Sometimes I fear we live in a fairy tale world— especially when it comes to serious matters like investing. Small investors, in particular, will not always “live happily ever after” with their Stock portfolios alone.
Today, we are in the middle of the worse medical crisis and financial disaster the world has experienced since the Black Plague repeatedly erupted across Europe from the 1300s on. You’d never know it by checking Stock prices that are definitely fairy tale priced.
Fairy Tale Stock Market For Sure
In the middle of the Coronavirus financial disaster of the 21st Century, the U.S Stock Markets are on fire trading at all-time highs. Is this the “real world” where one invests their life savings? Or does it feel, more like a fairy tale?
There is no doubt that a lot of money can be made and will be made in U.S. Stocks in the coming months. In fact, a small group of Americans are now $1 Trillion Dollars richer just since the March Coronavirus Crash.
The “Get Rich Quick” group of 650 people are in the Billionaires club. The rest of us are at the mercy of the markets for our retirement. In the 21st Century, every 7 years or so, a Black Swan event swoops in and devours huge chunks of our life savings—
2002 Dot Com Crash
2008 Mortgage Crisis
2020 Coronavirus Crash
To save the so-called “free markets” the Federal Reserve and Washington have conspired to pump Trillion of Dollars into failing banks, the Bond markets, ETFs, and the Stock Markets to create the illusion that markets always bounce right back. Where does the fake money really come from?
This has been a costly illusion to sustain. The reality is that our great nation is broke, busted, and without recourse. Living high on the hog, as my grandfather might say, has left us with a $27.3 Trillion national debt problem.
Who Really Owns the Wealth in America
So, who really is living happily ever after today? The Uber-rich!
Illustrating the gulf in financial inequality in the U.S. today, the analysis finds U.S. billionaires own $4 trillion— that’s 3.5 percent of all privately held wealth in the country.
If you can stomach it, there’s a Bloomberg Billionaires Index online that updates how the billionaires are doing every day.
The wealth accumulation of the Billionaires is now twice the wealth held by the bottom 50 percent of all American households combined.
Just 650 people own twice the wealth of approximately 160 million Americans.
Washington Says— “Let Them Eat Cake “
We’ve never believed in socialism or the redistribution of wealth. But something is seriously wrong here. It’s shocking that 650 Americans grew $1 Trillion Dollars richer after the Federal Reserve and Congressional stimulus programs stopped the Coronavirus Pandemic Crash.
This unearned, undeserved wealth accumulation occurred at a time when nearly 7 million Americans are at risk of eviction when moratoriums expire at the end of the year. Congress sits idly by as if they were French Kings and Queens ruling their subjects and telling them— “No bread? Then let them eat cake.”
The recent Covid Pandemic Crash in March, followed by an unbelievably quick rebound, reinforces our fears that the Stock Market is propped up by the Federal Reserve to create an imaginary illusion of wealth.
Fairy Tale Spending by Washington
Here are the big numbers that show the immense scope of stimulus spending and debt creation.
- FY 2020 U.S. Government Spending: $6.5 trillion
- FY 2020 Deficit: $3.1 trillion
- Stimulus Spending: $2.6 trillion
- Stimulus Tax Relief: $900 billion
- Next Stimulus Proposal: $1.8 to $2.2 trillion
Not an IOU, But a “You and I Owe Them”
What has all the fake money printing and 21st Century bailouts of the economy added up to?
Total United States National Debt $27,316,333,552,793 ($27.3 Trillion Dollars)
Every citizen in America— man, woman and child now owes $82,604.
If there is a better set of reasons to own wealth outside the U.S. Stock Markets and free of government debt, we don’t know it.
Sadly, our debt problem is no fairy tale. Those who are not prepared for the rapidly oncoming series of events will surely NOT LIVE HAPPILY EVER AFTER. Everything we’ve worked hard to accumulate is at risk today owning Stocks, Bonds, and U.S. Dollars. Money in the bank and cash under the mattress are bound to lose buying power when that nasty Grinch called Inflation suddenly appears.
We’ll end this discussion by sharing this link to the live website USDebtClock.ORG
Source: USDEBTCLOCK.ORG 12/1/2020 at 10:22 pm Central