Inflation is Still Increasing. Prices are Still Increasing. Only 14% of Americans Are Better Off Financially than 3 Years Ago

Nov 21, 2023

The Biden Administration is taking credit for inflation reducing 65%

-          Prices of goods are still increasing.

-       Inflation has not been under 4% annual since May 2021.

-       This is double the Federal Reserve target inflation rate of 2% annually for a stable economy.

-          The Biden administration's claim of inflation reducing 65% actually means the rate of increase is increasing slower. Inflation is still increasing. Prices are still increasing.

-          CPI: Consumer Price Index

o   2021:  4.7%

o   2022:  8.0%

o   2023:  4.0% approximately

o   Total: 16.7%

o   $100 item, now cost over $116

-          Has your income increased 16% in the past 3 years? If not, you are poorer.

Financial Times: 14% of Americans are better off financially because of inflation. 86% are falling behind.

Interest rates are likely to be higher for longer.

-          Business Insider: easier to sell Moroccan and Vietnam bonds than US bonds do to all the financing. 30 years bonds are selling at a huge discount because bond investors are concerned interest rates will be higher in the future.

-          The massive debt and higher interest rates create record levels of interest payments the government pays.

-       Borrowing more money will be increasingly difficult and expensive. 

-       As the interest on the debt increases, the government will be under extreme pressure to increase revenues (raise taxes).

-       Potential tax liability on any taxable asset will increase.

 

 

Higher interest rates = higher insurance company dividends

Interest rate sensitive assets will thrive while asset values on most stocks and real estate will suffer. 

 

Your Personal Bank dividends are interest rate sensitive and will thrive in a higher interest rate environment. Dividends are likely to increase for the next several years due to higher interest rates. 

 

Your Personal Bank funds grow income tax-free and you can access tax-free. This shields you from likely higher future tax rates. You can grow your money safely, with guarantees, tax-free, and highly liquid.