Think-About-It

How Will the U.S. Recover from the Debt Crisis?

Nice opening chart!

Don't forget that when Japan's real estate and stock market bubble burst they had two things going for them that we (the U.S.) currently lack. 1) They were the worlds largest creditor nation whereas we are the worlds largest debtor nation. 2) During the years following the POP global GDP was expanding at a healthy clip so they were able to sell many goods to their major trading partners whereas that is not a given for the U.S. over the next 5+ years. These two factors helped them "manage" their unemployment rate and dissipate social unrest.

Commodity based assets are not the only hedge against the debasement of our currency. Foreign currencies, foreign stocks, precious metals and shorting bonds can also work.