Retirement Lifestyle Advocates
With the debt ceiling drama debate now complete, ending as expected with an agreement to continue to operate with monster deficits for the foreseeable future, it’s a good time to discuss how far down the road the collective group of Washington politicians will be able to kick the public debt accumulation can.
The Fed’s two policy options moving ahead will produce a difficult economic and investing outcome for retirees and aspiring retirees.
Rapidly increasing levels of credit card debt had me concluding that Americans were increasingly dealing with rapidly rising consumer prices by resorting to accumulating debt on their credit cards.
The Fed, the central bank of the United States, after increasing interest rates .25% after its last meeting, issued a statement that was a bit different than other, recent statements after the Fed decided to increase interest rates.
Aggressive US sanctions against some countries globally are simply adding gas to the de-dollarization fire, as countries look to establish a permanent alternative to the US Dollar.
Homebuyers with good credit and larger down payments will now pay more in mortgage origination fees than poorly qualified, more marginal home buyers.
There is now a HUGE disparity between the yield on a 1-month US Treasury bill and a 2-month US Treasury bill.
Most Americans simply do not care that these new digital currencies could open a door for great tyranny. They just want to be able to pay the bills and take care of their families, and if our politicians tell them that this new system is good for the economy, they will be all for it.
The Fed will HAVE to either destroy the currency or destroy the economy.
I believe that the odds are fairly high that we may be on the verge of repeating the financial crisis; the downside for stocks from here could be greater than in 2007 – 2008.