US Debt Hit $36 Trillion
December 4, 2024
Hosted by Ferenc Toth
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Episode Description
The US added $11.8 Trillion of debt since 2020. The government owes $108,000 for every American, man, woman, and child. Deficit spending as % of GDP is at World War 2 levels. 25% of government receipts pay interest on the debt annually. The massive debt will push interest rates upwards until the government starts paying down the debt significantly. This will increase the cost of purchasing autos and homes for most Americans. Americans have record household debt. Credit card and auto loans debt is at all time highs. The Buffett Indicator shows US stocks are overvalued at 200% of GDP, one of the highest levels in history. Corporate insiders are selling shares at a record pace in the 4th quarter of 2024. Goldman Sachs states it is time for investors to diversify. Blackrock, Goldmann Sachs, and Vanguard all predict low stock returns (3-5% annually) for the next decade. Many financial experts are calling this the "golden age" of fixed investments. Even if the Trump administration does everything right, some problems will take a while to fix. Debt is a major challenge. Record levels of debt requires record selling of bonds. This pushes bond interest rates higher. Until the government starts paying down debt, bond interest rates will remain elevated. At the same time, the Federal Reserve is lowering borrowing costs by reducing interest rates. This creates an opportunity. Your Personal Bank allows you to earn dividends (likely increasing) while accessing funds to pay off debt, purchase items, or invest in assets. If dividends are higher than the borrowing costs, you keep the difference. This creates positive cash flow (positive arbitrage) on your money. We are likely headed to a historical positive arbitrage scenario. Historically, positive arbitrage has been available 24 of the past 28 years. The other 4 years the dividends and borrowing costs were similar. The average annual positive arbitrage was 2-3%. This is interest you earn on money you spent or allocated elsewhere!
Your Personal Bank
Wednesday at 11 AM Pacific on VoiceAmerica Business Channel
Your Personal Bank TM is a financial concept that strategically integrates financial tools from the banking and insurance industries to continue growth on funds even when you access them for other purposes. Ferenc will share how Your Personal Bank can enhance returns on investments, including real estate, reduce the cost of borrowing, and safely create positive arbitrage. Ferenc will also share how the rapidly increasing interest rates will likely increase future returns and positive arbitrage.
Ferenc Toth
Ferenc is founder of Your Personal Bank TM. He is passionate about helping people gain control of their money, create tax-favored income, and having access to more funds over their lifetime! He has a knack of explaining complicated financial concepts in a simple and easily understood manner. Ferenc gets people to think and empowers them to better understand the financial tools they are considering. He actively educates for financial literacy. Ferenc’s company continues growing rapidly with over 5000 clients and a dozen advisers. Ferenc has personally advised over 1000 clients and mentored many advisors over his 20+ year career. Ferenc has been and is annually recognized by several financial and insurance institutions as a top advisor. He has been honored many years as a top 10 adviser nationally. Ferenc is a General Agent. Unlike most agents/advisors General Agents work directly with financial institutions and typically have an extensive level of experience and knowledge. Ferenc proudly served in the Fife and Drum Corps, 3rd US Infantry, “The Old Guard”, US Army. The Old Guard is the Army's official ceremonial unit and escort to the president. The Fife and Drum Corps is one of the premier musical units in the US Army. Ferenc performed in many ceremonial functions at the White House and various events around the country including the Indianapolis 500 and Kentucky Derby. Ferenc is a semi-professional bass trombonist. He performs in various groups including church orchestra
Episode Directory
December 2024
- 12/18/2024: Guaranteed Lifetime Income Benefits have Doubled in the Past Year! Listen Now
- 12/11/2024: The Stock Market Could Be Too Strong for Its Own Good Listen Now
- 12/4/2024: US Debt Hit $36 Trillion Listen Now
