The US financial system is on the verge of great peril. The Federal Reserve has a horrible choice to make. They must make a decision between crashing the currency or crashing the market. Neither choice will be pretty.
The first choices to crash the currency. That means printing a massive amount of money. They will literally crash the currency by completely devaluing it. This will result in causing hyperinflation. We haven’t seen this here in the US, but in Third World countries they experience this all the time.
The second option is crashing the market. This is not pretty either. It will mean having to raise interest rates dramatically and we aren’t talking just 50 basis points. The steep rise in increased interest rates will create havoc on the market. Most people today are in the marketplace with retirement plans or pensions.
There is a true potential that many big companies will die off in the years to follow. The US and the Federal Reserve have allowed many big companies that should have defaulted years ago to be propped up by crony capitalism. These are called Zombie Companies. A Zombie Company is a company that needs bailouts from the political economy in order to operate, or an indebted company that is able to repay the interest on its debts but not repay the principal.
These are companies that should have ceased to operate years ago. The US keeps bailing them out though. The truth is by crashing the market this could result in these companies going belly up. This might sound like a good option to some because these companies should have defaulted years ago, but the problem is now with so many people in the market through financial and retirement planning or with pensions this could cause a lot of chaos to peoples financial well-being.
There is a major shock coming. I’m calling it the financial pandemic. You will see if you watch the news that Covid cases are on the rise again. I think the real threat against people is the financial pandemic.
The financial pandemic is the possible self destruction of the US financial system. The federal reserve is run by financial academics with very little real world experience. They have convinced themselves over the years that there are no consequences to their monetary policies. The truth is about ready to catch up with them. They are at the brink of disaster.
Both option hurt people. What will they decide to do? I wish I had a crystal ball. What I do know is they can’t solve the problem.
The problem is they have created a house of cards that aren’t sustainable. This house of cards is the US financial system. We have to be prepared for the worse in the weeks, months, and years to come. I’m preparing now and I urge you to do the same. You can make choices now to opt out of the system. That’s exactly what we are doing here at Explore Financial Freedom.
Reach out to us today to learn more.
Sincerely,
Adam Fischer, Founder
Explore Financial Freedom