If there’s something you’ve been thinking of buying–a new 4K HDTV, a new car, a new kitchen set–buy it now!
The reason I’m offering this advice now is INFLATION. Inflation means prices go up. That new car you’ve been thinking of buying will cost thousands of dollars more six months from now. The same will happen with that new computer, new refrigerator, new air conditioner you’ve been considering purchasing. Gas prices will go up. Interest rates will go up. And up and up.
In 2004, Vice-President Dick Cheney famously stated: “Deficits don’t matter.” Well, we’re about to find out. The Republican Tax Reform plan triggered a trillion dollars (unfunded) of spending. Then, the budget deal added a few hundred billion dollars more spending (still unfunded). The Republicans used to believe in Balanced Budgets. That’s now gone and spend, spend, spend rules. As Government prints more money to pay for its bills, the value of those pieces of paper declines. Evenually, Governments who trigger inflation have to accept draconian austerity policies. And much higher interest rates.
The American Government is embarking on a fiscal spending binge which will fuel inflation. Abandoning safe budgeting principles has consequences. Act now!
I have everything I need, but thanks for starting a panic! 🙂
Bob, oil prices just went up 8% in the last two weeks. It’s beginning…
“Better listen to him, Flounder. He’s pre-med.”
Isn’t it amazing how quickly these deficit scolds went hog-wild off the reservation at the thought of big tax cuts for the rich?
I’m glad we got our car and computer already.
Jeff, Republicans are always worried about The Debt when Democrats are in power. But once Republicans get control, they spend like drunken sailors! George W. Bush started not one, but TWO unfinanced wars that we’ll be paying for into 2200!
Since Reagan, the GOP has been the party of “Borrow and Spend.”
Dan, you’re right. Reagan run up huge deficits! But that’s going to look like chicken-feed compared to what the Republicans and Trump are spending!
Wait—I thought I was supposed to be thrilled with my paltry $20 per paycheck increase. You’re telling me now there are negative consequences to designing a deficit-structured tax plan that triggers massive governmental borrowing, destroys the social safety net, ignores our crumbling infrastructure, and only rewards billionaires? Mislead by the GOP? Who’d a thunk that?
Deb, before too long, you’ll be spending that extra $20 on filling your gas tank. Oil prices are moving up and you’ll see increases at the gas pump soon!
This is all just a ruse to take money from social security and medicare to pay for the deficit.
Patti, Warren Buffett’s Berkshire Hathaway stock holders are getting a $29 billion windfall from the Republican Tax Plan. That’s $29 billion less for Medicare, Medicaid, Social Security, infrastructure, etc. That’s just the tip of the Tax Reform give-away.
It’ll be “interesting” to see how this influences the value of the $ compared to other currencies.
We were very lucky to have a weak $ /a really strong € during the four years that we went on holiday to the USA (2008 – 2011, once every year :)) – you can see it here:
http://www.xe.com/currencycharts/?from=EUR&to=USD&view=10Y
On our last “shopping trip” from Nashville via Charleston and Savannah to Orlando and the Kennedy Space Center the € was almost worth 1.5$ so we spent a lot in those outlets that are everywhere on clothing, even had to buy an additional large trolley to get our stuff in.
Then we saw the $ rising during Obama’s second reign and now it’s been slipping again, maybe due too the “orange peril”?
For us of course there are big shoppings neither planned nor necessary – we have all we need …
Wolf, it’s true. We used to see throngs of Europeans – Germans, Brits, Spaniards – flocking to New York with empty suitcases to shop till they dropped. I’m willing to bet the numbers are way down now. On the other hand, when we first went to London ca. 1971-72, we were paying $2.40-2.60 to buy pounds. It’s been as low as $1.35 in recent days. Not that we’re traveling overseas these days.
Wolf, I always need more books, movies, and music CDs!
You’re right, and the conservative voters who put the current President in power don’t even see it. They blindly accept the rhetoric the GOP vomits out and then turns back to Fox News. The damn thing about interest going up is that these days, it seems to only apply to loans, not savings. Like Jeff, we have pretty much all we need in major items, though new gutters are planned for this summer, and we don’t drive a lot so gas price hikes have less effect on us, but it’s still terrible for the country to be in so much debt, and the damn GOP don’t give a rodent’s fanny.
Rick, food prices will start to rise along with energy prices. Once the Inflation Genie is out of the bottle, it’s tough to get it back under control!
I agree with Rick, especially about the interest rate on savings. I just put money in a CD for 2 years to get a 2% interest rate, and was happy about it, as it was the best rate I’d seen.
When my mom died, 2008, I invested a big chunk of the $ I inherited for 5 years @ 5%. That was in 2008 about 6 months later I invested some in a diff bank and it was down to 4% (early 2009)
some places offer 1.5 % for 5 years with a minimum that is laughable
Maggie, Warren Buffett just bought billions of dollars of U.S. Treasury Bonds. He claimed the Stock Market was no bargain.