Not a single Presidential candidate mentioned the $27 Trillion Dollar debt. Talking about debt is verboten! In the recent election, I heard Senate and House candidates throw lots of mud at each other in TV ads. No one talked about debt or getting the nation’s financial house in order.
No one cares. Not politicians. Not Democrats and not Republicans. We have finally borrowed and spent our way to the point of no return— seemingly no one cares.
How bad is it? What do the next few years look like pulling out of the Covid Pandemic financial hole?
Washington Loves Spending Money We Don’t Have
Looking at this chart, we’re thinking it will be difficult for the Democrats to outspend Trump. Trump is a borrower and spender by nature and loves low interest rates. All real estate developers need low interest rates, especially those involved in entertainment projects, travel related industries, restaurants, and Las Vegas casinos like Trump.
Too much debt can be a serious problem.
Americans need near-zero interest rates just to pay the interest on the $27 Trillion Dollar national debt. Keep in mind we never attempt to pay down the U.S. debt, we just struggle along to pay the interest. The country still owes for the War in Afghanistan, the Iraq Wars, the Vietnam War, and for much of the War on Poverty.
This year we’ve added over $4.2 Trillion in spending beyond what politicians were willing to tax. That’s with Trump in office. What’s next?
Never Let A Crisis Go To Waste
We all know Washington loves to spend money— and the Dems never let a good crisis go to waste. As President Biden enters office in January, he’s been left with an ongoing fight with the Covid Pandemic— and an insurmountable debt problem.
With the Federal Reserve urging more spending, they are ready to create more and more fake money so Democrats can shove money at pet projects and green infrastructure. That’s exactly what we should expect for the next four years along with higher taxes too.
Here’s how much funny money the Federal Reserve has created during the crisis—so far.
With $7.15 Trillion Dollars already on the “pretend” balance sheet of the Federal Reserve, Congress is on the verge of adding another $2 – $3 Trillion in Covid Pandemic spending.
Keep An Eye On Debt
Many of us who keep an eye on the ever-growing debt problem fear we are at an historical tipping point. Will the weight of debt ultimately destroy all confidence in the U.S. Dollar?
Will the radical, unprecedented creation of fake money bring on 1980s waves of inflation— 5% at first, then 10%, then whatever level it takes to use future inflation to pay for the debt of the past?
We urge our readers to consider the impact the incoming administration will have on their investments. Consider also this very scary chart from the 1918-1919 Spanish Flu Pandemic.
Spanish Flu Pandemic Came in Three Waves
The second wave of the 1918-1919 Pandemic was FIVE TIMES WORSE than the first wave. We are currently somewhere in the middle of wave 2. It’s not creating five times the deaths because we have far superior healthcare.
And this chart shows what no one has dared to discuss— wave 3 of the Pandemic. There were three times as many deaths in February to April 1920… that’s from deep Winter to Spring.
While we’re thrilled that vaccines are on the way, it will be some time away before 328 Americans are vaccinated. Big problem: Some 40% of Americans say they will not get the vaccine. That’s the only real solution to eliminate the health and economic damage of Covid.
Six in 10 Americans said they are somewhat or very likely to get a Covid-19 vaccine if doing so would lower the risk of becoming infected by about half, according to a new survey from STAT and The Harris Poll released Nov 10th.
That leaves 40% of Americans not expected to be vaccinated against Covid. Then how many waves should we expect?
If Covid progresses through the timeline of the Spanish Flu Pandemic, wave 2 and wave 3 will have taken their toll before the two shot vaccines have been administered and built immunities in Americans. The rest of the world will still need Summer 2021 to 2022 to control Covid.
We hope, we pray, we plan, we prepare for the worst. If the world economies can survive 2021 with limited damage, it will still take years for many countries to return to Pre-Pandemic normal.
If the vaccination plans take years to implement worldwide, its impossible to predict what will happen. Thinking back to the time of the Black Death—when the bubonic plague ravaged Europe—there are good reasons why they’re called the DARK AGES.