Trump and the Fed

by Daniel R. Amerman

Whether you are Republican, Democratic, independent, or have never even been to the US, a new president identifying the Federal Reserve as a major source of the problems facing the US could have extraordinary financial and monetary implications for the world.

Trump and the FedAmerman discusses artificial stability and its price; all it takes is one election; and whether or not Trump meant what he said.

Trump does know about debt and interest rates. He likely knows the potential carnage if the domestic or international markets decide the Fed may no longer have their back. He has explicitly stated that nations as deeply in debt as the US need to have low interest rates.

The monetary and investment world as we have known it over the last eight years may now be very much in play, and the old assumptions may not work any longer. If and when things start to work differently, that change could happen quickly, with little or no notice.

A personal retirement eye-opener shows how the government’s actions to reduce interest payments on the national debt can reduce retirement investment wealth accumulation by 95% over thirty years, and how the government is reducing standards of living for those already retired by almost 50%.

Much has been written about the advantage of waiting until age 70 before collecting Social Security. However, once we raise our game, and use a more sophisticated type of analysis than some of the simplistic Social Security decision aids in wide circulation, that advantage can vanish.

National debts have been reduced many times in many nations, and each time the lives of the citizens have changed. Amerman reviews four traditional methods, and explores how governments use your personal savings to pay down their debts in a manner that is invisible to almost all voters.


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