Small Business in the Pandemic Era

What Does the Future Hold For Small Business?     According to Forbes, American Billionaires have collectively risen in net worth of upwards of $1 Trillion dollars. This comes to no surprise as many businesses were mandated to close at some point during this pandemic. We all hope 2021 brings better news for all of us. While we are all in this together, small businesses across America have felt the pain of this crisis more so than others. Small businesses need to be supported more so than ever. Local employment coupled with financing requirements by lenders account for a large portion of real estate values in a given region. Small businesses, especially those in towns or communities that are more remote from metro areas likely will experience price volatility and/or declining real estate prices if small businesses close more frequently. The Federal Reserve has implemented "QE Infinity" which creates an interesting element to home values.The Fed and "QE Infinity"      The Federal Reserve is the central bank given the power to create fiat currency. This currency is backed by US Bonds / Treasuries in which for each dollar created a US bond is sold as collateral. The crux here is the Federal Reserve is now monetizing their own debt by purchasing US Treasuries. With the creation of trillions of dollars being injected into the economy all while the Fed purchasing its own collateral, this sets the stage for three possible scenarios:Inflations of goods and services with relatively low employment (stagflation)Inflation of goods and services with resumed employment (inflation)Collapse of the US Dollar / Creation of a new currency (likely a digital based dollar similar to the digital Yuan)After America resumes to its pre-COVID era, its important to note that while Wall Street was record setting, government deficits were at all time highs.… Continue Reading