Once again this week, we touch on a variety of topics that piqued my interest over the last week. We begin with some further analysis of the Fed’s controversial decision to hold interest rates near zero last Thursday. While this was the topic of my Blog last Thursday, I have more analysis today that I think you’ll find interesting.
One thing I conclude from the Fed’s decision last week is that Fed Chair Janet Yellen and a growing number of her colleagues are worried about deflation spreading to the US. Since most Americans living today have never experienced a prolonged period of deflation, we should talk about it at least briefly to understand why falling prices are bad for the economy.
Next, as much as I hate to bring it up, we could be facing yet another government shutdown at the end of this month. Fiscal Year 2015 ends one week from tomorrow, and Congress has not passed a budget for FY2016. As a result, the government could effectively shut down starting on October 1. Here we go again.
From there, we look at a new report which finds that the $13 trillion in government “debt held by the public” equals a record $107,000 per US household. Yet if we include all of our national debt of $18.4 trillion, that number goes up to over $150,000 per household.
Finally, a rare combination of celestial events will grace the night sky later this month. NASA says a SuperMoon, a BloodMoon and a lunar eclipse will take place on the night of September 27, this coming Sunday. This rare event has happened only five times since 1900, most recently in 1982, and there won't be another one until 2033. Read about it at the end of today’s E-Letter so that you won’t miss it this Sunday night.