The Agonizing Financial Pandemic of 2020

The Financial Pandemic of 2020
                                                 The Financial Pandemic of 2020

          There is no doubt in my mind that life will never be the same for this generation living through the Coronavirus / Covid-19 Pandemic. Life will go on, but the memory and fear of recurrences will remain for a long time to come. Many lives have been lost and irreversible emotional stress has been seared into our unconscious souls. Unfortunately, I believe society is not prepared for what is to come once the Coronavirus pandemic subsides and the financial pandemic of 2020 takes its place.

            I suspect the Federal Government has done all that it can to prop up the economy during the pandemic crisis by using  the Federal Reserve’s Quantitative Easing (QE) measure and issuance of stimulus checks to the population. In addition to these aggressive measures, the Federal Reserve is promising to purchase corporate debt and has removed all limitation on the amount of United States currency to be created. With unemployment steadily rising past 6,000,000 people and the workforce unable to return to work makes the future appear to be quite bleak.

            The decisions made by President Donald Trump and Congress were designed to keep the economy afloat while the financial pandemic of 2020 passes. The damage to the economy will still exist with record unemployment not seen since the Great Depression. The Stimulus Bill was said to be $2 Trillion, but I believe the cost will be way more in the long run. I don’t fault them for these decisions because the other choice would definitely cast the nation and world into a second Great Depression.

            The Federal Reserve Quantitative Easing will surely cause inflation, which will hurt the economy due to the dollars loss of value. The Federal Reserve is currently offering 0.00% to 0.25% interest rates with nowhere left to go other than negative rates. Negative Rates will be free money for whomever has the credit and or collateral to borrow against the Federal Reserve. And with all this doom gloom, I haven’t even gotten into the potential mortgage industry collapse due to the 0% interest rates offered by the Federal Reserve.  Only time will tell if this will come into fruition.

Example of Inflation
                  Scary Example of Inflation

            This may keep banks and big businesses a float, but there is a price to pay. The silent killer is inflation. I believe that inflation will skyrocket once the pandemic is over and millions will be left unemployed with unimaginable inflation concerns. Not only will they be left with no money coming from stable employment, but the money they did manage to save will lose its value right before their eyes.

            While the future does appear to be dim, the pandemic of 2020 will pass and the sun will shine once again.  The sun will shine for those that made the correct financial decisions in the past and in the present. Unfortunately,  majority of  society are still going about their lives without the realization of the dire situation that our financial system is plagued with. 

       If you were living check to check or were overly reliant on credit to survive in the pre Coronavirus economy, you may want to reevaluate your current financial situation. Having a respectable savings account is key when approaching a traditional recession much less depression of epic proportions. Investments in alternative forms of currencies like gold, silver, Bitcoin, and other cryptocurrencies  will be essential to hedge against the future down turn of the U.S. dollar. Owning stocks may also be helpful, but expect to sell them for a loss if you are not able to wait until an uptrend. 

       No one can predict the future, so no one knows when the Coronavirus pandemic will end and the financial pandemic of 2020 will begin. But one thing is for sure, it’s coming with vengeance for those poor unsuspecting souls.   

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The Financial Pandemic of 2020

 

Coronavirus/Covid-19 Pandemic Has Opened Our Eyes Forever

Coronavirus/Covid 19 Pandemic
Coronavirus/Covid 19 Pandemic

                The Coronavirus/Covid-19 Pandemic has changed all our lives for the worst with no immediate resolution in sight. I have been bombarded with news updates, social media drama, and just typical hysteria surrounding the recent viral outbreak.  The government has instructed the public to quarantine themselves, which has been disregarded by the masses until it affects their personal little space bubble.

                People have forgotten about past pandemics and what toll they had taken on society psychically and economically. The Spanish Flu pandemic gave us a set road map to follow and we as a people continue to make the same exact mistakes that were made 100 years ago. The government knows what needs to be done, but they cannot force the citizens to comply without martial law. Unfortunately, martial law is the exact opposite of our great democracy so the government will only use this measure as a last resort which will resort in more lives being lost to the Coronavirus/Covid-19.

                The economic ramifications have just begun with millions of people unable to work because businesses have been forced to shutter their doors to curve the pandemic around the world. With medical and food shortages potentially looming on the horizon is there anything positive about these events?

                I believe that the Coronavirus/Covid-19 Pandemic will require every single person in this world to reassess their lives and behaviors moving forward. Humanity has become too dependent upon technology and mass production to solve the woes of our lives. The Coronavirus has proven that our mentality of immediate gratification does not always come into fruition due to the simple limitations of science and man. Our expectation of the government being able to step in and fix any occurrence immediately does not exist and our comfortable little lives can change overnight.

                The reliance on super grocery store chains and mass produced items has weakened our society almost to the breaking point. We now realize that dependence on foreign manufacturers is to our detriment and the behavior must be curtailed. People will support manufacturers from their country and the governments will be more determined to keep businesses from venturing abroad for cheaper labor.

                With schools being closed with no idea of when they will be given the all clear to reopen their doors, families have been forced to hunker down in their home. Most traditional families in the United States of America require two incomes to keep up with the American Dream lifestyle. This has turned into a nightmare and a blessing for many parents. With young children at home all day, they have been forced to spend an abundance of quality time with their children. This is also a curse because once the Coronavirus/Covid-19 Pandemic loses its grip on our society; a monumental recession will set in and bills still need to be paid.             

                So, where does this leave us as a society today? It leaves us with the realization of what if. What if there is no more toilet paper? What if I can’t get meat at a grocery store? What if there is no milk to be found? What if there is a gas shortage? What if the hospitals become overwhelmed? What if there is martial law? And the list goes on endlessly within our imaginations.

                A lot of these what if questions can be answered by yourself along with the necessary preparation for the particular scenario. The word pantry was a thing of the past, but I strongly suspect that it will make a major comeback. We as a society have been reminded that we cannot always expect there to be abundance and we should be prepared. Fortunately, the Coronavirus/Covid-19 Pandemic has opened our eyes before it’s too late.

Here are some reliable links concerning the current Coronavirus/Covid-19 Pandemic:

Center for Disease Control (CDC)

World Health Organization

FEMA/ Department of Homeland Security

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