An economists' concept and term that everyone should be aware of and understand, at least by definition, is known as Broken Math.
Broken Math refers to the fact that the US national debt has well surpassed the annual Gross Domestic product, resulting in massive deficit spending.
That will further increase the debt, almost surely demanding more and more interest payable each year, as interest rates are already presently at historic lows and likely to rise.
Two years ago, the interest on the debt was 2.159% according to treasurydirect.org while GDP increased at a lesser 1.5% annualized rate ... despite Congress, the Fed & the Treasury conspiring to pile on an extra $100B per month to the debt from their deficit spending.
'Markets' are manipulated regularly via the Fed's invention of money to fund runaway spending. Clearly, the math is 'broken'. The key for investors will be navigating through the probable correction to the mathematical abuses in place today.
How the Broken Math will affect our clients is one of our main strategies, and it is one that we do our best to reduce their exposure.
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WILLIAM S. CHERRY & NO COMPANY
Park Avenue Wealth
The Life Economic Coach for America