U.S. Money Reserve foresees a potential recessionMay 4, 2019 - Author: steph
Although the economy of the United States continues to grow every month, the U.S. Money Reserve does not believe that it is an indication of good tidings to come. Casual observers may be excited with the growth because the markets seem to be expanding and things are looking bright.
However, for these experts, there is every reason to be worried. According to their projection, this could be the beginning of dark financial times. The company is foreseeing a looming economic crisis similar to the ones that the country experienced in previous years.
Why the company things there can be a recession
According to the U.S. Money Reserve, recessions are not necessarily bad things. The company believes that they are part of the natural economic cycle as long as they occur naturally. What these experts are not comfortable with is the way that the authorities are managing the current boom. Read more:
They say that the problem starts when the wages begin to climb because labour has become scarce. When this situation happens, the Federal Reserve will have no option but to increase the interest rates because most companies will stop hiring. You know it is a recession when businesses ‘profits drop marginally, and the economy practically slows down.
Comparison to historical occurrences
To prove that a financial recession could be nearer than people imagine, the U.S. Money reserve looks at past examples. It is clear that the recessions that occurred in the 1990s and 200s had many similar things to what is happening today.
For instance, in the 90s, the economy was booming for up to 120 months. This boom made everyone to believe that the country was steady and therefore, everything was going to be okay. Read more: US Money Reserve | BizJournals and US Money Reserve | Manta
It was such a long time that people got carried away, but they forgot to look at the most critical indicators. It is because of this situation that the authorities were unable to stop the recession when it finally became a reality.
The same boom is happening today, and people seem oblivious of the things that followed in the past scenarios. That is the reason the company is warning them.
The U.S. Reserve was formed to act as a distributor of government-supplied gold. With time, the company started educating people on the importance of investing in gold to cushion themselves from the effected of tough financial times such as recessions.
It is because the price of gold has always been increasing and so, people are sure to make money when they invest in it.
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