What can we do in the current economic situation which is, to say, very bad?

The fundamental indicators in my brain tell me that the economy is going down, but is it the case?

The Current situation

We seem to be in a situation where the entire world economy will depend upon the U.S. Economy again. As seen in the current political case between China and the U.S. and between Japan and Korea, international cooperation has deteriorated. Those things are usually strongly negative signs regarding the probability of coming depression. 

In 1929 due to the devastation of the First World War, almost the entire economy had to ask for financial help from the U.S. economy. In that era, the U.S. was the only substantial economic existence that could afford to help other countries. European countries were filled with debts from U.S. investors and the government. Amid that situation, European countries implied that without Germany’s paying Compensation stated in the Treaty of Versailles, European countries also do not pay back to the U.S. The fear and the anger of American citizens and investors came from the statement or attitudes that hindered international cooperation, which can be to blame for the lengthened period of the Great Depression in 1929 and possibly the cause of the disaster. Meanwhile, the U.S. financial system crashed in 1929, and the entire economy, which depended upon the U.S. financial market, also was devastated by the incident. 

Another example easily can be seen in financial history. In 2008, the world economy fully trusted the American housing market and invested in almost everything. The housing market crashed, and this affected the entire global market.

What can we hope for?

If there is any chance to turn the situation into a positive one, what would it be?

We can hope that the governments and the central banks will keep the economy rolling until the real economy comes up with the current bubble economy. There are inevitable and necessary demands for green technology, which is essential for humans to survive as a species on the earth for a more extended period.

However, I could say that it is easier to build the “green economy” by eliminating inefficient sectors and corporations from the economy by having an economic recession and rebuilding the economy with the ideas based on green technology.  

To return to the main topic, what should we do in the current situation?

We assume that the recession is inevitable, and there might be a bubble before experiencing an actual recession. If the assumption is valid, it is rational to buy Yen and Gold and sell short on indices or ETFs such as Nikkei 225 and S&P 500. I confirmed that Gold is no longer the best option because the prices of Gold have gone too high already. Buying Yen would be the best option I can consider.

Although I believe the contents of this article are accurate, it does not mean that I suggest that you should buy the things above. Nobody forces you to do some specific investment movement. Do anything at your own risk. Thank you very much.