How does an economic depression come about? How would this affect your life? We recently put out our newsletter where we made predictions about an economic depression that will be life changing for all of us. If you don’t get the newsletter, you can sign up here. We’re going to write some posts here and there over the coming month or so detailing some of the reasons why this will happen and how it will affect certain markets. We’ll do this as we continue to mix in economic update videos as well as continue with some of the other areas we’ve been writing about.
The world economy is made up of many different markets. At any given time, there are always some markets which are appreciating in value and some markets which are depreciating in value. Some of these markets have tremendous volatility while others change in value slowly over time in comparison to most other asset classes. Sometimes, most markets are appreciating all at the same time. At other times, most markets are falling. This is an economic depression. Sometimes, change happens slowly and at others, everything seems to be changing every day.
(Please Notice that the following statement is one of OPINION which could turn out to be correct or incorrect!) We believe that the world has just entered what will turn out to be one of the most tumultuous times in world history where massive amounts of wealth absolutely disappear. It will be a severe economic depression.
We do not want you to take this assertion at face value, but would instead recommend that you look into the facts and decide for yourself what you believe will happen. Just don’t make the mistake of thinking that everything will be okay just because you hope it will. We have a strong confidence that difficult economic (and amazing spiritual) times are ahead, but this understanding does not extend to the particulars of the economic changes. Instead, we’ve looked at the accumulating economic factors and have come to believe that we understand fairly well what is about to transpire.
That being said you must decide for yourself whether you believe we’ll experience economic depression or not and if so, what that will look like. This will be a very foolish time to not try to understand the economic factors facing you. Perhaps more wisely, what you should think about is what you believe the range of possibilities are which might happen. Once you’ve established this, you can more easily determine the best allocation for your wealth in order to preserve, protect, and perhaps even prosper during the tumultuous times that are at our doorsteps.
To assist you in this process, we’re going to first give a concise description of what we see as the biggest economic factors bringing about an economic depression starting with the western world with a particular focus on the United States. We’ll then turn our attention to the contributing factors towards and what we believe is the likely outcome of hyperinflation and what that would mean to your life. We’ve spoken about these things at great length before, but we hope to do it in almost bullet point fashion so that the big picture is conveyed both quickly and precisely.
After establishing our thesis on what type of economic depression will occur, we will examine individual asset classes that we believe should be considerations for investing in this type of environment. Depending on what you believe will happen and the variety of circumstances that you want to be prepared for possibly happening, you will be able to examine each to determine if it fits into the allocation you believe is best situated to preserve and grow your asset base.
Please remember that it is far more important to protect what you have than to stretch to grow it. In these tumultuous times, most people will become very poor, very quickly. While this does perhaps present opportunities to grow your assets substantially (particularly in nominal terms), there will be many who have a good sense about what is going to happen, but still end up destitute because they became too aggressive in a volatile environment. Be careful and remember to focus on preserving assets first and foremost!
This is Part 1 in the series Economic Depression. To continue with this series, click on Pt 2.