New Zealand Refused Entry to a Pregnant Citizen

New Zealand Refused Entry to a Pregnant Citizen, so She Went to Afghanistan

Notes From the Field By Simon Black  February 9, 2022

Charlotte Bellis is a journalist who was based in Afghanistan during the US withdrawal.  She covered the Taliban’s first press conference after it took control of the country last summer, and asked, "what will you do to protect the rights of women and girls?"  Now Bellis, a New Zealand citizen, could ask the same of her home country. Seriously, this story is incredible:

In November, Bellis was living in Qatar with her partner when she unexpectedly became pregnant. But in Qatar, it is illegal to be unmarried and pregnant. A doctor advised her that she should leave the country immediately to avoid punishment.  Bellis went to Belgium — where her partner is from — and likely would have remained there for the duration of her pregnancy, if that was an option.

Unfortunately for her, without securing residency in a European Union country, New Zealanders can only stay for three months.

But she also couldn’t simply return to her home country, because in the name of COVID, New Zealand had implemented a lottery system to control the flow of citizens repatriating.

Bellis wasn’t too worried though. Despite having no luck in the lottery, the restrictions were set to expire at the end of February. That gave her plenty of time to return home well before she was due to give birth.

But then New Zealand delayed reopening, and suspended the lottery system altogether.

Bellis informed the New Zealand authorities of her situation and requested emergency authorization to return. She was denied.

This was not the stress Charlotte Bellis needed during a pregnancy.

She didn’t want to use up all of the three months she was authorized to spend in Belgium, in case she had to return in an emergency.

So she reached out to authorities in the only other country she had a visa to live in: Afghanistan.

And Taliban officials welcomed her with open arms. Seriously.

They assured Bellis that as a foreigner, her status as an unmarried pregnant woman would put her in no danger from the government.

Thanks to the Taliban being more understanding and compassionate than New Zealand’s bureaucrats, she entered Afghanistan with no problem.

However, with the poor quality medical care in Afghanistan, Bellis and her baby were at serious risk of complications, or even death.

So from Afghanistan, she once again reached out to New Zealand for an emergency authorization to re-enter the country — this time, with the help of a lawyer, and medical professionals who could vouch for her need.

And New Zealand AGAIN denied Bellis emergency entry back to her homeland.

New Zealand authorities said that she had failed to prove her pregnancy showed a time-critical need for medical treatment.

Exasperated, the only option Bellis had left was to go public, and shame the government of New Zealand into extending some basic human decency.

Only then, after the public became aware of the situation, did New Zealand reverse course and grant Bellis emergency authorization to return home to give birth.

What a bunch of pathetic sociopaths.

New Zealand is supposed to be a first-world nation that allows citizens to freely come and go.

And the Taliban are supposed to be uncivilized barbarian terrorists, right? Yet apparently they had more compassion for an unmarried pregnant woman in need.

Secondly, how shameful that New Zealand had absolutely NO PROBLEM putting Charlotte Bellis and her child in unsafe precarious conditions — as long as no one found out!

In fact, as the Taliban swept into power in August, New Zealand was among the countries which sent planes to rescue people who remained at risk in Afghanistan.

At the time, New Zealand’s Prime Minister called on the Taliban to allow safe evacuations, especially for “women and girls... because the whole world will be watching.”

Well isn’t that interesting that New Zealand had no problem being downright evil to a woman well into her pregnancy, when they thought no one was watching.

But when the public found out and became outraged, somehow the problem was easily and immediately solved.

I’m sure there are some fine people in government who really care and try to do the right thing.

But clearly there are some truly evil bureaucrats and politicians who just cannot wait to be petty tyrants and abuse their power.

And the fact that all of us are forced at times to rely on these people is truly terrifying.

This is a major reason to ensure you have plenty of options.

Think about it — Charlotte Bellis is an intelligent person. But she failed to foresee this particular bad situation. And that’s totally normal; why would anyone ever think they would be denied entry to their home country, especially under such circumstances?

If she had secured a second passport just in case, she could have avoided her only option being Afghanistan, of all places.

For example, she might have European lineage in one of many countries which award citizenship through ancestry. As part of the EU, she may have been able to stay in Belgium indefinitely.

But even a second residency would have saved her from this situation — and residencies are super easy to come by.

Mexico is a great example, because it requires a relatively low income or savings threshold to gain temporary residency. And that can lead to permanent residency and even citizenship down the road.

Last summer, my wife and I could have had our baby almost anywhere in the world, and we chose Mexico.

That’s because of the high quality medical care we found at several hospitals and clinics.

And as an added benefit, Mexico grants citizenship to babies born on its soil, and permanent residency to the child’s parents AND grandparents.

What a great gift to give a child at birth — a second passport (or in my daughter’s case a fifth passport) that can open doors, and give them a Plan B option for life.

Citizenship and residency are insurance policies that you may never have to cash in.

But if the day comes when you really need it, it makes all the difference

To your freedom,  Simon Black,  Founder, SovereignMan.com

https://www.sovereignman.com/trends/new-zealand-refused-entry-to-a-pregnant-citizen-so-she-went-to-afghanistan-34573/

4 Ways To Tame Financial Stress And Save For Retirement

4 Ways To Tame Financial Stress And Save For Retirement

Elizabeth Ayoola of NerdWallet  Tue, February 8, 2022

Maybe you feel like you don’t earn enough. Or you don’t understand how investing works. Or maybe you can’t organize your finances. These are factors that can lead to financial stress and set back your retirement savings.

A lack of assets and money management challenges are contributing factors to high levels of financial anxiety and stress, according to a 2021 report called Financial Anxiety and Stress Among U.S. Households from the FINRA Investor Education Foundation and Global Financial Literacy Excellence Center.

“We also find that financial anxiety and stress can have long-term consequences: those who are financially anxious and stressed are less likely to plan for retirement,” the report says.

Sometimes when people are worried about something financial, they just ignore it, says Adam Frank, a certified financial planner and registered investment advisor based in Los Angeles.

“But the problem is, the longer you wait to start investing or continue investing for retirement, the more you have to do later,” Frank says.

Strategies For Reducing Financial Stress

If financial stress is affecting your ability to save for retirement, you may have to work longer and you may also risk running out of money in retirement. But getting started as soon as you can could help you reach your retirement goals faster.

If you’re anxious about your ability to save for the future, here’s how you can manage those feelings and get on track.

1. Create A Realistic Budget

“The first thing will be to get organized — you know, the big, bad B word, it gets a bad rap, it’s budgeting,” says Lauryn Williams , a Dallas-based CFP and Olympic medalist in both women’s track and field sprint and two-woman bobsled.

To continue reading, please go to the original article here:

https://news.yahoo.com/4-ways-tame-financial-stress-112618359.html

These Are the Receipts To Keep for Doing Your Taxes

These Are the Receipts To Keep for Doing Your Taxes

By Barri Segal February 3 2022

Gathering and saving receipts and tax documents is an important part of filing taxes and receiving your refund quickly. Whether you take the standard deduction or itemize deductions, most people filing their 2021 taxes in 2022 will be happy they took the time to prepare when the IRS deadline rolls around.

Review which receipts to keep for taxes — the information below will help to make tax preparation less painful and ensure you take all of your eligible deductions.

What Receipts Should I Keep for Taxes?

In the event that you’re not sure how to file receipts for taxes, consider seeking the help of a tax professional. They can not only tell you what receipts to keep for taxes, but they can also assist taxpayers with complex financial situations and can help with calculating all types of taxes. Concerning the money you receive back, this could also help protect any tax refund. It might even give you a large refund to spend. But rather than focusing on how to spend or what not to do with a refund, a tax expert can use receipts to help you avoid needing a refund in the first place.

Whichever route you take, make sure you know how to save and organize receipts for taxes — the last thing you want is to not have the documents you need to defend yourself during an IRS audit.

Small-Business Owner Receipts

Self-employed individuals should consider using QuickBooks or similar accounting software, according to Bonnie Lee, an enrolled agent and owner of Taxpertise in Sonoma, California.

“The scope of an audit of a small business is reduced considerably when the auditor discovers that adequate books and records, checkbook reconciliation and all other bookkeeping tasks are being performed on professional software by a professional accountant,” said Lee.

A small business owner wondering what receipts to keep for taxes should make sure to save these documents:

Sales slips  Paid bills    Invoices  Receipts  Deposit slips   Canceled checks

Keep your gross receipts because they show the income for your business, which you must include when you file your taxes. Gross receipts to save for taxes can include:

Cash register tapes   Deposit information   Receipt books   Invoices   Form 1099-MISC

Don’t forget to save your receipts for business purchases, which are classified as the things you buy and resell to consumers. Save these purchase documents and receipts:

To continue reading, please go to the original article here:

https://www.gobankingrates.com/taxes/filing/deadline-countdown-receipts-save/?utm_campaign=1155388&utm_source=yahoo.com&utm_content=8&utm_medium=rss

How Long To Keep Tax Records: Can You Ever Throw Them Away?

How Long To Keep Tax Records: Can You Ever Throw Them Away?

Michael Keenan   Sat, February 5, 2022,

Once you’ve submitted your tax return to the Internal Revenue Service each year, the last thing you probably want to think about is how to store your tax records. But making these arrangements is essential to protect yourself in the event of a future IRS audit.

The general rule is to keep your tax records for three years, but there are several important exceptions for when you might need to keep your tax records for a longer period as a taxpayer. Read on to learn how long to keep your tax records and when you can safely dispose of them.

Determining Expiration of the Statute of Limitations

Typically, the statute of limitations for the IRS to audit your tax return is generally three years. For an income tax return, the period of limitations is three years. But the IRS says it’s wise to keep your tax returns even longer. For example, if the IRS audits you, you’ll have the documents you need to protect yourself from an audit. The statute of limitations starts running on the later of the due date for your tax return or the date on which you file your taxes.

Special Tax Items

You’ll need to keep your records for seven years if you claim a deduction of worthless securities or bad debts. For example, if you lent a friend $10,000 under a promissory note and the friend went bankrupt, keep records to prove that it was a legitimate debt discharged in bankruptcy that was never paid.

Another special tax item is employment taxes. Keep records for employment taxes for four years from the later of the date the tax is due or the date you pay the tax.

Records Related To Property

When your tax return includes information related to property, keep those records until the statute of limitations — typically three years — runs out for the year in which you sell or otherwise dispose of the property.

To continue reading, please go to the original article here:

https://news.yahoo.com/long-keep-tax-records-ever-140014688.html

Money Isn’t Everything

Money Isn’t Everything

Last updated on February 5, 2022 by One Frugal Girl

I type the phrase “money isn’t everything” into my keyboard. Then I stare at the words in disbelief. Is that statement true?  We often think of the world in terms of black and white. Ideas are true or false, and people are good or evil, but the truth is rarely this straightforward. Most things exist in the gray space in between, and money is one of those examples.

Money Is Everything

Money isn’t everything, but money is a lot of things. I can’t live in a cozy, warm house, feed myself, or put clothes on my back without money. I also can’t pay for higher education or classes to improve my skills.

In this modern world, we cannot survive without money. Whether we like it or not, most things in life require it, and if you don’t have enough, it will feel like everything to you.  It is a privilege to believe that money isn’t everything and a disservice to those who read my words to ignore that fact.  Do you know people who say money isn’t everything? I’m sure most of them have plenty of money to meet their basic needs and then some.

Is Money Everything?

I shouldn’t say that money isn’t everything. Instead, I should say that money feels like everything until we reach financial safety and security. After that point, more money isn’t everything.

Before earning a six-figure salary, building an FU Fund, or becoming financially free, I held remarkably different views about my finances.

As I battled chronic pain, I felt fearful, stressed, and anxious, not to mention emotionally attached to money.

Back then, I thought money was everything. Not because it could buy me expensive goodies or extravagant vacations, but because I felt unstable and frightened without it.

The best part of reaching FI wasn’t quitting my high-paying job; it was paying my bills without worry.

Money Isn’t Everything

Of course, money can’t buy everything, and I suppose that’s a good argument for why it isn’t everything, but it does improve our lives beyond measure.

To continue reading, please go to the original article here:

https://www.onefrugalgirl.com/money-isnt-everything/

12 Essential Money Tips for Every Phase of Your Financial Life

12 Essential Money Tips for Every Phase of Your Financial Life

By Gabrielle Olya Dec 2, 2021

Learn the secrets to make the most of your finances.

Everyone makes money missteps at some point in their lives, whether it’s splurging on unnecessary items or neglecting to contribute to retirement funds as soon as possible. Even financial pros are not immune to making mistakes.  To help you avoid unnecessary pitfalls, check out these tips and tricks that can help you live your best money life — no matter your age.

Start With Saving

Although it’s tempting to spend rather than save when you get a paycheck, it’s important to prioritize putting money away into your checking or savings account. On top of that, you should also use the right checking or savings accounts to grow your money.

Avoid Lifestyle Inflation

It’s important to increase your savings rate whenever you start earning more in order to keep growing your net worth.

 “Save one-third of every pay raise you get so you don’t succumb to lifestyle inflation,” said Ted Jenkin, a certified financial planner. By starting this practice early in your career, you’ll develop good habits like saving, investing and paying down debts instead of spending it on more stuff you won’t care about in a few years’ time.

Don’t Waste Your Money on Things You Don’t Need

Whether you’ve just received your first paycheck or your first raise, it can be tempting to spend your money on things you want rather than on things you need — but this can be a huge mistake.

 “Don’t spend so much money on clothing,” said Michelle Schroeder-Gardner, founder of the personal finance blog “Making Sense of Cents.” “I’ve worked full-time since I was around the age of 14, yet I didn’t really start saving money until nearly a decade later.”

Don’t Buy Things To Impress Other People

Spending on immediate wants can hurt your future needs, said John Rampton, founder and CEO of Calendar.

“Don’t waste your time on expensive cars or gadgets,” he said. “It’s better to save money for the long-term and for things that can keep generating money, rather than taking (your) money.”

Start Investing In Your Retirement ASAP

A GOBankingRates’ retirement savings survey found that 64% of Americans have less than $10,000 saved for retirement. It’s easy to put off saving for retirement when you’re in your 20s, but that’s the best time to start. The sooner you save, the sooner you can take advantage of compound interest. No matter your age, it’s important to prioritize investing in your retirement accounts.

To continue reading, please go to the original article here:

https://www.gobankingrates.com/saving-money/savings-advice/money-tips-for-every-phase-of-life/?utm_campaign=1155096&utm_source=yahoo.com&utm_content=6&utm_medium=rss

7 Things You Should Never Pay for With Cash

7 Things You Should Never Pay for With Cash

Jennifer Taylor   Wed, February 2, 2022, 7:00 AM·5 min read

Some people charge everything to a credit card to rack up rewards points, but that isn’t your style. When possible, you prefer to pay with cash. Maybe you’ve ditched the plastic as a way to curb overspending, avoid credit card fraud or simply because you prefer to shop off the grid. However, despite the many good reasons to pay with cash, it isn’t always the best choice.

Not sure what types of purchases warrant leaving the cash in your wallet? Here’s a look at seven common payments that should always be made with a different form other than cash.

Rent

Writing a check can be a hassle, so if you don’t have the option to pay your rent online, you might opt for cash. However, William Capece, CFP, director of business development at the JS Benefits Group, said doing so is unwise, because it leaves you without a paper trail.

“Too often we hear stories of landlords who evict tenants over unpaid rent, while the tenant swears to have paid,” he said. “Cash leaves no paper trail and thus no proof.” On the flip side, he said landlords should also never accept cash payments for the same reason. “This should be outlined in the renter agreement,” he said.

Car

Since interest rates are at historic lows, Capece advised against buying a car with all cash. “Utilizing a car loan helps in many ways,” he said. “Dealers make more money when customers utilize debt, so they are more likely to give you a better deal.”

Beyond that, he said paying for such a large purchase in cash limits your ability to invest. If you can swing it, he recommended financing your car purchase and using the cash as the down payment on a rental property. “Use an appreciating asset to pay for your lifestyle,” he said.

Home Maintenance and Updates

To continue reading, please go to the original article here:

https://news.yahoo.com/7-things-never-pay-cash-120012133.html

Who Inherits When No Will or Trust Exists?

Who Inherits When No Will or Trust Exists?

Money / Financial Planning

Determining inheritance after a person passes away with no traditional resources like a will, trust or estate can be challenging. What can make things even more complicated is the fact that many assets, such as life insurance policies and 401k balances are not distributed in a will.  If there’s no financial plan in place after death, the decision of how the inheritance gets distributed lies with the state in a process known as intestate succession. This means that the deceased’s assets are disbursed in accordance with the area’s laws.

Read on to find out how intestate succession works and why it’s important to start thinking about creating a will if you haven’t already.

Uniform Probate Code

Though laws differ from state to state, the core of intestate succession is defined in the Uniform Probate Code. This dictates the deceased’s inheritance goes to close relatives, generally defined as spouse, children, grandchildren, parents, siblings, nieces, nephews, and grandparents. If none of these surviving family members meet the qualifications to receive the estate, the inheritance is given directly to the state.

Division Among Relatives

If the person who’s died has a surviving spouse, the spouse can inherit the entire estate and divide it among children of the deceased, according to Law.com. The spouse must be legally married or a domestic partner to the person who has died. In some states, common law marriages are recognized as legal marriages, and therefore the common law spouse of the deceased can inherit the estate.

The surviving spouse takes between $100,000-$150,000 of the estate plus 50% of anything more than that, depending on if the spouse is also related to the children.

If there are no children, but the deceased’s parents are alive, the spouse takes the first $200,000 of the estate plus 75% of anything more than that amount. By most laws, children of the deceased are defined as direct descendants and adopted children.

 If a child was conceived out of wedlock, laws dictate the child inherits only from their mother, and would need to show documentation to prove the deceased was their father to be entitled to the estate. Stepchildren and foster children are usually not eligible for inheritance. In some states, stepchildren (who have not been legally adopted) are not eligible to inherit until all direct relatives have received assets.

To continue reading, please go to the original article here:

https://www.gobankingrates.com/money/financial-planning/who-inherits-no-will-or-trust/?utm_campaign=1154648&utm_source=yahoo.com&utm_content=5&utm_medium=rss

Be Curious

Be Curious

Jan 3, 2022 Guest post by Ted Lamade, Managing Director at The Carnegie Institution for Science

There is a great scene in the first season of Ted Lasso in which the show’s antagonist, Rupert Mannion, challenges Lasso to a game of darts. After seeing him make a few poor throws, Mannion is confident that it is easy money. The two play and Mannion appears to be on the verge of winning with Lasso needing two “triple 20s” and a bullseye on his final three shots. Then, just before he throws his darts, Lasso turns to Mannion and says in his Southern drawl,

“You know Rupert, guys have underestimated me my entire life. It used to really bother me, but then one day I was driving my little boy to school and saw a quote by Walt Whitman painted on a wall that said, ‘Be curious, not judgmental’. I liked that. See all those fellas who belittled me, none of them were curious. They thought they had everything figured out. So, they judged everything* and everyone*.

And then I realized that their underestimating me had nothing to do with it…..because if they were curious, they would have asked questions. Questions like, ‘Have you played a lot of darts Ted?’ Which I would have answered, ‘Yes sir. Every Sunday afternoon at a sports bar with my father from age 10 until I was 16 until he passed away’.”

Lasso proceeds to drill all three shots and wins the game (watch the scene on YouTube if you have a minute). In short, a hustler got hustled because he wasn’t curious enough. He made judgements based on incorrect assumptions and didn’t ask the right questions

Being curious is one of life’s most underappreciated qualities. It’s an admission that you don’t have it all figured out. It means you’re willing to listen and learn. Most importantly, it often differentiates the good from the great.

The Innovators

Ted Lasso is a work of fiction, but this concept of curiosity is not. Look no further than what Walter Isaacson said was the most common trait he observed in the people he wrote about in his book “The Innovators”.

“Curiosity. Pure, passionate, and playful curiosity about everything. Steve Jobs was curious about calligraphy and coding, while Da Vinci was curious about art and anatomy. They wanted to know everything about everything that was knowable. Ben Franklin wanted to know about science, the humanities and poetry. Even Einstein wanted to understand Mozart at the same time that he studied general relativity.

Curiosity leads to an interest in all sorts of disciplines, which means you can stand at the intersection of the arts and sciences, which is where creativity occurs. A wide range in curiosity allows you to see patterns exist across nature and how those patterns ripple.”

Roelof Botha of Sequoia Capital echoed a similar sentiment in a recent podcast when asked about the most important characteristic of a venture capital investor.

“The most important thing is curiosity. Are you interested in learning about new things? Are you interested in meeting new people? Are you interested in listening to their ideas about a company and how they are going to change the world? If not, or if you lose this curiosity, then you become jaded and you should probably stop being an investor.”

To continue reading, please go to the original article here:

https://www.collaborativefund.com/blog/be-curious/

What Happens to Your Bank Account When You Die?

What Happens to Your Bank Account When You Die?

Nicole Spector   Thu, January 27, 2022

What happens after we die? Science and religion have long debated this question on a metaphysical level, while accountants and other finance professionals deal with the issue in an administrative and legal sense. They — possibly along with estate attorneys, judges and even debt collectors — swoop in to sort out the aftermath of your monetary life. This includes dealing with your bank account and figuring out exactly where the remaining funds go.

The specifics of what happens to your bank account when you die depends on how you left your financial affairs and the nature of the type of account you held.

“First, it is important to note that what happens to your bank account when you die will depend on a host of factors,” said Mariah Street, CEO and managing attorney at Legacy Street Law. “In other words, what happens to one person’s bank account may not be the same thing that happens to another person’s bank account.

There will never be a ‘this is exactly what is going to happen to every person’s account no matter what’ process; however, the process of determining what happens to that account is always the same.”

Step 1: Determining Who Holds Title To Your Account

“The first thing that will be examined in determining what happens to your bank account when you die is who or what holds title to that account,” Street said. “Basically, we’ll need to see whose name is on the account. Did you and your spouse have a joint account, which means that both of you are joint owners?

If so, then that account will likely go directly to the surviving spouse. Did you have a trust in place that is the owner of that account? If so, then the funds from that account will be distributed according to the terms of the trust.”

Step 2: Locating Who Is ‘Payable On Death’

“If you did not have a joint owner of the account when you died or a trust wasn’t the owner of the account, the next thing that will be asked is: Did you have some sort of ‘payable on death’ directive in place for that bank account?” Street said.

To continue reading, please go to the original article here:

https://news.yahoo.com/happens-bank-account-die-120026231.html

Mainstream Suddenly Realizes Raising Interest Rates In A World Buried In Debt Might Be A Problem

Mainstream Suddenly Realizes Raising Interest Rates In A World Buried In Debt Might Be A Problem

By Tyler Durden  Wednesday, Jan 26, 2022 - Authored by Michael Maharrey via SchiffGold.com,

The Federal Reserve is talking about raising interest rates. But the US economy is buried under piles of debt. I’ve been asking how this is going to work for months. Apparently, the question has finally occurred to the mainstream.

A CNBC article declared, “Fed rate hikes will intensify a global debt crisis, research warns.”

Well, yeah. Duh.

According to the study came from a UK non-profit the Jubilee Debt Campaign, debt payments rose in developing countries by 120% between 2010 and 2021. They are currently at their highest levels since 2001.

The sharp increase in debt payments is hindering countries’ economic recovery from the pandemic, the report suggested, and rising US and global interest rates in 2022 could exacerbate the problem for many lower income countries.”

The study and the CNBC article are really a pitch for debt cancellation, but their narrative swerves into an unpleasant truth for US policymakers. Raising interest rates in a world awash in red ink is going to be a problem. And not just for “developing countries.”

The US government is closing in fast on $30 trillion in debt with no end to the borrowing and spending in sight. The federal government managed to run a deficit in December despite record receipts.

In December alone, the federal government spent $508 billion. The was the highest December spending level ever. Through the first three months of fiscal 2022, the federal government has already spent $1.43 trillion. That’s a record for the first quarter of any fiscal year.

Raising interest rates will drastically increase the cost of servicing all of that debt. And it will increase the cost of borrowing more money for the Biden spending coming down the pike.

In the fiscal year 2020, Uncle Sam spent $345 billion in net interest payments alone, despite near-zero interest rates. The nonpartisan Committee for a Responsible Federal Budget found that even a 2% increase in interest rates would cause net interest payments to rise to a whopping $750 billion. And this estimate was calculated before the passage of the American Rescue Plan and the Bipartisan Infrastructure Bill. That was followed up with a big surge in interest rates on US Treasuries. In other words, $750 billion underestimates the cost.

On top of that, American consumers are buried under debt. Consumer debt jumped 11% year-on-year in November. It was the biggest single-month jump in consumer debt in 20 years. Total consumer debt now stands at over $4.41 trillion. And that doesn’t include mortgages.

Revolving debt – primarily credit card balances – grew by a staggering 23.4% year-on-year in November. That was the biggest increase since 1998.

And that’s not all. Businesses and corporations are also leveraged to the hilt.

The year 2020 set a record for corporate debt issuance with $2.28 trillion of bonds and loans, comprising both new bonds and bonds issued to refinance existing debt.

All of this debt is a feature of the Fed’s loose monetary policy - not a bug.

The Federal Reserve and the US government have built a post-pandemic “economic recovery” on stimulus and debt. It is predicated on consumers spending stimulus money borrowed and handed out by the federal government or running up their own credit cards.

Now, the Fed is threatening to turn off that easy money spigot. How is that going to work? How will consumers buried under more than $1 trillion in credit card debt pay those balances down with interest rates rising?  With rising rates, minimum payments will rise. It will cost more just to pay the interest on the outstanding balances.

Overleveraged companies have the same problem.

And so does the US government.

This does not bode well for an economy that depends on borrowing and spending to sustain itself.

The only reason Americans can borrow money is because the Fed is enabling them. It holds interest rates artificially low. That’s how the economy works. And that’s why I think the Fed will ultimately relent on any move it makes toward tighter monetary policy. As Peter Schiff put it, the Fed can’t do what it’s claiming it will do.

https://www.zerohedge.com/markets/mainstream-suddenly-realizes-raising-interest-rates-world-buried-debt-might-be-problem