Coming Financial Crisis

We wrote our book, Preparing for the Fiscal Cliff, at the end of 2012. At the time the term "Fiscal Cliff" kept popping up in the news, but nobody defined it, so we wrote a short book about what it was and what you could do about it.

Since 2012, nothing much has changed in our governmental financial status. Well, not for the better, anyway.

Congress - you know, those wonderful guys and gals supposedly working FOR us, the People? - keep kicking the financial can down the road.

In July of this year, the government lifted the nation’s debt ceiling and raised the limits on what the the federal government can spend over the next two years.

In other words, while most US citizens struggle in their day to day lives, our government decided they could spend more money.

I guess they figure it doesn't need to come from anywhere. After all, the Treasury Department can just print more dollars.

Here's an aside:
Now Mr. Trump just wiped out a few hundred million dollars of student loan debt for disabled veterans. 

That's okay with me. Veterans, especially disabled veterans, should never need to accrue student debt in the first place.

Besides, call it $300 million and it is only 27% of the total student loan debt. Yes, there is currently $1.08 TRILLION owed the US government in student loan debt. Veterans should get a pass. Everyone else, not so much.

Maybe the government should look at the source of the problem. In today's economy, I would not have been able to afford college as I did back in the 1970's.

According to the Financial Report of the US Government published last April, our government went deeper in debt by $1.16 TRILLION in Fiscal Year 2018. And 2018 was a good year.

According to the estimates by our own government, the Social Security Administration admits their trust funds will run out of money in 2034. After that, they will need to cut benefits.

Two years ago they said the funds would be depleted in 2040. Whoops.

We're not just headed for a Fiscal Cliff any more, my dear people. We're careening from the edge of a Fiscal Chasm and hoping we don't die when we crash at the bottom.

I don't like to be a pessimist, but most of us normal Joes (and Janes) are going to be hurt in the upcoming crisis. I don't think our elected officials will be hurt as much, though. They know the problem exists.

Many of the folks running for office today say we should take the money from the ultra wealthy and give it to the poor.

That didn't work for Russia. That hasn't worked for any nation in the history of the world.

I'm tired. You should be tired, too. 

I'll post other thoughts on what ordinary folks need to do in the future. In the meantime, save as much money as you can. Don't buy into the stock market right now. Never trust those guys with the financial newsletters. If you can afford it, buy a little gold and silver as insurance (not an investment).

Love people. People matter.

And pray. Now is a great time to pray.

Thanks for reading.