The world is deep in debt and the pandemic is making it worse. Central banks are poking the bear, printing money like never before not knowing when too much will turn cash into trash.

1. Professor Larry Kotlikoff, Boston U,
and Ron Surz discuss the
Global Debt Crisis
on the Baby Boomer Investing Show
Tuesday 2/9 at 10:00 PST (Replay anytime)
Facebook: https://www.facebook.com/100144354887536/posts/260181365550500/
YouTube: https://www.youtube.com/watch?v=GPYtpC9_IcA
The US is on a Fast Track to Argentina With co-host
Kathy Tarochione

2. All-inclusive US Debt is $100 trillion: 500% of GDP
Our country is by no means out of the short-term economic
woods. Baring new COVID variants immune to vaccines, it
will take at least half a year to get most businesses back to
normal. The long-term fallout could be significant. Hundreds
of thousands of small, medium sized, and even large
companies, most in the hands-on services sector have closed
or or are closing for good, meaning permanent job loss.
Uncle Sam (the Treasury and Fed) has pulled out all stops.
But the price is not free. Debt/GDP now exceeds GDP. 2020
deficit was 15% of GDP. Debt/GDP projected to reach almost
200 percent by 2050. Fast Path to Argentina

3. Debt Crisis
THE WORLD IS BROKE
PAPER MONEY IS JUST PAPER
We have mentioned Professor Kotlikoff’s research
in several previous Baby Boomer Investing Shows

4. CBO Government Expenditure Projections:
Increasing from 19% of GDP to 31%
Health increases from 21% of expenditures to 29%
Interest increases from 5% to 26%
Interest
Health
19% of GDP 32% of GDP 31% of GDP

5. Debt Crisis: Season 1, Episode 6
Global Debt Exceeds $200,000 per person Social Security & Medicare are Going Broke
2026
2034
Source: Target Date Solutions

6. Printing Money: Modern Monetary Theory
Treasury
Federal
Reserve
Federal Reserve buys most of Treasury borrowing Inflation follows the money

7. The World is
Spending Big on
COVID.
US will spend $5.2
Trillion, which is
25% of GDP.
And it gets worse
Moral Imperative or Moral Hazard?

8. Heightened Inflation Risk

9. Helicopter Money “Rescues”
the economy and stock market
but…
• Wealth concentration
• Limited bank lending
• Aging population
• Technology advances
• Abundance (e.g. Energy)
• Outsourcing $4
$9
$11
Where & when will the scales tip?
$Trillions
Source: Target Date Solutions
Money Printing and Inflation

10. Protect Against
Hyperinflation
• Precious metals, especially Gold
• Cryptocurrencies like Bitcoin (S2, E7)
• TIPS: Treasury Inflation-Protected
Securities
• Consumer staple stocks
• Commodities, including energy & food
• Some real estate, like farmland
$4 Trillion QE + $5 (?) COVID Relief + $2 (?) Infrastructure
= $11 Trillion
MMT
Warning: Cash could become Trash
$11 Trillion new money is half of our
$22 Trillion Economy

11. Rising Interest
Rates Cause
Disaster
When ZIRP (Zero Interest Rate
Policy) ends

12. Tumbling the House of
Cards Built on ZIRP & MMT
When interest rates rise, as they will, the whole
house of cards collapses.
• Stock prices plunge because future earnings
are discounted at higher rates. The pin that
bursts the bubble.
• Interest payments on the debt take away from
other government programs, like welfare and
military. Worry about Social Security &
Medicare.
• Inflation escalates as even more money is
printed to monetize the debt: The “Debt
Spiral.”

13. Regardless of Who is Right
The primary investment objective of baby boomers should be to protect
their lifetime savings. This won’t make Wall Street happy.
Do NOT “Stay the Course” if it’s the Wrong Course.
60/40 stocks/bonds is WRONG for most Baby Boomers
Wizards of Wall Street say “Don’t Worry”

14. Financial Planning Webinars on
https://maxifiplanner.com/webinars
• Pros and Cons of Reverse Mortgages
• Build a Financial Plan That Puts You In Control
• Getting Richer with Little or No Risk
• Investment & Spending Decisions Using MaxiFi
• When Can I Retire and what's my number
• Using Retirement Accounts to Maximize Lifetime Spending
• House Poor No More
• Career Choice and Financial Security
www.kotlikoff.net

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Contact Ron Surz Ron@PPCA-Inc.com