Are you prepared for a recession? Maybe a recession can be avoided, but are you prepared if a recession is just around the corner? March 7, 2022,
In easy-to-understand terms, a recession is a slowdown in economic activity, what causes recessions? typically recessions occur when the government or some other influential entities interfere in the economy. Currently, there’s an aggressive push to rid the Western world of fossil fuels, doing this is rather expensive and even the current “carbon credits” schemes are inefficient and costly for consumers.
This new carbon credits market will take a few years before it really starts showing itself to the market, but the entire carbon credits market will revolve around bureaucrats, who tend to do things slowly, what this means in my point of view is that if a recession hits, before this carbon credits scheme is fully developed the world could be head for a lot of economic turmoil.
Even with the carbon credits, companies involved are still going to be ideologically driven, and I don’t know what that means in the long term. In the short term, a recession equates to job losses, shortages, and potentially consumer price inflation. A recession is a form of deflation in the economy, but there’s currently an abundance in jobs, right?
Well, if I’m, to be honest, I didn’t see a recession a few months ago, because there’s an abundance of jobs, but because of the increases in the cost of living and the welfare programs available in most developed nations, it’s a net negative for most people to go to work when they can receive government handouts. So I still see this thing playing out with some sort of austerity measures.
But if I’m, to be honest, I’m not sure, we’re seeing in real-time what happens when government overreach goes too far. You have to remember that Franklin D. Roosevelt won his elections in a landslide, because ideologically at the time Americans were with him, unfortunately, his ideas were stupid, and had it not been for Japan declaring war on America, FDR probably would have been regarded as the worst President in U.S history.
Political climate change is ideologically driven, people who believe the earth will be destroyed without political action are willing to sacrifice the economy to achieve their goals. This could also mean war, you’ll notice a lot of political environmentalists, have no interest in saving Ukrainian lives, by starving Russia’s energy sector. Socialists of all stripes are some of the most heartless people on the planet, you need to understand this moving forward. What does this mean ultimately? It means potential economic chaos moving forward that you’ll have to learn to navigate through.
Yield curve recession signal intensifies as war fuels ‘stagflation’ fears | reuters.com
Interesting times ahead!