Q. What is the biggest headwind or hurdle the US economy is facing in the intermediate or long term?
A. The reality is that the American fiscal path is beyond unsustainable. I talk to very few people who do not completely realize this, and there is practically no political will (or urgency on Main Street) to do anything about it. The debt-to-GDP ratio has gone from 35% in the year 2000 to 73% now. This is a devastating statistic, and one that has to be dealt with soon. We are borrowing 40 cents of every dollar we spend. My belief continues to be that, sadly, this will not be addressed until the bond market forces it to be, but I hope I am wrong.
David L. Bahnsen
Senior Portfolio Manager and Managing Director,
Mr. Bahnsen is based in Newport Beach, CA
Mr. Bahnsen sees it, and said it well: “The American fiscal path is beyond unsustainable.” For you, that means at the very least it’s time to write or call your elected officials in Washington. Find out why they don’t see it.
Posted for your edification and enlightenment by
NORM ‘n’ AL, Minneapolis