BANK FAILURES. ECONOMIC DECLINE. CIVIL UNREST. WHAT ELSE? (PART 2)
Make sure you read Part 1 of Bank Failures. Economic Decline. Civil Unrest. What Else?
Are you paying attention? Surely you feel something is different. Maybe you can't quite put your finger on it. The signs are all around you.
While most Americans are busy living out their lives, changes are happening all around the world. I'm continually frustrated with my friends and associates that go about their daily lives cluelessly about what is happening in government, around the world, and yes, just across the borders in Central and South America.
Fortunately, I also have a group of friends and acquaintances that are very much aware of what is happening to global and US governmental structure, the monetary system, and the other systems we use in our lives every day.
What?! More Banking Turmoil?
I'm sure you've heard of FTX (cryptocurrency exchange) and SVB (Silicon Valley Bank). But have you seen the news on First Republic being seized the FDIC and sold to JP Morgan Chase Bank? What about the problems with Signature Bank, First Republic Bank, PacWest Bancorp, and Western Alliance Bancorp? We're seeing a high level of banking consolidation at the upper levels of banking that will increasingly reduce banking options in the financial sector. Read more at American Banker.
Recently, Warren Buffet (one of the most successful investors of the last 100 years), sold his shares in two banks, Bank of New York Mellon and US Bancorp, while buying shares in Bank of America. If you want to be wealthy, pay attention and do what wealthy people do. Article at YahooFinance!
I expect more banking failures and more banking consolidation as the government moves towards the Digital ID and CDBC (Central Bank Digital Currency). Fewer banks, make increasing control of the monetary system easier. Also, expect inflation to remain high as the dollar loses more value worldwide and more countries move away from using the dollar to conduct trade.
Where Did the Food Go?
I can't help but notice how the food options at the grocery store are continuing to dwindle. Many of the options for the things we purchase at the store have been reduced by 25-75%, leaving us with much fewer options for condiments, canned goods, chips, and many other foods. Have you noticed?
While meat continues to increase in price, you may have noticed the media talking more about how food animals affect "climate change," and we need to move away from meet. You may also have noticed celebrities and various media channels talking about eating bugs as the new diet. It's rather interesting to see traditional meats being vilified and bug proteins being glorified at the same time. A simple "eat bugs" search will tell you everything you need to know.
If you're paying attention, you may want to consider alternative methods of obtaining the food you need in the coming months. Just a thought...more of a recommendation...strong recommendation.
Scarcity of Resources
When resources become scarce, civil unrest follows. Inflation puts lower-income families in a bind. Some food items are up to 60% more expensive. A lower-income family of four would already be strapped for cash. Now raise the cost of living by 20-60%. See the problem?
In several areas, crime has gotten so bad that Walmart is shuttering stores. Recently, Walmart closed its remaining stores in Portland, Oregon, due to crime. Portland is the capital of the state! Four additional stores have been closed in Chicago.
In addition to resources, the rhetoric around reparations is heating up, fomenting more stress in the culture. Recently, California's Governor Newsome signed a reparations bill into law. This bill could put as much as $1.2 million into each person's hands that are considered "slavery victims." The scarcity of resources causes people to do crazy things. Prepare yourself and your family. What would happen if you couldn't buy groceries at the store for 30 days? What would happen if the power goes out for 30 days?
stock market dump inbound?
You'd need a crystal ball to predict the future of the stock market, and even then, you'd only be right 80% of the time. Well, some people say you can't predict the market, but that's not a true statement. It would be more accurate to say that most people can't predict the future of the stock market, but some can with a reasonable amount of accuracy...although no one is right 100% of the time.
Quite a few financial analysts and economists predicted the crash of 2008 and 2009. They tried to warn people. Some listened, and some didn't. The same will happen during this crash. Some will listen. Some won't.
Economic indicators so an inbound recession or depression, some might say. It is coming. Layoffs are happening, and many of the larger corporations. For many of these companies, 5-15% of their employees are being let go. This is an indicator.
Microsoft issued a statement of "no raises for 2023."
Sounds Bad! What Do I Do?
If I and many other financial minds are correct in predicting the coming economic downturn, my fear is that many Americans' retirement accounts will be wiped out. The traditional financial advisor and investing "wisdom" say, don't worry. Invest for the long haul. Everything will bounce back. Well, what happens if you're 50, 60, or 70, and the market dumps 30%? 60%? or more? and DOESN'T recover for 20-30 years? I'd say that's a problem, and it's already happened 2 times in the last 100 years. It happened from 1929 through 1956 and again from 1966 to 1993.
Business as usual. Do nothing. Keep rolling and see how it goes.
Move everything out of the market. It's an option. Most financial advisors and Dave Ramsey would definitely tell you not to do this.
Diversify your risk. Many of the common investors have most of their assets tied up in two areas. Their primary house and their retirement 401k or IRA. You can't do too much with your house unless you want to downsize, but there are options for your IRA and 401k. Seek out a high-quality financial advisor before making a decision. Several years ago, I moved my money out of the market and into a self-directed IRA. A self-directed IRA gave me more options. I was able to look at venture capital stocks, cryptocurrencies, syndicated real estate, and more. It allowed me to diversify my risk beyond the stock market and mutual funds. Personally, I'm not concerned about the stock market dumping, but I do care about the people it will hurt.
Now, you should know that all the really wealthy people all know this crash is coming. They understand the "Boom and Bust" cycle. We've been living in boom for a while now, so it's time for bust. Bust is when everything drops and "goes on sale." So as real estate prices drop, the wealthy person will buy. In fact, they've been waiting for it. They're ready for it. Will you be?