Recession in 2014: “The Government Will Not Be Able to Save the Economy”
December 17th, 2013
Editor’s Note: The following article has been generously contributed by well known contrarian analyst and commentator Gonzalo Lira of the Lira Strategic Planning Group.
Over the years he has put forth some incredibly astute and accurate analysis about economics, market dynamics, the machinations behind the scenes and what to expect from the global economy. As you’ll see below, Gonzalo understands the fundamentals behind what makes global commerce tick and his analysis strongly suggests the onset of a major recession in 2014. It won’t be just another “typical” 18 month cyclical recession such as those we’ve seen in the past. This time around Gonzalo notes that the Federal Reserve and U.S. government are, in essence, out of options, meaning that when the pain hits, there isn’t much with respect to policy making that can be done.
The end result? Expect stock markets to crash, real estate prices to slide, and a self-reinforcing negative feedback loop that will further crush America’s working classes. Moreover, as Gonzalo explains, the price of everything from food to energy will likely rise as a consequence of the Fed’s inflationary monetary policy and investors fleeing to commodities as protection from financial collapse.
Take the time to review this excellent analysis, and put your preparedness initiatives in overdrive – just in case.
What If There’s A Recession in 2014?
By Gonzalo Lira
If policymakers were gunfighters, they’d be out of bullets: They have run out of effective policy tools to improve the economy.
So the question is simple: If there is a recession in 2014, and policymakers are out of bullets, how will it play out across the American economy?