The Weekend Edition is pulled from the daily Stansberry Digest.
When COVID-19 shut down the U.S. economy in early 2020, the federal government acted fast…
And for almost two years now, it has propped up our economy with massive fiscal and monetary support.
We can argue all day about the size and scope of the support, but one thing is clear…
It worked.
The government’s swift actions kept food on people’s tables… It kept folks from being kicked out of their homes… And it kept money flowing into the financial markets.
But these handouts ended earlier this year…
And now, the Federal Reserve has begun tapering its purchases of U.S. Treasury bonds… And this week, it voted to wind down purchases even faster. The government’s support is winding down. And that means interest rates are on the rise.
In today’s Weekend Edition, I want to discuss the aftermath of all this support…
As you’ll see, America is already facing a major problem. It’s going to reverse our economic recovery from COVID-19 and risk sending us into another financial crisis.
But fortunately, you don’t have to be a victim whenever the next crisis unfolds…
Today, I’ll show you a way to protect your portfolio and make money from this coming storm. It involves a wealth-building strategy that some of the world’s best investors use.
First, let me explain what’s going on…
Pre-pandemic, many Americans were already up to their eyeballs in debt…
The average U.S. household owes more than $12,000 in student loans, $11,000 in car loans, and $6,000 on credit cards. In total, that’s $29,000 in nonmortgage debt… 50% higher than the $19,000 of nonmortgage debt that the average American owed back in 2007 before the last financial crisis.
The credit-card industry capitalizes on this – by trapping people with low minimum payments.
According to a Fed study, around one-third of all Americans only pay the minimum amount due on their credit cards each month. That’s a recipe for disaster…
Minimum payments today average only around 2% of the credit-card balance. By paying only the minimum required, it would take more than 30 years for the average American to pay off a $6,000 credit-card balance… And that’s assuming they don’t charge another dime on the card over that span.
When you only pay the minimum, you’re practically paying nothing but the interest on your debt. That’s what the banks want, though… The more you owe and the longer you owe it, the more money they make.
When you get to the point that you can only afford to pay the interest on your debt, you’re truly …….
