7/19/09

Thoughts about the national debt

The national debt represents a transfer of wealth from "us" to "them" -- the bond holders.

The problem is that this transfer of wealth increases the class inequalities between "us" and "them".

By increasing taxes to pay down the debt we further increase the inequalities between classes.

Another problem is, as shown by several studies, countries with large inequalities between social classes grow more slowly. Social discontent is the logical outcome to high national debt.

To find out more about my in depth view of the markets and my strategy just visit our website https://www.peterdag.com/ where you can review The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific money management needs.

I will be happy to speak to your investment group on how the business cycle impacts investment strategies and the choice of asset classes.

George Dagnino, PhD
Editor, since 1977

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