With stock market indices hitting record highs and housing prices skyrocketing, enthusiasm for the U.S. economy is also increasing. But these metrics are not necessarily the be-all and end-all that some economists would have us believe. In a recent e-book, U.S. Money Reserve, one of the country’s largest distributors of government-issued coins, argues that the perceived strength of the economy is more illusory than some may think. In The U.S. Economy: A House of Cards, the company makes the case that many of the commonly cited indicators of strong economic growth are based on underlying incorrect assumptions, misguided principles, and faulty economic practices. Read on for a summary of the book’s salient points to gain a more complete understanding of the issues affecting the economy today.
Behind U.S. Money Reserve’s analysis
Before exploring the advice, let’s take a quick look at the company providing this information. U.S. Money Reserve has built a reputation as a guiding resource when it comes to financial information. As the only gold company in the world led by a former U.S. Mint director, it draws on its president’s years of experience inhabiting the intersection between public service and the encouragement of financial freedom. This unique foundation has earned the company numerous commendations from customers and professional organizations alike. This includes a coveted AAA rating from the Business Consumer Alliance for ethical and trustworthy business practices.
In addition to the wealth of financial information U.S. Money Reserve provides, the company is also known for its quality customer experience. This level of service stems from a top-down approach in which customers work with account executives who have actual experience in the field of precious metals. This provides the opportunity for customers to become truly informed on vital details pertaining to the purchase of government-issued legal tender. In addition, by keeping an extensive inventory of coins on hand, the company is able to send orders out with some of the fastest shipping rates in the industry. This means that shipments are securely delivered from the vault to a customer’s door in five days or less.
The underlying premise of The U.S. Economy: A House of Cards is that the U.S. economy, though it may seem stable, is currently based on an inherently unstable foundation. The analogy of a house of cards, a metaphor for volatility and fragility, illustrates this assertion. In this case, the imagery conjures a structure built of precariously perched tiers that lack the stability to withstand any kind of blow or disruption. In other words, it signifies something that is inherently weak or prone to collapse.
This analogy of a house of cards is nothing new and has been used to describe the U.S. economy at various times. However, as the new e-book points out, the analogy has taken on new importance in light of recent policies that have fundamentally undermined the economy’s stability. Examples of this include the operational methods of the Federal Reserve, which has opted to keep interest rates at extremely low levels. The federal government has also contributed to the situation by engaging in spending practices that many believe are fiscally irresponsible. In light of these practices, U.S. Money Reserve argues that U.S. residents have been left with a financial system that is both over-leveraged and supported by an influx of cheap credit. In addition, markets have become inflated, and access to money has become excessively easy and cheap.
Beyond the above examples, U.S. Money Reserve references in the e-book a variety of other elements that have helped play a role in bringing about the current economic state of affairs. One primary culprit is the nefarious influence of deregulation. In a functioning financial system, regulations are put in place to limit the danger presented by those within the system who are prone to taking excessive risk. Though this can provide a measure of safety, it can also limit growth. When a government or regulatory agency implements policies that deregulate an aspect of the financial system, checks and balances on that system go out the window. This can be gratifying in the short term, as economic growth will likely occur, but it can result in significant long-term problems as the economy experiences an increase in risk as well. The advisory resource put out by U.S. Money Reserve points to excessive deregulation as one of the elements that have contributed to the lack of stability in the current financial system.
Another factor identified as a cause for concern is the potential damage associated with the looming trade war between the U.S. and China. Trade conflicts pose one of the biggest risks to an economy by significantly impacting the flow of goods and services to and from the countries involved. Tariffs imposed as a result of such conflicts cause disruption of worldwide supply chains, global markets, and a wide range of industries that operate both domestically and internationally. In addition, international trade conflicts provoke fear in buyers and other market players, which has a significant impact on confidence in the economy. These types of market disruptions contribute to rising levels of inflation and declines in job growth—and depress many elements of economic health.
In addition to analyzing some of the elements at play in current financial markets, the document looks at some of the traditional indicators that people typically use to predict economic change. One commonly referenced number is annualized growth, as many believe that, as long as this number remains above 2%, a recession is not imminent.
Since the U.S. economy expanded at an annualized rate of 2.2% in the first quarter of this year, many have asserted that there is no reason to anticipate a slowdown in growth. However, the authors of the e-book point out that this trend has not always proven reliable. For example, the growth rates in July 1981 and March 2001 were both above 2%. Despite these numbers, those months preceded extensive recessions in the U.S. economy and proved that such a growth rate is not an absolute predictor of future economic conditions.
Benefits of gold
One of the fallouts predicted by the recent e-book distributed by U.S Money Reserve is a potential disruption in the market value of many global holdings. With the potential for unstable market conditions to negatively affect many commodities, individuals understandably need to place their wealth in vehicles that have historically withstood severe economic turmoil. In other words, it’s important to seek out a reliable store of market value.
In an effort to safeguard privacy, profit, and protection from tumultuous market forces, U.S. Money Reserve highlights the benefits of buying gold. Noting that the precious metal has gained over 375% in market value since 2000, the advisory resource goes on to single out the prediction of many analysts that this valuation will continue to increase in the future. Some experts have even predicted that the market value of gold could double in light of the changing worldwide financial landscape. For this reason, among others, the company encourages buyers to learn more about transferring paper dollars into physical gold in advance of potential fluctuations in global economies.
The U.S. Economy: A House of Cards informs readers about the potentially unstable state of the current U.S. economy. Discussing numerous long-term factors coming together to create a scenario in which financial markets may falter, the authors are understandably cautious when detailing the risks associated with present economic conditions. In the face of such uncertainty, many buyers may want to look for alternatives to the assets found in stock and bond markets. By highlighting the historical stability and growth of precious metals such as gold, U.S. Money Reserve provides a welcome perspective to those seeking a potential safe haven for their wealth. By examining the above information and taking a closer look at the company’s offerings, many may find a route to both financial stability and peace of mind.
Read more about U.S. Money Reserve: http://chronicleweek.com/2018/06/u-s-money-reserve-helps-individuals-retire-precious-metals-iras/