this is my life philosophy
Stagflation should also worry you. This is when you have inflation and either a recession (a decline in economic growth) or slow economic growth. In this situation, your prices continue to increase, but your money buys less. These are extremely difficult to fix. Basically everything that fixes inflation, makes the recession worse. The stuff that’s supposed to fix recession makes the inflation worse. If you’re in this situation, going rogue is suggested. At least then you can pick what currency you’re paid in.
Principle Four - Depressions: Depression is a less news-friendly word for recession. There isn’t a formal definition. The only thing anyone can agree on about depressions is that they are severe recessions and the definition of severe varies widely. The only thing anyone agrees on is that the Gross Domestic Product (Basic formula: consumption + investments + government spending + exports - imports) decreases at least ten percent during a depression.
Basic Recipe for Depression:
- Get everyone to stop spending their money and withdraw their money from the banks and stock markets.
- Take money and stuff under the mattress (preferably where I can find it)
- Cut the government’s budget
- Import more than you export
Keep in mind that any combination of the above steps can cause Depression.