The Best Way to Avoid Falling Victim to This Impending Economic Catastrophe
Editor’s Note: Tom Gentile is America’s #1 trader, and one of the world’s foremost authorities on stock, futures and options trading. Read his message below on how to avoid the impending economic catastrophe…
We all know how boring the topic of “debt” is…
Your eyes actually might glaze over when the pundits start talking about it on the financial news networks.
But as much as you want to ignore it – it’s an impending financial crisis isn’t going anywhere anytime soon.
In fact, it could hit you harder than you may think…
Here’s The Only Way to Handle the Federal Debt Epidemic
Federal debt has been plaguing the economy for years. But it’s nearly doubled over the last decade and while it may be easy to ignore, the impact of this borrowing is catching up with us – and fast.
Currently, the U.S. governments adds, on average, $1.5 billion to the deficit every day.
To put that into perspective…
That’s $62 million an hour.
$1 million per minute.
And more than $17,000 a second.
So, I think we can all agree that this pileup isn’t going to slow down anytime soon.
U.S. debt is currently outpacing the size of the economy (which is measured as gross domestic product or GDP). To give you an idea, the deficit was sitting at 35% of GDP before the recession. And today – it’s sitting at 73%.
The worst part is that it could grow to 118% over the next 20 years – which will exceed the peak that followed World War II.
There’s also been little to no progress made on reaching a budget agreement.
In fact, while there has been plenty of chatter surrounding the topic coming from both sides – there’s no resolution in sight.
And that inaction could lead to another government shutdown. A government shutdown occurs when no budget agreement is reached which leads to not being able to fund the government.
Now, you might recall the recent government shutdown we faced last year in December. When this shutdown first started on December 22, smack dab in the middle of the holidays, I (like so many people out there), thought it would end by New Year’s Day, at the latest. I’m sure federal employees thought (and hoped) so, too…
But fast forward more than a month later, and it was still happening. And it lasted for 25 days making it the longest shut-down in history.
Not only were the hundreds of thousands of furloughed workers facing several pay periods without compensation, the contractors who supply them goods and services were also left hanging. And we also saw it impact traders and investors alike.
And we could be looking at the possibility of that happening again…
Even if it doesn’t, here’s what we could see if this spending continues:
- Economists predict social security could run out by 2035.
- Economic growth could slow significantly, creating fewer jobs.
- Taxes will be raised for consumers and property owners.
- Interest rates will continue to rise.
And I don’t know about you, but that’s not painting the brightest future for the economy. And it’s not fair to you to pick up the tab and slave away until you’re 80.
But you don’t have to fall victim to the domino effect the debt crisis could create – because you’re equipped with a tool that allows you to create your own financial future – and that’s with options.
You see, the great thing about trading is that you’ve got the luxury of making money whether the market’s up, down, or sideways.
And with that, you won’t lose a wink of sleep.