So here’s how the meteor, let’s call it The Fed Crash is going to affect American’s wealth.
- Bond investors are going to experience massive losses. When interest rates rise the value of bonds goes down. If you own bonds or bond mutual funds, expect to see substantial declines in the value. If you need to cash these in you are going to be in trouble.
- Home prices are going to drop like bricks. The spike in interest rates that is coming will instantly cause home values to fall as fewer buyers can qualify. Remember, homes have seen massive increases in value over the past 24 months. A 20, 30 or 50 percent decline in value is not out of the question.
- The stock market could see losses and volatility beyond what happened in 2008, and quite possibly worse than the 1929 depression.
- America will is going to experience a severe economic contraction.
We have seen what happened in 2008 how jobs were lost, how the stock market crashed. The truth is that most Americans have short term memory of these events.
But here’s the dangerous part, the dangerous part is believing the Federal reserve will save us again.
I believe this time they are NOT in it to protect the stock market, or the real estate market. I believe that this time they are in it to protect the democracy. The U.S Government from failure.
That’s why THIS Fed crash is going to be bad.
- With higher inflation, the cost of Government goes up too. Increased cost of Government programs to pay more benefits, but also the cost of interest on the Governments debt is going to go up as well. The Government is going to need more money.
- TAXES… Taxes are going to go up a lot. We live in a moment where taxes are low. But don’t be fooled. The Government debt is headed toward 40 trillion dollars. IT’s going to be 50 trillion some day. There is going to be a lot more money needed to pay the Governments debt. They don’t to talk about this. They don’t want Americans to know how bad this is, but it’s coming, and you need to get prepared.
Again all of this is caused by The Fed crash. Folks, we are going to see tax increases over the next decade that will literally confiscate freedom.
- The last effect of The Fed Crash will be the crushing effect on retirees and retirement savings. The Fed will have destroyed a generation, or maybe 2 generations of retirement savings. There will be financial plans that just didn’t create the security in retirement people were counting on. This is the danger.
It’s the Feds goal to turn the money in circulation from this, in to this. And as that happens… it’s going to deal a crushing blow to American’s financial assets. They are going to crash the money supply to protect the democracy of America and prevent hyperinflation.