U.S. Money Reserve Sees Possibility of Recession, Recommends Gold as a Protection

The American economy has been expanding for nearly a decade, but some financial observers predict that another recession could be on the horizon.

According to the U.S. Money Reserve, a company dedicated to advising Americans on pocketbook issues, too much emphasis has been placed on certain economic indicators and not on others that may be more important. The company also recommends the purchase of gold as a way of preparing for a possible slump.

In a recent report, the U.S. Reserve noted that much attention has been given the unemployment rate, which remains low, and the stock market, which has generally risen in recent years. What has been largely ignored is rising consumer debt, which it said has risen above the levels noted at the beginning of the Great Recession in 2008. It noted that personal debt can generate instability that affects the entire economy.

A second major concern of the company is the current status of American politics. It expressed the belief that extreme partisanship could hamper the ability of the U.S. federal government to properly respond to an economic crisis.

The company further noted that the wrong type of action could actually make things worse. An example of this would be government intervention that merely delays a recession, making the situation more serious when the downturn finally occurs.

The company believes that recessions are essentially natural events that result from a combination of factors. The trouble will often begin with rising wages and a scarcity of labor, which leads to a reduction in hiring. Read more: US Money Reserve | Biz Journals and US Money Reserve | Manta

In response to a slowing economy, the U.S. Federal Reserve will raise interest rates, which can further thwart business activity, eventually leading to a general downturn. In the event of a recession, one item that continues to show stability is gold. In the Great Recession, this precious metal actually became more expensive when prices in other areas of the economy continued to drop.

The U.S. Money Reserve serves as one of the largest distributors of American-produced coins. Headed by a former director of the U.S. Mint, the company has gained a reputation for providing its clients with exceptional levels of service. It offers the type of advice that American consumers need to survive in the modern economic climate.

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