"Global Alert: Economies Under Pressure", egads!

The title of the program was definitely not a turn-on, but the invitation to visit the AMA Chapter in Richmond VA was tempting. What an outstanding chapter!

The program featured Christopher Keating, VP, Consumer Strategist, Financial Services for Iconoculture. Iconoculture, based in Minnesota, helps marketers make decisions in corporations and agencies to enable growth and innovation. They keep up with consumer culture (via some pretty extensive and comprehensive research) helping clients align their businesses with the needs, wants, desires and passions that drive lifestyle and lifestage buying behaviors. It's all about knowing your customer to Iconoculture.

Christopher's presentation helped us understand the volatile global marketplace. Doom and gloom, unfortunately.

Over 50% of the U.S. Treasury debt (our debt, yours and mine) is in foreign ownership, mainly China. Personal debt (which is only yours and mine) is growing exponentially.

There was a time that foreign ownership of the debt would have been little cause for concern. The U.S. is the most consumer-riddled economy in the world; almost 30% of the world's economy. However, there's a fast-growing middle class in China, India, and now Russia. That means, foreign investors have new customers.

Do they still need us? We seem to serve as the standing military for the world, but who's going to help pay for it?

Current debt is unsustainable. None of us is saving enough. Less than 16% of U.S. households have a "rainy day fund", or 3 months of household expenses, in savings.

The deficit must be controlled. Cut spending. Increase taxes (ugh!). Correct entitlement programs.

Martin Wolf of the Financial Times forecasted that in 10 years, our debt and liabilities will exceed 100% of GDP... and that was on 17 AUG 2004 ... and nothing has changed, it's only getting worse.

Are we headed for Economic Armageddon?