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.