Time Line : 2018 : Maybe 1/4 rise in interest rates, then no more for a long time as the deficit and Inflation stop them. The Inflation should push interest rates much higher, but a failing wallstreet will have trump leverage the FED into cutting rates (that is the mistake we will repeat). We continue down the same path, if you are listening to Lynette Zang, Jim Rickards, Howard Long, and Peter Schiff you know that the Banks are consolidating their wealth while putting all the risk back on the consumer. This time it isn't the bank that has to pay up, but your bank account will be raided. Don't forget, the FDIC now has $.03 for every $1.00 in the bank. That means that you may be insured for 250K, but you are not getting that much if there is a problem. All of the above listed people sell a product, GOLD, want you to watch their video's.You can watch here to learn how the banks have passed along the responsibility to you, the person with money in the bank. 2019 : Real Estate continues up and the FED decides to CUT rates some based on Wallstreet. Wallstreet has to fail, there is no reason for it to stay up. It is only this high because of buy backs, tax cuts, and QE 1,2,3. Headed backwards as soon as the FANG stocks all stop, 2 did this past week. Insiders are selling big time. Only people buying are suckers still in 401K 2020 the real estate tops out, market is down and FED cuts again to stimulate ECONOMY as Trump pushes for cheaper interest so people will buy houses, the only thing left with a reasonable price, Tarriffs have since drove all prices higher. Fed has no where to go, wages are up maybe 5 -10% which is still 150% short on real inflation for the past 20 years and we start into epic collapse. 2021 - This is it, when we have our 2007 / 2008 will be be on Trumps watch or some dem. who has to eat it. Of course if Trump wins, he will blame others, if he loses, then it is the dem potus that moves into the white house. Doesn't matter who the POTUS is at the TIME, this whole Economy is based on Credit and workers have borrowed to extend it.
There could be some huge debt problems. As the debt grows, the share of the budget that will be consumed to service that debt will grow. Eventually the slightest thing will be able to jar the whole system—it might initially be a small rise in interest rates. If interest rates go from 2 to 3 percent, for example, that will increase the portion of the budget going towards servicing the debt by 50%. I suspect the Fed will turn to inflation, but the problem with that is, when there's inflation, lenders demand higher interest rates. The yields on the next round of issuance of Treasury debt will go up. That in turn would drive even more inflation, to the point that inflation isn't able to keep up with the debt increase. (That's why more likely than not the inflation would be rather sudden, something lenders were not anticipating when they bought the debt) Are we talking about the Fed buying the entire National Debt? That would cause 2000% inflation. (The ratio of Reserve Assets on the Fed's balance sheets relative to the National Debt is about 1 to 20 )
I am thinking if the money in bank accounts collapse, the U.S. dollar is most likely going to collapse with it. The Fed will react and jump in to save those accounts from collapsing, and the only way to do that is to pump more money into the system. There will still be just as many dollars in bank accounts as before but it will all be worth less. In other words, it will be sort of a hidden collapse, that won't be altogether apparent to most people exactly what happened. There won't seem to be enough money to do things as they were done before, and people won't know why. I know in Japan their long drawn out recession didn't end until 25 years, after the standard rate of inflation had finally eaten away at prices until they lowered to more affordable levels.
I predict stagnant wages but higher un- and under-employment. Real estate will rise a bit, but it will still be substantially lower than what it was before relative to inflation. Stock market will take a bigger hit than real estate, but overall the two will be similar. With (seemingly) everything becoming worth less, it will be difficult to gauge the actual inflation going on. Further conflating things, I predict several other currencies like the Euro and Canadian dollar will follow a similar course to the US dollar, so a change in exchange rates will be obscured. You'll have to compare the US dollar exchange rate with other currencies more distant from the US and EU economies. China is going to have their own bubble, so not a good currency to compare. Possibly India or Argentina may be good currencies to compare.
Gold might not necessarily be a good investment. The price is already too high right now, so there might be a little bit of a bubble. Ask yourself whether you're willing to take a 25% hit just to have a safe haven to store your savings. And if there was ever something really serious, the government might just make gold illegal and attempt to confiscate it all. That's what they did during the Depression, and from 1933 to 1974 gold was basically illegal to privately own in the U.S. (with a few small exceptions for regular jewelry and old coins with a high level of collectible value). A little interesting fact, coin collectors noticed something interesting over the decades. During times when the stock market was high, the price of the gold in their coins went down, but the demand for collectible coins went up. During long periods when the stock market was lower, the price of gold went up, but there were fewer people looking to buy collectible coins. The net result was that the price of gold coins with collector's value didn't fluctuate as much with good or bad economic times.
If you think a collapse is coming tell us why? The last collapse was Great Depression and it never happened again because we now understand monetary policy much better. Do you understand?
Funny that today u can go on the US Mint and purchase modern day collectibles., like the 2015 high relief. Been buying since then and will continue to buy with much of the winning from the market. Now into GOLD mining stocks, they go up first and are already moving. Investors are looking for safe havens and there are not too many these days. Thus, the rich want things to happen fast, make money on the way up and on the way down. This FLOAT that we are in now doesn't make them the 10x they are use too. Things should move quickly.
I understand a lot more than you do. If you did, you would write something more than questions. Gotta love the guy that answers questions with questions. It is "HIS" way of thinking "I am smart, but let's see what the other guy knows" You seem to have forgot 2008 in your comment. That was a collapse, only Bush and the Treasury Dept. decided to allow QE, and BAIL out. Obama agreed, so it isn't all on the republicans, Obama also allowed it to continue way too long. Thus, in place of a rec. followed by a depression that would have trigger mass increase in taxation on the wealthy, we QE1,2,3 and here we are. A bubble that was blown up much higher. WE live on Credit and it won't continue forever, they would have to call a Jubilee to walk away and start over. Someone isn't getting paid, or, they take it from everyone but the rich and pizz people off. There is a lot I don't know, but you can find anything you need via Lynette, Peter Schiff, Gordon Long here : https://matasii.com/ or you can just continue asking others if "they know" making yourself feel better. If you know more, than you should want to share it with others. If you know nothing and pretend to know, then you post nothing. Your choice, no worries and really, no one cares.
of course and next time we will be even quicker to prevent a recession and to contain any financial issues. Do you understand? did you ever wonder why China never collapses despite massive imbalances everywhere?? Its because they too understand monetary policy.
