HOPE. It appears to me that one of the greatest threats that we all have to our futures is the lack of HOPE that many are experiencing right now.
Older people are losing hope because their incomes- which in the recent past were more than sufficient to cover their basic needs and even sock away a few extra dollars- are now purchasing FAR less than they had been able to purchase in the past. People who were comfortable and content are now worried and eating through their excess savings because the cost of food, gas, utilities, TAXES, healthcare and most everything else, is skyrocketing in price.
Those retired and on a fixed income are the people most at risk during the current inflation that we are experiencing and are really in trouble if what I expect to be coming takes place. I am expecting FAR higher inflation at- by the latest – the beginning of 2025 (After the election). Of course, inflation continues to rise and there is no guarantee that inflation doesn’t get much worse sooner.
Those, like me, who could be contemplating retirement are thinking long and hard about the idea of retirement. It is awfully tough to plan a comfortable retirement when you have little faith in the “money” you are using to measure your wealth and what it may purchase going forward.
Since I mentioned in my article last week that the Fed had to conjure up over $88 BILLION just for social security last year and over $450 BILLION for Medicare because the taxes collected were SHORT by that much- how does it get better with massive corporate layoffs and more demand on the system?
I am expecting the “printing” to have to get substantially worse and the dollar to lose purchasing power even faster than it already is. This is BEFORE the threats faced by the dollar as the BRICS continue to set up an alternative monetary universe. This is also before the introduction of Central Bank Digital Currencies which can be programmed to EXPIRE. How do you PLAN with that?
Another concerning fact is that between current expenditures and maturing treasuries the US government has to sell over 10 TRILLION in bonds in 2024. IF they even attempt to lower interest rates inflation could go parabolic.
Finally, our young people, while they may have time to work things out- unlike many retirees- they are probably the most disadvantaged generation that has existed in the nation’s history.
Many may be thinking of the great depression or world wars 1 and 2 and wonder why I would say this about our younger generation. Really, it is pretty simple. In the past our “educators” had the best interest of the young minds entrusted to them at heart. Contrast that to today where our students are barely educated but are indoctrinated into a worldview that is at best- alarming.
In addition to our education system being meaningfully watered down many don’t have the skills needed to grow and prosper in life. Many of those that go to college wind up deeply in debt and many find it hard to afford rents, transportation and food while having to service the student loans. Not only are the student loans a burden, but many are resorting to even more credit just to afford the necessities of life. Credit card debt is over $1.3 TRILLION, the average interest rate is north of 21% and most of the overdue bills are owned by those 35 and under.
In addition, with the artificially low interest rates that existed for far too long the price (even if not the value) of homes exploded higher- driven in a large way by corporate entities buying homes- so that our upcoming generations are priced out of the market unless they would like to be what we used to call “house poor” for the next 15-30 years. They could also be called DEBT SLAVES.
In addition, with the economy contracting in real terms the opportunities that existed in the past just simply don’t exist today. While many may look at the mainstream propaganda and hear that GDP is growing it is ONLY growing because of government spending (DEBT). This is not true growth that offers opportunity but DEBT that will lead to further stagnation in the future as more and more “wealth” is consumed by interest payments.
In addition, those who are trying to get started in their careers are starting out behind the 8 ball. The rich are getting richer because they own the financial assets. According to Statista the wealth breakdown is:
- The top 0.1% (VERY FEW) OWN 13.9% of all our national wealth
- The rest of the top 1% (Still Very Few) OWN another 16.6%- That makes over 30% of ALL US assets owned by a very few.
- The top 10% own 36.1% of all US assets so the top 10% own 66.6% of all US assets.
- From 50%-90% (middle?) own 30.8% of financial assets which means that 97.4% of all US assets are in the top 50%.
- That leaves 50% of our population with a stunning 2.6% of our national wealth.
Who do you imagine would be the most represented group in the bottom 50%? My guess would be older retirees and the younger generations who are trying to get a foothold in the economy. With the “money” they are working for becoming more and more worthless- while at the same time making the price (even if not the value) of the investments of the rich go higher and lead to even greater disparity between the “Haves” and the “have-nots”. The rising cost of living makes it FAR harder for those starting out to amass assets because their incomes are providing for current needs. Since costs are rising faster than incomes the future must look awfully uncertain from that perspective. This appears to be leading to a malaise I haven’t seen in this country where “hope” is a commodity that is being lost day after day.
I believe that this has taken place because of our reliance on fiat (backed by NOTHING) “money”. Those “in charge” have “printed” our dollar into oblivion- which could not have happened if we stayed on the gold standard and our politicians have used the dollar as a weapon which is just hastening its ultimate demise.
When you have fake money, you have a fake economy. When you have a fake economy you have a false sense of reality where PRICE and VALUE have little, if any, correlation.
While this has taken far longer than most could have anticipated to play out it appears the fakery and the manipulation are coming face to face with reality.
Personally, I want to own ASSETS- not someone else’s promise to repay. Mat tells me MANY are going to be disappointed with the VALUE they receive even if they are paid the full PRICE they are expecting.
The truly wealthy have kept generational wealth in ASSETS. Mainly GOLD, ART and UNENCUMBERED (NO LOANS) Real Estate. I believe they do this because these are assets that cannot go to ZERO while many paper promises can and d go to ZERO.
Be Prepared!
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