With the United States economy expanding for a 100th consecutive month, many experts have predicted that a recession is likely to occur. While this might be surprising to many people, there are indicators that the economic cycle is due to a change in the near future. According to US Money Reserve, the U.S. economy will likely begin to decline within the next year.
While a recession in the near future may be unsettling, they are not always bad. Whenever recession occurs naturally, it helps complete a normal economic cycle. In a typical recession, labor becomes scarce and wages go up. As a result, companies stop hiring new employees. The Federal Reserve then raises the interest rates in most cases. A combination of these two events slows down the economy.
Whenever there is an economic slowdown, business profits go in decline. Due to this factor, a number of Wall Street banks try to implement policies that delay recessions for as long as they possibly could.
During a recession, incumbent politicians will usually have their political fortunes changed due to voters being unhappy about rising unemployment and lower wages. Since recessions can impact the government, many government officials attempt to use policies to delay recessions too.
US Money Reserve has recently stated that a manufactured delay in recessions can have negative effects on the economy. One of the ways in which a delayed recession can be hurtful to the economy is the development of bubbles.
This is a situation where certain assets become overvalued. In most cases, the bigger the bubble, the more devastating a recession can be. It is a good idea to compare other economic booms in the past to get a better idea of how a new recession can affect the economy.Read more: US Money Reserve | BizJournals and US Money Reserve | Manta
According to economic experts and US Money Reserve, there have been only two periods where economic growth was as high or higher than it is now. The most notable economic boom was in the 1990’s when there was steady growth for 120 months in a row.
There are a couple of factors that will significantly impact the next recession. These include the mounting debt among consumers and political partisanship.
The debt levels of consumers and lending practices are comparable to what they were prior to the 2008 financial crisis. Unlike 2008, the political leadership has gotten very divided and will likely be reluctant to resolve economic problems in a timely manner if a recession occurs.
As a result of these two factors, it will be important for individuals to invest in assets that typically perform well during economic downturns. One of the best things to invest in during an economic downturn is gold. This will help many people maintain their wealth and get through a recession without too much hardship.
US Money Reserve is the leading distributor of precious metals. The company sells a variety of assets such as coins, bars and bullion. Consumers are able to purchase these assets in either gold, silver or platinum.
Along with providing precious metals to consumers, US Reserve offers educational materials and support to help individuals take advantage of precious metals investing. The company was founded in Texas back in the year 2001 and has become the most reputable retailer of gold assets.
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