March 14, 2009
Credit Card Cancer
by Peter Schiff
Peter Schiff is president of Euro Pacific Capital and author
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Lastly, savings can always be relied upon whereas credit is ephemeral. Remarks this week from the Chinese premier Wen Jiabao should serve notice to all Americans that the day will soon come when the Chinese stop lending us their umbrellas. When that happens, the average American will be soaked to the bone.
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One does NOT have to have a crystal ball to see the future.
The Chinese will stop buying Treasury debt. Interest rates to will go thru the roof. And, the economy will slow further.
The only defense is to have ZERO bad debt. That is nothing but a fixed rate mortgage that is well below 15% of your annual income.
Maybe Dave Ramsey is right. ZERO debt is best?
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