Business: Spending for a Rainy Day

Some time during this Christmas season, a father selecting a suit for his son or a sugar daddy eying a bauble for his woman friend will pull out a plastic credit card to pay for it, and the U.S. consumer will be $1 trillion in debt. Figuring that in an inflationary period the wise person borrows while the fool saves, the consumer has been piling on debt at a quickening rate, buying new houses, new toys and just about everything else. Private debt now averages more than $4,600 for each man, woman and child in the U.S.

Federal Reserve Board Chairman...

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