{"id":25124,"date":"2018-09-19T11:31:21","date_gmt":"2018-09-19T18:31:21","guid":{"rendered":"https:\/\/goldco.com\/?p=25124"},"modified":"2022-02-04T09:24:16","modified_gmt":"2022-02-04T17:24:16","slug":"dont-mistaken-cause-next-crisis","status":"publish","type":"post","link":"https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/","title":{"rendered":"Don\u2019t Be Mistaken About the Cause of the Next Crisis"},"content":{"rendered":"

One thing that\u2019s almost universally true of the financial media is that they are ignorant of economics. Read just about any financial commentator and you\u2019ll find articles chock full of bad economics and debunked fallacies. Whether it\u2019s the \u201cbenefit\u201d of higher government spending contributing to GDP growth, the necessity of the Fed to stimulate demand, or the broken window fallacy<\/a> in the aftermath of natural disasters, you can be almost assured that whatever you\u2019re reading is full of errors. And that naturally also applies when commentators start to expound on economic history.<\/p>\n

While many Americans understand that the financial crisis was caused by the Federal Reserve\u2019s monetary policy that created the housing bubble, many financial commentators don\u2019t. Whether it\u2019s out of ignorance or whether they have an ideological ax to grind, you\u2019ll see a lot of blame for the crisis placed on \u201cderegulation\u201d of the financial sector or on risky lending by banks. Never mind that the banking sector remains one of the most highly regulated in the country, or indeed the world, or that risky lending was only possible because of the massive amount of money the Federal Reserve was pumping into the financial system.<\/p>\n

And so despite the trillions of dollars of new money that the Fed has created since the financial crisis, you can rest assured that the next crisis will not be blamed on the Fed either. The Fed itself, of course, likes to blame market actors for the creation of bubbles, thinking of them as a sort of mass psychosis that has nothing at all to do with the Fed\u2019s monetary creation. And of course the recent pressing issue of a looming escalation of a trade war with China<\/a> will undoubtedly get some blame too. But while those factors may get the blame, they aren\u2019t the actual cause of a crisis.<\/p>\n

American companies and households were never allowed to really recover from the last crisis. Rather than allowing businesses to deleverage themselves, households to pay down debt, and bad debts to be liquidated throughout the financial system, the Federal Reserve insisted on papering over the debt problem. Rather than allowing bad debts to get flushed out of the system, the Fed created more money and drove interest rates down to near zero, incentivizing further debt issuance. It\u2019s no wonder now that American businesses and households are more indebted than they\u2019ve ever been, with debt levels continuing to rise.<\/p>\n

A trade war may help bring some of those issues of indebtedness to light and cause those indebted companies to start to fail, but it won\u2019t be the cause of the next crisis itself. But that won\u2019t mean the trade war won\u2019t get the blame for the crisis. With so many critics of President Trump looking to pin the blame on him, it will be the trade war, or tax cuts, or some other policy of Trump\u2019s that financial commentators will try to blame for the crisis \u2013 anything but the Fed.<\/p>\n

But savvy investors who understand economics and monetary policy know that the Fed is behind the next crisis just as it has been behind every financial crisis over the past century. More importantly, they know that the next crisis is brewing and they can take the right steps now to protect themselves and their assets against a coming stock market crash. That includes investing in gold<\/a> to hedge against inflation and market downturn. Because no matter what the pundits may say, it\u2019s not a trade war or anything else President Trump could do that will cause the next crisis, but rather a decade worth of the Federal Reserve\u2019s unconventional monetary policy.<\/p>\n","protected":false},"excerpt":{"rendered":"

One thing that\u2019s almost universally true of the financial media is that they are ignorant of economics. Read just about any financial commentator and you\u2019ll find articles chock full of bad economics and debunked fallacies. Whether it\u2019s the \u201cbenefit\u201d of higher government spending contributing to GDP growth, the necessity of the Fed to stimulate demand, […]<\/p>\n","protected":false},"author":13,"featured_media":32620,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[207],"tags":[],"class_list":["post-25124","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy"],"acf":[],"yoast_head":"\nDon\u2019t Be Mistaken About the Cause of the Next Crisis – Goldco<\/title>\n<meta name=\"description\" content=\"Savvy investors know that the Fed is behind the next crisis, and know how to protect their assets against the coming market crash.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Don\u2019t Be Mistaken About the Cause of the Next Crisis – Goldco\" \/>\n<meta property=\"og:description\" content=\"Savvy investors know that the Fed is behind the next crisis, and know how to protect their assets against the coming market crash.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/\" \/>\n<meta property=\"og:site_name\" content=\"Goldco\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/goldcopreciousmetals\" \/>\n<meta property=\"article:published_time\" content=\"2018-09-19T18:31:21+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-02-04T17:24:16+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/Stock-Index-855x570-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"855\" \/>\n\t<meta property=\"og:image:height\" content=\"570\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Paul-Martin Foss\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:description\" content=\"Savvy investors know that the Fed is behind the next crisis, and know how to protect their assets against the coming market crash.\" \/>\n<meta name=\"twitter:creator\" content=\"@GoldcoPM\" \/>\n<meta name=\"twitter:site\" content=\"@GoldcoPM\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Paul-Martin Foss\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/\"},\"author\":{\"name\":\"Paul-Martin Foss\",\"@id\":\"https:\/\/goldco.com\/#\/schema\/person\/58e0d6d6a6a1f8500ce9a0d8e83c1ada\"},\"headline\":\"Don\u2019t Be Mistaken About the Cause of the Next Crisis\",\"datePublished\":\"2018-09-19T18:31:21+00:00\",\"dateModified\":\"2022-02-04T17:24:16+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/\"},\"wordCount\":634,\"publisher\":{\"@id\":\"https:\/\/goldco.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/Stock-Index-855x570-1.jpg\",\"articleSection\":[\"Economy\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/\",\"url\":\"https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/\",\"name\":\"Don\u2019t Be Mistaken About the Cause of the Next Crisis – Goldco\",\"isPartOf\":{\"@id\":\"https:\/\/goldco.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/Stock-Index-855x570-1.jpg\",\"datePublished\":\"2018-09-19T18:31:21+00:00\",\"dateModified\":\"2022-02-04T17:24:16+00:00\",\"description\":\"Savvy investors know that the Fed is behind the next crisis, and know how to protect their assets against the coming market crash.\",\"breadcrumb\":{\"@id\":\"https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/#primaryimage\",\"url\":\"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/Stock-Index-855x570-1.jpg\",\"contentUrl\":\"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/Stock-Index-855x570-1.jpg\",\"width\":855,\"height\":570},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/goldco.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Don\u2019t Be Mistaken About the Cause of the Next Crisis\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/goldco.com\/#website\",\"url\":\"https:\/\/goldco.com\/\",\"name\":\"Goldco\",\"description\":\"Top Rated Gold & Silver IRA Company\",\"publisher\":{\"@id\":\"https:\/\/goldco.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/goldco.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/goldco.com\/#organization\",\"name\":\"Goldco Precious Metals\",\"url\":\"https:\/\/goldco.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/goldco.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/goldco.com\/wp-content\/uploads\/2021\/09\/Goldco-Precious-Metals-220.png\",\"contentUrl\":\"https:\/\/goldco.com\/wp-content\/uploads\/2021\/09\/Goldco-Precious-Metals-220.png\",\"width\":220,\"height\":101,\"caption\":\"Goldco Precious Metals\"},\"image\":{\"@id\":\"https:\/\/goldco.com\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/goldcopreciousmetals\",\"https:\/\/x.com\/GoldcoPM\",\"https:\/\/www.instagram.com\/goldcopm\",\"https:\/\/www.linkedin.com\/in\/goldcopreciousmetals\",\"https:\/\/www.pinterest.com\/goldco\/goldco-precious-metals-blog\/\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/goldco.com\/#\/schema\/person\/58e0d6d6a6a1f8500ce9a0d8e83c1ada\",\"name\":\"Paul-Martin Foss\",\"url\":\"https:\/\/goldco.com\/author\/paul-martin-foss\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Don\u2019t Be Mistaken About the Cause of the Next Crisis – Goldco","description":"Savvy investors know that the Fed is behind the next crisis, and know how to protect their assets against the coming market crash.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/","og_locale":"en_US","og_type":"article","og_title":"Don\u2019t Be Mistaken About the Cause of the Next Crisis – Goldco","og_description":"Savvy investors know that the Fed is behind the next crisis, and know how to protect their assets against the coming market crash.","og_url":"https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/","og_site_name":"Goldco","article_publisher":"https:\/\/www.facebook.com\/goldcopreciousmetals","article_published_time":"2018-09-19T18:31:21+00:00","article_modified_time":"2022-02-04T17:24:16+00:00","og_image":[{"width":855,"height":570,"url":"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/Stock-Index-855x570-1.jpg","type":"image\/jpeg"}],"author":"Paul-Martin Foss","twitter_card":"summary_large_image","twitter_description":"Savvy investors know that the Fed is behind the next crisis, and know how to protect their assets against the coming market crash.","twitter_creator":"@GoldcoPM","twitter_site":"@GoldcoPM","twitter_misc":{"Written by":"Paul-Martin Foss","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/#article","isPartOf":{"@id":"https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/"},"author":{"name":"Paul-Martin Foss","@id":"https:\/\/goldco.com\/#\/schema\/person\/58e0d6d6a6a1f8500ce9a0d8e83c1ada"},"headline":"Don\u2019t Be Mistaken About the Cause of the Next Crisis","datePublished":"2018-09-19T18:31:21+00:00","dateModified":"2022-02-04T17:24:16+00:00","mainEntityOfPage":{"@id":"https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/"},"wordCount":634,"publisher":{"@id":"https:\/\/goldco.com\/#organization"},"image":{"@id":"https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/#primaryimage"},"thumbnailUrl":"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/Stock-Index-855x570-1.jpg","articleSection":["Economy"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/","url":"https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/","name":"Don\u2019t Be Mistaken About the Cause of the Next Crisis – Goldco","isPartOf":{"@id":"https:\/\/goldco.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/#primaryimage"},"image":{"@id":"https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/#primaryimage"},"thumbnailUrl":"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/Stock-Index-855x570-1.jpg","datePublished":"2018-09-19T18:31:21+00:00","dateModified":"2022-02-04T17:24:16+00:00","description":"Savvy investors know that the Fed is behind the next crisis, and know how to protect their assets against the coming market crash.","breadcrumb":{"@id":"https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/#primaryimage","url":"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/Stock-Index-855x570-1.jpg","contentUrl":"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/Stock-Index-855x570-1.jpg","width":855,"height":570},{"@type":"BreadcrumbList","@id":"https:\/\/goldco.com\/dont-mistaken-cause-next-crisis\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/goldco.com\/"},{"@type":"ListItem","position":2,"name":"Don\u2019t Be Mistaken About the Cause of the Next Crisis"}]},{"@type":"WebSite","@id":"https:\/\/goldco.com\/#website","url":"https:\/\/goldco.com\/","name":"Goldco","description":"Top Rated Gold & Silver IRA Company","publisher":{"@id":"https:\/\/goldco.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/goldco.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/goldco.com\/#organization","name":"Goldco Precious Metals","url":"https:\/\/goldco.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/goldco.com\/#\/schema\/logo\/image\/","url":"https:\/\/goldco.com\/wp-content\/uploads\/2021\/09\/Goldco-Precious-Metals-220.png","contentUrl":"https:\/\/goldco.com\/wp-content\/uploads\/2021\/09\/Goldco-Precious-Metals-220.png","width":220,"height":101,"caption":"Goldco Precious Metals"},"image":{"@id":"https:\/\/goldco.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/goldcopreciousmetals","https:\/\/x.com\/GoldcoPM","https:\/\/www.instagram.com\/goldcopm","https:\/\/www.linkedin.com\/in\/goldcopreciousmetals","https:\/\/www.pinterest.com\/goldco\/goldco-precious-metals-blog\/"]},{"@type":"Person","@id":"https:\/\/goldco.com\/#\/schema\/person\/58e0d6d6a6a1f8500ce9a0d8e83c1ada","name":"Paul-Martin Foss","url":"https:\/\/goldco.com\/author\/paul-martin-foss\/"}]}},"_links":{"self":[{"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/posts\/25124","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/comments?post=25124"}],"version-history":[{"count":0,"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/posts\/25124\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/media\/32620"}],"wp:attachment":[{"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/media?parent=25124"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/categories?post=25124"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goldco.com\/wp-json\/wp\/v2\/tags?post=25124"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}