose face by not being able to pay their young men and women who were putting their lives on the line every day.
So I am surprised that this is suddenly acting as a wake up call to so many people. The US government is broke and has been for many years, it’s just that no one knew about it or at least only a few did.
Until all of the western countries that have democracies can get together the best minds in their respective countries, and start to lay down a citizens charter that protects the individual and outlaws completely crazy speculation for the sake of the fast buck, this type of manic financial russian roulette will continue. There is nothing wrong with people earning a good percentage interest on their investments, but the speculators have to be stopped for the sake of the common good. I have lived and been involved with the financial systems in many countries around the world, the three main ones being the US, Canada and the UK where I currently reside. It is all the same and needs leadership from public minded leaders to make the difference and we will not find these leaders in any form of government.

Dane