The government shutdown experienced under the presidency of Donald J. Trump could lead to a possible financial and economic collapse if no resolution could be made as soon as possible.
The U.S. Money Reserve, which is a partner of the United States government when it comes to the distribution of special edition coins, bullions, and metal products, warned that conflicts within the administration could lead to the uncontrollable rise in interest rates. Learn more about US Money Reserve: http://www.manta.com/c/mml8pv9/u-s-money-reserve-in and https://www.glassdoor.com/Reviews/U-S-Money-Reserve-Reviews-E784519.htm
Presently, the interest rates in the United States are controlled by the Federal Reserve. However, there is a present turmoil between the President of the United States and the head of the Federal Reserve, and any standoff could result in a widespread economic disaster.
The uncertainty of the situation had a positive effect on gold though, as it rose in value which sends a harrowing message to those who have other investment options – they should prepare for the worst. The U.S. dollar is also performing badly these days, and other countries have opted to leave the dollar for another currency, especially when trading in oil.
The U.S. Reserve pointed out that the root problem in the Federal Reserve would be the normalization of national interest rates. This issue was exposed by Republican Phil Gramm of Texas, who stated that the Federal Reserve has been reducing the number of securities that the institution owns, and with the continued normalization of interest rates in the country, their balance sheet might end up in a catastrophic manner, and it will affect businesses big time.
The Federal Reserve was even scolded by the President because they are not doing anything to avoid the issue from worsening. Similar scenarios have taken place in the past, and the effects were devastating to the population.
The worst case scenario wherein the government no longer has any control of how interests in the country are to be set is what President Donald Trump tries to avoid. He wanted to work with the Federal Reserve and introduce new ways on how they can deal with the problem.
The U.S. Reserve stated that the problem between the Federal Reserve and the American government could have a negative effect on the financial and business sector, and the two parties must agree to a resolution that would prevent any global crisis from happening.
The U.S. Reserve continues to serve as the government’s primary distributor of limited-edition coins and other similar products.