Tag Archive for: government spending

Why We Can’t & Won’t Pay Off Our $38 Trillion Debt; Why The World NEEDS Our Deficits

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Woohoo! Our national debt just hit $38 trillion – only two months after we hit $37 trillion! That is almost $300,000 in debt per household. It’s a bit frustrating when we consider that all that spending and borrowing actually makes us immensely worse off – and that it is all for the benefit of a relatively small group of politicians, people, and entities on the receiving end of the largesse.Read More

Uh Oh. First-Time Buyer Median Age is 38! Average Age Of Buyers Is 56! Solutions?

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In the 1990s, I rarely had a first-time homebuyer over the age of 30. But, by the end of last year, the average age of first-time homebuyers was 38, as this recent Darth Powell post illuminates.Read More

Can Our Economy Grow Forever On Government Spending & Borrowing?

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We were all taught in school that government spending can spur economic growth, largely based on the teaching of the famous economist John Maynard Keynes. And – Keynes was right if the spending goes into GI bills to support college, new seaports, an entire freeway system, new airports, or anything else that actually helps an economy grow.Read More

Why Massive Government Borrowing Is Not Pushing Rates Higher Like EVERYONE Predicted

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The more the government borrows, the more it slows down economic growth. And the more it slows down economic growth, the more investors demand the “safety and liquidity” of Treasury Bonds. So, there will always be sufficient demand for our debt, without having to push yields higher.Read More

Why I Was So WRONG About Rates; Why It Matters So Much

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If you google “wrongness,” you’ll see a picture of me screaming “Rates will fall by March of ’23!” I am wrong a lot actually and am not afraid to admit it because it makes for great learning and blog fodder. For example, I was wrong about when rates will fall, and I was wrong when I said that the Fed would not raise rates again after its June pause.Read More

Biggest Increase in 3 Years; Unpredictability/Timing the Markets

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We are seeing the biggest rate increase in 3 years. Investors moved into stocks and out of bonds, and rates climbed. Trump’s promises to cut taxes, to increase government spending […]Read More