During a period of great economic growth, it may be difficult to believe that a recession is just on the horizon. However, that is the bleak truth that many economists are believing. Recessions always follow periods of economic growth.

The economy is essentially a cycle. There’s growth and then there’s a recession. When a recession occurs naturally, the effects can be felt, certainly, but it isn’t typically that long and doesn’t hurt people overmuch. The recession like the one in 2008 in which the housing market took a plunge was a result of an unnatural recession.

Unnatural recessions occur when bankers and politicians attempt to thwart or put off a recession. This is because bankers typically see their stock values decrease significantly. Businesses receive a reduction in profits. As for politicians, they typically aren’t re-elected during a recession because their voters feel as though they aren’t doing anything to help the economy. Read more: US Money Reserve | Manta and US Money Reserve | BizJournals

When those bankers and politicians push off a natural recession as much as they can, a bubble forms. It is this bubble that tends to determine how devastating a recession is going to be.

There are also many factors that can add to the emergence of a recession and how devastating it will be. This article will touch on those factors as well as provide a safeguard to protect your wealth.

  1. Debt

While the last recession focused primarily around housing, this recession will likely have a great deal to do with debt. Much to many economists’ worries, the debt level is reaching that of what it was in 2008. While they’re unsure of the role that debt will play in the recession, many are sure that debt will play some role in the upcoming recession.

  1. Politics

During the last recession, bipartisanship was pushed aside in an effort to help staunch the devastation of the recession. The current political climate in Washington doesn’t make that same partnership likely. Dealing with the damage could be a lengthy process and allow many people to suffer while they wait.

3. Safeguard

The US Reserve suggests that you should buy gold coins to preserve your wealth. This is because gold has a long-lasting place in terms of money. It typically rises while stocks decrease. Because gold is always desired and desirable, buying gold coins can be an excellent wealth-preservation method.

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