What ever happened to the tea party?
It seems to have sailed–perhaps with the tea–right out of the Boston Harbor!
Indeed, conservative members of Congress have clearly forgotten that money doesn’t grow on trees. In fact, most of them seem to have forgotten the value of a dollar, altogether. The tea party once served as an important check on government power (and our leaders’ spendthrift tendencies) and was a helpful force in preserving the value of the U.S. dollar.
There were just six–and only six–Republican Senators that voted against the $900 billion dollar relief bill.
- Marsha Blackburn of Tennessee
- Ted Cruz of Texas
- Ron Johnson of Wisconsin
- Mike Lee of Utah
- Rand Paul of Kentucky
- Rick Scott of Florida
It’s not easy to go against the tide, but nonetheless, we elect our officials to represent OUR interests, not theirs. And, as such, we expect them to be willing to vote against perceived popular bills, even in the 11th hour.
Effect of on U.S. Dollar and Savings
One thing most law makers seem to have forgotten is that our current debt level is already and estimated $27 trillion dollars. The significance of that is massive. At this point, we are spending more than we make (GDP in 2019 was $21 trillion.) This will place an enormous burden on American families and depress the value of their savings over time. As the dollar decreases in value, inflation should creep increasingly into our economy, thereby making the value of what we have saved increasingly less.
As such, investors are wise to diversify their portfolios because while the economy may struggle and the value of the U.S. dollar will likely decline, there is still money to be made. Namely in equities (as well as real estate and commodities. Bond prices are also expected to continue moving higher, as rates decrease.) In fact, investment-wise, we could be looking at some very good years ahead.
Stock Market Mirage
But, don’t conflate the stock market with fundamental economic growth. One of the problems with a weaker dollar and spendthrift lawmakers is that part of the market’s success is actually tied to the weaker currency, thereby making the stock market a bit of a mirage.
As we all learned in 2008, that “mirage” can only go on so long.
As such, we need the tea party right now to help us confront this economic reality. So, let’s say “Bravi” to the six Senators willing to fight back against the lobbyists pushing their own agendas. Simultaneously, recognize the reality of easy money–with both it’s attributes and its consequences.