This year, the United States economy reach a 100-month of expansion. So far, there are two periods of economic growth that have surpassed the current length. With this expansion comes the fear of recession and all that it entails. Recessions are not all bad. The employment rate is usually low during a downturn. It is currently at four per cent, that means more people are working. We now have record-setting markets.
With a recession, labor becomes scarce, and wages slowly rise. A recession is a concern because the increase in wages prompts companies to slow down or stop hiring. A slow economy results in a high unemployment rate and fewer profits for companies. This economic cycle slows down the economy as well, which prompts the Federal Reserve to raise the interest rate. Read more: US Money Reserve | Manta and US Money Reserve | Biz Journals
Politicians and banks (Wall Street) interest lie in delaying a recession. The banks have a vested interest in a delay and the politician wants the delay because their voters will be upset over high unemployment rate. The U.S. Money reserve believes that a manufactured delay can be harmful and can cause an economic bubble, which can occur as certain assets become unstable. Just like any bubble, the bigger, it gets the more devasting it going to be.
As we move toward uncharted territory, the factors that are contributing to the potential for the economic downturn are debts and the influence of politician. The housing market in the past has contributed to financial turmoil. Today, the housing debt levels of 2008 have been exceeded. Another factor is the influence of politics. In the past, the executive and legislative came together to pass legislation promptly to avert a recession. Today, we have not been able to alert politicians of the urgency of the market.
There are long and short term solutions to slow down the recession. The long term solutions include educating consumers on how to reduce long term debt (ex. Mortgages). They can be taught to put their assets into something more stable like gold. The short term solution is to have the Federal Reserve raise interest rate. Excess reserves may be used to create loans or to buy inter-bearing assets like government bonds.
The U.S. Reserve has been a reliable distributor of government issued coins for more than a decade. The U.S. Money Reserve is an exclusive distributor for a few of the most collectable proof sets on the market now. Because of its institutional operating experience, it can offer a level of expertise that is hard to find elsewhere when it comes to financial services and information.
It goes above the industry standard to provide superior customer service, with the goal of establishing a relationship with each customers. The U.S. Reserve claims to give the fastest standard shipping in the business. Whenever your banks lend your money to other men and women, it’s actually creating money.
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