What are the economic and financial system early warning signs that we should heed rather than get caught up in fearmongering? When should we start to worry about ballooning budget deficits, the national debt, a currency collapse, or the stock market? Topics covered include: Signals to monitor to see if things are falling apart How much government debt is too much and why interest rates are key Why central banks don't control the stock market Why the dollar remains dominant, … [Read more...]
443 Plus: U.S. Debt Downgrade, Vanguard Cash Plus Account, and Crowdstreet Fraud
In Plus episode 443, we consider the repercussions of Fitch downgrading U.S. government debt and how to monitor the debt situation. We analyze Vanguard's new cash options. Finally, we review the recent fraud accusations for one of the real estate investments hosted on the Crowdstreet real estate platform. … [Read more...]
433: What Happens If The U.S. Defaults On Its Debt? Here’s Why It Won’t
What are the grave consequences if the U.S. debt ceiling isn't increased and the government defaults? What would the Federal Reserve and the Executive Branch do to prevent default if Congress doesn't act? Topics covered include: What are the potential impacts of a U.S. default on the stock and bond markets, and the overall economy What causes the U.S. to have a perennial debt ceiling crisis Why it is uncertain when the U.S. government would run out of money to meet its … [Read more...]
418 Plus: Mortgage REIT Preferred Stock, Debt Ceiling Standoff, and Fallen Angel Bonds
In Plus episode 418, we review the current status of mortgage REITs and analyze the mortgage REIT preferred stock David recently purchased. We consider whether investors should move assets out of cash until the debt ceiling standoff is resolved. We consider options the U.S. Treasury has to meet its obligations including minting a trillion-dollar coin. Finally, we look at two ETFs that invest in bonds that have recently been downgraded to non-investment grade from investment grade. … [Read more...]
416: Your Nation’s National Debt: 5 Things You Need To Know
We analyze the worrisome national debt situation in the U.S., UK, and Japan and consider what will determine the likelihood of default Topics covered include: How big is the national debt in the U.S., UK, and Japan Why Japan and UK interest rates have increased When do federal government debts jump the most What two numbers are key to whether a level of national debt is sustainable What are five ways indebted countries have reduced the relative size of their debt Why … [Read more...]
403: The Pandemic Might Be “Over,” but Not Its Repercussions
How risk perceptions and actions have changed over several years of the pandemic. How the pandemic's impacts continue to affect politics, the economy, financial markets, how we invest, and our personal lives. Topics covered include: Is the pandemic really over? Based on what criteriaWhat percentage of people continue to isolate at homeHow behaviors such as eating out and visiting friends have changed throughout the pandemic.How work has changed with the pandemicHas pandemic stimulus … [Read more...]
360: Will the U.S. Default? Debt Ceilings, Government Shutdowns, and the National Debt
Why the U.S. is closing in on both a debt default and a government shutdown. Topics covered include: How a government shutdown differs from a debt ceiling crisis Why hasn't Congress passed legislation to fund the government and raise the debt limit How refusing the raise the debt ceiling could impact Social Security How big is the national debt and who owns it Why we never know how much federal debt is too much: Japan vs the U.S. How federal debt is used and how it has … [Read more...]
338: The National Debt, Inflation, and the U.S. Dollar—What Could Go Wrong?
With a ballooning U.S. federal budget deficit, a growing national debt, and double digit increases in the money supply, is it time to bet against the dollar? Topics covered include: What is driving the double-digit increases in U.S. home prices Why hasn't inflation spiked in line with rising home prices What is the velocity of money and why is it falling What are three schools of thought regarding what causes inflation What is the average interest rate and maturity … [Read more...]
295: Federal Reserve Insolvency and Monetizing the National Debt
How central banks can become insolvent and why it can lead to hyperinflation. What are four ways the Federal Reserve and the U.S. Treasury could monetize the national debt. Topics covered include: What are the major asset and liabilities of the Federal Reserve How does the Federal Reserve make a profit and what happens if it suffers a loss. How has the Federal Reserve has significantly expanded the types of assets it will hold and what are the risks. What could cause the … [Read more...]
200: The Great National Debt Debate
Joshua Sheats from the Radical Personal Finance podcast and I discuss our different views regarding the national debt and the severity of the U.S. government fiscal situation. Photo by Jake Ingle Over the past four years, David has created 200 episodes of Money For the Rest of Us. On this 200th episode, he talks with Joshua Sheats, creator of the Radical Personal Finance podcast. They discuss the national debt debate, why local communities are often the driving force … [Read more...]