{"id":45033,"date":"2019-04-04T11:21:29","date_gmt":"2019-04-04T16:21:29","guid":{"rendered":"https:\/\/olduvai.ca\/?p=45033"},"modified":"2019-04-04T11:21:54","modified_gmt":"2019-04-04T16:21:54","slug":"one-reason-you-might-have-some-time-to-prepare-for-the-next-economic-recession","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=45033","title":{"rendered":"One Reason You Might Have Some Time To Prepare For The Next Economic Recession"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"http:\/\/www.shtfplan.com\/headline-news\/one-reason-you-might-have-some-time-to-prepare-for-the-next-economic-recession_04042019\">One Reason You Might Have Some Time To Prepare For The Next Economic Recession<\/a><\/h3>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" src=\"http:\/\/shtfplan.com\/wp-content\/uploads\/2018\/09\/federal-reserve-trade-war.png\" alt=\"\" class=\"wp-image-61690\"\/><\/figure><\/div>\n\n\n\n<p>There\u2019s is one big reason why the U.S. will go into another recession eventually, but it\u2019s the same reason you will have some time to prepare for it as well. Making money more expensive to borrow will lead to a recession, but the Federal Reserve isn\u2019t raising rates.<\/p>\n\n\n\n<p>That\u2019s great news, but far too many Americans have already overspent and are in massive amounts of debts.<a href=\"http:\/\/www.shtfplan.com\/headline-news\/debt-crisis-alarm-bells-are-going-off-as-americans-default-on-student-loans-at-record-levels_02272019\" target=\"_blank\" rel=\"noreferrer noopener\">&nbsp;Student loan debt is dragging down the economy<\/a>&nbsp;and will eventually come to a head, regardless of the interest rates arbitrarily chosen by the central bankers at the Fed.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.marketwatch.com\/story\/this-is-the-real-reason-why-the-us-economy-isnt-in-recession-danger-now-2019-04-01\" target=\"_blank\" rel=\"noreferrer noopener\">But according to&nbsp;<em>Market Watch,<\/em><\/a>&nbsp;the refusal to make money more expensive to borrow also buys the United States time before the next recession. Ed Yardeni opined that the inverted yield curve drove the Fed\u2019s decision to keep interest rates where they are at as opposed to raising them.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>In my recent book,&nbsp;<em><a href=\"https:\/\/www.amazon.com\/dp\/B077VGFZBD\/ref=cm_sw_r_cp_ep_dp_w1IyAb30XKCAR\" target=\"_blank\" rel=\"noreferrer noopener\">Predicting the Markets<\/a><\/em>, I wrote: \u201c<strong>The Yield Curve Model is based on investors\u2019 expectations of how the Fed will respond to inflation.<\/strong>&nbsp;It is more practical for predicting interest rates than is the Inflation Premium Model. It makes sense that the federal funds rate depends mostly on the Fed\u2019s inflation outlook, and that all the other yields to the right of this rate on the yield curve are determined by investors\u2019 expectations for the Fed policy cycle.\u201d \u2013<a href=\"https:\/\/www.marketwatch.com\/story\/this-is-the-real-reason-why-the-us-economy-isnt-in-recession-danger-now-2019-04-01\" target=\"_blank\" rel=\"noreferrer noopener\">Ed Yardeni,&nbsp;<em>Market Watch<\/em><\/a><\/p><\/blockquote>\n\n\n\n<p>Yardeni suggested that after studying the relationship between the yield curve and the monetary, credit, and business cycles, the conclusion is that\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/www.marketwatch.com\/story\/this-time-an-inverted-yield-curve-suggests-the-stock-market-has-already-peaked-some-analysts-say-2019-03-28\" target=\"_blank\">credit crunches, not inverted yield curve, and not aging economic expansions that cause recessions<\/a>.\u00a0The inverted yield curve also has a great track record when it comes to predicting recessions.\u00a0<\/p>\n\n\n\n<p>&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>One Reason You Might Have Some Time To Prepare For The Next Economic Recession There\u2019s is one big reason why the U.S. will go into another recession eventually, but it\u2019s the same reason you will have some time to prepare for it as well. Making money more expensive to borrow will lead to a recession, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[303,534,6490],"class_list":["post-45033","post","type-post","status-publish","format-standard","hentry","category-economics","tag-fed","tag-monetary-policy","tag-shtfplan-com"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45033","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=45033"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45033\/revisions"}],"predecessor-version":[{"id":45034,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45033\/revisions\/45034"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=45033"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=45033"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=45033"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}