WHY THERE ARE CONCERNS ABOUT THE US ECONOMY

Given the football World Cup, Taylor Swift's wedding, and a 250th birthday, Americans would be excused for losing focus this summer.
However, there have been increasing indications of economic difficulties. They made headlines this week when the US national debt surpassed $40 trillion (£29.4 trillion), sparking worries both domestically and internationally.

 

HOW DID WE ARRIVE HERE?

According to Maya MacGuineas, president of the Committee for a Responsible Federal Budget, it took nearly 200 years for the US national debt to reach $1 trillion for the first time.
That 1981 milestone was seen as a warning. "At that time, President [Ronald] Reagan told the nation in a televised address, 'If we as a nation needed a warning, let that be it'," she stated.As we approach America's 250th year, we are spending more on debt interest alone."

 

Reaching the $40 trillion milestone was anticipated due to increases in public spending throughout the administrations of Joe Biden and Donald Trump, but it also represents a turning point.
Increased expenses for social programs and other expenditures have surpassed income, which has been compromised by tax cuts. Borrowing has escalated in response to disasters like the Covid epidemic and the 2008 financial crisis.

 

HOW AWFUL IS IT?

The US national debt was slightly less than $20 trillion at the start of Trump's first term as president in 2016. In the ten years following then, it has doubled.
The Congress Joint Economic Committee estimates that the amount is increasing by around $90,000 every second, or $7.8 billion every day.The level of interest rates has changed significantly during the past ten years, according to Eric Swanson, a professor of economics at the University of California and a former senior economist at the Federal Reserve.

 

"Long-term interest rates in the US are at multi-decade highs - part of that is concerns about inflation, but part of that is concerns about the extreme levels of US government borrowing."
In addition to investors' concerns about the size of the US debt, the bond market is demanding bigger returns since tech companies are vying with the government for investors' money by borrowing staggering amounts to spend on artificial intelligence.The funding of the deficit becomes more costly when interest rates rise, according to economist Mohamed A. El-Erian, a professor at the Wharton School.

 

According to El-Erian, interest payments on public debt have increased by 15% from the same time last year. They account for about 20% of tax income, which is "larger than defense," he continues.

 

DO I NEED TO WORRY?

According to the Congressional Budget Office, the US is very close to its $41.1 trillion debt maximum and is expected to reach over $64 trillion by 2036.
However, economists claim that the situation is not yet dire. According to El-Erian, the US has a "much longer runway to fiscally misbehave" than other nations since it has the largest economy in the world and the dollar serves as the global reserve currency.It's about to turn into a yellow light that flashes. "It's not a red light that flashes," he claims.

 

Other nations have had comparable or greater debt levels, according to Swanson.
Even though the US national debt is 126% of its GDP, it is less than that of other G7 countries like Italy and Japan.
However, Swanson cautions that investor interest in lending money to the US government through bond purchases is "diminishing," producing a "vicious" cycle that necessitates the government providing ever-higher yields to keep investors buying its debt.
Additionally, increased borrowing costs in the US invariably translate into higher borrowing costs in other nations. "What happens in the US never stays in the US," El-Erian asserts. EL-Erian address to BBC News 

 

According to Charlie Bean, an emeritus professor of economics at the London School of Economics, financial market upheaval could result from a fire sale of US bonds if the US debt to economy ratio reaches a specific threshold.He states, "There's probably a point, but we don't know where it is."It's not like there's a certain amount that we can say, "We're fine if we stay at 145 percent, but disaster will happen if it gets to 150 percent."

 

FOR AMERICANS, WHAT DOES THAT MEAN?

According to El-Erian, households will probably pay more for credit cards, auto loans, and mortgages as a result of the current circumstances, with those with lower incomes being most severely impacted.
Because greater borrowing costs for businesses are frequently transferred to consumers through higher prices, there is also a secondary impact on consumers.
Accordingly, the debt "finds its way to the pocketbooks of people one way or another," according to MacGuineas.

 

WHAT COMES NEXT?

According to the most recent data, the US economy has slowed recently, although it is still expanding very quickly.
This is significant because economic expansion results in increased tax revenue, which may be used to fund government initiatives or interest payments. El-Erian notes that the debt issue is alleviated with sufficient growth.
However, the US may need to consider other choices if growth is insufficient. These can involve austerity or changes to the tax and public expenditure systems. Restructuring debt is an additional choice.

 

The Treasury department intervened on Wednesday to buy back government debt, increasing demand for bonds and cutting borrowing rates. Thus far, the approach has been akin to financial engineering.
However, the effect was fleeting, as long-term borrowing costs increased again the next day.

 

The White House will want to appear to be making progress on the economy as the midterm elections draw near. Voters' #1 issue is affordability. However, El-Erian is skeptical that the administration is prepared to consider alternative choices because they are no longer attractive.Over the next two to three years, I don't see anything that will drastically reduce the deficit. Tax cuts are the main topic of discussion in politics.

  

WHAT IS A CARTEL AGREEMENT? DEFINITION, EXAMPLES, AND WHY IT’S ILLEGAL

 

• What Is a Cartel Agreement? Definition, Examples, and Why It’s Illegal
• Cartel Agreement Explained: How Companies Fix Prices and Break Antitrust Law
• Price Fixing and Cartels: How Secret Deals Hurt Consumers and Lead to Millions in Fines
• Is a Cartel Agreement Illegal? US Antitrust Laws, Penalties, and Real Examples
• Cartel Agreement 101: How Companies Collude and What Happens When They Get Caught

 

1. The Basic Point: 20% of Stock Gives 80% of Sales

What your article says is very straightforward:

"Look brother, out of all the items you sell, only 20% are the ones that sell more than 80% of the total."

In business terms, these are called Fast Moving Items or Fast Running Items. These are the products that sell every day, repeatedly, without stopping.

For example:

If your shop has 100 different items, usually only 20 of them are the ones customers ask for daily. The remaining 80 items sell once a week, once a month, or occasionally.  And the interesting part is that this same 20% of items also generate 80% of your total sales. Meaning, the money is actually coming from here.

 

2. Where Does the Problem Come In?

Most small and medium business owners make this mistake:

They have limited money, but they buy a little bit of everything. The result is that Fast Moving Items run out, and Slow Moving Items just sit on the shelf.  A customer comes in asking for the item that sells every day. When it’s not available, the customer walks away. You lost a customer just to buy cheaper stock. And losing a customer is the most expensive deal of all.  That’s why the article says: "If money is tight, take your attention off the mobile and put it on your business." Meaning, first figure out what your 20% is.

 

3. How to Find Your 20%? Basic Method

For this, you need 30 minutes and a notebook. 

Step 1: Collect Data

Check your sales for the last 30 or 60 days. Write down for each item how many units were sold and how much revenue they generated. 

Step 2: Sort It

Put the highest-selling items at the top, and the lowest-selling at the bottom. 

Step 3: Draw the 80% Line

Add up the sales from top to bottom. When you reach the 80% sales mark, draw a line there. Whatever items are above that line are your 20%.

 If you have a computer system, this report takes 2 minutes. If not, you’ll have to do it manually. But it’s necessary.

 

4. Basic Level Strategy: Never Out of Stock

Once you have your 20% list, your only goal should be:

"None of these items should ever go out of stock."

 For this: 

• Keep separate safety stock for these items. 
• When stock drops to 30%, reorder immediately. 
• Invest more in these, less in the rest.

 This is the point where a small business can beat a big business. Big stores keep everything, but if a small shop only keeps what customers actually ask for, customers will always come back to it.

 

5. Intermediate Level: Bulk Buying vs Cash Flow

There’s another important point in the article:

"Buying in bulk often gets you a cheaper rate, but if it causes other items to run out, it’s not cheap—it’s very expensive."  This is where the principle of Cash Flow comes in.

Let’s say you have 100,000 rupees.

Option A: 

Spend 80,000 on one cheap item in bulk, and run the rest on 20,000. Result: 20 items run out, customers get upset.

Option B: 

Spend 60,000 on Fast Moving Items, and keep the remaining range complete with 40,000. Result: Customers find everything, and they come back.  The 80/20 Rule says Option B is always better, until your cash flow becomes strong.

 

6. Advanced Level 1: Profit Margin Filter

Basic 80/20 only looks at sales. Advanced 80/20 looks at both sales and profit.  Some items sell a lot but have only a 5% margin. Some sell less but have a 40% margin.

 You need to make a matrix:

Quadrant 1: 

High Sales, High Margin → Focus on these the most. 

Quadrant 2: 

High Sales, Low Margin → Keep them for volume, but look for alternatives. 

Quadrant 3: 

Low Sales, High Margin → Keep for customers, but don’t overstock. 

Quadrant 4: 

Low Sales, Low Margin → Remove them immediately.

This is also called the 80/20/30 Rule. 20% of items give 80% of sales, and within that, 30% of items give 70% of profit.

 

7. Advanced Level 2: Customer Segmentation

The 80/20 Rule applies not just to products, but also to customers.

Usually, 20% of customers make 80% of your sales.

Who are these customers? 

Wholesalers 

Regular retail customers 

People who buy in cash

Identify these 20% customers. Give them credit, discounts, and special service. Don’t waste too much time on the other 80%.  Similarly, 20% of suppliers provide 80% of your stock. Build strong relationships with them, your credit period will increase and rates will improve.

 

8. Advanced Level 3: Marketing & Display

Place only these 20% items where the customer’s eye goes first.In front of the counter, at eye level, near the gate. 

If you’re online, show only Fast Moving Items on your website’s homepage, WhatsApp Status, and Facebook posts. Create a separate "Clearance" section for Slow Moving Items. 

Your marketing budget should also follow 80/20. Spend 80% of the budget on advertising the 20% products that give immediate sales.

 

9. Common Mistakes People Make

Feeling-Based Stocking:

"This item looks good, I’ll keep it." Stocking without data is the biggest mistake. 

Fear of Out of Stock:

Stocking 6 months’ worth of everything. It blocks your cash. 

Ignoring Slow Movers:

Don’t completely ignore the 80% items. They give customers the feeling of a "full range." Just don’t tie up money in them. 

Not Reviewing:

80/20 changes every 3 months due to season, trends, and prices. Do the analysis again every quarter.

 

10. Practical Action Plan: Start Today 

Sit down tonight and pull out the last 2 months’ sales data. 

Make a Top 20% list. Call it your "A Category." 

Make a separate stock register for A Category. Check every week that no item drops below 20% stock.  Set a Minimum Order Quantity for B and C Categories. 

Set aside 1 hour at the end of every month just for this analysis.

 

11. Conclusion: Big Business with Little Money

The real message of the article is this:

If money is tight, instead of putting a little into everything, put it into the 20% that’s giving you 80% of the results.  Companies like Amazon, Walmart, and 7-Eleven use the same principle. The only difference is they have software, and you have a notebook and pen. The principle is the same.  Once your cash flow improves and your system is set, gradually expand your range. But the foundation will always be this 20%.

How to Grow Wealth Mastery

1. MASTER YOUR PERSONAL FINANCES FIRST

You can’t grow wealth if you’re leaking money.

Track every dollar:

Know where it goes for 30 days. Most leaks are in subscriptions, impulse buys, and fees.

Pay yourself first:

Automate 10-30% of income into savings/investments before you spend anything else.

Kill high-interest debt:

Anything above 7-8% APR is an emergency. It’s a guaranteed negative return.

 

2. BUILD MULTIPLE INCOME STREAMS

Relying on one paycheck is the fastest way to stay stuck.

Primary skill income:

Get excellent at a high-value skill. Sales, coding, design, finance, operations. Income scales with skill rarity.

Assets over labor:

Shift from trading time for money to owning assets. That’s stocks, real estate, businesses, IP, or digital products.

Side ventures:

Start small. A product, service, or content that solves a specific problem for a specific group.

 

3. INVEST WITH A LONG-TERM EDGE

Index funds + compounding:

For most people, low-cost S&P 500 or total market funds beat 90% of stock pickers. Time in market > timing market.

Understand risk:

Higher returns require higher risk. Match investments to your timeline. Don’t put money you need in 2 years into crypto or startups.

Reinvest returns:

The 8th wonder of the world isn’t magic. It’s dividends and gains buying more assets.

 

4. THINK LIKE AN OWNER, NOT A CONSUMER

Wealthy people buy assets that produce cash. Everyone else buys liabilities that drain cash.

Before buying anything, ask: “Does this put money in my pocket, or take it out?”

 

5. MASTER THE PSYCHOLOGY

Delay gratification:

The ability to wait 2 years for something that pays for 20 years is rare.

Learn to be uncomfortable:

Investing, negotiating, and starting a business all feel risky. That discomfort is where returns live.

Surround yourself right:

 You pick up the financial habits of the 5 people you spend most time with.

 The fastest path: Increase income > cut waste > invest the difference in assets > repeat for 10+ years. What’s your current situation looking like - are you starting from zero, paying off debt, or already investing and want to scale up? I can tailor this to your stage.

 

How crypto currency thieves stole $700 million from victims, frequently employing tried-and-true methods

 

"Having your crypto currency stolen is particularly painful. Even if someone takes your money and puts it in their own crypto currency wallet, it is still viewable online since every transaction is documented on a digital ledger called a block chain”

 

 " Helen, who lost almost $315,000 (£250,000) to burglars, adds, "You can see your money there on the public block chain, but there's nothing you can do to get it back."

She compares it to witnessing a robber stack your valuables on the other side of an impassable abyss.
Helen and her husband Richard (not his real name), who live in the UK, have been purchasing and hoarding Cardano crypto currency for seven years.

Unlike money saved in more traditional methods, they were drawn to the prospect of investing in a digital asset with the potential for significant value growth. They took precautions to protect their digital keys even though they knew it was dangerous.
However, hackers managed to gain access to their cloud storage account, which contained details on their crypto currency wallets and how to access them.

 

Following a brief test transfer in February 2024, the thieves quickly and covertly transferred all of the couple's coins to their own digital wallets.
Then, with no way to stop it, the couple watched for months as their money was transferred between wallets. (The fundamental paradox of crypto currency is that, although users can opt to be publicly untraceable, all transactions are publicly trackable.)
Richard and Helen don't have much money. He is a composer, she works as a personal assistant, and they had great expectations for their Cardano investments.

 

"We'd been buying these coins for so long... We used every scrap of money we could find to buy more," Richard adds. "Aside from my parents' deaths, this theft is the worst thing to happen to me."
Helen has been determined to get their money back ever since. She acquired comprehensive reports from the Cardano developers and other law enforcement agencies. Now, no one can uncover the offenders, despite the fact that she has their wallet address.
They intend to accumulate sufficient funds to hire private detectives in an effort to track down the hackers. It makes you feel powerless, but I'm going to keep trying," she says.

 

An increase in cybercrime

 

According to a study conducted in August 2024 for the Financial Conduct Authority (FCA), over 12% of British adults—almost seven million people—owned crypto currency.
560 million people are thought to be crypto currency owners worldwide. However, stealing increased along with ownership. The pandemic caused the value of crypto currency to soar, which in turn led to an explosion in attacks on the sector.

 

According to investigators at block-chain analysis company Chainalysis, thefts totaled over $3.4 billion (£2.5 billion) in 2025, making it yet another successful year for crypto currency thieves. Since 2020, the annual figure has stayed almost the same.

 

Massive cyberattacks on cryptocurrency companies are stealing the majority of the money. For instance, in February 2025, hackers from North Korea stole $1.5 billion (£1.1 billion) from the crypto currency exchange Bybit.
The wealthy crypto currency companies compensate the losses in this instance as well as the great majority of others, with no effect on individuals. However, attacks on individual crypto currency investors also increased in 2025.

 

These individual attacks increased from 40,000 in 2022 to 80,000 last year, according to Chainalysis analysis.
An estimated 20% of all crypto currency value taken, or $713 million (£532 million), came from hacking, scams, or coercion of individuals.
However, the business notes that not all victims may opt to report thefts publicly, so the figure might be far higher. You might be left on your own when this occurs.

 

Banks and credit card firms cover a lot of thefts and frauds in traditional banking. In the UK, you may file a complaint with the Financial Ombudsman Service and receive compensation through the Financial Services Compensation Scheme. According to the FCA, crypto currency is still very risky and mostly uncontrolled in the UK. "If something goes wrong, it is unlikely you will be protected so you should be prepared to lose all your money."
Searching for "Binance account hacked" online serves as a sobering reminder of this. Although Binance is the biggest crypto currency exchange in the world, with an estimated 1.4 million members in the UK, the page on its website that provides guidance to victims of theft is prohibited in the UK.

 

Since 2023, the company has not been taking on new UK clients because the FCA has not granted it operating authorization. However, criminals don't give a damn about the location of their victims, and they target people without distinction wherever in the world.
The "under-documented frontier for crypto crime" is how Chainalysis has characterized these attacks on individuals.

 

They contend that enhanced security procedures at big services may have driven "attackers toward individuals perceived as easier targets" and attribute the volume of crimes to the number of people entering the crypto currency space as investors as coin values have increased.
Additionally, the likelihood of being targeted increases with the amount of crypto currency you own and your level of publicity about it; small-time holders, or "hodlers," as the community refers to them, are much less likely to be impacted.

 

Muggings, burglaries, and "wrench attacks"

 

As for the thieves, they could be anywhere.

Block-chain experts from the crypto currency analysis firm Elliptic issued a warning in October that North Korean state-sponsored hackers are increasingly focusing on affluent crypto currency owners. Young con artists and hackers from foreign nations are also prevalent.
Evan Tangeman, 22, entered a guilty plea in December in the United States to being a member of the Social Engineering Enterprise, a group of crypto-currency criminals accused of stealing over $260 million (£194 million) between October 2023 and May 2025.

 

According to the prosecution, they used compromised databases to target wealthy crypto-currency owners, deceiving them into believing they were crypto-currency exchanges and convincing them to send money.
The gang's members, who were primarily young men from the United States, are alleged to have used the pilfered money to purchase designer handbags, costly vehicles, and private jets to give away at nightclubs.

Prosecutors claim that in several instances, the gang planned home invasions to seize electronics that held the keys to crypto-currency stashes

 

 

“In the crypto-currency ecosystem, burglaries and muggings have become so frequent that they are sometimes referred to as "wrench attacks" since perpetrators have been known to threaten victims with spanners.
Spanish crypto-currency thieves attempted to coerce a man and woman into giving up their crypto-currency in April of last year.
The victim and his partner were detained for several hours while the thieves attempted to access their crypto-currency wallets after the man was shot in the leg, according to Spanish police. The woman was eventually freed, but her partner was still unaccounted for; his body was later discovered in a forest.”

 

In relation to the case, four individuals in Denmark were accused, and five more were detained in Spain.
Similar incidents have occurred in France on multiple occasions, including one in which a kidnapping attempt was caught on camera.

 

Early in 2025, David Balland, a co-founder of Ledger, a crypto-currency security firm, and his spouse were kidnapped from their central French house.
Police saved them a few days later, but during the extortion attempt, Balland's finger was severed.
Then, last month, masked men stopped a car traveling between Oxford and London and made one of the occupants transfer £1.5 million worth of bit-coin, leading UK police to detain six people.

According to Phil Ariss, director of UK Public Sector Relations at block-chain intelligence company TRM Labs, criminal organizations who are already at ease using violence to further their objectives are likely to switch to crypto-currency.

 

"As long as there's a viable route to launder or liquidate stolen assets, it makes little difference to the offender whether the target is a high-value watch or a crypto wallet. “Since crypto-currencies are now widely accepted, our conventional perceptions of physical danger and robbery must change.


Since few "wrench attacks" are reported to the public, it is challenging to pinpoint their actual frequency. However, it seems that these kinds of thefts represent a tiny portion of the expanding problem of personal crypto currency thefts.

 

Additionally, a lot of thieves rely on tried-and-true hacking or fraud techniques, which are getting easier because so much data is being stolen in large-scale cyber-attacks on businesses.

 

"The number of Bit-coin millionaires is increasing."

 

"Data is a common problem as Bit-coin millionaires are becoming so frequent, and there are stolen databases that are enriching the target list all the time," explains Matthew Jones, the founder of the crypto-currency security company Haven.
One hacker contacted by the BBC cited a data breach at Kering, the parent firm of premium goods like Gucci and Balenciaga, as an example.
The databases display the amount of money consumers have spent at the stores, along with millions of customer names and contact information.

 

According to the hacker the BBC spoke with, he paid $300,000 (£224,000) for the spreadsheets so he could target the largest spenders.
He says he conned several Coin base users out of at least $1.5 million (£1.1 million) in crypto-currency using the information and details from another stolen database.

 

The culprit proved to the BBC that he had $700,000 (£522,000) in Bit-coin, which he claims originated from a single victim, and that he was in possession of the stolen data. I purchase hacked databases and compare them with others to look for wealthy individuals as well as current phone numbers and email addresses. He asserted, "I'm still moving down the list and quickly tripled my money."
Other than the fact that he attends a US institution, the hacker would not provide any personal information.

 

He responded, "Neither, I am only interested in making money," when asked if he thought of himself as a hacker or a con artist.
Kering previously assured the BBC that its IT systems had been protected following the data breach and emphasized that no bank account details, credit card information, or government-issued identification numbers had been stolen in the attack. Kering did not reply to a request for comment regarding this.

 

According to Matthew Jones from Haven, he had his own crypto-currency stolen, which led him to create a wallet with additional security features.
He claims that features like geo-fencing to prevent transactions outside of a person's home or place of employment and ongoing biometric verification to ensure that only the owner can transmit coins are now necessary. Additionally, he is incorporating a panic button inside the digital wallet.

 

"People are walking around with millions of dollars in crypto these days and wallets have no ceiling on how much can be held - or how much can be stolen in one go," he states.

 

Being 'your own bank'

 

What the market promotes as "self-custody" is the main focus of Matthew Jones's crypto-currency wallet.
Haven's app is comparable to Trust wallet and Metamask. Although tangible products like USB memory sticks are offered by other firms like Trezor and Ledger, the concept remains the same: you can operate your own bank.
However, as you have no safeguards at all, this increased freedom also comes with more risk.

You cannot even file a complaint with a crypto-currency exchange if your coins are taken from your own self-custody wallet.

 

When asked if the independence of "being your own bank" outweighs the growing hazards, Jones maintains that it does. He contends that banks have the authority to suspend or terminate your account for general, frequently ambiguous reasons and that they are not really liable to their clients.
Additionally, he claims that he objected to being questioned by conventional financial institutions about topics like why he was taking money out of an account.

After deciding to run their own bank, Helen and Richard lost all of their money. The fact that a large portion of the funds came from the selling of Richard's mother's home following her passing was what made it very heartbreaking.

 

"My mother's money has gone," Richard claims. "She stole all the grafting she had done for my future. We were briefly homeless after having to sell our automobile and musical instruments."
However, they are not completely abandoning cryptocurrencies. They intend to immediately return to cryptocurrency investing once they receive their money back or save enough.