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It's more like financial cancer and economically it will destroy the entire banking system. FED policy that requires Zero interest rates for us to survive (avoid cyclical deflation) is a bankrupt policy. We need higher rates, a stronger dollar, and we need to face the DEFLATION that we should have faced from 2001-2019 but did not have the guts to face. Every generation in American history has had to face periodical deflation as a kind of economic winter or economic re-set. The FED did not think we could endure this; it is their job to try to find a way to protect us from the darkness. But the darkness is like winter in nature. What doesn't kill us makes us stronger.
Remember, the FED was created to AVOID recessions. Recessions are nature's way to cleanse and purify the economic system. Those with too much debt get crushed. Companies get eliminated or challenged to the point they have to endure hardship to survive. Darwin's survival of the best-adaptors. The BEAR MARKET of 2001-PRESENT was short-circuited by FED intervention. Did it defeat the BEAR-RECESSION-DEPRESSION-DEFLATION, or did it only manage to delay BEAR-RECESSION-DEPRESSION-DEFLATION, and not devastate it?
It is wise during the Deflation Cycle to unload debt. In 2001-2019 not only did we NOT destroy debt, we added to it. Now we have more than ever. Can we grow our way out of debt -- MASSIVE GLOBAL DEBT -- that the (missed or delayed) recession was supposed to destroy for us? If the New Economy needs zero-interest-rates to survive, then it DID NOT WORK and we will have a GREATER DEPRESSION before us...BECAUSE OF THE FED shortsightedness.
It's more like financial cancer and economically it will destroy the entire banking system. FED policy that requires Zero interest rates for us to survive (avoid cyclical deflation) is a bankrupt policy. We need higher rates, a stronger dollar, and we need to face the DEFLATION that we should have faced from 2001-2019 but did not have the guts to face. Every generation in American history has had to face periodical deflation as a kind of economic winter or economic re-set. The FED did not think we could endure this; it is their job to try to find a way to protect us from the darkness. But the darkness is like winter in nature. What doesn't kill us makes us stronger.
Remember, the FED was created to AVOID recessions. Recessions are nature's way to cleanse and purify the economic system. Those with too much debt get crushed. Companies get eliminated or challenged to the point they have to endure hardship to survive. Darwin's survival of the best-adaptors. The BEAR MARKET of 2001-PRESENT was short-circuited by FED intervention. Did it defeat the BEAR-RECESSION-DEPRESSION-DEFLATION, or did it only manage to delay BEAR-RECESSION-DEPRESSION-DEFLATION, and not devastate it?
It is wise during the Deflation Cycle to unload debt. In 2001-2019 not only did we NOT destroy debt, we added to it. Now we have more than ever. Can we grow our way out of debt -- MASSIVE GLOBAL DEBT -- that the (missed or delayed) recession was supposed to destroy for us? If the New Economy needs zero-interest-rates to survive, then it DID NOT WORK and we will have a GREATER DEPRESSION before us...BECAUSE OF THE FED shortsightedness.
Good Luck!!!
See bolded .. I totally agree with you. I have made the most money of my life with recession investing. Stay out of debt, have cash and an investor can make a bundle picking up the shattered dreams of those that lost the Darwin lottery. I find myself looking forward to a recession and China punching back hard. Two things I think will create investment opportunities for those that keep theirs wits about themselves. Hello short sales and bankruptcy auctions .. music to my ears.
It's what our government wants. Everyone borrow money cheap. It's ok to be in debt, it's good debt .
Even the government does it. Except our government has a money tree
Debt is good for a government if it helps climb out of a recession. Just like an individual might put their groceries or medicine on a credit card for a few months when they are out of a job.
But when better times return it’s important to pay down the debt. Creating more just puts the interest you pay in someone else’s pocket. We had recessions in the 80’s and 00’s. Debt kept the nation going.
Then in the 90’s it got paid off saving us a lot of interest payments and waste of taxes. In the 2010’s debt saved us from the Great Recession and we were starting good payoff until the last couple of years when instead of getting back to the good side we cut taxes and couldn’t afford to pay off debt or maintain our infrastructure.
Debt is good for a government if it helps climb out of a recession. Just like an individual might put their groceries or medicine on a credit card for a few months when they are out of a job.
But when better times return it’s important to pay down the debt. Creating more just puts the interest you pay in someone else’s pocket. We had recessions in the 80’s and 00’s. Debt kept the nation going.
Then in the 90’s it got paid off saving us a lot of interest payments and waste of taxes. In the 2010’s debt saved us from the Great Recession and we were starting good payoff until the last couple of years when instead of getting back to the good side we cut taxes and couldn’t afford to pay off debt or maintain our infrastructure.
The debt was never paid off in the 90s.
Not sure where you learned that but it's bull****.
It’s a fact. National debt went to zero with a slight surplus by the end of the Bill Clinton presidency.
The annual DEFICIT was eliminated for a few years. On an annual basis we collected more in taxes than we spent.
The national debt, the total amount of money the government owes, was not eliminated. The debt, being the accumulation of every annual deficit, is far too big to lay-off in a year or two of surplus revenue.
It’s a fact. National debt went to zero with a slight surplus by the end of the Bill Clinton presidency.
You should learn the difference between national debt and deficit. They are not the same thing.
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