The Economy is Beyond Saving and Has Already Entered a Recession

 We need to start preparing a large safe vault now. Why? 

The recent stock market crash was just a warning. From now on, we need to be ready with a large safe vault  and a safety net

Get Real With Money 

Why? 

Because a few months from now, when you check your bank account, you'll find that the hard-earned money you've deposited will start decreasing at a rate of 2% each year. 

In other words, if you deposit money in the bank—say you deposit 100 dollars—the bank won't give you any interest; instead, you'll have to pay 2 dollars every year just to have them keep your money safe. This is not an exaggeration because when a country enters a recession, it uses negative interest rates to stimulate the economy. 

Countries like Japan, Denmark, Switzerland, and Sweden have done this before, and now it's America's turn. You might think this is just something happening in the U.S. and doesn't concern you, but the ones who suffer the most are always those who think this way. For example, during the 2008 financial crisis, it was the U.S. that had issues, but the whole world was affected. This time will be no different.

You may have noticed that the stock that has increased the most this year is NVIDIA, and its CEO, Jensen Huang, has been doing one thing every day since August—not running or working out, but selling his company’s stock. 

The management and board members of NVIDIA are also selling their company's stock. If you think you understand AI better than the company's CEO, you'll also notice that the CEOs of other leading companies like Amazon's Jeff Bezos and Facebook's Mark Zuckerberg have been slowly selling off their company's stock as well.

 When you believe you know more about these companies and America than these billionaires, you'll find that Warren Buffett, the stock market legend, recently announced that he has sold 50% of his Apple shares, even though Apple has always been his largest holding. Now, he holds more cash than ever in history and has bought more short-term U.S. Treasuries than even the Federal Reserve. Why? Because the U.S. might already be in a recession.

Two years ago, when the Federal Reserve needed to raise interest rates, they said it was because Americans' salaries were too high. When everyone has too much money, they drive up the prices of goods, leading to inflation in the U.S. So, the Fed could only raise interest rates to make borrowing more expensive for companies, making business difficult, forcing layoffs, and reducing wages, which would then solve the inflation problem. 

This way, ordinary people wouldn't struggle to afford gas for their cars or steaks for their dinners. Now, they are discussing the need for an emergency rate cut. It's no longer a question of whether they will cut rates, but by how much. 

Why? 

Because a country fears high unemployment rates the most. If the unemployment rate is too high, it triggers an economic recession. 

Look at Japan—thirty years have passed, and most people there have given up, stopped getting married, stopped having children, stopped spending, and just stay home watching movies. So, the U.S. has a red line for unemployment—it must not exceed 4.2%. Once it does, the consequences will be uncontrollable, leading to massive layoffs across all companies, even those not planning on layoffs. The unemployment rate will then skyrocket, and the economy will directly enter a recession.

The recently reported unemployment rate suddenly rose to 4.1%. Scary, isn't it? That’s why people on Wall Street are wondering if the U.S. is about to enter a recession, or if it already has. And once a recession hits, even a rate cut won't save the economy. 

Only the Federal Reserve, which has access to the most up-to-date data, knows whether the U.S. has already entered a recession. They are faced with only two options. 

The first option is to believe that the economy is beyond saving and has already entered a recession, so they won't cut rates and might even trigger a global financial crisis—if we're going down, everyone goes down together, right?

The second option, which most people in the market are predicting, is a rate cut in September to save the economy. 

The Federal Reserve has already prepared the language for the rate cut—they’ll say inflation is down and unemployment is severe. Once the U.S. starts cutting rates and printing money, it’s uncertain whether it will save the economy, but inflation will definitely return, and the U.S. dollar will depreciate, meaning it will become less valuable.

So, if like us investors, you've made a decent profit in the U.S. stock market this year and have now exited, holding a large amount of U.S. dollars, I’m telling you that the dollar is about to depreciate and lose value. If the dollar depreciates by 10%, it will offset the 10% profit you made in the stock market. So, what would you do?

 Of course, you would exchange your dollars for other non-dollar safe-haven assets, meaning these assets will be in high demand in the coming months, causing their prices to skyrocket. 

So, if you missed the chance to profit from the U.S. stock market surge and now have some money, whether or not you can take advantage of this wealth migration opportunity will determine whether your money depreciates or multiplies. Smart money won’t wait until the rate cut actually happens to start positioning.