I firmly believe the strategy for dealing with the national debt is through inflation and dollar devaluation. The USA borrows dollars from the Chinese and then steadily deflates them. The Chinese dance with us because their economy is locked to ours, and they don't want the house of cards to fall down either.
This means personal wealth kept in dollar money, as in CDs, Savings, etc., is steadily eroded away and declines. People who borrow money are rewarded, especially money borrowed for a long term at reasonable interest rates, such as the 30-year 6% mortgage loans that were issued a couple years ago.
So, where should accumulated wealth be kept? Real Estate? The Stock Market? Do precious metals increase in value, or are they just reliable place-markers in value against the dollar? Should we transfer our dollars to Euros?
Personally, I used to lean toward the stock market but now can see the wisdom in good real estate. But you must have some way to compensate for real estate taxes.
I know of a farm in Gaithersburg, Maryland that was owned by the King family:
"The King Farm Park is a remnant of the 122 acre farm known to the King Family as “Irvington Farm.” The Park preserves the original setting of the house and associated farm buildings to the south on approximately seven acres. Irvington Farm was part of the largest dairy operation in the county (500 cows milked daily), and accommodated 100 dairy cows."
(Note: I don't understand how a 100 cow farm milks 500 cows daily.
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I can remember in the late 1980s or early 1990s that the King family was over $5 Million in debt for back taxes. The farm and family could not produce enough income to pay their taxes. They eventually sold (or had to sell) and the area is one big cluster of development.
On the other hand, stocks are not taxed until they are sold. Held for the very, very long term, they are just like a 401(k) in that you can wait until you retire to sell them. A significant difference though is that the tax rate when you do sell (in current law) is only 15%.
So, what's your advice for storing wealth?
Ken300D