While the American economy seems to be currently in good shape – given the fact that it has a low unemployment rate and a bull market that set new records – many experts continue to predict an incoming recession – with their predictions getting more pronounced than before.
U.S. Money Reserve, America’s Gold Authority, released information regarding the state of the economy and what could cause a recession – and also how consumers can help protect themselves against it.
It’s important to take note of the fact that a recession is not seen as something that is intrinsically bad, due to the fact that if it’s allowed to occur natural it can be an important part of the economic cycle.
The U.S. Reserve points out that recessional occur generally when labor is scarce and wages are climbing. This results in businesses starting to reduce the number of people they hire, which in turn makes the Federal Reserve start to raise interest rates. This chain of events leads to the economy start to slow down.
Both banks and politicians have an interest in trying to delay the recession for as long as possible – experiencing a downturn in the economy does not fare well for incumbent politicians due to the fact that voters can become upset with the declining wages and the rising unemployment.
However, while delaying the recession seems like the logical way to go, U.S. Money Reserve highlights that an unnatural delay within the economic cycle can end up having negative effects. Delaying the recession can result in an economic bubble, and the bigger the bubble becomes the worse the effects of a recession can be once it inevitably occurs.
It’s important for consumer to keep a close eye on the developments within the economy, given that politicians tend to hold off on labeling a downturn a “recession” right away. A major concern among consumer is the fact that recession can lead to the devaluation of assets which are wealth-bearing.
What this means is that consumers should protect themselves in times of economic turmoil by seeking assets which perform well during downturns. Gold is seen as being the best-performing asset, as it managed to not only hold its market value but also gain more. Read more: US Money Reserve | BizJournals and US Money Reserve | Manta
For example, during the period spanning from 2007 to 2009, while many assets’ values got wiped out, gold’s valuation managed to increase by 26%.
About U.S. Money Reserve
Being considered an authority when it comes to gold and precious metals, the U.S. Money Reserve offers consumers information regarding portfolio-related decisions, providing a strong understanding when it comes to public policy as well as financial freedom.
U.S. Money Reserve is the only gold company that has a former director of the U.S. Mint at the helm.