We will remind the good readers that it is not on them who might be in debt, but our great nation as well. As such, we can look to the US as an example of why being in indefinite debt is not a good idea. This is because the money will either have to repayed at some point, or financial ruin will occur.

As the dollar sags and other investments beckon, a shakeout looms. That is the subheading of this very informative article.

Consider this:

However, the dollar will remain vulnerable, especially as the U.S. faces the enormous financing requirements created by the retirement and health-care needs of the baby boomers. In the near future, the U.S. will require either ever more foreign capital or an increased rate of domestic savings.

Absent the latter, the U.S. is sure to eventually bump up against its foreign borrowing limit. The day of reckoning will be at the point when foreigners demand more for their money, either through a weaker dollar, higher interest rates, or both. On the way there, any more reports of waning interest in U.S. securities are likely to attract much more attention in the currency markets, to the detriment of the greenback.

The principle can be adjusted to fit personal economic situations as well. Just think, if you do not start saving, and instead spending above the means with a currency that might devalue soon and a looming economic crisis on the horizon, there will be a good change that you will be in a detrimental situation.