We Are in A Bifurcated Economy. What Does That Mean for the Future?

Aug 6, 2024

- A recent CNN study reports 39% of Americans are concerned about paying their bills. In comparison, 37% were concerned about paying bills during the Great Recession in 2008 - 2009.

- Household debt has set a new record high.

- Credit card debt is at record highs. Banks are bracing for major loan defaults.

- 25% of Americans have resorted to skipping meals to avoid high food prices.

 

- The rate of increases of inflation is moderating, but the cumulative impact of several years of inflation has devastated buying power.

- The pressure is real. Everything is much more expensive than it was four years ago. This has devastated many household budgets.

- The 30,000 foot view is that employment is low, the economy is growing, and people are spending money. 

- The reality on the ground is moderating inflation does not mean prices are going down. It just means prices are not increasing as fast as they were before.

 

- Primary cause of inflation is excess government spending.

- Interest on the debt is estimated to exceed $1.1 Trillion in 2024.

- This is equivalent to over 75% of personal income taxes collected. This is the largest revenue item for the federal government.

 

- Homeowners and those who own significant financial assets have done very well the past few years, but this leaves out huge segments of the population.

- 3 in 5 Americans believe we are in a recession. 

 

- MarketWatch prediction: Stocks will not beat inflation over the next decade

- The S&P 500 to the M2 money supply valuation model is the most bearish since 1970.

- The M2 money supply Federal Reserve estimate of total money in circulation in the US.

 

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You can invest in high cash value Your Personal Bank TM policies that are insured, with guarantees, income tax-free, highly liquid, and likely to increase returns for the next 5-10 years!

 

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