Heads Up for a Recession

Next Big Recession On Its Way.

Have you been wondering when the next recession will hit?

You are like many others, we’ve all been watching the market as it’s been up and down. Don’t get too comfortable!  Robert P. Murphy and Austrian Economist explain in the “When is the Recession Coming” article on page 10 there is a great indicator of why he feels late 2019 to 2020 will be the next big downturn.

If you look at the yield curve on page 13 you will see there are 2-3 big drops and then gains before the big crash each time this happens.

You will also see what the that the Feds have been paying banks to hold money since 2018 driving up the bank reserves. Banks were being paid more to hold money than to lend money.

Today that is not the case, banks are being charged 1.5% to lend money from the Feds making it harder for them to make money by then lending it to you. They can’t continue this, so instead of continually raising rates the Feds are collecting their IOU’s from the bank to keep rates down so makes can make money.

Yes, banks make money when interest rates are lower! (That’s for another blog.)

So again, manipulation of money is happening with inflation that will affect your bottom line. Read it for yourself.

If you want to protect your money from market ups and down, keep up with inflation and just plain sleep better at night knowing you are on the right track get yourself started today by purchasing either Farming Without the Bank or Wealth Without the Bank or Wall Street.

Mary Jo