The United Nations has recently sent a representative to investigate poverty in America. The Trump administration pulled out of the United Nations Human Rights Council after hearing about this investigation. And the investigation turned up some incredibly alarming results. As it turns out, America is in dire straits when it comes to the lowest level of our socioeconomic strata.
A large swath of the American population is not even able to withstand a $400 crisis. A broken leg or car could put a family into bankruptcy. The statistics are startling. More than 23% of Americans have no money available in their bank accounts. More than 22% of American families do not have enough savings to cover three months worth of expenses. And 71% of Americans can’t cover six months of expenses.
Stansberry Research shows that the money moving around the economy will slow to a crawl because the Federal Reserve has begun raising rates and repealing the 2008 stimulus programs. Credit is becoming more difficult to get so families have begun tightening their budgets. That means less spending at the middle and lower class levels which will absolutely stagnate the economy.
I love reading these Stansberry Research articles. They see things that I simply can’t see and they always get me thinking about my next financial move. This company performs all sorts of research on money movement, the stock market and the economy. You can read some of their articles for free. You also have the choice of paying for their more in-depth analysis.
I’ve begun to make different investment decisions after reading the Stansberry Research article about the stagnation of the economy. I’m now watching the Federal Reserve closely as they begin to play around with interest rates while repealing any stimulus. I now know that the next economic downturn is inevitable and will be a bad one.
This can only end poorly with so much wealth concentrated at the top. No amount of stimulus will shock the economy back to life when there is no money in the middle and lower classes. And there can be no spending as credit tightens, according to Stansberry Research.