Are we headed for a serious recession?
Warren Buffet has proven to be good at seeing
where we are headed economically before others. It is this ability that has
made him one of the richest people in the world.
He has recently been careful to sell off assets
to prepare for an upcoming deep recession by building up an enormous amount of
liquid funds.
He intends to use these liquid funds when the
recession hits and many possible “deals” appear on the market.
Those of us who do not have the large amounts
of capital that he has at disposal will have to be content with preparing
for an upcoming recession in other ways. Listening to Warren Buffet’s warnings
can be a first step. Buffet believes that the signs speak for themselves.
1)
More and more people are starting to save instead of spend.
2) States are investing in weapons and the military instead of infrastructure.
When Donald Trump creates chaos in the
financial, international, economic system, he is paving the way for the
creation of anxiety and lack of confidence in banks and institutions.
Instability breeds recession.
In China, a property crisis that has been
going on for a few years has increasingly begun to create distrust in both the
Chinese government and its banking system. China's surplus production of goods
(reduced imports to the US) is shaking world markets.
The Russian economy is facing collapse due to the Ukraine war.
Lessons to learn from the 1930s
Very few people have bothered to learn from the 1930s depression about how to survive a recession. Some lessons:
1) Those who had no liquid assets to fall back
on were hit harder.
2) The failure to acquire financial cushions
to fall back on led to runs on the banks when banks restricted cash withdrawals
or simply closed down.
3) When the banking system stopped working,
people turned to barter. Therefore, it is advisable to prepare yourself as much
as possible by ensuring that you have the opportunity to acquire goods that are
desirable for barter.
4) Having only one source of income is risky.
If you have more sources of income, you are less vulnerable. Many people today
are dependent on a single source of income (e.g. wage earners).
5) Those who are thrifty and like to recycle or repair increase their chances of surviving a deep recession.
Todde
Also
check: https://axiom1b.blogspot.com/2025/01/wealth-power-after-reading-book-wealth.html
PS. Already in the 1980s I began to worry about the rapidly growing international "debt mountain" (credit bubble). Even then it turned out that the international banking system's credits to states were growing rapidly. This "bubble" has since expanded enormously.
