In 2019, the U.S. deficit has grown a mind-blowing 23% so far and it will top $1 trillion, a new record. US president Trump wants interest rates to be cut, only because he believes that gets him re-elected next year. There is no need for lower rates. He is the one that constantly talks about the “record” economy). He does not care about the asset bubble it will create or the massive burden for the next generations, our children and grandchildren. That’s for the next presidents to deal with.
Fed Chair Jerome Powell, considered a clever and experienced Federal Reserve veteran, is supporting this insane plan. So does Congress, Republicans and Democrats alike. You can’t make this up!
If we had financial literacy among our citizens, I strongly believe, all these people would be voted out. Most would have to work in a real job, hands on, for the first time in their life. For something so important in life like money, we should have mandatory basic economic lessons combined with personal finance how to spent, save and invest money, along with consumer skills. Teaching the youngsters financial skills will make a huge difference in their lives.
Too many people fall for the credit card offers or the marketing machine of the banks. But those credit cards, loans and other dodgy financial instruments get a lot of people in trouble as the debt piles up or they loose unnecessary money that they desperately need. On the other side, those who invest smart at young age and let their money compound, will be far ahead of their peers who don’t.
Sven Franssen