The last 15 years have been a time of Easy money and a booming economy Rebounding from the lows of the Great Recession of 2008 but that's all about The change as the government seeks to Rein in inflation the tools they've Utilized in the past dropping interest Rates and pumping money into the economy Have caused a sugar high in which Investors have made risky gambles while Money was cheap but that's all ending Now as cheap money has led to inflation Too much money chasing too few goods We're now several months in the Quantitative tightening while at the Same time the FED is Raising interest Rates we've been enjoying good times Every investor was a genius as stocks Climbed in businesses for no other Reason than liquidity floating in the Markets but the party has come to an end After the party The Federal Reserve has a problem with Inflation which they haven't seen since The 1980s now to combat that they've Recently raised rates so aggressively That some banks have been caught with Their pants down unable to provide their Promise rate of return and suffering From a public lack of confidence and a Run on withdrawals now this has led to High profile closures that have revealed How intricately laced fragile and Interwoven all our money really is now
You may have heard that the era of easy Money is done what that means is Interest rates were held at zero or near Zero for so long that Banks and Investors could borrow trillions of Dollars risk it in as risky of Investments as they wanted to and then They could also count on the FED bailing Them out if those Investments went South The highest bet funds rate was 20 in 1979 in 1980 and the lowest was absolute Zero in 2008 in 2020 and at 20 percent Even Bankers Count Their pennies and are Cautious about investing or loan earning Money zero percent is a raucous party Where anything goes now between these Two extremes is waking up with the Hangover of all hangovers and that's Where we're at today with the interest Rate having only climbed to 4.85 percent But they've done that in less than a Year after being artificially held to Zero for two years and we've barely Opened our eyes the morning after the Party and as we open our eyes we're Gonna find that many of the rich have Turned a quick profit on their losses by Selling short and leaving the FED Holding the bill as we open our eyes Further we'll see a riot in the streets Outside called the Ukraine war where Rival games Russian American European Middle Eastern and Chinese they're all Trying to kill each other and gain
Control and when fully awake we will Find that our just-in-time Delivery Systems are suffering our aging Infrastructure is crumbling and none of Our credit cards work and when we check Our bank balances we'll see that we are In one of the longest bear markets that We've ever experienced and the wealthy Have been heading for the exits with all Money well before the party ended and There's no Uber that's going to pick us Up and whisk us safely home we have a Long and dangerous walk ahead of us if We want to get home and there's a little Matter of the check before you can go Home you see the cost of all that Careless spending and Reckless investing Has been passed to you from the bankers Through the fed and to you the consumer And the tax paying worker The check There are several early indicators that We're heading into a deeper session that We're going to look at here the foremost Of these indicators is inflation unless You're rolling in money you've probably Noticed that you're paying more for Everything from a bag of lettuce to a Gallon of gas inflation hit a 40-year High on June 15th of last year and it Has continued its upper trajectory only Beginning to level off and sink a bit This year but has it really unlike the Inflation of the past however high
Prices are also being driven up by Supply scarcity and supply chain Disruption from a World War combined With price manipulation from multiple Suppliers OPEC plus Nations they've cut Production Russian Supply is shut off And for-profit fossil fuel companies Sell their product to the highest Bidders overseas all of this causes Fossil fuel prices as a surge Grieflation can also occur when a Company forecasts higher material or Transportation costs in the future so They raise prices preemptively now or They see their competitors raising price Devices so they raise prices even though Their production supply and demand They're all stable So even though the chart may show a Leveling off or even a decline in Inflation that doesn't mean you the Consumer are seeing any price to clients It simply means the rate of speed for These increases has slowed down a bit You still hold the Hefty check in hand Now unlike previous generations we rely Almost entirely on adjust-in-time supply Chain and delivery system we saw what Could happen to that when a container Ship got stuck in the Suez Canal covet Locked us in our homes and a world war Broke out we also see the fragility of This after every natural disaster every Infrastructure filling with a
Maintenance and replacement parts cannot Be found and after every substantial Cyber attack shuts down or ransomware Are critical systems all of these Contribute to even larger inflation Increases but they are unique to this Time in history because they're so Unique the period of great inflation at Nearly 15 percent during the 80s will be Remembered fondly from where we are Heading the origins of the great Inflation were policies that allowed for Excess excessive growth in the supply of Money Federal Reserve policies they Didn't have all of these added unique Compounding factors now these unique Compounding factors could be called a Series of financial crisis punctuating The contraction if you know your history You might recognize that explanation of National economic health decline from The longest and deepest downturn in the History of the United States in the Modern industrial economy the Great Depression unlike then America is Perhaps too divided for any new deal to Lift us out of our depression so get Ready now The grift If you are the Central Bank you can Seemingly creep money out of thin air You can loan money at no interest which Results in investors and super wealthy Investors putting billions into risky
Investments to turn what they hope is a Quick profit you can raise interest Rates to make borrowing money harder for Banks and investors now between the Raising or lowering of interest rates Whole banks sometimes get ground down to Insolvency and they can no longer make Their minimal interest payments and Promise debt obligations we saw that With Silicon Valley Bank this year when High risk loans fell the FED purchases Those loans and makes the banks stable And that doesn't mean the banks will Loan out that injected money now in the Past they have turned around and bought Up those same bonds created to solve Those high risk failures Banks pay their Executive millions of dollars in bonuses Even as a bank burns down around them as If magic all of that insolvency debt and Financial hardship it passes right over The executives of those Banks and Investment institutions back to the fed And eventually to you in the form of Higher prices for everything in a Collapsing economy when your company Can't get the money they need it may Downsize your position slow production Or be forced to stop manufacturing Altogether and it's easy to believe that Banks built this country but they didn't People did it's easy to think that the Federal Reserve can solve our economy's Woes but it cannot when the federal bank
Shifted its policy from a central bank That manages the currency to the primary Engine of economic growth the power went From democratic institutions to the Federal government so what does that all Mean it means that our nation's economic Eggs are in a single basket it means That the coming recession is going to be Different and worse than anything that We've seen in the past it will Dramatically change a generation of Americans the nation is relied upon the FED to protect us over the last two Decades but that protection is now Running out Your new reality The dream of a soft Landing was always More of a dream than a reality the facts Are that there are too many Unpredictable elements in this economy Many of those I mentioned earlier if any Natural disaster supply chain failure Ever increasing war or political Disaster pushes inflation higher and the Job rate down stagflation and an even Deeper recession are all but inevitable So what does that mean to you So enough of this high-level forecast of Our collectively dismal future let's Look at precisely what this will mean For you and what you can do about it Unemployment or stagnant wages So far the only good economic news is That the jobless rate has remained low
Though that may be changing and let's be Honest though even when the economy was Chugging along wages have been stagnant Since 1979. these two combined are just Rough for the average worker in a decent Economy in a downward economy it's Terrible news as companies change their Projections and Outlook to the Future as A supply of resources slows or becomes Challenge as it becomes more difficult To maintain the high profits of the past They will look to lay off downsize scale Back production and cut worker pay so Even as a cost of everything continues To rise you have less money in your Pocket to buy anything Cost and prices rise In this time of uncertainty the cost of Making and transporting anything Continue to rise this is translated into Price both real and perceived and the Real is the actual cost going up and the Proceed is that imaginary grief relation I just spoke about earlier so just when You think things can get more expensive Expect them to go up in price even Further for a long time to come Social and political strife The wealth inequalities and the Government's failure to protect and Insulated citizens always result in Social and political Strife politics Becomes even more divisive some call for Government assistance or bailouts and
Others demand that the government not Interfere while blaming the opposition Or offering no clear solution themselves And on top of that unions push for their Share of the profits for their members They fight for higher wages and better Working conditions crime and Homelessness also increase as people are Suddenly left with little to nothing of What they once had What can you do As dark an image as that might portray There are always ways that you can rise Above it and to endure and there's no Single great solution but a series of Little things that you can do and there Certainly isn't going to be a central Bank or government that will ride in and Rescue and let me say this before we Jump into actionable steps that you can Implement now you do not have to be a Victim the decisions that you make today Will Define your future so let's cover a Few practical things that you can do First you want to get local with your Supply the more removed you are from the Global supply chain that feeds the big Box stores and grocery chains the easier It will be for you when those inevitably Film grow some of what you eat source as Local as possible and cook your own food Did you know that just 10 companies Control almost every large food and Beverage brand worldwide I would
Encourage you to not keep your faith in Just these 10 companies that will keep Prices down and produce food even as Their profits nosedive don't expect the American Farmer to rescue you either as Massive Agro businesses have replay Place mini securing a steady localized Self-generated or self-prepared food Source for yourself is a chief means to Endure a massive economic downturn the Economic downturn we Face will be Further Complicated by drought and flood Even as the Western U.S receives massive Amounts of rain hydroelectric lakes and Aquifers remain at low levels and this Means water insecurity will continue Through this decade of financial decline If you're in a part of the country Receiving too much rain snow and Precipitation that can be a problem as Well additionally we have seen train Derailments that have devastated entire Communities and rendered their water Toxic have water stored to get you Through crisis and have the means to Collect treat and filter water should Those crisis last longer than anyone Would expect every massive economic Downturn is accompanied by foreclosures And people being forced to move from Their homes and seek other Accommodations paying your home down More aggressively and maybe paying off Any equity line of credit are good ways
To build a better shelter now look I'm Not a financial advisor but I don't have To be to tell you that the economic Times that we're heading into will mean Higher interest rates and tightening of Credit if you're barely keeping a roof Over your head right now it will get Worse as the economy slides further down I bought my first home in 2009 right After the housing market crashed and let Me tell you I drove into neighborhoods Where literally every other house had a Foreclosure sign in the front yard it Was pretty surreal to see to be honest And while I don't think we're heading Into a similar situation just don't Allow yourself to risk the roof over Your head when things get tough Companies inevitably cut and those that Are in demand they rise to the surface I Learned this principle years ago and Decided to invest in myself back in 2005 I started my first business doing web Development and at that time YouTube Wasn't really popular and there weren't Many online courses I had to go to the Library and buy books online to learn Various skills now obviously the market Has changed drastically since him there Are a ton of online monthly subscription Services that allow you to develop a Skill my videographer for example who Just set up the studio behind me just a Few years ago he decided to learn video
Skills and he learned from several Prominent YouTube channels and now he Gets gigs with Netflix and other Studios Simply because he chose to invest in Himself he's actually older than me and He started learning at about the age That I am right now now I bring this up To point out that it's never too late to Start learning a new skill even if it's Technical don't allow excuses to hold You back and the final thing that you Must do to survive a decade or more of Economic downturn is to approach your Finances as a prep an all-out dramatic Collapse is less likely than a long Drawn out series of failures and Collapses I would encourage you to Implement small strategies as we Detailed in the recession-proof guide That we make available for free so many Financial lessons aren't passed from Generation to generation let's be honest The systems change still there are some Constants that you can apply today to Get you better position to face a Chaotic and declining fiscal future we Try to outline those for you with this Guide which I'll provide a link to below Look I'll be honest with you I don't see Any good economic indicators in the Immediate future the Federal Reserve They're gonna have difficulty Controlling a runaway economy and Decline and there are far more unknowns
And influences and there really are Certainties this situation is going to Get far worse before we see any light That's just a reality people will see What they thought was a sheer future Evaporate over the next several years From jobs to homes to Investments to Retirement plans Supply chains are being Realigned right now in a global struggle For power and control and infrastructure Systems will continue to fail you don't Have to be a victim in that collapse if You take some solid steps for today a Little each day may not give you a Guaranteed future of everything that you Want but it may provide you with what You need here's the thing the window is Closing and prepping it's just going to Get harder and harder as people struggle To make ends meet so I would encourage You to start your preparedness today and With every downturn typically there is a Recovery where we brush ourselves off And hopefully learn our lessons it Doesn't appear that we will see that Perhaps the rest of this decade if you Do make it to that point in the Rebuilding phase it will be because you Are part of a generation that reclaimed Their independence apply their know-how And strive to free themselves from the Sinking economy as I always say your Preps their life wrath and you may have Them stored away for a rainy day but I
Believe a lot of us are going to be Using them more and more over the next Few years as always stay safe out there Foreign
