It’s no secret that things are only getting worse in the US economy.
With mass inflation as the norm and many sectors experiencing labor shortages, people are not optimistic about the economy’s shape.
The political class is scrambling to find a solution to the inflation problem it started.
One way it is trying to do so is by raising interest rates.
While raising interest rates is a sound proposal to stave off inflation, there are limits to the effectiveness of such policies.
The US’s spending problems are so pronounced and its regulatory state is so massive that just changing interest rate policies will not be enough to contain inflation.
Here’s the problem.
If interest rates are sharply hiked, this would only exacerbate the US’s already massive debt crisis given how the costs to service the debt will be so massive.
Eventually, the US would be forced to default on its debt obligations. And at that point, it will reach Banana Republic status economically speaking.
This stuff is clearly the political class’s fault and not the product of the free market.
It’s what happens when the government does not exercise fiscal restraint nor bothers to pursue balanced monetary policies.
Now, America is staring down the barrel of a stagflationary economic crisis that will drastically reduce people’s living standards.
At that point, America will no longer be exceptional and just fall down a familiar path of economic decline that has characterized many previous civilizations.
That’s how things go in this civilizational game.
And there’s not much you can do about it.
That’s why it’s crucial to focus on the things that actually matter i.e. securing your wealth.
In the meantime, make sure to check out Jason Hartman’s video on the Federal Reserve’s inability to stave off an economic crisis.
Head here to learn why the economic future looks quite bleak in the Land of the Free.
P.S. No doubt things are getting hectic in the US.
The economy is totally out of whack and the political class is as predatory as ever.
However, we must remain cool here.
Remember, politics is an unruly beast that can’t be so easily controlled.
It’s something you should pay some attention to but not get excessively focused on.
Because let’s be honest here… when has real political change happened in our lifetime?
You guessed it….
Never.
It’s something that is well out of your reach.
There’s not much you can do about it.
But you can do a lot about your wealth. It’s one of the few aspects of your life that’s within your full control.
At Empowered Investor Pro, Jason Hartman and his trusty team of income property investors will teach you how to maximize wealth-building through investing in income properties. This is a once in a lifetime opportunity that you should not pass up.
So make sure to sign up for Empowered Investor Pro here.
