018 Debt Ceiling-Chinese Inflation-your IRA-and Greece


I know you are wondering what do these four have in common?Farm And Ranch Country

I believe any deal on the debt limit will include a “new” index on how the government figures inflation.  What this means is higher taxes and lower benefits.  This may be the only thing that both parties in the deal want and will get.  Could save as much a $2 trillion over 10 years.

Chinese Inflation is on the rise.  In its 4000 year history anytime inflation gets out of hand in China, you have social,political, and economic unrest.  Chinese leaders will do whatever is necessary to get inflation down, including selling US debt at a time we need them to buy more of it.

Government hit the debt ceiling back in May, why is August 2nd the debt ceiling date and not back in May?  The US government has “borrowed” money from funds under its control.  Including government employees Thrift Savings Plan monies.  This is the government employees retirement funds.  So, how safe is your IRA or 401K plan?  What if the government when it cannot function anymore for lack of money all the sudden says “25% or 50% or all of your retirement funds have to be invested in these low paying government securities?  It is already borrowing its own employees money.

Greece since it gained its independence has been in default more than 50% of the time.  Why would anyone lend them money?  Oh Mr. Banker I pay my loans 50% of the time will you lend me money?  And, why would you want them as part of your economic union?

All four of these things can and will affect the Farm Bill debate and your finances.

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