The U.S. Money Reserve recently stated that an economic downturn was bound to occur, seeing that the country’s economy had exceeded its one-hundredth month of expansion. These predictions are due to the fact that the economy is cyclical in nature and according to historical events, a recession usually occurs after the economic expansion has reached one-hundredth month. In the past, the economic boom that lasted for more than its 100th month happened in the 1990s and lasted one hundred and twenty months.
Recessions are not always that bad especially when they are allowed to happen naturally. The problem usually comes in when other factors such as Wall Street players and politicians try to delay recessions. Recessions are brought about by a chain of events including scarcity of workforce and increased salary rates. This, in turn, makes companies rates as well as the Federal Reserve to increase the interest rates.
Politicians who are already in office may want to delay recessions since they are afraid that their political career may come to an end if a crash in the economy happens while they are still in office. This is because they may think that people might not vote for them because they might be devastated over the increasing unemployment rates and decreasing salaries. Most financial institutions also have policies in place that they use to ensure that they delay an economic downturn for as long as they could. Read more: US Money Reserve | Biz Journals and US Money Reserve | Manta
According to the U.S. Money Reserve, this type of delay in an economy may lead to adverse effects. The main reason is that delaying a recession unnaturally may create an economic bubble which might, in turn, lead to some assets being over-priced. If the economic bubble continues to increase, the recession might turn out to be more frustrating when it finally happens.
U.S. Money Reserve
U.S. Money reserve is has been operating for more than ten years and is currently serving over four hundred thousand clients. The company was founded in 2002, and it has over one hundred employees. It has its headquarters in the Southern U.S., and it is one of the main distributors of the United States government issued Silver, Gold and Platinum coins.
The company is headed by Philip Diehl who was a U.S. Mint Director. Mr. Diehl has been in the center of financial freedom and public service and has had years of knowledge and experience in the precious metals industry which he brings to U.S. Money Reserve.