NEWS OF THE WEEK
Our pick for the two most alarming news items of
past weeks: the latest GAO Report and the public debt crisis. As
long as the Tapeworm is free to print, finance, borrow and steal
whatever money it needs – including the money that funds our
day to day living expenses –the Tapeworm will grow.
GAO REPORT –
Our pick for most important news last week was the US Government
Accounting Office report that for the ninth year in a row, the federal
government refused to produce audited financial statements.According
to the GAO, "the federal government's fiscal exposures now
total more than $46 trillion"...
here for report highlights
here for full report
DEBT LIMIT –
From the Washington Post (AP) Monday, March 6, 2006 "Treasury
Secretary John Snow notified Congress on Monday that the administration
has now taken "all prudent and legal actions," including
tapping certain government retirement funds, to keep from hitting
the $8.2 trillion national debt limit."
here for Washington Post article
THE REAL DEAL –
From James Turk's pointed commentary in Economic
Suicide (March 15, 2006): "The federal government
faces a potentially toxic mix of constrained revenue, soaring expenditures,
ballooning debt and rising interest rates." We would strongly
encourage folks who want to diversify away from the federal credit
as James advises, toward the type of financially intimate portfolio
detailed in our latest audio seminar Solari
Portfolio Strategy: The Power of Financial Intimacy.
Blessings coming your way!
-Catherine & the Solari Team
For more on tapeworm economics and practical solutions see our