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...]
169: The Debt Ceiling—What Happens If the U.S. Defaults
What could happen if the U.S. Congress doesn't raise the debt ceiling and defaults on U.S. financial obligations. Photo by Augusto Navarro In this episode you’ll learn: What is the federal debt ceiling and why does Congress always wait until the last minute to raise it. How long has the debt ceiling been in place. What would be the consequences of default by the U.S. government on its obligations. Why does the government continue to run a budget deficit instead of a … [Read more...]
157: The Most Important Economic Question of Our Time
Why the likelihood of a future fiscal crisis sparked by the national debt depends on whether there is a limited or an unlimited supply of money. Is it possible the federal government's endless borrowing could crowd out the private sector and harm the economy? Photo by Cesar Marchan In this episode you’ll learn: How much is the U.S. national debt expected to increase. What is the financial concept of crowding out. How money is a zero-interest perpetual liability. How the … [Read more...]
126: Where Federal Money Flows
Why cutting federal spending and trying to lower the national debt reduces household income and spending, potentially causing a recession. Photo by Julie Macey In this episode you'll learn: What does the U.S. federal government spend money on.How big is the U.S. national debt and who owns it.How most people receive more Social Security benefits than they paid into the system.What happens when interest costs becomes a larger portion of the federal budget.What are the … [Read more...]
MNY107 Plus: Timing Smart Beta, Lending Club Woes and the National Debt Size
This week on Money For the Rest of Us Plus we review a new academic paper on whether it is possible to time exposure to smart beta factors. I also discuss the departure of Lending Club's CEO and whether that should change our opinions on peer-to-peer lending. Finally, we look at different measures of U.S. national debt size and look at Brazilian economy to see why it is experiencing inflation and high interest rates even though it controls its own currency and is in a recession. The … [Read more...]
MNY106 Plus: National Debt, Solar Bonds, Permanent Portfolios, Emerging Markets and Dissecting A Portfolio
This week on Money For the Rest of Us Plus we cover a number of different topics. I address hyperinflation and the national debt. I also answer questions on emerging market stocks, solar bonds and international stock exposure when implementing a Permanent Portfolio. I also analyze a member's asset allocation in his retirement account to estimate the expected return and risk and compare it to one of the Hub's model portfolios. The episode length is 24 minutes. … [Read more...]
106: How Worried Should You Be About the National Debt?
Why some nations are at risk of default on their national debt and others are not. Plus why the U.S. national debt will never be repaid. Photo by J.D. Stein In this episode you'll learn: Why the federal government is not like a household or business.Why the federal government should focus on economic growth and inflation and not fiscal soundness.Under what circumstances have nations defaulted on their national debt.How federal governments can print money by coordinating with their … [Read more...]
