 Good day, fellow investors. Welcome to the long term stock market news. And today we're going to talk about perhaps the most important information spread out through the media this week. And that is that the US deficit, budget deficit will surpass 1 trillion next year as it increased 100 something billion over the past months in comparison to last year. So for me, that's a huge long term impact, huge long term risk, because if you spend more than you make, you live great for a while, you have spent more, you enjoy your party, but later you get into trouble. Will the same happen to the US? Let's see, because nobody cares about the deficits, nobody cares about the overspending, everybody is happy. Let's see what's going on. And I'll finish the video by sharing seven steps that you can take to hedge yourself and to protect for whatever happens to protect your portfolio and financial well-being. If we look at the Congressional Budget Office numbers, you can see here how 2017 the deficit was 665 billion, so revenues of the government and the outlays of the government. 2018 is expected at 793 billion, 2019 close to a trillion, 2020 and then going to the next 10 years, growing, growing and growing. We all know that this is not sustainable, you cannot just spend, spend more than you make forever. However, nobody cares, the news came out this week, the stock market is up, it is closing again on all-time highs and it will probably surpass all-time highs in the coming months, because everything is so good, nobody cares. Here we can see again the deficits over the last few years, so the economy is doing better, more revenues are coming in, but the deficits are getting bigger and bigger year after year. The deficit is expected to be at 4.6% of GDP. The economy is getting stronger, the government is getting more money, so why the hell there are more deficits? Now that everything is good, the government should have suffices to cover for the past deficits. When there is a recession, then it is the time for the government to step in, overspend, so to put the economy back on track. Not now, so this is an irrationality that is going on there, but nobody cares. If we look at the long-term budget outlook, again, from the congressional budget office, if nothing changes in the current policies, by 2048 the deficit will be bigger than 10% of the GDP. And that's huge from the current 4.6% in Europe if you are above 3% you are considered in trouble for a longer period of time. So the US is at 4.6% of GDP, nobody cares. Why nobody cares? One reason are the extremely low interest rates. You can see here that net interest payments are perhaps 1-2% of GDP and I think there are around 7% of government spending. If interest rates remain as they are and the government continues to spend more, they will become more and more of the pie, so 20% of government spending in the next 40 years. And that will be hard, especially if interest rates go up, which might change the situation. Further, this is a conservative estimate because, look at this, moreover, if lawmakers changed the current law to maintain certain policies now in place, preventing a significant increase in individual income taxes in 2026, the result would be even larger increases in debt. So, taxes have been lowered but it's already programmed that you see higher taxes in 2026. That's why nobody cares because we all want things now and we don't care about what will happen in 2026, that's 8 years from now. Who cares about debt? And that's what everybody is playing on. Give them now so that the people can enjoy now and 2026, nobody cares. Politicians in 8 years, most of them will be dead so they don't really care about the long term. Let's dig deeper. However, to remain objective here, if we look here, major health care programs take what? 40% of government spending. Let me just show you here something. This is the United States life expectancy, 78.7 years. In the Czech Republic, one of the ex-communist republics in Europe, the life expectancy is 79.4 years, so about half a year longer. However, the spending per head, when those statistics were made, is $9000 in the US on health care and 2200 something in the Czech Republic, which is one quarter of what the US spends and they live longer. So if the government wants to solve all the deficits, they have to just apply the Czech health care system or send everybody to get treated in the Czech Republic, live longer and spend 75% less of what they're spending now. Apart from the jokes, if the government can lower health care costs, what Buffett and Bezos and the other guy are doing, trying to do, then everything will be sold. So that's another reason interest rates, health care costs might get lower in the future, even if I doubt it, a lot of lobbyists there. So that's another thing, okay, we don't care, we will lower health care costs and increase the expectancy of lives perhaps, and that's a solution. So let's remain objective. However, we have the reasons why nobody cares. Let's dig deeper. Here you can see how government outlays and receipts continue to grow, but the outlays grow at a faster pace, even if the economy is doing really, really good. And as they are overspending, spending more, higher interest rates don't help anybody. And we have seen this week how Trump started commenting on higher interest rates. That's something that has not happened lately, but Trump, he comments on everything. So tightening now hurts all that we have done. So all that you have done is spend more, take debt, and that's good for that's where the good comes. That's one question. And then if he finishes with that coming due and we are rising rates, really? So all the economic growth, all the good things that have happened during the last eight years are thanks to that. And you are so openly saying that on Twitter. I'm not commenting on Trump. He's doing some good things for America on trade. There are some crazy things, crazy subsidies here in Europe. And I would approach it differently, but he is stating the point. So there are good and bad. I'm not commenting on Trump. I'm just commenting on the interest rates things. So and the debt. If the debt is fueling this growth, then it is a lot of trouble. But again, nobody cares. So what is the conclusion? Nobody cares. Texas higher in 2026. Come on, Sven, you're so boring. Who cares about 2026 deficit of 10% by 2048. Oh, by 2048 we are all dead. Who cares? Sven, don't be a party breaker. Nobody cares. Everybody loves the party. What's going on? Sven, don't be a party breaker. And nobody wants to be a party breaker. And that's why nobody cares. So to conclude, what to do now? Well, I think that play the party, be at the party, enjoy the party, but be hedged. And here are my seven ideas for hedging. And I also made a video a year ago and make another one to show how everybody can be hedged. Let me show you. So as nobody knows what will happen, will there be an economic collapse? Will it be tomorrow? Will it be 2031? Nobody cares. So what we can do? Be hedged. Diversification, hold commodities, stocks, emerging market, credit, inflation protected bonds, real estate. Think common sense, look at value and be diversified across various assets, especially if they are uncorrelated. Deeper on that diversification, go into hedges, buy fixed assets that increase in price in case of inflation. Like, I don't know, have some gold, have great real estate. Think about those things and how you can be protected for whatever happens. Free, have good debt with fixed low interest rates for 30 years. The government has a pile of debt, so they will protect themselves. If you have good debt where the money is invested in an investment, you will get the same protection the government has. Currency hedges, assets, debt in different countries, different protection, always have some cash to take advantage of the opportunities. Keep your eyes open, open a business, start a business, do something, whatever. And then if you really want to be protected, you can always buy options. So the key is be protected with something, try to, okay, this might happen, might not happen, nobody knows when will happen. How will I react or how am I ready for that? Don't just party, party, party. Be ready for the hangover that will come later. When you're ready for that, when you prepare, drink a lot of water, everything works out fine. So that's it for today, let me give you the plan for the next week. Sunday stock analysis, full analysis of crescent, value, in-detail analysis, land bank, everything. Monday investing is a positive sum game. I'll give you five things to keep in mind to make investing work for you in your lifetime. Tuesday, my perfect portfolio, what would it be? How am I thinking of creating my portfolio? How am I working on it? Wednesday, just promotion. I'll make a video to promote myself. So if you have tips on that, what triggered you? What gives you value? What would trigger you to give you even more value? So how did you find me? Any tips are welcome in the comments. First day, Canada pension fund investing strategy. I have limited fund options to invest to and that was a question from a friend. And so that will be a very funny video, interesting video to see how would I do in a limited investment strategy. And Friday, of course, your comments, so please write a lot of them. Thank you for watching. Again, looking forward to your comments and I'll see you in the next video.