Current Assessment

A Financial Heads-Up

Posted 8-19-2026

There have been three recent financial developments that are worth noting:

  1. The 30-year US Treasury yields are quite high and rising. https://www.nytimes.com/2026/08/18/business/oil-prices-bonds.html?searchResultPosition=2 
  2. The US National Debt hit a record $40 trillion dollars this month. We now pay more on the interest on the national debt than we do on defense.  

A story on PBS Newshour features a report on this large national debt. https://www.pbs.org/newshour/show/national-debt-nears-40-trillion-how-we-got-here-and-why-it-matters   

3. US stocks are currently overpriced. 

The S&P 10 year Price-to-Earnings ratio is approaching a level last seen during the Internet Bubble crash back in 2000.  This situation may be setting the stage for another financial crash which may be too large for the Federal Reserve and the US Treasury to ameliorate this time.

My Two Cents-worth Advice:

  • I agree with the pundits. This situation suggests that we are in danger of a major financial correction. However, be aware that nobody can predict when it will happen. 
  • Get rid of any credit card or short term debt ASAP. Do not use credit to buy daily necessities like groceries, rent or gasoline.
  • If possible, get to a conservative personal and family financial position quickly: Be able to survive in a situation where net family income exceeds family expenses. If necessary, make do with less. 

Reports & Statements by the Experts 

Intergovernmental Panel on Climate Change (IPCC)

Sponsored by the United Nations and winner of the Nobel Peace Prize, this is the world's premier authority on ongoing climate change. It issues reports on a regular basis. Its methods, data and documentation are transparent. This is the go-to source for comprehensive information on climate change, reports about climate change and its effects on the planet and international efforts in continuing research on the climate crisis. 

The Post Carbon Institute

The PostCarbon Institute has an excellent introduction to the whole topic of Overshoot called "Welcome tothe Great Unraveling: Navigating the Polycrisis of Environmental and Social Breakdown. You can read their report onscreen, or download a PDF and buy the Print Version on their website. https://www.postcarbon.org/publications/welcome-to-the-great-unraveling/

Power: Limits and Prospects for Human Survival traces how humans have come to overpower the earth’s natural systems and oppress one another…with catastrophic implications.

Humanity must act quickly to prevent environmental and economic collapse. But is it even possible for human beings to deliberately rein in our power? 

Power lays the groundwork to understand what we’ve done and how to fix it.

Go to their website to buy the book. 

https://www.postcarbon.org/publications/power-limits-and-prospects-for-human-survival/