The recent US debt deal has sent ripples across the global economy, with experts warning of the potential damage to come. Inflation is one of the most significant consequences, as governments print more money to pay off their debts. In this blog post, we take a closer look at the guaranteed inflation hell that the US debt deal has created, and how it could impact the world economy in the long run.
How the US Debt Deal has Damaged the Global Economy: A Look into the Guaranteed Inflation Hell
Introduction
The United States government was able to reach a deal with Republicans and Democrats, which postponed the US debt crisis, giving the government time to continue borrowing. However, this deal has major implications for the economy, leading to guaranteed inflation hell for the global economy. The excessive spending by the US government, coupled with global supply chain disruptions, has created an inflationary spiral that could lead to higher prices and economic instability for years to come.
The Excessive Spending Fueling the Inflation Crisis
The US government has been on a spending spree, and the debt crisis is only going to be postponed until January 2025. This unlimited borrowing leads to excessive money printing by the Federal Reserve, triggering am inflationary spiral. This excessive spending will have a domino effect on the economy, leading to rising interest rates, higher taxes, and eventually, a stock market crash.
The Inflation Crisis to Continue, Prices Could Spiral Out of Control by 2025
The inflationary spiral created by the US government’s excessive spending is not going away anytime soon. Inflation is expected to continue, and prices could spiral out of control by 2025. With the supply chain disruptions caused by the Covid-19 pandemic, many businesses are struggling to keep up with demand, leading to higher prices for consumers. This inflationary spiral is expected to continue for years to come.
How to Protect Your Assets
With the impending inflation crisis, it is important to safeguard your assets. One way to do this is by investing in precious metals like gold and silver. In Singapore, you can buy gold and silver with discount code “SEAN”. Furthermore, various investment platforms offer stock deals up to $3500 and free stocks to new users. It’s important to diversify your investment portfolio to hedge against the inflationary spiral.
Other Ways to Protect Your Assets
- Invest in real estate
- Buy non-correlated assets like cryptocurrencies
- Reduce your debt burden by paying off high-interest debts
The Federal Reserve Tightening Monetary Policy While US Government Goes on a Spending Spree
The Federal Reserve has started tightening monetary policy, but the US government’s excessive spending is negating the effect. While the Federal Reserve is trying to control inflation by raising interest rates, the US government is creating more money to fund their spending spree. This tug-of-war between the two entities is fueling the inflationary spiral, leading to a global economic crisis.
Debt Limit Suspended Until January 2025 – Unlimited Borrowing
The US government has suspended the debt limit until January 2025, allowing for unlimited borrowing. However, this will have long-term implications for the economy, leading to a rising national debt and currency devaluation. Furthermore, this will lead to higher taxes and interest rates, causing more economic instability.
Rising Interest Rates to Lead to Inflation Nightmare Affecting Global Economy
The rising interest rates caused by the inflationary spiral will have far-reaching implications for the global economy. With the US being the largest economy in the world, the inflationary spiral will lead to higher prices for goods and services, leading to economic instability. Furthermore, this will lead to higher borrowing costs for businesses, resulting in lesser investments and hiring.
Conclusion
The US debt crisis has far-reaching implications for the global economy. The excessive spending by the US government, coupled with supply chain disruptions, has led to an inflationary spiral that will continue for years to come. It is important to safeguard your assets by diversifying your investment portfolio, investing in precious metals, and reducing your debt burden. However, despite these measures, everyone will be affected by the inflationary spiral, leading to economic instability and higher prices for goods and services.
FAQs
1. How did the US debt deal damage the global economy?
The US debt deal led to unlimited borrowing, which led to the Federal Reserve creating more money, fueling inflationary spiral. The rising interest rates will also result in lesser investments, and hiring, leading to economic instability.
2. What are the implications of the debt limit suspension by the US government?
The debt limit suspension will lead to a rising national debt and currency devaluation. It will also increase taxes and interest rates, leading to more economic instability.
3. What are the ways to safeguard your assets during the inflationary spiral?
One can invest in precious metals like gold and silver, buy non-correlated assets, reduce debt burden by paying off high-interest debt, and diversify their investment portfolio.
4. What are the other ways to protect assets during economic instability?
One can invest in real estate and reduce discretionary expenses.
5. Will the inflationary spiral lead to a stock market crash?
The inflationary spiral is expected to lead to rising interest rates, higher taxes, and eventually a stock market crash.
