When government borrows, it crowds out private borrowing

Folks, this is a normal occurrence in economics whenever a government's borrowing needs are this voracious, it crowds out private borrowing. The folks at Agora Financial's 5 Minute Forecast found this and wrote about it today:

“Two days ago, (Treasury Secretary Tim) Geithner insisted on Capitol Hill that his department’s massive borrowing was not -- repeat, not -- crowding out private investment and crippling recovery.

Cue the Fed’s quarterly flow of funds report yesterday…

The report confirmed everything common sense would tell you: The crowding-out effect is in full force:

· Business debt in 2009 fell 1.8%. The figure is now its lowest since the 1991 recession… good
· Household debt fell 1.7% -- the only annual decline in the data, which go back to 1946… even gooder
· State and local government debt grew 4.8%… umn… not so good
· Federal government debt grew 22.7%… yikes.”

Folks, it is pretty simple. This all leads to a more entrenched recession - even a hyperinflationary depression. A gold IRA is a wonderful way to arm yourself. You should consider Lear Capital as your " gold central " location to place physical gold - the safe haven gold into your retirement. Call us to investigate it now!