The ultimate American fantasy is the idea that you can spend today and pay tomorrow. Today consumer debt makes up almost 80% of the national gross domestic product. In 2007, just before the great recession, consumer debt was over 95% of the GDP and personal savings was below 2%. Do you see a connection here? Our “paper economy” is built largely on DEBT. That is not sustainable. The main culprit in 2007 was mortgage debt. Now we see college debt emerging, which I think will be the next bubble to burst. I have said it many times, after income tax, the 30-year mortgage is the worst thing ever to happen to the American family. I know, I have one. The American dream has become the American nightmare. You want to give your kids something of value? Teach them the value of learning a marketable skill. Teach them to live simply and pay for things as they go. Teach them to avoid debt and mortgages. You will be teaching them how to live as free people.

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