National Debt

123% Debt to GDP!

The bull market for bond prices rising and interest rates declining that started on 9-30-1981 at the nose bleed level of 15.84% for the 10 year U.S. Treasury bond ended 8-4-2020 at 0.52%!  Since then rates are moving upward in a saw tooth manner.  Please note rates will increase higher during times of economic growth but will decline to HIGHER LOWS during recessions.

Spending by Congress’ and Presidents continue to be out of control for a soon to be 3 decades with zero talk of any kind for fiscal responsibility.  This is forcing the Federal Reserve to monetize (digital printing) an increasing share of the deficits.  The Fed’s balance sheet currently sits with 6.5 trillion dollars of Treasury securities all bought with digital money printing.  If they hadn’t interest rates would be higher chocking off the economy.

There is always trade offs, this money printing is where the vast majority of your price increases are coming from.

The remaining price increases is due to a supply and demand imbalances from high oil prices that is seeping through to all product chains.  Also corporations are increasing prices even higher in anticipation of future inflation to maintain after inflation profit growth...

Till Next time!