Ray Dalio, the hedge fund founder of the $150 billion Bridgewater Associates says that he sees a “significant risk” of an economic recession occurring in 2020. Dalio also says that when the next recession hits, the Federal Reserve and the ruling class will be powerless to stop it.
“Where we are in the later [economic] cycle and the inability of central banks to ease as much, that’s the cauldron that will define 2019 and 2020,” said Dalio, co-CIO, and co-chairman of Bridgewater Associates. Bond yields are signaling the Federal Reserve should not increase interest rates anymore, Dalio added in the interview at the World Economic Forum in Davos, Switzerland. “If it rises faster than that, I think we’re going to have another problem.”
The Fed, after its fourth interest hike of 2018 in December, had signaled two more rate increases for 2019. However, Fed Chairman Jerome Powell earlier this month said central bankers will be “patient” given continued muted inflation. “I think there is the possibility that you extend the equilibrium in a certain way where you have an easier monetary policy … and you grow in a fairly slower way and that you don’t have a classic recession for a while,” Dalio said. That means that the recession could be pushed back if the Fed decides to lay off of more interest rate hikes in the near future.
CNBC reported that Dalio said earlier Tuesday during a Davos panel discussion that “the next downturn in the economy worries me the most.” He also said he’s concerned about “greater political and social antagonism” around the globe.
If a recession hits in 2020. that gives all a fair amount of warning. The time to get your finances prepared for the economy taking a turn from the worse is now. If you would like to prepare for an economic recession, one that experts agree will be worse than the 2008 Great Recession, the best thing you can do is dramatically pay down your debts and save money.
Turing a catastrophe, such as a recession, into an inconvenience is simply a matter of having a prepper’s mindset as opposed to a victim mindset. If you’re having trouble beginning, consider reading The Prepper’s Blueprint by Tess Pennington. It’s an expertly written book laying out an easy to follow guide to help get you through any disaster.
I doubt that people with a good supply of metals and debt free will be hurt much. However it is a good opportunity to pick up some toys at firesale prices! If you plan accordingly you can do very well.
Make sure you have one of these posted too! Funny shit lol!
I like this one too.
No Trespass signs work. The sign is the intruders first warning, the 2nd warning is a gun blasting sound a quarter second after the Head pink splat sound.
Hey my old house in Tampa dropped 4.4% in the last month alone. A $12K hit… Real Estate is Crashing Bigtime. Almost back to the price I sold it at nearly 4 years ago. Yikes.. Anybody with a brain refi’ed in the last few years. No Mortgage here all paid for, off the Grid and luvin it. No Electric power bills in the last 4 Years.. Do the math on that.
The opposite is happening here. Prices going up and building houses like no tomorrow. I’m expecting yet another property tax increase grrrr. Damn cali refugees! Our power bill is only about 40 bucks a month (have a small grid tie system). Of course the cabin is offgrid so no bills at all. I could make my power bill 0 but I would have to get permits etc. Never had a mortgage, paid cash for this place and the cabin.
In 2016 it was reported that we were going to have a recession in 2017. In 2017 the recession was moved to 2018. In 2018 we were DEFINITELY gonna have a recession in 2019. Now it’s been moved AGAIN to 2020!! I’ve known weathermen who were more accurate with their forecasts…