EVERYONE NEEDS TO KNOW THE ECONOMISTS' TERM, BROKEN MATH.

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Real Estate Agent with Bill Cherry, Realtor 0124242

 

 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.

Click here for more information about our Life Coaching for Wealth

WILLIAM S. CHERRY & NO COMPANY
Park Avenue Wealth

The Life Economic Coach for America

Dallas

972 677-7026

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Rainmaker
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Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Bill, Broken Math indeed. These are scary times. The stock market growth of the last several years is a direct result of the "extra" money the Fed has created. What happens when they stop expanding the money supply?

Bill Roberts

Aug 16, 2014 12:25 AM #1
Rainmaker
393,606
BILL CHERRY
Bill Cherry, Realtor - Dallas, TX
Broker & Wealth Coach

Hi, Bill ---

You and I both know the reason and can extrapolate the consequences.  Geeze!


Regards.

Bil

Aug 16, 2014 01:13 AM #2
Ambassador
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Bill - this is really broken math. And quite scary. And seeing how ferociously the legislature fights for keeping the spending... ouch

Aug 21, 2014 12:10 PM #3
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