American Consequences - January 2020

FROM OUR INBOX

You wrote, asking when the debt dam would break, and then answered: Probably at the worst possible time... right as the economy enters a recession... as huge amounts of corporate debt become due... and as the U.S. consumer makes even bigger purchases funded by debt – whether that’s four years of college, a large QSVXKEKISVEPY\YV]9: My take is that when the debt dam breaks, the U.S. consumer will most likely cut way back as well, and probably massive numbers will declare bankruptcy, along with the U.S. government. It won’t be the choice of the consumers to cut back necessarily. In order to borrow at the consumer level, ]SYLEZIXSǻRHE[MPPMRKPIRHIVERHXLI PIRHIVWEVIPMOIP]XSTERMGEW[IPPGYXXMRKSǺ the ability to roll over debt just as everyone needs to do just that. – Gordon F. Steven Longenecker comment: You’re absolutely right, Gordon. And for most Americans, it will be a disaster. Essentially every major economic crisis is rooted in debt. The good news, of course, is that if you don’t have debt, it won’t be as much of a problem for you. It’s hard to completely shield yourself, of course, but a little common sense goes a long way.

All that we Social Security recipients are left with is a government promise that we’ll get what we’re entitled to. Consult Native Americans for a further discussion on government promises. Re: The Wheels of Society r«¼¼"¼¼HėZÊÊà 5VSǻXWSǺMRZIWXIHEVI3*:*7*&73*) money. How you can get so far away from human decency is the question... Do not IZIVJSVKIXXLEX]SY[MPPEP[E]WLEZIEǻKLX coming when you have the nerve to want XSOIITEPPXLIJVIIQSRI]TVSǻXWXLEXEVI earned not by you but literally earned by hardworking overworked ‘others’ (men and women in real life terms). – I.M.E. Steven Longenecker comment: There’s no such thing as “free money profits.” Folks who invest their capital take on risk and expect some sort of return on their money. If there is no possibility of return, why would anyone invest? You can’t have it both ways. If you’re not a saver and an investor taking advantage of this “time of plenty” in the economy any market, I have bad news for you when the next crisis comes.

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January 2020

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