The Real Economy: a 75% Chance of a Recession Has Been Confirmed

What’s the Real Story for Retirees When It Comes to the Economy?

With so many stories and all the static in the daily news cycle, it’s often hard to tell the real direction of the US and global economy. That’s why we like to look at the facts, and nothing more. Here’s some recent happening in the financial and economic world that just show once more that the next recession is practically already here and it’s time for retirees to prepare now.

84 percent of CFOs surveyed think there will be a recession by 2021. The survey surprised the surveyors when so many CFOs were in close agreement that, if not sooner, a recession would be here by 2021. A global economic slowdown, however, is taking place in the United States and the Western world along with Asia.

recession prediction 2019 and 2020

Fewer young Americans get driver’s licenses these days. While getting a driver’s license used to be as American as moon landings and baseball, Generation Z now enrolls in later-age driver’s education and fewer go to the DMV to get that all-coveted freedom pass. With Uber, Lyft, and limited resources and income to include insourcing menial wage jobs to foreigners and immigrant workers (some illegal), the average 16-year-old American now competes heavily with men twice their age who are willing to do backflips for the same job.

Labor market supply gluts are keeping wages weak. Again, globalization reveals its true face, with many Americans later entering the workforce for jobs that pay less and offer less hours, while women joining the workforce and more than doubling the labor market in massive amounts of immigrants, driving down labor prices since the 1970s.

Real Inflation Could Eat Away More than Just Retirees Fixed Income Distributions

Actual (unofficial) inflation and CPI are actually around 7-10%. The government has consistently changed the way it keeps tabs on metrics such as inflation and the CPI (consumer price index), even going so far to ignore the cost of basic goods because, at the end of the day, the Federal Reserve is not there to do anything but protect the global banking elite and keep Wall St looking good.

This is also one of the reasons getting a Gold IRA could be very beneficial to a newly made retiree or someone with an old 401k they need to convert into an IRA. Readers should check out thebestgoldirarolloverguide.net to get a free Gold IRA rollover and investing kit.

401k IRA rollover to gold

Millennials can’t afford to buy homes, have too much debt and not enough good jobs. With a shortage of good jobs, millennials graduate university with enormous student loan debt that many will never be able to reimburse working a “normal” job. I once met a restaurant worker who told me she had over $100 K in student debt when I waited for tables. When I heard that, I almost collapsed and she said it as casually as you might ask for a napkin at lunchtime.

With 10,000 people becoming 64 each day over the next few years, a baby boomer will benefit from being mentally and psychologically prepared to protect their investments, 401k and IRA as long as they can. Ensure that your investments are more severely divided into lower risk assets once you leave the workforce.

Whatever You Do to Protect Your Retirement, Do Something to Protect Your 401K or IRA!

With savings accounts not even paying enough to break inflation, American retirees are going to have to come up with a strategy to have enough money for retirement, whether they like it or not. The good news is, there’s still time. The bad news is, time’s running out!
 

The Greatest Depression is Set to Start in 2020, Here’s Why

The T-Bill Yield Curve Inverts: A Recession is a Year Away

 
A fundamental warning indicator of a potential recession was triggered on Friday afternoon, as a result of the 3 month T bill rate exceeding that of 10-year Treasuries. What this would suggest is that short term government bonds are producing larger returns than long term treasury instruments, showing that investors have a negative outlook of the economy long term.

To state this in other words, the rare occurrence of a yield curve inversion has historically predicted recessions in 1989, 2000, 2007, and what will likely be 2020.

The ONLY Thing Propping Up the Current Stock Market

 
The Federal Reserve System recently revealed that that they had no need to lift interest rates any longer for 2019, primarily admitting they could not any longer. This is a reverse from an exact previous plan to raise rates a minimum of 4 times this ucpoming year. Upon raising rates in the previous year to a nominal rate of a miniscule 2.5%, the stock exchange began a 3 month dive starting in October, and had a spectacular devaluation during the holiday season in 2018.

What this suggests is that the Fed Reserve is confessing that the economy isn’t that sturdy in any case, and with no more zero interest rates to make sure lots of free money get injected into the equity and bond markets, the Dow-Jones and other exchanges don’t have the necessary fuel to remain on their upward price movement for much longer.

Federal Reserve Chair Powell Backtracks on Original Intent to Raise Interest Rates

 
After flip-flopping on future interest rate hikes, the Federal Reserve has shown their real agena, and if you interpret reality you’ll see that they’re not opposed to dropping rates back to zero, if not going into a time of negative interest rates- charging you money for just holding yours in too-big-too-fail banking institutions.

But maybe unsurprisingly this is simply the outcome of ten years of quantitative easing, money printing, tax cuts for the rich corporations resulting in them performing stock share buybacks to prop up their share price- events that have occurred during a surreal time where consumer, corporate, national, and worldwide debt have soared to a combined $250 trillion and at which currently, everyone admits can never ever be paid off.

So as we tend to sit and await the worldwide debt default, it’ll be up for discussion to figure out the next trigger as housing markets around the world still continue to slide, the school student loan bubble rises to new heights, and presently record retail location closures and people missing their vehicle payments for 3 months straight paint a scenario which will not end well.

Indeed, the economy isn’t as upright as the “experts” have been claiming, and central banks round the world are quietly buying gold in emergency-like proportions. Gold in your IRA is another option as prices are at all-time historic lows, and many assess precious metals as the last real investment opportunity left that is not in a current bubble or fresh off from a burst bubble.

Precious Metals Could Soar in the Coming Years

 

A great way to protect your retirement with gold and silver is to simply shop for it yourself online. If you have a 401K, Roth IRA or IRA and want to secure a large position in gold or silver, a Gold IRA rollover could be beneficial to your overall portfolio, providing a tax haven, allowing for holding metals and ownership of real gold, and enabling buyers to accept delivery whenever they like.

401k rollover to gold

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