Even If Trump Wins, We’re Not Out of the Woods

Donald Trump being sworn in

After last week’s first Presidential debate, the universal consensus seems to be that President Biden’s mental faculties are in serious decline. And even committed Democrats seem to think that Biden’s poor performance will cost him the election.

Of course, there’s still a lot of time between now and November. And American voters have notoriously short memories, so last week’s debate may be long forgotten by then.

But Biden could come under a microscope in the coming months, with every gaffe and every mental blunder demonstrating what most of us knew years ago, that Biden is probably not mentally fit to be President.

Many pundits have expressed the belief that the election is now Trump’s to lose. After four miserable years under Biden, with high inflation and a lackluster economy, Trump certainly seems poised to win.

Trump’s lead in the polls has many Trump supporters believing that victory is all but certain. And once that victory comes, they think Trump will make everything right with the economy, so until then there’s no need to prepare for the worst.

That’s wishful thinking, driven by the need many Americans have for a political messiah to set things right. But here’s why, even if Trump wins, the US economy won’t be out of the danger zone.

The Good Things About a Trump Win

But first let’s look at the positives about a Trump win, which could be many.

Among the major benefits is that Trump would be expected to renew the “Trump tax cuts” he signed into law during his first term. They’re set to expire next year, which would raise taxes considerably for most Americans.

Then there’s the fact that we would expect Trump not to try to raise taxes on businesses and individuals, unlike the Biden administration which has floated significant tax increases and even concerning proposals such as taxes on unrealized capital gains.

But while low taxes may be great for taxpayers, that’s only one small facet of the economy. And while lower taxes may stimulate spending or investment by individuals, and businesses, there are other factors at play here.

What Trump Faces

The biggest problem Trump would face in his second term would be the ongoing impact of the federal government’s 2020 fiscal stimulus. The Federal Reserve’s enabling of that stimulus through adding over $3 trillion to its balance sheet was what caused the inflation we have experienced over the past several years.

That inflation hasn’t disappeared, as the amount of money created and pushed into the financial system was so massive that we’re still feeling its effects. And once the economy falls into recession, the Fed’s response to that, through rate cuts and quantitative easing, could cause inflation to rise once again.

The important thing to remember is that there is nothing that President Trump can do to prevent the next recession from occurring. It will be the result of the 16+ years of loose monetary policy in the aftermath of the 2008 financial crisis.

Trillions of dollars were added to the financial system in the aftermath of the 2008 financial crisis, and even more was added in 2020. This tsunami of money creation, along with over a decade of near-zero interest rates, makes the pre-2008 “too low for too long” monetary policy of the late Greenspan era look like nothing.

The sheer size of what the Fed has done since 2008 has completely distorted the US economy, and the end result could make the 2008 recession look like a mild one once all is said and done.

Those chickens are now coming home to roost. And while we can’t put off the recession forever, we can take steps to mitigate its impact on our finances.

How to Prepare and Protect Yourself With Gold and Silver

A great many Trump supporters think that when President Trump takes office, the economy will miraculously turn around due to his policies. But they fail to understand just how the Fed’s monetary policy actions cause recessions.

Many of these people are so certain in their beliefs that Trump will save them that they’re not doing anything to prepare themselves against the coming recession. They’re sitting on their hands, perfectly content to do nothing but wait for Trump to win and fix the economy.

Of course, there are two big problems here. The first is that Trump might still not win.

The second is that, even if Trump wins, he still has to contend with the likelihood of recession, which is not something that his policies will be able to counteract.

There are many things to like about a potential Trump win, and a Trump win would very likely be better for the economy in the long run than a Biden win. But in the short term, there’s that risk of recession that has to be addressed, and doing nothing to protect yourself against that is fraught with risk.

Many people have already started to try to protect themselves and their financial well-being with precious metals like gold and silver. Gold and silver have well-earned reputations as safe haven financial assets, stores of value, and inflation hedges.

During the aftermath of the 2008 financial crisis, gold nearly tripled in value by 2011 while silver more than quintupled. Many people expect gold and silver to do the same if the next recession is anywhere near as serious as 2008 was.

And if the next recession is as serious as 2008, we can expect markets to drop by 50% or more just like they did back then. After all, the short but sharp 2020 recession saw 35% losses, so losses of 50% or more for a full-fledged recession or financial crisis could even be conservative.

Are you going to sit idly by and watch your hard-earned savings lose 50% or more? Or will you take steps today to protect the money you’ve worked so hard to save and invest, trying to minimize your potential losses?

If you have tax-advantaged savings in IRA, 401(k), or similar accounts, you can protect those assets with gold and silver too. A tax-free rollover from a 401(k), 403(b), TSP, IRA, or similar account to a gold IRA or silver IRA can allow you to use those assets to purchase physical gold and silver coins while still enjoying the benefits of a tax-advantaged IRA account.

If you have cash or cash-like assets, direct cash purchases of gold and silver coins are an option too. These can be shipped right to your door.

No matter how much gold or silver you want to buy, Goldco has options available to you. We work directly with mints around the world to source gold and silver coins directly from the mints that produce them, ensuring that the gold and silver you buy from us is 100% authentic.

With over 6,000 5-star reviews from our customers and over $2.5 billion in precious metals placements, Goldco has built up a reputation as one of the best and most trusted gold companies in the country.

We work hard to ensure that Americans from all walks of life have the ability to benefit from owning gold and silver.

If you’re looking to protect your financial well-being with precious metals, call Goldco today to learn more about the gold and silver options available to you.

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