Wealthion: Robert Kiyosaki: Worst Crash of Our Lifetime Ahead
One of the biggest impacts of inflation isn’t just the loss of purchasing power. Rather, it’s the fact that wages are dropping in real terms.
Workers are used to getting an inflation adjustment of a few percent per year. Now, that’s simply lowering the total loss given the high inflation rates now. That means that most workers are falling behind. And since income drives consumption, it’s likely that the economy is in for more pain ahead.
Meanwhile, there are no easy solutions. Politicians may push towards trying to inflate their way out of an economic slowdown, even as inflation remains high. The alternative, letting things crash so they can rebuild from a more solid foundation, seems unthinkable.
Many have stated for years, even decades, that our financial system is overleveraged. Yet it seems to continue to grow. But with markets coming off a strong, long-term bull run and wages now falling, that could change.
It’s likely that many won’t see a further crash. Inflation is at 40-year highs, levels last seen before any of today’s traders may have even been born. And many of today’s traders may have started after the Great Recession, leaving them poorly equipped to deal with an extended market decline.
While it’s possible that another rally could kick off, some of the data indicates that a far worse crash could unfold out of today’s bear market.