It’s coming, folks.
The volatility in the Stock Market earlier this month is just a warmup for a big financial adjustment that could really damage American families.
The “perfect storm” could be on our doorstep.
Our national debt is $16,700,000,000,000.00 and rising. Congress just can’t stop borrowing and spending.
American Treasury bonds are no longer rated AAA and that is keeping pressure off interest rates.
The Federal Reserve just keeps printing money. That’s why the Stock Market is so high – too many dollars chasing fewer stocks.
And printing these dollars weakens the value of the U.S. dollar. That is a disincentive for investment in the start up or growth of businesses. China has dropped the value of its currency and that makes Chinese goods drop in price which hurts the sales of American products.
Companies are paying off debt and delaying or cancelling expansion plans.
Remember the financial crisis of 2008? There were several causes but government attempts to manipulate interest rates and money supply triggered the Stock Market plunge that ruined the life savings of many hard-working Americans who had money in stock-based retirement accounts.
U.S. Rep. Jim Bridenstine, who has a degree in economics, understands the problem and knows the solution. We need lower tax rates, spending constraint, fewer government regulations, sound monetary policy, tort reform and fair trade.
If it were up to Bridenstine, we would be on the road to recovery. But Congress – even his own party – chooses to follow the wrong path.
Author and radio host Dave Ramsey has it right. Pay off your debt and save some money for hard times.
The hard times for America are closer than we think.