"Sometimes there just aren't enough rocks" - Forrest Gump
There will be plenty of politicians and "expert" lobbyists telling us that it's "climate change" and we should give them more money to fix it but, I honestly believe that (finally) folks are catching on. Small Business owners in the affected areas are among the most productive people our country has; they create the most jobs and pay the most in taxes but they are literally being abandoned by the state in their most desperate need.
Congress members sending money overseas while denying aid to their suffering constituents is like giving the middle finger to the victims as they're passing by the devastation!
New high-water marks are being set in other ways also; plan on seeing a lot more never-before-seen stuff in the economy as we careen towards and election that is going to be a real doozey! From the perspective of small business owners there's little incentive to make plans or hire new workers now and most plans are on hold. Considering how much has happened since Covid, it's easy to understand why business owners are cautious.
For business owners looking for funding there are still many options but guidelines have changed due to higher risks currently in the marketplace. Last week's rate cut provided some relief but it also sent a message that things aren't well at all. I'm hearing there will be another cut although I can't imagine what excuse they'll come up with to justify making it. The Muppets running the show have a problem you see, they have been telling everyone the economy is great for so long it's awkward to have to admit they we're wrong (lying).
The critical issue IMO right now is the rapid purchasing power destruction happening to the Dollar from unrestricted turbo-money printing. As dollars accumulate, they have to be used ever-more quickly before their value declines further. I expect this to start hyper-accelerating now that the Fed is cutting rates; there's nowhere to go for the flood of money coming in and they plan to print far more just to stay afloat as long as possible. Anyone who hopes that (either) election result will fix anything is probably going to be disappointed. It took a long time to get into the mess we're in now so it's not unreasonable to expect that it will take more than a month to fix it.
"Our economy is on a decades-long path to total collapse. And no election can completely stop what is coming!"
This depreciation has caused another asset to achieve a new "high-water" mark:
Why is Gold (and Silver) rising so fast? Simple! It is because their value is stable and the dollar's value is not. The government can print as many dollar bills as they want but they can't print gold or Oil or a ham sandwich for that matter.
My point is this: It's not the "things" whose value is changing, it's the dollar your using to buy them with that is actually changing.
The Grand Wazoo Central Banker Alan Greenspan himself said it best:
“We can guarantee cash benefits as far out, and at whatever size you like, but we cannot guarantee their purchasing power.”
Alan Greenspan, discussing Social Security, February 16, 2005
Owners who are aware of this can benefit by turning either cash or debt into tangible stuff such as inventory or property. All hard assets will appear to be "rising" while it's really the dollar depreciating. Borrowing money can be profitable in this situation if used correctly.
Assets will maintain value while cash in the bank will lose it's purchasing power at an accelerated rate.
SBA term loans offer the most affordable working capital because they extend out ten years or more so the carry cost isn't hard on cash flow.
MCA cash advance is hard on cash flow but it's quick and easy for most borrowers.
I'll post another blog later this week, call me if you need any funding.
Cheers!