Money should be a token to facilitate the exchange of goods and services. What has been happening, however, is that instead of the economy serving the people, the people have been serving the economy. A complete reversal is needed.
Our economy needs to be of service to the people. This is going to take a massive change in thinking.
During these last months of the economic crisis, people were beginning to discover that they could actually survive without buying more stuff.
That’s what we have to do environmentally anyway. So this was a good start. However, governments don’t want us to be self-sufficient, they want us to keep on spending. That’s why in many countries they are offering thousands of dollars for people to trade in their old cars and buy new ones with a subsidy from the government. On September 11th 2001, President Bush asked the American people to go out shopping and spend more money. This has been the root of all our problems. We are living on borrowed money and it cannot continue. Our economic structures are collapsing and the governments are trying desperately to prop them up by pouring more and more taxpayers money into failed corporations.
We need to see this very differently. The recession is the best thing that could happen. We need to reduce our emissions by 80% in the next 30 years and the recession is going to force us to do just that.
Capitalism has to change. Humankind has lived on its income for hundreds and thousands of years e.g. agriculture. We were dependent on what was available at the time. But in the last 25 years, we have been living beyond our means as
we thought we could engineer our way to utopia through having more and more cars, planes, etc. Now it is technological advances that are drawing us more and more into debt. The idea has been that our technology will take us to utopia.
There has been a failure of wisdom in our society. For the last 200 years we have been grossly incompetent. Do you realise that 80% of technology goes into the military to make weapons for killing each other? What if that money was spent on health, education etc?
The structures of our societies in general have been based on a hierarchy e.g. emperors, generals, cardinals, popes etc. This is a primitive state.
Evolution follow 3 stages:
dependence – the lowest stage,
Independence – next stage
Interdependence
Historically, humanity has been dependent on the hierarchy and recently we have been rebelling against that dependence. There has been a decline in the respect for leadership.
Our banks and financial institutions used to be pillars of our society. They were honorable and earned our respect. We used to have 80% respect for those institutions. Now less than 10% respect them and they are on a par with 2nd hand car salespeople and double-glazing salespeople.
This hierarchy needs to be replaced by self-responsibility. But when you take the authority away (even if it was benevolent or malevolent) – there was a certain order produced by the authority, so when you take it away – people are not used to being self-responsible. There is a breakdown of leadership and people are going crazy for a while.
There is an urgent need for society to shift into proper responsibility.
The hierarchy began to break down about 25 years ago.
If we took self-responsibility for our health – the health care budget would drop by 75%.
The rich are getting richer, the poor are getting poorer
How can this be fair? The CEO of Target earns $75000K per day while staff pay is $64 per day.
Capitalism has failed and it’s time we admitted it. We have an economy that people are in service to. The money is the first consideration, not the people. The money has become the goal in itself. It’s a complete distortion of trade.
In the last decade there has been a huge increase in the number of crises such as tsunamis, earthquakes, floods, HIV, Swine Flu, economic crises we are facing. It has gone from 40 a year to over 400 a year. This is a huge awakening. It is time for us to take responsibility for ourselves and for our world.
This blog is about economic trends, market updates, news and forecasts. Up to date information about finance and business.
Saturday, June 27, 2009
Sunday, June 21, 2009
World Financial Predictions 2009-2012
World Financial Predictions for 2009 to 2012
Tax protests, food riots, student revolts, homeless uprisings, tent cities, ghost malls, general strikes, huge increase in crime, governments being toppled, global depression – these are the events that I see in the coming years.
In the US, outraged citizens are being forced to foot the bill for trillions in government rescue packages while property taxes, sales taxes, licence taxes and newly-invented taxes. This is happening in many other countries in the rest of the world.
Generally people will fail to protect their assets, to explore alternative employment possibilities, to find new income streams and to prepare for radical lifestyle changes. There will be periodic mini-surges on the stock markets and in the economy, but this is all delusion.
Contrary to popular belief, in my view, this Great Depression will NOT spare the other economies. Emerging markets can only emerge with strong export demand from the developed markets which will not happen. Even China, without export demand, no amount of external stimulus, such as the $585bn China has injected into their economy since the beginning of 2009 will produce sustained growth.
There is already considerable unrest in Iran. If they are attacked by Israel and/or the US, this could ignite WWIII. In May 2009, General Ayatollah Salehi, Commander of the Iranian army said: “If we are subjected to any attack by Israel, I do not think that we will need more than 11 days to wipe Israel out of existence.” It is only a matter of time before more hostilities begin to break out.
The so-called Green Shoots of recovery of the economy only mean that it is dying a little more slowly than before. Between the Federal Reserve, the US Treasury and the FDIC, over $13 trillion is being pumped into the financial sector. Nothing on this scale has ever been done before. Financiers are now in control of the country. The dollar is in decline and Gold will go to at least $1600 an ounce.
Most people are unaware of the FASB (Financial Accounting Standards Board) ruling allowing banks to set prices for their own toxic assets, regardless of real market value. This allows banks to invent balance sheets as they please. This seduced many investors back into the stock markets and caused the recent spikes. There are numerous accounting scams allowing companies to bury their losses and boost their bottom lines.
We keep being told that the worst is over, despite so many nations having economic crises: riots in Greece, the Iceland government overthrown, Latvia, France, Thailand, the UK, Iran – protests, marches, demonstrations.
China and Russia are testing world reactions to a new reserve currency.
China and Brazil already have agreed to pay for each others goods in their own currencies (the real and the renminbi.)
There will be a new political party emerging from the internet. There will be no ballot cheating, no financial threats placed on the candidates, it will be a much fairer system. Through the Internet, independent parties will be able organise support and raise money. An internet force of people who are really thinking for themselves will unite to free people from the two-party domination. It will have inclusive appeal as it will be anti big-government and anti Big Brother. As wars drag on, the economy will worsen and more and more people will become furious and disgusted with broken promises and empty talk.
2012 may well be a significant date on which a new age will rise and a new order will replace the old. However, given the constant global volatility it is very hard to pinpoint a precise date – so it could happen in 2012, 2013 but sometime around that date.
In the UK the recession is deepening – the biggest banks are nationalised, the pound is plummeting, Parliament is embroiled in scandal. By 2012, the UK will still be in deep economic crisis and the stock exchange will not have recovered.
In France there have been business closures, layoffs, wage and benefit reductions – this will continue and so will the unrest. France is a real wild card and it could be the catalyst for sparking off a revolution in the whole of Europe.
As anger and desperation grows, companies who specialise in security will thrive. For example, personal bodyguards, surveillance systems. Most of all the cyber security market will be very financially rewarding.
With all the unrest in the Pakistan/ Afghanistan region, there is a distinct possibility of another terror attack on the US or somewhere in Europe. Should terror strike it would drive the US and much of the world into an even greater Depression. Unlike 2001, when Bush urgently pleaded with the public to continue shopping, this time it will not work. There is no room for a reduction in interest rates as we are already at 0%. Americans are working 30 hours or less, the median household income is less than it was a decade ago and there is the worst unemployment since the Great Depression.
Washington would close down Wall Street to forestall stampedes on equity markets. Not only would stakeholders be prevented from redeeming equities, CDs and other financial instruments would also be frozen. The President would call a “bank” holiday following a panicked public’s run on the banks.
You need to be prepared and have strategies in place to survive the financial havoc. Not a lot of options are available but here are a couple for you to think about:
Invest in gold and silver and store it in a safe place other than a bank safety deposit
Invest in a basket of currencies so that when some go down, others will go up, thus hedging your losses.
Make sure you have at least six month’s living expenses outside of any financial institution.
Have food and water supplies and alternative power for at least three to six months.
We are living in three different worlds: the world of media, the world of politics and the real world. But the general public has been brainwashed and conditioned into accepting as the real world, the picture presented by the media and political worlds. But it is not. Wars are sanitised, geopolitics is reduced to the good guys versus the bad buys, socioeconomic news is biased and focuses only on the positive. The political and media worlds use their show business methods to promote the issues they want highlighted in their way. They distort, sensationalise and sugarcoat what is going on to misrepresent exactly what they pretend to reveal – the real world. Look how this is happening right now with the so-called Swine Flu pandemic.
The world is in deep denial. Two sets of emotions are being played upon simultaneously: Fear and Hope. There will be long-term decline and a permanently altered consumer climate. The worst of the economic storm has not yet hit.
SURVIVAL will be key.
Read my "Handbook for Surviving the Global Financial Crisis." It is available on Amazon, Lulu and from my website: www.financemoneybusiness.com.
This will help you to prepare and survive the challenging years ahead.
Tax protests, food riots, student revolts, homeless uprisings, tent cities, ghost malls, general strikes, huge increase in crime, governments being toppled, global depression – these are the events that I see in the coming years.
In the US, outraged citizens are being forced to foot the bill for trillions in government rescue packages while property taxes, sales taxes, licence taxes and newly-invented taxes. This is happening in many other countries in the rest of the world.
Generally people will fail to protect their assets, to explore alternative employment possibilities, to find new income streams and to prepare for radical lifestyle changes. There will be periodic mini-surges on the stock markets and in the economy, but this is all delusion.
Contrary to popular belief, in my view, this Great Depression will NOT spare the other economies. Emerging markets can only emerge with strong export demand from the developed markets which will not happen. Even China, without export demand, no amount of external stimulus, such as the $585bn China has injected into their economy since the beginning of 2009 will produce sustained growth.
There is already considerable unrest in Iran. If they are attacked by Israel and/or the US, this could ignite WWIII. In May 2009, General Ayatollah Salehi, Commander of the Iranian army said: “If we are subjected to any attack by Israel, I do not think that we will need more than 11 days to wipe Israel out of existence.” It is only a matter of time before more hostilities begin to break out.
The so-called Green Shoots of recovery of the economy only mean that it is dying a little more slowly than before. Between the Federal Reserve, the US Treasury and the FDIC, over $13 trillion is being pumped into the financial sector. Nothing on this scale has ever been done before. Financiers are now in control of the country. The dollar is in decline and Gold will go to at least $1600 an ounce.
Most people are unaware of the FASB (Financial Accounting Standards Board) ruling allowing banks to set prices for their own toxic assets, regardless of real market value. This allows banks to invent balance sheets as they please. This seduced many investors back into the stock markets and caused the recent spikes. There are numerous accounting scams allowing companies to bury their losses and boost their bottom lines.
We keep being told that the worst is over, despite so many nations having economic crises: riots in Greece, the Iceland government overthrown, Latvia, France, Thailand, the UK, Iran – protests, marches, demonstrations.
China and Russia are testing world reactions to a new reserve currency.
China and Brazil already have agreed to pay for each others goods in their own currencies (the real and the renminbi.)
There will be a new political party emerging from the internet. There will be no ballot cheating, no financial threats placed on the candidates, it will be a much fairer system. Through the Internet, independent parties will be able organise support and raise money. An internet force of people who are really thinking for themselves will unite to free people from the two-party domination. It will have inclusive appeal as it will be anti big-government and anti Big Brother. As wars drag on, the economy will worsen and more and more people will become furious and disgusted with broken promises and empty talk.
2012 may well be a significant date on which a new age will rise and a new order will replace the old. However, given the constant global volatility it is very hard to pinpoint a precise date – so it could happen in 2012, 2013 but sometime around that date.
In the UK the recession is deepening – the biggest banks are nationalised, the pound is plummeting, Parliament is embroiled in scandal. By 2012, the UK will still be in deep economic crisis and the stock exchange will not have recovered.
In France there have been business closures, layoffs, wage and benefit reductions – this will continue and so will the unrest. France is a real wild card and it could be the catalyst for sparking off a revolution in the whole of Europe.
As anger and desperation grows, companies who specialise in security will thrive. For example, personal bodyguards, surveillance systems. Most of all the cyber security market will be very financially rewarding.
With all the unrest in the Pakistan/ Afghanistan region, there is a distinct possibility of another terror attack on the US or somewhere in Europe. Should terror strike it would drive the US and much of the world into an even greater Depression. Unlike 2001, when Bush urgently pleaded with the public to continue shopping, this time it will not work. There is no room for a reduction in interest rates as we are already at 0%. Americans are working 30 hours or less, the median household income is less than it was a decade ago and there is the worst unemployment since the Great Depression.
Washington would close down Wall Street to forestall stampedes on equity markets. Not only would stakeholders be prevented from redeeming equities, CDs and other financial instruments would also be frozen. The President would call a “bank” holiday following a panicked public’s run on the banks.
You need to be prepared and have strategies in place to survive the financial havoc. Not a lot of options are available but here are a couple for you to think about:
Invest in gold and silver and store it in a safe place other than a bank safety deposit
Invest in a basket of currencies so that when some go down, others will go up, thus hedging your losses.
Make sure you have at least six month’s living expenses outside of any financial institution.
Have food and water supplies and alternative power for at least three to six months.
We are living in three different worlds: the world of media, the world of politics and the real world. But the general public has been brainwashed and conditioned into accepting as the real world, the picture presented by the media and political worlds. But it is not. Wars are sanitised, geopolitics is reduced to the good guys versus the bad buys, socioeconomic news is biased and focuses only on the positive. The political and media worlds use their show business methods to promote the issues they want highlighted in their way. They distort, sensationalise and sugarcoat what is going on to misrepresent exactly what they pretend to reveal – the real world. Look how this is happening right now with the so-called Swine Flu pandemic.
The world is in deep denial. Two sets of emotions are being played upon simultaneously: Fear and Hope. There will be long-term decline and a permanently altered consumer climate. The worst of the economic storm has not yet hit.
SURVIVAL will be key.
Read my "Handbook for Surviving the Global Financial Crisis." It is available on Amazon, Lulu and from my website: www.financemoneybusiness.com.
This will help you to prepare and survive the challenging years ahead.
Friday, June 19, 2009
Financial Predictions
Expect to see many more banks coming unstuck, but the worry is that the FDIC in the USA and other governments around the world who have guaranteed bank deposits, that they will run out of money and will not be able to honour their commitments. Imagine this: you have put your money into a “reputable bank” thinking that in the worst case, your government will be able to cover your savings in case the bank goes bust. But what happens if the government goes bankrupt? Don’t expect to get a penny of your money back if that happens.
Another thing to remember is this: if you must keep some money in a bank, try not to be persuaded into a “high-interest” savings or bond account. There is always a reason why you are getting more interest: it means there is more risk involved. Given the volatility of our environment today, it is best to take the minimum risk in all your financial dealings. So my recommendation is that you have a simple checking account and maybe an online saver or similar savings account that doesn’t penalise you if you decide to take out your money immediately. Do not tie yourself into any longer term deals. Here are my reasons for this: number one, if the bank gets into trouble, you are not going to appear at the top of the list when it pays back any money it may still have in its possession. Number two: what looks like a great rate now i.e. 7% or 8% for 5 years – may look terrible in just a year or two’s time. What happens if interest rates go up to 15% and more? How are you going to feel if you are stuck with only 7%?? Be very careful and don’t be talked into anything you don’t understand.
So we have Swine Flu which has now become a pandemic. On a practical note, I have been saying for months and months that it is important to have some provisions in case we are unable to get normal supplies of food and water. Ideally, at least three months is great, and here we are with a possibly serious outbreak of Swine Flu and many people could be either quarantined, or there could be so many sick people that our services are unable to cope with demand. In this event, you will be very glad that you stocked up and prepared for the worst. How much better it is to be prepared rather than panicked and caught out. Again, I am saying this not only in the event of a pandemic, but also in case of a natural disaster, in case oil becomes scarce and the supermarkets shelves are bare…. in these very uncertain times, it is better to be safe than sorry. And remember, that when a panic sets in, it is already too late. Just look how quickly Iceland fell apart. It may look rosy right now, but it could turn on a dime.
There is a lot of illusion, delusion and unreality out in the world. The stock markets have largely been rallying, despite the dreadful unemployment figures, numbers of foreclosures, companies going bust, governments getting into more and more debt, increasing crime… the list goes on. So certainly, until the middle of July, we will be seeing more optimism, more talk of “green shoots of recovery” and “the housing market has turned a corner.” Expect more of this but don’t be fooled by it. This crisis is far from over and we have many years yet to learn how to survive and thrive in times to come. It has been very pleasing to see that some local communities have already started to come together. People have one another’s telephone numbers, they know who has what strength and ability, they are able to call on one another should the need arise. This is a very positive outcome of the crisis.
There is the threat of war, violence, unrest in so many areas. Last week Israel carried out its most extensive precautionary emergency drill ever. They are preparing for a possible outbreak of war with Iran. Obama sent another 17,000 troops over to Afghanistan. And this week, there have been riots and demonstrations in Iran. Words used in the media have been “revolution” and “toppling the government.” These are words I have used over the last several months describing the effects of this opposition. As more and more young people are unemployed, we are going to see a much stronger possibility of revolution and drastic change around the world. Indeed, make no mistake, the fact that there are now British National Party representatives in the European Parliament, is a step in this direction. Expect to see much more civil unrest, uprisings and revolutions. This is just the beginning.
Well, I hope I have made up for missing out on a blog last week as I was just so busy. To recap: be careful about tying your money up anywhere, especially with a bank – all banks are scary. Remember to keep on stocking up on provisions. Try to be considerate – if you are not feeling well, DON’T go out and give it to other people. Let’s try to contain any infections in our communities. Watch out for unreality in the markets, in the media, from our governments – don’t be sucked in. Start to think for yourself. If you are reading something about the housing market for example, check out who is writing that piece. If it is coming from the Real Estate Institute, then you can expect it to be optimistic. Make sure that you are aware of the possible bias of any author. In the end, the best thing to do is to think for yourself and make your own decisions. Don’t go along with the crowd – that’s a sure fire way of getting into trouble. Make your own choices and stand by them. Good luck!
Another thing to remember is this: if you must keep some money in a bank, try not to be persuaded into a “high-interest” savings or bond account. There is always a reason why you are getting more interest: it means there is more risk involved. Given the volatility of our environment today, it is best to take the minimum risk in all your financial dealings. So my recommendation is that you have a simple checking account and maybe an online saver or similar savings account that doesn’t penalise you if you decide to take out your money immediately. Do not tie yourself into any longer term deals. Here are my reasons for this: number one, if the bank gets into trouble, you are not going to appear at the top of the list when it pays back any money it may still have in its possession. Number two: what looks like a great rate now i.e. 7% or 8% for 5 years – may look terrible in just a year or two’s time. What happens if interest rates go up to 15% and more? How are you going to feel if you are stuck with only 7%?? Be very careful and don’t be talked into anything you don’t understand.
So we have Swine Flu which has now become a pandemic. On a practical note, I have been saying for months and months that it is important to have some provisions in case we are unable to get normal supplies of food and water. Ideally, at least three months is great, and here we are with a possibly serious outbreak of Swine Flu and many people could be either quarantined, or there could be so many sick people that our services are unable to cope with demand. In this event, you will be very glad that you stocked up and prepared for the worst. How much better it is to be prepared rather than panicked and caught out. Again, I am saying this not only in the event of a pandemic, but also in case of a natural disaster, in case oil becomes scarce and the supermarkets shelves are bare…. in these very uncertain times, it is better to be safe than sorry. And remember, that when a panic sets in, it is already too late. Just look how quickly Iceland fell apart. It may look rosy right now, but it could turn on a dime.
There is a lot of illusion, delusion and unreality out in the world. The stock markets have largely been rallying, despite the dreadful unemployment figures, numbers of foreclosures, companies going bust, governments getting into more and more debt, increasing crime… the list goes on. So certainly, until the middle of July, we will be seeing more optimism, more talk of “green shoots of recovery” and “the housing market has turned a corner.” Expect more of this but don’t be fooled by it. This crisis is far from over and we have many years yet to learn how to survive and thrive in times to come. It has been very pleasing to see that some local communities have already started to come together. People have one another’s telephone numbers, they know who has what strength and ability, they are able to call on one another should the need arise. This is a very positive outcome of the crisis.
There is the threat of war, violence, unrest in so many areas. Last week Israel carried out its most extensive precautionary emergency drill ever. They are preparing for a possible outbreak of war with Iran. Obama sent another 17,000 troops over to Afghanistan. And this week, there have been riots and demonstrations in Iran. Words used in the media have been “revolution” and “toppling the government.” These are words I have used over the last several months describing the effects of this opposition. As more and more young people are unemployed, we are going to see a much stronger possibility of revolution and drastic change around the world. Indeed, make no mistake, the fact that there are now British National Party representatives in the European Parliament, is a step in this direction. Expect to see much more civil unrest, uprisings and revolutions. This is just the beginning.
Well, I hope I have made up for missing out on a blog last week as I was just so busy. To recap: be careful about tying your money up anywhere, especially with a bank – all banks are scary. Remember to keep on stocking up on provisions. Try to be considerate – if you are not feeling well, DON’T go out and give it to other people. Let’s try to contain any infections in our communities. Watch out for unreality in the markets, in the media, from our governments – don’t be sucked in. Start to think for yourself. If you are reading something about the housing market for example, check out who is writing that piece. If it is coming from the Real Estate Institute, then you can expect it to be optimistic. Make sure that you are aware of the possible bias of any author. In the end, the best thing to do is to think for yourself and make your own decisions. Don’t go along with the crowd – that’s a sure fire way of getting into trouble. Make your own choices and stand by them. Good luck!
Tuesday, June 2, 2009
Financial Predictions for 2009-2010
There are a series of different events happening around the world that I feel are interrelated and important to be aware of:
War and Civil Unrest
Firstly, Israel started its biggest emergency drill in the nation’s history this week to prepare civilians, soldiers and rescue crews for the possibility of war. The five day drill comes amid the nation’s rising tensions with Iran.
The US has sent another 17,000 troops to Afghanistan where they are fighting insurgency, but who knows whether this will be enough or whether Obama will need to send even more troops into the region.
So we have vast funds being spent on defence and war with great uncertainty as to the outcome.
Bank Deposits
The FDIC fund has dwindled to dangerously low levels. At the same time, the number of problem banks continues to grow at a rapid pace. Whilst Congress has already approved a $500bn line of credit to the FDIC, make no mistake that line of credit is going to have to be tapped. And there is absolutely no guarantee over time that your funds are secure. Other governments around the world have guaranteed bank deposits, but many of these countries are highly indebted and there are doubts as to whether the governments will have the money to fund the banks should they collapse.
Make sure that you have some liquid funds outside of any banking institution just in case they call a “bank holiday.”
Gold and Silver
Northwestern Mutual Life Insurance in Milwaukee, has bought gold for the first time in 152 years to hedge against further asset declines. They have accumulated about $400 million in gold. The CEO Edward Zore commented: “the downside risk is limited, but the upside is large, we have stocks in our portfolio that lost 95%, but Gold is not going down to $90.”
Gold has gone up 10% in recent weeks and should definitely be part of your portfolio. Silver too, priced very reasonably right now, will be a store of wealth for the future and also useful to barter and trade with. It is likely to go through the roof once the US dollar really begins to fall.
Unemployment
Unemployment is rising around the world with reported figures always coming out too optimistic when in fact the situation is worsening. In the US we could see unemployment rise to 25% which in turn will increase crime and threaten the stability of the country.
Pulling all these different strands together, especially with the extra $30bn of taxpayers money going into GM, it seems to me that the economic system is going to implode. We live in a credit driven world and the problem is that the governments will never be able to pay off the interest on the debt.
I see more huge disruptions, more foreclosures, more bankruptcies, higher unemployment, increase in crime and a devastating change in our economy.
Here’s what you can do:
1. Be aware of everything that is happening and make up your own mind about what is true. The media want us to believe that we have the “green shoots of recovery” but you need to think for yourself and check out your intuitive responses.
2. If you are prepared in your thinking, then you can prepare for yourself and your family. It is those who are going along with the crowd who are going to come out the worst. Also, be ready to express your outrage at the government’s actions – it’s time for the people not to sit down and take it any more. Part of the problem is that we have been too complacent – we need to be ready to fight for what is right.
3. Have some liquid funds outside of the banks or any financial institution – preferably about 6 months living expenses.
4. Buy some gold and silver as your insurance policy and also for trading and bartering should the need arise
5. Increase your personal security and if you can move to a quieter more rural area.
6. Be ready to be flexible and to change – volatility will increase and you may need to change your strategy according to the unfolding of events. Stay alert and aware 24/7.
War and Civil Unrest
Firstly, Israel started its biggest emergency drill in the nation’s history this week to prepare civilians, soldiers and rescue crews for the possibility of war. The five day drill comes amid the nation’s rising tensions with Iran.
The US has sent another 17,000 troops to Afghanistan where they are fighting insurgency, but who knows whether this will be enough or whether Obama will need to send even more troops into the region.
So we have vast funds being spent on defence and war with great uncertainty as to the outcome.
Bank Deposits
The FDIC fund has dwindled to dangerously low levels. At the same time, the number of problem banks continues to grow at a rapid pace. Whilst Congress has already approved a $500bn line of credit to the FDIC, make no mistake that line of credit is going to have to be tapped. And there is absolutely no guarantee over time that your funds are secure. Other governments around the world have guaranteed bank deposits, but many of these countries are highly indebted and there are doubts as to whether the governments will have the money to fund the banks should they collapse.
Make sure that you have some liquid funds outside of any banking institution just in case they call a “bank holiday.”
Gold and Silver
Northwestern Mutual Life Insurance in Milwaukee, has bought gold for the first time in 152 years to hedge against further asset declines. They have accumulated about $400 million in gold. The CEO Edward Zore commented: “the downside risk is limited, but the upside is large, we have stocks in our portfolio that lost 95%, but Gold is not going down to $90.”
Gold has gone up 10% in recent weeks and should definitely be part of your portfolio. Silver too, priced very reasonably right now, will be a store of wealth for the future and also useful to barter and trade with. It is likely to go through the roof once the US dollar really begins to fall.
Unemployment
Unemployment is rising around the world with reported figures always coming out too optimistic when in fact the situation is worsening. In the US we could see unemployment rise to 25% which in turn will increase crime and threaten the stability of the country.
Pulling all these different strands together, especially with the extra $30bn of taxpayers money going into GM, it seems to me that the economic system is going to implode. We live in a credit driven world and the problem is that the governments will never be able to pay off the interest on the debt.
I see more huge disruptions, more foreclosures, more bankruptcies, higher unemployment, increase in crime and a devastating change in our economy.
Here’s what you can do:
1. Be aware of everything that is happening and make up your own mind about what is true. The media want us to believe that we have the “green shoots of recovery” but you need to think for yourself and check out your intuitive responses.
2. If you are prepared in your thinking, then you can prepare for yourself and your family. It is those who are going along with the crowd who are going to come out the worst. Also, be ready to express your outrage at the government’s actions – it’s time for the people not to sit down and take it any more. Part of the problem is that we have been too complacent – we need to be ready to fight for what is right.
3. Have some liquid funds outside of the banks or any financial institution – preferably about 6 months living expenses.
4. Buy some gold and silver as your insurance policy and also for trading and bartering should the need arise
5. Increase your personal security and if you can move to a quieter more rural area.
6. Be ready to be flexible and to change – volatility will increase and you may need to change your strategy according to the unfolding of events. Stay alert and aware 24/7.