Mike Maloney (from GoldSilver.com and formerly a Rich Dad advisor) just put out a video today showing why he's convinced that we are now in an economic recession. Following up on a Zero Hedge article that US Federal Tax Receipts growth rate is at an anemic 1.2% year-over-year, down big time from its 13.4% YoY growth in June 2013, Mike goes on to show that every single time this happened in the past, the economy had been in recession. Shall we expect an announcement from the FED later this year or early next year, as Mike suggests?
Watch the video below for details...
A slowing economy impacts company earnings and stock prices negatively. In fact, most all other assets will get slammed as well (real estate, commodities, etc.). Bonds in the current interest rate environment are no longer a safe alternative, either.
GOLD
Gold, however, traditionally has a negative correlation with the stock market. In times of economic downturn when all other assets decline in value, gold can perform really well.
credit: Hard Assets Alliance
As you can see from the chart, during five out of seven previous recessions (shaded areas), gold price rose - getting up to double digit rates on three occasions. Will it happen again? Well, it's happening already. Gold price has risen 25% since the beginning of the year. Will the trend continue? Nothing is guaranteed in the market, but considering the current global political and economic uncertainty, there is a good chance it will.
May we all prosper, in good times or bad. Om shanti.
If the labor force participation rate is any indication, we never recovered from the 2008 crash. https://fred.stlouisfed.org/series/CIVPART
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Thanks for the comment. That's a very telling chart, isn't it. This 'economic recovery' spin we've been fed is a farce.
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A look at the monetary base has me even more concerned. We have all been participating in a grand experiment, courtesy of the federal reserve. https://fred.stlouisfed.org/series/BOGMBASE
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Wow. It's too surreal, it's almost funny. It's a Bizarro world.
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did we ever leave the depression that the government and media keep lying to us about?
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It is a grand illusion, but trickery cannot last forever. Thanks for sharing.
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I reckon we are heading full steam for a major financial crash originating out of the US.
My timeline prediction for this is before October 2016, we will have had experienced this crash.
If it does not happen by then, that will mean there has been major quantative easing, and when the bubble does burst, it will be substantially worse than expected, which is already pretty bad.
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You're right. I think the Fed and other central banks have painted themselves into a corner. All they can do, based on their Keynesian mindset, is what they have been doing, which hasn't worked at all.
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Try to imagine that this isn't happening by chance, and that they puppet masters knew what the effects of their actions were with regards to the financial model they forced upon us.
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We are entering a massive global recession the likes of which we've never experienced before as global debt clocks tick down rapidly. Nations around the world will continue to default.
The world is more divided than it ever has been before with civil rioting beginning to occur more frequently in every major nation. Everyone is aiming at each others throats looking for someone to blame, they will be scared, confused, and vicious when backed into a corner. In their fear they will seek to elect the most 'certain' man with promises of a utopia in exchange for your freedom.
Stay safe Steemers, but do not despair, for this will also be the greatest wealth transfer in history for those who are prepared. : )
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Wise words. Good to be reminded that times of crisis also present great opportunities. This is one of those times where it pays to be self-educated and empowered rather than rely on authorities.
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