The Coming Crash
There is a crash coming, and I’m not talking about the big, overall collapse of the Western world, which has already begun in earnest and I think will most likely be something that slowly happens over time instead of all occurring with one big, scary event.
Instead, today I’m talking about the coming economic crash/recession that is most likely going to occur within the next 24 months. There is absolutely no way to predict this with any accuracy of course, and perhaps this crash will come tomorrow or five years from now. However, based on all the data I see before me, and based on the predictions and analysis from men who I read and who know a lot more about these topics than I do, I think it’s more likely than not this recession will occur within the next year or two.
As to the specifics of what will or will not happen, again, there’s no way to know for sure. What is most likely to occur is that the over-bloated stock market in the US will crash, dropping the Dow and S&P 500 20% or more, causing a panic. This will not likely be the first thing that happens. Instead, it will more likely be the result of problems in the banking sector. As I’ve talked about before, Deutsche Bank, one of the largest banks on the planet, has literally hundreds of trillions of dollars in derivative exposure (yes, that’s trillions with a “T”). This can (and will) pop at any time, imploding the bank like Bear Sterns before it, and sending the already collapsing Suicidal Europe into a tailspin. This will affect the world, namely the US, and the stock market and/or bond markets will also crash. The US stock market is at an all time historic high, and most of these growing stocks are not backed by any real cash or liquidity. Not good.
Then we have the averages. We average one recession/crash every 4-10 years or so (depending on how you define “crash” or “recession”), and our last one was 2009, which was eight years ago. That means we’re due for one pretty soon.
There are numerous other reasons for the likelihood of a big recession coming, and I could spend the next several pages talking about them. Feel free to do your own research and draw your own conclusions. My point here today is that it’s definitely coming, and likely coming in the next year or two (though that’s only a guess; I could be wrong).
Such a crash will whack Tantrum Trump right in the face. Very stupidly, Trump immediately took credit for the booming stock market the split second he became president, while just a few months before denouncing the same stock market as a dangerous bubble. Of course, as I’ve said before, a booming or collapsing stock market has pretty much nothing to do with whatever the current president is doing. The problem is, since Trump has taken ownership of the good stock market, if/when the stock market collapses on his watch (which it is likely to do), he will then take the blame for the stock market, even though it won’t be any more his fault than the booming stock market is right now.
This is not good news for a president with record-breaking, historically low approval ratings when the stock market is doing great. I’m mean seriously, Tantrum Trump has a shockingly low, 33%(!) approval rating while the Dow just cracked an all-time high of 22,000 last week. Simply amazing, but we are in uncharted waters these days. Just imagine what will happen to this terrible 33% when the stock market crashes!
Normally, this would damage his chances for re-election. However, since my fellow Americans lost their minds long ago, and since Americans now have a 25 year habit of re-electing the current president no matter how bad he is, how much he lies, or how much he screws over his own base, one never knows if a collapsed economy will affect Trump’s re-election chances or not. Trump worshippers are likely to just vote for him again anyway, and Trump knows this (just as Obama knew it about his supporters, and Bush knew it about his; both of these bastards were re-elected when they should not have been).
A more relevant question is how the coming crash will affect you. If you’re already poor and/or unemployed and/or have a very low income, you probably won’t notice a difference. However, if you work in the corporate world and/or if you have real investments or assets, you’re likely looking at some serious trouble ahead. Most traditional investment instruments pushed by Societal Programming (stocks, bonds, 401K’s etc) are going to take a serious blow.
If you’ve followed my advice and built an Alpha 2.0 financial structure, with diversified, international, location independent sources of income, as well as very boring, safe investments, particularly if you have zero debt and a low monthly expense footprint, you’ll probably be just fine. If you have a lot of money in cash, you may even be able to take advantage of the crash and invest in things when their values are ultra low, then cashing in a few years later when the economy has recovered (which it will).
For you more risky types, there are some investments that may actually do very well during the next crash (gold, silver, bitcoin, ethereum, inverse ETF’s, etc), and these investments may explode in value, making you a nice hunk of cash, or they may not. I have a percentage of my investments in these kinds of vehicles; we’ll see how much money I make when the crash happens and all the normal people are freaking out about losing their jobs and how much money they’ve lost in the stock market.
Just be aware that there’s likely a recession coming around the corner in the next year or two, and signs point it being pretty bad. As always, get to work and start building your financial foundations now, so that you’ll be protected from any and all future recessions that are regular occurrences in our slowly collapsing, corporatist world.