So, just to start here, what can you tell us about the state of the US dollar on the world stage? Is it growing, holding steady, weakening? What is happening to it?
Well, we’ve just come out of a period where the dollar has been strong, but we are starting to see the dollar weakening against other currencies. The dollar will weaken further when the Fed starts to cut interest rates. That’s just how things work. It’s also weakened by the one topic that we talk about ad nauseum here on the show: out-of-control government spending. You know, the Fed has been monetizing our almost $36 trillion of debt by creating money to buy treasuries, which puts more dollars into circulation, making each dollar worth less until they’re eventually worthless.
Inflation is sort of a hidden tax that hits all consumers. It doesn’t discriminate on the basis of color, gender, or sexual orientation. Congress is really afraid to address the elephant in the room, which is deficit spending. It’s simple math to see: you bring in $4 trillion, and you spend $6 trillion. There’s a problem, and it’s not going to go away on its own. But they also benefit from a lot of this spending that they legislate, and it helps them get re-elected. The elephant’s going to get bigger though until we elect fiscally responsible people who are willing to address the big problem, which is spending.
One day, the market will focus on this unsustainable massive debt, that could likely lead to the next Great Recession, or even be the cause of a major crisis. Not that we want to go down that rabbit trail. I think the issue kind of holds back certain financial matters.
Now let’s take a question. Thank you, Steve. This question is about how to financially support an airline. Before we do this, just as a cost measure, if you saved that money, would you be okay with it? Sure. Because there’s going to be one world government, and no one knows yet what that will be. I personally don’t think it’s going to be anything that already exists, and you know, there’s a lot of debate around whether we as Christians will even be here when that happens. I personally believe that we will be raptured before that time comes, so I don’t really see a need for current season apportionment.
Yeah, and our last question here to wrap this up is regarding our strategy. What’s a good, healthy amount of exposure in international funds?
Well, it really depends. International companies can become more valuable as the dollar starts to weaken, and I think they always have some place in a portfolio. The exposure you have really depends. It depends on your age, risk tolerance, and to actually find out what we recommend for certain age groups or certain risk tolerances, you have to be a partner. So, I would encourage you to do that. But in general, our asset allocation models right now contain anywhere from two to twenty percent of international exposure. Again, become a partner and find out not only how much international exposure you have but also how you can eliminate exposure to companies that are using your dollars to support agendas that are absolutely contrary to your values.
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