All of a sudden, it seems like the mainstream media just can’t stop talking about “the coming recession”…
All of a sudden, it seems like the mainstream media just can’t stop talking about “the coming recession”. If you go to Google News and type in the word “recession”, you will literally get dozens of articles from the last couple of days with “recession” in the headline. And of course it is true that there are signs of global economic trouble all around us, and I have been documenting them on my website all throughout 2019. So we don’t want to criticize the mainstream media when they actually decide to tell the truth, because a recession is definitely coming, but could it be possible that there is also a hidden political agenda at work? The economy is generally regarded to be one of the bright spots for President Trump, and political operatives on the left clearly understand that a major economic downturn now would spell almost certain doom for Trump’s chances of winning the 2020 election. And when mainstream reporters talk about the possibility of a recession as we approach the next election, many of them almost seem gleeful as they describe how it could hurt Trump politically. Ultimately, when things start to really get bad it is inevitable that the mainstream media will place the blame directly at the feet of Trump. It is easy to imagine a narrative along the lines of “Trump’s handling of the economy has plunged the nation into a recession” being relentlessly pounded into the heads of American voters over the next year. And if the end result is Trump being voted out of office, more than 90 percent of those that work for the big news companies will be just fine with that.
This week, we have seen an absolute explosion in the number of stories about the possibility of an imminent recession. The following are just a few of the stories I came across while doing research earlier today…
Of course many of these stories were sparked by a major event that we just witnessed on Wall Street. The following comes from Fox Business…
The yield curve is blaring a recession warning.
The spread between the U.S. 2-year and 10-year yields on Wednesday turned negative for the first time since 2007. Such a development has occurred ahead of each and every U.S. recession of the last 50 years, sometimes leading by as much as 24 months.
Yes, it is possible that the yield curve could be wrong this time, but I wouldn’t bet on it.
And the economic news that is coming in from all over the world just continues to confirm that conditions are deteriorating. On Thursday, we learned that U.S. manufacturing has slumped back into contraction territory, and earlier this week we got some really troubling news from Germany and China…
Germany – Europe’s largest economy – reported that its gross domestic product, a measure of an economy’s health, went negative in the second quarter.
In China, the country’s industrial output in July hit a 17-year low, Detrick said. Retail sales and investment in real estate and other fixed assets weakened, an indication the world’s second-biggest economy is feeling pressure.
So it isn’t as if the mainstream media is being dishonest with us in this case. Global economic activity is most definitely slowing down, and many believe that things will get much worse during the second half of this year.
And a global economic slowdown would be terrible news for the Trump campaign, because their entire narrative depends on President Trump making the economy great again. A substantial percentage of American voters are convinced that since he is a billionaire, Trump must really understand the economy very well. And according to a CNN poll from earlier this year, the performance of the economy is one of the main reasons for his current level of support…
Right now, the main reason voters approve of Trump’s job performance is the economy. A CNN poll from late May found that 26% of those who approve of Trump’s job performance said it was mainly because of the economy. That was more than double the next most commonly given answer. Additionally, 8% said jobs/unemployment was the main reason for why they approved of Trump. Among those who disapproved, few said anything related to the economy was the main reason why they disapproved of Trump. For example, only 1% said the Trump tax cuts.
But if the U.S. economy plunges into a painful recession, the game completely changes.
For those on the left that would like to see Trump voted out in 2020, the timing of the next recession will be key. If the next recession doesn’t begin until the second half of 2020, there may not be enough economic pain before November to swing the election in the favor of the Democratic candidate. So what the left really needs is for a recession to begin during the second half of 2019 or the first half of 2020 so that Americans are really suffering by the time election day rolls around.
I know that is a very sick way to think, but these are the sorts of conversations that these people actually have. For example, on his own television show Bill Maher publicly stated that a recession would be “worth it” if Trump is voted out in 2020. As we approach the next election, many on the left will be so desperate to see Trump gone that they will be willing to pay just about any price to see that happen.
And to be honest, the U.S. economy is definitely way overdue for a major downturn, and so it is only prudent to get prepared for rough times ahead. At this point, even USA Today is providing us with “recession survival tips”…
Do you really need that bundle package from your cable provider, or to pay a gardener to mow your lawn every week? Now might be a good time to figure out what’s an essential expense, and what you can let go.
“Review the family budget to see what could be reduced or cut if there was a sudden drop in monthly income,” says Richard Fleming, a certified financial planner based in Colorado Springs, Colorado. “Be prepared to make those reductions (or) cuts as soon as it becomes necessary.”
That is actually really good advice.
Now is a time to cut costs, get out of debt and build up your emergency fund.
The coming year promises to be quite chaotic, and those that hate President Trump are likely to pull out all the stops in an all-out attempt to get him voted out in 2020.