How U.S. Debt Cycles Changed from 1790 to Today

Heresy Financial • 1 day ago

Original source

What This Video Is About

The video explores the concept of the long-term debt cycle in the United States, which has undergone several phases since its inception. Understanding these cycles is crucial for investors and economists alike.

Major Ideas Discussed

  • The United States has experienced multiple phases of the long-term debt cycle, with each phase characterized by either an increase or decrease in government debt relative to the size of the economy.
  • The phases include: Phase Two Cycle (1790-1834), Phase One Cycle (1835-1866), Phase Two Cycle (1866-1906), Phase One Cycle (1906-1946), Phase Two Cycle (1946-1981), and Phase One Cycle (1981-2020).
  • The current phase, which started in 2020, is a Phase Two Cycle, where the government deleverages, and the debt to GDP ratio decreases.
  • Investors can optimize their portfolios using tools like the Portfolio Stress Test, which provides a custom blueprint to address vulnerabilities in their portfolio and access to educational resources.

What to Watch Next

Investors should monitor the progression of the current Phase Two Cycle, as it may impact their investment strategies and portfolio performance.