14.8 Trillion dollars and growing. This is just the current debt of the US. In addition, there is all of the other debt all over the world.   How did things get so out of control? It simply comes down to spending more than you have. However, where countries are involved, that would be incredibly irresponsible spending on a grand scale.

How do you get rid of trillions of dollars worth of debt?

There are simply very limited options when it comes to getting rid of this debt.

Pay it back, don’t pay it back and someone loses, or borrow more money.

Politicians all over the world have elected to forego the pain of loss and the responsibility of paying back debts by continuing to borrow money. In theUS, we successfully do this all of the time just to make the INTEREST payments. As long as we can use other people’s money, that works. Does that work for other countries? Well, we can look to Europe for this answer.

As you know, countries in Europe, Greece specifically, are facing a debt crisis. Other European countries and involved parties are in the midst of making a choice. Do we let someone lose or do we continue to use debt to take care of old debt? The option to borrow more money to take care of more debt works as long as other people are willing to lend money.   However, every country faces the day that the third option ceases to exist. Thus, this creates a loss.

This is starting to happen in Europe. The after effect of this might not be to pretty.

What about the US? Ultimately, we will find ourselves in this place where no one is interested in lending money to theUS. When that day comes and when borrowing debt to pay back old debt no longer works, massive losses will occur until the point that the debt is finally handled.

Will this affect my investments?

The highest probability is that there will come a day when we will not be able to borrow money. As Harry Dent said on my show, this is the future. As a result, we will finally be getting rid of debt….not by paying it back but by someone taking the loss by not getting paid back what is owed.

As that process starts, retirement accounts are at risk. Remember, everything in this world is inter-counted and can either positively or negatively (in this case) affect the stock market.

Consider the three steps below and the resources I have linked to them for your own investment/retirement survival.

First, start the process of understanding the risk that resides in a post-2008 financial crisis world. Getting an understanding of the problem is the first steps you take to preparing for it.

Second, think differently about your investments. Most people think buy and hold. That is your Plan A strategy. What is your Plan B when Plan A doesn’t work?

Finally, make sure you understand your own goals and have a game plan for obtaining them. The surest path to success is to understand your own goals and make sure you are on track to achieve them.