It is official. In the United States, the yield curve has inverted. The 90-day T-Bill interest rate is now higher than the 30-year T-Bond rate, barely. And so we now have an inverted yield curve, which is an excellent

sign that we look to to predict a future and coming recession.

So today on Radical Personal Finance, I think it's timely that I talk to you about how to prepare

for the coming recession. in. Welcome to Radical Personal Finance, a show dedicated to providing you with the knowledge,

skills, insight and encouragement you need to live a rich and meaningful life now

while building a plan for financial freedom in 10 years or less. Today on the show

we're going to talk about avoiding catastrophe because I'm going to talk to

you about avoiding the catastrophic or

potentially catastrophic effects of a recession on your financial life. I'm going to give

you the strategies, the steps, and the actions that you need to take to prepare

now.

If you are not familiar with the concept of the inverted yield curve,

it has been in the past decades one of the

more reliable indicators of recession and the most important thing is when the 90-day

T-built rate rises above the 30-year Treasury bond rate.

So once you'd imagine what that means, that means that if you give money to the United States

government, you are promised a lower rate of return if you give that to the government for 30 years

than if you give it to the government for 90 days. That violates all of the normal expectations about investing.

You say, well, I'll give you my money, but pay me 2% for 90 days, but pay me 6% for 30 years.

Well, when that gets out of whack, and you have people saying, pay me 2%% for 90 days but pay me 1.5% for 30 years.

It signals that people are more interested in the return of their money and safety than the return on their money. And this particular inverted

yield curve has historically, fairly predictably been a signal of coming recession. Now it's not exclusive, there's no guarantee. I always try to keep in

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