Everyone knows about the crash that happened in 2008. It was a problematic year for a lot of families and individuals. That’s one of the times when a major recession hit the world, and the economy has been trying to recover.
Instead of learning from its mistakes, the government proposed solutions that were not aimed at completely recovering the economy. Instead, they just hoped that printing more money would make the world a better place. Follow this link for more info https://www.reuters.com/markets/europe/gold-gains-concerns-over-new-coronavirus-variant-stifle-risk-appetite-2021-11-26/.
Fast forward more than a decade later, and the conditions are looking even worse. The reported projections that the economy has been recovering by more than 2 percent per year can’t be felt by the general public when the costs of living have more than doubled. The pace of progress is high, and things can’t stay like this for long.
That’s why a lot of economists have predicted that a major crisis is about to happen in the near future. That’s not so much a prediction because it’s a fact. The economy collapses once every couple of decades and needs to be reset.
That has been the truth for the past 100 years, during which the United States has been trying to implement fiat currencies instead of hard money. The system is not built to last, and that’s why major economies such as China, Japan, Germany, and the United States have slowed down dramatically.
What are the reasons for a recession?
Most of the economists that have predicted the crash in the near future are hoping they’re wrong. If their estimates turn out to be true, then the consequences are going to be catastrophic. Here’s why. First of all, the current rate of employment creation can’t keep up with inflation.
Around the world, there are a lot of countries and states that have inflation rates that are in the double digits. This is a road towards hyperinflation. Plus, the pandemic happened and stopped all trade and collaboration. In the States alone, more than four million people lost their jobs in a couple of months. That creates a dent in the economy that’s hard to fix.
At the moment, there are plenty of mandates that are causing the rise of unemployment. There aren’t enough people to enter the workforce, as they are people leaving it. It’s doubtful that the prices are going to increase or decrease drastically, and that’s why the government is broadcasting that there are no causes for worry.
However, the truth is diametrically opposed to that statement. Instead of believing the words of specific people, it’s much better to look at hard data from places like Goldco and see how things really look. Here are some of the statistics.
The national debt has increased by more than 50 percent in only four years. That’s a sum that’s in the trillions of dollars. There has never been such a reported case in history. In most of the past previous years, there has been a deficit of more than a trillion dollars.
When you read these kinds of numbers, it’s easy to get lost in the math because it’s hard to conceptualize them. Here’s an interesting example. A time of a million seconds comes close to an entire week. However, a billion seconds represent more than 30 years. Imagine how much a trillion seconds are going to last.
Now, it might be a bit clearer how much the United States has been losing money. If you want to believe that the government has increased their expenditure and reduced their spending would be an understatement and an insult. The economy is in decline, and there’s only one way out of it.
What can you do?
The only way that you can protect yourself is on the individual level. No institution or government program is going to help you out. For that reason, you need to start being responsible for your actions, savings, and investments. The first step is to transfer your wealth outside of the mainstream financial systems.
This means that you should transition all of your stocks and bonds and put them into precious metals which are not taxable and serve as hedges against inflation. Real estate is always going to be worth the expenses, so that’s one asset class that you should keep if you have any properties.
The Federal Reserve always wants to get out of a recession by printing more money. If that’s the case this time, then having a bit of gold and silver is going to be your ticket to massive wealth. Interest rates have already started to drop, which means there’s going to be a pending boom.
This is a last-ditch effort by the government and banks to increase spending in the hopes that the economy recovers. That’s not going to happen since more and more people are catching on to the scheme.
Why is silver better?
A lot of people think that silver is a cheap copy of gold. That’s not the case at all. In recent times, silver has gained an even more important position than gold. That’s because it works as a metal that serves two purposes, industrialization and investing.
Silver can be used in electronics, medicine, the automobile industry, and dentistry, and it also serves as a medium of exchange. Central banks have been selling it off for low prices because they believed that it wouldn’t make a comeback.
The year 2008 was a reminder that gold and silver will always be on the throne when it comes to currencies and monetary representation. If you have a lot of silver in the next downturn, your profits are going to be unbelievable.
Precious metals have been regarded as the ultimate risk-free asset, and that has been explicitly defined in finance books. The pillars of the science of economics still hold true today. They’re suitable for all investors, and you most definitely need to allocate a small percentage of your portfolio to this asset class. There’s no volatility in the long run, and the growth rate is linear.
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