Blog - Goldco

Blog

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 [...]

Read more...
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 [...]

Read more...
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 [...]

Read more...
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 [...]

Read more...
You can't rely on Social Security

Relying on Social Security Is Like Playing Russian Roulette

For nearly 80 years the Social Security system in the United States has been paying benefits to retirees. Generations of Americans have grown up and gone to work in the expectation that the Social Security taxes they paid throughout their careers will be repaid with interest once they retire. But as demographic changes alter the makeup of American society and the American workforce, what was once seen as a guarantee by the government is now slowly fading away. Anyone [...]

Read more...
Will the Fed cut short its interest rate hikes?

President Trump Continues to Attack the Fed: Will Powell Fold?

One of the more disappointing aspects of President Trump’s tenure is the evolution of his criticism of the Federal Reserve System. While candidate Trump rightfully criticized the Fed for artificially depressing interest rates, President Trump has morphed into attacking the Fed for raising its target federal funds rate. While he correctly identified the Fed’s political motivations for keeping interest rates low in the past, he now desires to benefit politically from the continuation of low interest rates. The big [...]

Read more...
Bank of Japan

The Central Banking Bubble – Bank of Japan Assets Exceed GDP

When central banks first began to engage in quantitative easing (QE) policies during the financial crisis, those policies were harshly criticized by sound economists. The idea that printing money out of thin air to purchase worthless assets could somehow strengthen the economy and bring it back from the brink of destruction was an absurd one. All it could do was delay the inevitable day of reckoning, which as we see is just about to occur now that the stock [...]

Read more...
6 things for investors to be thankful for

6 Things to Be Thankful About This Thanksgiving

It’s that time of the year again, time to get together with family, eat turkey, watch football, and think of all the things to be thankful for. As Americans, we often don’t realize how fortunate we are to live in such a prosperous country. We often complain about “First World problems” that people in less developed problems would kill to have, such as having our names misspelled on our cups of coffee at Starbucks. But at the end of [...]

Read more...
Are doves at war with hawks within the Fed?

Is There a Rebellion Within the Fed?

One of the hallmarks of the Federal Reserve System in the modern era is the near unanimity with which it normally makes decisions. With the direction of policy being guided by the Fed’s chairman, the Federal Open Market Committee (FOMC) has rarely had members dissent from its decisions. When dissent does occur, especially when a number of members dissent, it makes headlines. And the leadership of the Fed almost always provides a united public face. But that may be [...]

Read more...
How much money will you need to save for retirement?

How Much Do You Need to Save Each Year to Be Able to Retire Comfortably?

While every American dreams of retirement, the big question most people face is how much money they will need to save up in order to retire comfortably. Many financial planners advise at least a million dollars worth of assets which, thanks to the recent stock market boom, is not outside the reach of many Americans anymore. But others recommend even more money, $3 million, $5 million, even $10 million, in order to ride out any possible twists and turns [...]

Read more...