For those who haven't read it yet, Warren Buffet's right-hand man Charlie Munger had plenty to say about the state of the U.S. in his article entitled, "Basically, It's Over". In broad strokes (through a clever parable), Munger details our former greatness and our coming demise by the year 2012. Oh, and he calls a bucket shop (haha).
It is worth reading through to the end, even if it leaves you feeling a little queasy about America's prospects. Many of you will dismiss it out of hand (as Munger predicts in the parable) out of either fear or apathy. But it's hard to argue with the credit pressure the U.S. is under right now. It certainly could completely unravel over the next two years. All it would take is one major creditor to say, "No thanks, I think I'll pass this time." for the house of cards to crumble.
Unfortunately, Munger wasn't long on solutions to the problem. I suspect this is because he doesn't believe that there are any solutions, and that the coming demise is now inevitable. Coincidentally, I just finished watching an excellent BBC documentary called Empire of the Seas. It detailed how Great Britain went from complete global dominance to relative obscurity in less than 200 years. So don't think it can't happen to us.
I'd love to hear what, if anything, you guys are doing to prepare for the nasty eventuality outlined in Munger's article. Are you putting exit plans in place? Doing nothing? Hoarding cash?