We look at the national debt rising toward 20 trillion dollars and pessimists predict catastrophe in the form of hyper inflation. They reason that this debt will be monetized, that government will run the printing presses, and gold and real estate and tangibles will rise as the dollar sinks.
And there is some truth in this
But realistically we are in a new type of economy that is very sensitive. The slightest acceleration brings higher prices which slow things which brings lower prices.
I see a wonderful future of moderate growth, low inflation, low interest rates, and a gradual lessening of the debt problem.
Debt will continue to go up, but as the economy grows, it can sustain more debt.
Debt is not such a bad thing. Debt is just money.
Is the solution to have less money? I don't think so.
What has been working well is a gradual increase in the supply of money.
Right now another small real estate bubble is forming. But I don't expect it to continue. Gold has been in a downtrend for more than a year.
Sensible people are seeing that it is better to buy a bag of seeds than to buy a bag of gold
It is better to hold income property or a healthy business rather than unproductive land.
Virtue will be rewarded.
We will muddle through.
This is a new economy, a smart economy.
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