Markets Moving Up

Some think that the Biden administration's new policies will generate run wild inflation, which we see all over the place such as pump prices for gas, and interest rates spiraling up threaten the markets continued move up. Of great concern is Biden's plan to monitor all banking transaction over $600 - talk about a 4th Amendment violation and no privacy!

But rates are capped - WHAT? Interest rates cannot go over 4% because the National Debt has ballooned to nearly $30 trillion. That is debt that the United States has to, at a minimum, pay the monthly interest on. The interest on the debt for fiscal year 2021 is estimated to be $413 billion, that is according to the Congressional Budget Office (CBO). If the rates go over 4% the US will not be able to make the payments.

On another front, while rates are moving up, we are also experiencing an ever increasing supply chain shortage. Simple economics show that when the supply is outpaced by the demand of products the price of the products go up. Therefore, we know that rates are capped because the US Government overspends and puts at stake the life's of our children and future generations but they can only go so high or we bankrupt the nation. But we are saved, i.e., markets will move on up, because the drastic and increasing supply chain issues.

In summary, we are bankrupting the country but we expect the market to continue to move up.