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Strategies & Market Trends : The Art of Investing -- Ignore unavailable to you. Want to Upgrade?


To: Kirk © who wrote (3515)2/3/2022 10:44:27 AM
From: Sun Tzu2 Recommendations

Recommended By
kidl
Lou Weed

  Respond to of 10708
 
No politics please. You can criticize a policy and point out what you think its effect will be. But you can't color politics outside of investment analysis. I didn't allow any personal attacks on Trump and I won't allow it for the other side either.



To: Kirk © who wrote (3515)2/3/2022 10:54:07 AM
From: Sun Tzu3 Recommendations

Recommended By
Jacob Snyder
kidl
research1234

  Respond to of 10708
 
US has too much accumulated debt - and this is not a liberal vs conservative issue. In fact the conservatives have racked up the debt far more than the liberals. But that is besides the point. The reality - which is what I'd like to deal with - is that the US debt-to-GDP is ~135% and is not sustainable.

There are only 3 things that the government can do to lower it: (1) raise taxes - this is political suicide. (2) cut spending - also not politically viable. (3) Print money - this is the path of least resistance.

Given that the money will be printed, one way or another regardless of who is in the office, my preference is that it will be spent on things that will eventually provide a decent return on investment rather than being given away to big business. This means investment in small businesses, education, and infrastructure. This is exactly what the US did after WWII and we saw great returns on that investment in the late '50s till the late '60s. But that is just my personal opinion. As far as investments go, I only deal with cause and effect and the reality on the ground.

Longer term however, that chart shows you that we are one major crisis away from the end. The next global financial crisis or pandemic or peak oil or whatever gives a major shock to the system will be a tipping point.