In the United States, we find ourselves on the brink of a significant financial crisis. This observation isn’t new; the groundwork for this unfolding tragedy has been laid over many years. Anyone with even a modicum of curiosity can see the events transpiring.
The U.S. population now exceeds 334 million, according to the U.S. Census Bureau’s population clock. This quantity brings with it a myriad of needs—food, clothing, and shelter being just the beginning. There’s more to consider.
Many of these individuals require medical care at various points throughout the year. Some might suffer fractures; others may experience sudden health crises, such as a burst appendix or a heart attack. Additionally, there are grave medical emergencies that stem from accidents or environmental dangers.
In a society where limited government and individual freedom prevail, people tend to support themselves through the efforts of their own labor. Families assist minors until they reach a point of self-sufficiency. Elderly relatives may rely on their children if they haven’t managed to save enough during their working years. Continue reading
The New Year often brings a wave of optimism and hope—a chance for reinvention and new beginnings.
While this sentiment is inspiring, the resulting outcomes can often lead to deep disappointment.
Reflecting on 2022, many anticipated a year of recovery and prosperity. With the economy reopening post-pandemic, there was a belief that this resurgence in activity would spark a new cycle of growth.
However, an unexpected turn of events took place. On January 3, 2022, the S&P 500 closed at a peak of 4,796. Fast forward just over a year later, and it closed at 3,808—a decline of over 20 percent.
Throughout this period, the yield on the 10-Year Treasury note surged from 1.66 percent to 3.70 percent, indicating that Uncle Sam’s borrowing costs have more than doubled.
Meanwhile, what was first thought to be transitory inflation proved to be persistently high. Additionally, for the first two quarters of 2022, the gross domestic product (GDP) experienced a downturn. Continue reading
Happy 2023!
The New Year’s edition of the Economic Prism invites wild speculation and bold predictions, embracing abstract thinking and creative theories. Concepts such as cycle theories, metaphysical insights, and even the musings of amateur fortune tellers are welcome.
With our vision sharpened by hindsight, we gaze into the year ahead. The arrival of the New Year provides the perfect opportunity to reflect on what is in store for the upcoming twelve months.
There, on the horizon, we find fresh dreams, new paths, and perhaps some illusions, swirling like storm clouds amidst radiant sunlight. We witness a blend of opportunities and challenges, as well as moments of despair and glimmers of hope.
But what deeper truths should you carry with you as you embark on another journey around the sun? What lies ahead for stocks, the 10-Year Treasury note, gold, oil, bitcoin, and other assets? Can we anticipate turmoil in junk bonds due to potential corporate defaults? Continue reading
“Fate is nothing but the deeds committed in a prior state of existence.” – Ralph Waldo Emerson
Capital Consuming Gluttony
In fiscal year 2022, did you know that federal tax receipts reached a near-record high of 19.6 percent of gross domestic product (GDP)?
According to the U.S. Treasury, in FY 2022, total federal tax receipts and additional revenue exceeded $4.90 trillion. Yet, during this same period, Congress spent $6.27 trillion, resulting in a budget deficit of $1.37 trillion.
This shortfall has been financed through borrowing. Year after year, and decade after decade, these deficits have accumulated into a staggering mound of debt. Currently, the U.S. national debt stands at over $31.4 trillion. In contrast, back in December 2000, it was merely $5.6 trillion.
This tells a stark story: the U.S. national debt has surged by 460% over the past 22 years, while U.S. GDP has grown by a mere 157%, from approximately $10 trillion to $25.7 trillion. Continue reading
