Do you have an answer to that question? I don’t think any of us do. I know I don’t.
I watch my investments in the stock market every day and hope that the market doesn’t crash. But that could happen at any time.
What I do know is that all of the spending that the government is doing is not a good thing. In my estimation the Fed is just propping the economy up until the day it crashes.
Our money, which is just paper, is getting more and more worthless every day. It used to be backed by gold until they got rid of the gold standard in August of 1971. Now nothing is backing it. It is just becoming worthless paper.
In the past couple of decades they have been printing more and more money. The U.S. has so much debt that I think they can’t stop printing money or everything will collapse.
You know that debt is not a good thing. You know that if you keep adding to your debt and don’t pay it off every month that eventually you will be bankrupt. Well, that is what will eventually happen with with our government too.
Someone asked me this recently? “What would you do if you had a lot of mortgage debt, car loans, and credit card debt?”
That is a hard one for me because we have no debt at all. But if I did the first thing I would pay off would be the car loan and your home. The car can be repossessed and you may need it to get to work and make your income. If you don’t need it, I would pay off your home first.
You need a place to live and if you want to stay in your home, pay it off as quickly as possible. Thousands and thousands of people lost their homes during the Great Depression because they could not make their loan or mortgage payments. They ended up on the streets or moving in with family if that family could afford to feed them. You don’t want that to happen to you.
If you own your home and can afford to pay the property taxes, you have a place to live. If you don’t, the banks will foreclose and take it if you miss a few payments.
You are feeling the effects of prices going up. Prices on groceries and many other items are increasing and they will continue to increase as long as the government keeps printing money. And they don’t seem to want to stop. Instead they want to spend more and more money. When they do that, we have inflation and eventually hyperinflation.
So if you still have income coming in, I suggest you pay off your mortgage as quickly as possible. Did you ever wonder why the 2020 census asked you if you own your home? I know I did.
If you have an opinion about this topic, I would love to hear it.
2 replies on “What Will Happen With This Economy?”
Hi AD. You know, last year when things shut down, before the stock market recovered, I was so glad for our paid for house. It made me feel secure that we had a place to stay as long as we could pay our property taxes. And our kids and granddaughters would have a place to stay if things got really bad. I agree with you about paying off your mortgage. Our daughter and son in law refinanced to a 15 year last year and she is paying some extra as they can. They will be mortgage free by the time they are 50 if they do not pay extra, which is amazing to me. We are so proud of them. Our son is putting sweat equity into his new place and we are proud of him too.
I am concerned about the economy. I just don’t see how all of this spending can happen without raising taxes? Something has to give. I am concerned about who is buying our US debt, some of the countries buying it are not our friends. I saw a chart that concerned me this morning about how many foreigners are buying property in our country and wonder what that means? There is only so much I personally can do to try to make sure my family will be ok. I am keeping a good stockpile and a full freezer, for one thing.
Smart move for your daughter to pay extra. You should be very proud of your children. They are doing so well!
They will raise taxes and then the companies, large and small will pass that cost onto us as consumers. So the middle class will pay! I too m concerned about everything you said.
My son got chairs and a nice leaf table free on Facebook Marketplace today. He is going to refinish them. I am proud of the way he does things!