An economic downturn is inevitable.
Many Americans will feel a great deal of pain during a financial crisis.
Here are some steps you can take to defend yourself against an economic catastrophe.
Liberal economic policy is spiraling out of control.
For decades and decades, politicians have promised citizens free stuff in exchange for votes.
The problem is, politicians are paying off voters with their own money.
This irresponsible spending has snowballed over the years to the point where the country is now $22 trillion in debt with no good options.
Entitlement programs and unfunded liabilities have essentially bankrupted the country.
The 2007-08 financial crash was supposed to be a wakeup call that the game was up.
However, Barack Obama decided to dig an even deeper hole.
He thought it was wise for the country to spend its way out of a spending problem.
He doubled the debt in his eight years and only made matters worse.
The economy has been due for a recession for years, but Donald Trump’s tax cuts and deregulations pumped life back into the economy.
However, the bill always comes due.
If the spending problem isn’t addressed soon, the only options will be wild inflationary spending – which is a proven failure around the globe – or to default, which would lead to chaos.
So here are some steps you should take to protect yourself for the impending financial challenges.
First, it’s not a bad idea to have some money invested in precious metals.
Historically, gold and silver have been good hedges against inflation and market volatility.
Next, don’t be afraid to sit in cash for a while.
Inflation obviously decreases the value of money.
The average rate of inflation is about 3% per year, which means your investments need to be making at least 4-5% to be worth your time.
The monetary policy under Obama dropped interest rates to near zero in an attempt to get people to spend instead of save.
This means a savings account is no longer an option for growing wealth.
Sitting in cash until you find a good investment opportunity isn’t the end of the world.
The liquidity of having some investment cash on hand will allow you to make quick moves.
If the stock market crashes, you should be able to find very good businesses on sale.
Also, developing a backup revenue stream is a good idea.
The more money you can have coming in from multiple sources, the more durable you can be during a financial collapse.
With people tightening their wallets during a downturn, the residual effect on business can be both unpredictable and severe.
Turning a hobby, such as antiquing or woodwork, into a side hustle has worked for many people.
Finally, survivalists who homestead will have an advantage.
The cost of goods will undoubtedly go up, so the more self-sufficient you can be, the better.
Growing your own food is a good way to save money, and it can also lead into an alternative revenue stream.
The bad news is that a downturn is coming.
The good news is that it doesn’t have to be devastating for you.