The Next Round of Stimulus Will Shock You: “Prepare For Chaos”

Saturday, June 25, 2016
By Paul Martin

Wealth Research Group
June 24th, 2016

We are living under a fiat currency system. Essentially, currency supply comes into existence as debt or credit that must be repaid. The more our society grows, the more currency we need and the more debt we issue.

This allows for tremendous opportunities, but not for everyone. In fact, the little guy gets the short end of the stick every time.

Economic Cycles

The concept I am about to share with you will impact your decisions going forward. Economies work in cycles, and are affected by two main factors – productivity and debt. When economies are prospering, incomes rise, individuals and businesses borrow in order to enhance their growth, and the currency supply is increased. This, in turn, raises asset prices, creating a “wealth effect” – everything you own is priced higher. Everyone feels great. This is an exciting time for individuals who capitalize on the situation and are able to increase their financial situation and avoid debt. At some point, debt from new loans to buy houses, cars, education, vacations, credit cards, and business loans exceeds the rate of productivity. Debt increases at a faster rate than incomes rise, and the cycle reverses.

The Rest…HERE

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