December 2018 - Goldco

Monthly Archives - December 2018

The US government is facing a debt crisis

The US Government Spent a Record Amount of Money on Interest in 2018 – How Does That Affect You?

In the aftermath of the 2008 financial crisis the Federal Reserve engaged in a massive amount of quantitative easing (QE). In addition to pushing interest rates to near zero, the Fed also purchased nearly $2 trillion worth of US government debt. That incentivized the US government to take advantage of the low interest rate environment to issue trillions of dollars in new debt at ultra-low interest rates. Despite the years of $1 trillion federal budget deficits, interest spending on [...]

The economy is growing increasingly fragile

With an Economy This Fragile, Investors Need to Be Prepared

Building up a nest egg for retirement is only one half of retirement planning. The other half consists of planning to safeguard and maintain that wealth well into the future. Business cycles have been a regular part of the economy for over a century. The booms and busts that occur with regularity are something that need to be taken into account when preparing for the future. Failing to do so could leave investors suffering significant losses in wealth during [...]

Did the Fed give in to President Trump?

Has President Trump Successfully Cowed the Fed?

Stock markets soared last week in the aftermath of Fed Chairman Jay Powell’s speech to the Economic Club of New York. In contrast to Powell’s statement in October that the Fed was still a “long way” from the neutral interest rate, Powell last week stated that interest rates now “remain just below the broad range of estimates of the level that would be neutral for the economy.” Markets saw that as a clear sign that the Fed has become [...]

Russia is poised to dump the dollar

Russia Ditches Dollar in Response to US Sanctions

Russia has announced its decision to forgo use of the US dollar in response to US sanctions against the country. While the Russian government would prefer not to have to take that measure, it feels that it has no option, seeing what has happened to Iran and not wishing to be cut off from world financial markets if it continues to operate with dollars and rely on US banks or their correspondents. Some of its recent sales of arms [...]