By Jeff Berwick: It is like the entire world flip-flopped 20 years ago. Twenty years ago communism was still hanging on in the USSR and China still hadn't quite emerged from the Communist fog while the USA was still seen as a bastion of free markets.
Twenty years ago a prudent, conservative financial portfolio would include a mix of large US industrial and bank stocks and government and corporate bonds.
Segue to today and China and Russia, and many of the former Soviet states are, in many ways, more free market than the US. And the US, now, is much closer to being outright communist, with central control of banking, real estate (Fannie May & Freddie Mac), transportation (Amtrack, General Motors), the public education system and with its tentacles intertwined into every facet of American life with rules, regulations, subsidies and taxes.
A portfolio that worked very well for the last 20 years in US stocks and bonds has now gone from being very conservative to extremely risky.
This is never reported to the American people via their government mass media cabal but many of the largest players in the financial markets, including us here at The Dollar Vigilante, have stated, openly, that almost all large western nations will default on their debts and/or promises (Social Security etc) at some point in the near future.....read on
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