The Recession is Robbing You | The Gold Standard 2305

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We examine how recessions rob us of our spending power and wealth.

What is a recession? A recession is a term that refers to a period of economic decline characterized by a decrease in the gross domestic product (GDP), rising unemployment, and reduced spending power. During a recession, people’s wealth is often negatively impacted, leading to decreased purchasing power and an overall decline in the standard of living.

The recession robs individuals of their spending power as their income and savings are reduced, and their investments and assets’ value declines. Losing spending power can have far-reaching consequences. People are forced to cut back on spending and may struggle to pay for essential expenses such as housing, food, and healthcare. Individuals, families, and communities can feel the effects of a recession for years after it has ended.

Are We in a Recession? The textbook definition of a recession includes several critical indicators used to determine if an economy is in a recession. How many of them strike a familiar chord?

Gross Domestic Product
A decrease in the GDP over two consecutive quarters is a sign of a recession.

Unemployment
An increase in the unemployment rate and a decrease in the number of new jobs created are often considered indicators of a recession. Since the start of the year, the tech sector has laid off 76,000 employees, about 2,500 workers per day. Those layoffs have expanded now to include media, retail, and financial companies.

Industrial Production
A decrease in industrial production, such as goods, services, and construction, indicates economic weakness and can mean a recession.

Retail Sales
A decline in retail sales can indicate a decrease in consumer spending and a sign of a potential recession.

Stock Market Performance
A sustained decline in the stock market can indicate investor fear and uncertainty about the economy, which may signify a recession.

Remember that a recession is not officially declared until well after economic decline has started. It takes time to determine a recession because data becomes available slowly and is often revised.

The Printing of Trillions of Dollars
The phenomenon of printing money and its impact on the currency’s value has been a concern for economists and governments for many years. The US dollar, as a reserve currency, is used worldwide, and the Federal Reserve is responsible for printing the currency. However, the excessive printing of money can lead to inflation, eroding the dollar’s value.

The Government Rips Us Off Through Inflation
Inflation can significantly impact an individual’s purchasing power as prices for goods and services rise over time. Each year, the same amount of money buys less and less.

Devaluing Our Dollar
The supply and demand for US currency in the global market determines its value. When the supply of fiat paper money exceeds the demand, its value tends to decrease. Devaluation has happened with the US dollar over time, as the Federal Reserve insists on printing money. As a result, the dollar’s value has declined relative to other currencies and assets, such as gold and silver, which hedge against inflation and currency devaluation.

Taxes
Income taxes are a significant source of revenue for governments, and their collection has become increasingly important over the years. In the past, income taxes were not widespread, but today, they are a significant component of government revenue. However, collecting income taxes also means that individuals lose a portion of their hard-earned money to the government.

Economic turmoil, like a recession, negatively impacts people’s wealth and leads to decreased purchasing power and erosion of savings and investments. To protect their wealth, many diversify their portfolios by investing in tangible assets such as gold and silver. These precious metals have historically held their value over time.

The Gold Vienna Philharmonic is one of the most successful investment bullion coins on the European and Japanese markets. The Austrian Gold Philharmonic is a bullion coin that was first minted in 1989 by the Austrian Mint (Münze Österreich). The coin is made of .9999 fine gold and is available in various. The obverse shows the Vienna Philharmonic Orchestra’s famous concert hall, the Musikverein. Various musical instruments, including a cello, harp, and Vienna horn are on the reverse.

One of the reasons for the popularity of the Gold Philharmonic is its 24-karat gold content. Additionally, the coin’s design is intricate and detailed, which makes it a popular choice among those who appreciate the beauty of precious metals bullion coins. The Austrian Mint is known for its strict quality control standards, which add to the coin’s excellent reputation.
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