Like most of you, I worry about how much debt the U.S.A. is accumulating right now. Soon, there will be a greater dollar value placed on the interest of our debt than the total amount of tax income generated by the IRS. We all know that the US Congress and President are spending way more money each day than they take in, but in some ways the US Federal Reserve might be doing even more long term damage.
At present, the US Federal Reserve is punishing savers in order to continue the big spending ways of folks who borrow money. The side effect of this type of Fed policy is to jump start job creation, but in recent months it has not been working as advertised. It use to be a good thing in the United States of America when large numbers of its citizens save money for future needs like emergencies and retirement.
However, that is not the case anymore. It is the US Federal Reserve who can print money at will in order to try and trick the US and other economies around the world into doing something that is not natural. I believe some smart people have looked at history and then made the decision that the Great Depression need not ever have happened if the US government continued to spend money it did not have.
Free markets are the best thing for the world we live in today. However, the US Federal Reserve and most elected members of the government have kicked the can down the road so many times - the few folks who do still have money to invest do not trust them anymore. There is nothing natural about the US stock market anymore, because the Federal Reserve has pushed so much money into it recently - there is no where for it to go but up.
In the world of the US Federal Reserve and politicians in Washington, falsely inflating the stock market has become business as usual. While the dollar value of US stock markets continues to increase, the real value of those assets has dropped - because the US dollar is not as valuable as it once was.
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