It will not take long under this scenario, for the economy to crash hard and fast.
On one hand, we have all these “underemployed” making substandard wages with no chance for a raise and few benefits, unable to save for bad times. (And probably don’t during good times either.)
As inflation kicks in, (A guarantee) energy costs double, food and cost of living doubles, small employers have to start laying off to pay the higher cost to operate a business. Many business will just close or go bankrupt.
Consumer spending really tanks rapidly this time. Record numbers of people will become unemployed, Government now is paying double for Food Stamps, the Unemployed get their full 98 week draw all over again, government operating costs will double, the National Debt will go over 20 Trillion.
The idiots at the Fed and the Treasury Dept. will keep on printing worthless cash and buying it’s own debt. (Loaning money to itself) The right pocket (The Treasury) owes the left pocket (The Federal Reserve) 5 trillion Dollars, so the right pocket prints another 5 Trillion in cash to pay back the money it owes the Left pocket.
All of this is because they no longer can or will borrow from other countries. The result will be even more runaway inflation. Or better said, Hyper inflation.
Thanks to this incompetent and dangerous combination of idiots now in charge of our economy, there is no longer such a thing as a “recovery”! But even worse, very few people know or care about just how much trouble we are actually in!