As seen in the headlines, the U.S. national debt is growing dramatically. The
various government programs such as Social Security, Medicare, Medicaid,
stimulus programs, cash-for-clunkers, etc. have increased government spending
significantly. A huge national debt has a negative effect on a country's economy,
just as too much debt hurts businesses and families. On the national level, it
hurts the economy because the government must take money out of the
economy to pay the interest payments on the debt, either by raising taxes on
citizens and businesses, by borrowing more from foreign countries, and/or
printing more money. Typically a huge national debt leads to inflation, as seen in
Europe in the 20th century.
Regardless of our political views, we strategize to protect clients’ financial plans
from inflation. We have several investment tools that we use to protect our
clients, such as inflation-protected bonds and other investments that go up in
value during periods of inflation.
If you are interested in finding out more about our investment philosophy, please
visit us at our web site at http://www.magnoliafinancialplanning.com/.
Copyright © 2009 Robby T. Bryant, CFP, CEA. All rights reserved.