Cities Turn Red States Blue in Geographical Rebuke

By
E.J. Smith - Your Survival Guy
-
Line of voting privacy booths at an empty polling station, USA Election Day, copyspace
By Sunshower Shots @ Adobe Stock

Big blob cities turned red states blue in yesterday’s geographical rebuke election. Look at the results state by state, and you see tiny blue blob population centers and coastal elites turning red states blue.

What spending problem?

A chart of the Congressional Budget Office's 10 year budget projection and the history of the debt to GDP ratio back to the 1700s. The projected ratio is higher than any time before it, even during World War II.

A line chart of the interest paid on the national debt as a percent of GDP from the 1940s to the present. The chart begins at 2.2%, spiked to nearly 5% during the late 80s and early 90s, falls back to around 2.5% in 2015, and then climbs again to over 4% today.

You Can’t Spend Your Way Out of This

Expect more bond issuance to pay for it all. We’re still the nicest house in a bad global bond market neighborhood. But what’s happening in France shows there is a limit to what investors will buy. You can’t spend your way out of this forever.

Action Line: Make sure you understand your risk tolerance, or intolerance, and invest accordingly. Need help? Email me at ejsmith@yoursurvivalguy.com.

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