News. With the national debt now topping $12 trillion, the White House estimates that the government’s tab for servicing the debt will exceed $700 billion a year in 2019, up from $202 billion this year, even if annual budget deficits shrink drastically. Other forecasters say the figure could be much higher.
My point. I said it earlier and I am going to say it again. The huge interest on the debt is a transfer of wealth from us to the bond holders of the US deficit.
This is the reason cars are getting smaller. Gas is becoming more expensive. Commodities are rising. The dollar is declining. Stocks have gone nowhere in more than 10 years.
These trends mean one and only one thing. Our purchasing power is going down the drain as the national interest bill increases in the name of things we cannot afford.
The markets always win.
To find out more about my in depth views of the markets and my strategy just visit our website https://www.peterdag.com/ where you can review The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific money management needs.
I will be happy to speak to your investment group on how the business cycle impacts investment strategies and the choice of asset classes.
George Dagnino, PhD
Editor, since 1977
Ranked Top Market Timer in 2009 by Timer Digest
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