It was exactly 10 years ago this month when I woke up and found myself completely out of control financially.
I had no idea how money really worked, and I had been living a lie. I had sold my company the day before I turned 30, and had become a millionaire. I was doing all the things that I thought rich people do – I had the big mansion, a fancy car, expensive clothes and toys.
Yet, I was still feeling empty, and anxious. And worse, I was making almost every financial mistake I could, causing my financial success to quickly evaporate.
Until that point in my life, I hadn’t learned anything about how money and wealth really worked. The truth is, I was like most people who never learn what they need to thrive financially. That ignorance caused me to hit a financial wall that almost took everything away that I had worked so hard to accumulate.
It was 10 years ago when I vowed to myself that I would never be in a position like that again, and that I would gain financial literacy.
Since that time, I’ve spent thousands of hours studying economic fundamentals and really understanding the purpose, history and mechanics of the money system. It became a hobby and passion of mine, and that knowledge has allowed me to be able to understand what’s going on in our financial system, economy, and what lies ahead.
In fact, on this very blog, my knowledge has given me the ability to predict a number of pretty incredible things.
My Ability To “Predict The Future”
Turned Out To Be Pretty Good
I called the Lehmen Brothers collapse before it happened, and suggested that General Motors was going to go bankrupt, well before it did.
When gold was $800, I suggested that gold would move to over $1,000 and higher, which it did on schedule. I predicted that gold would hit over $1,500 in a few years, which it has.
I’ve been able to predict where interest rates would move, and what the U.S. and Canadian dollars would do, and what we would see in the real estate markets.
So why am I telling you all of this?
I want you to realize that if you are financially illiterate .. if you’re not aware of what’s going on economically, then you are at a HUGE risk.
Sticking your head in the sand and thinking that financial news and stuff about the economy “isn’t for you” is placing you in serious financial jeopardy.
I tell you my story because I want you to realize how powerful it is to finally learn how money works, and what’s really going on in the economy.
Through the last decade, I went from being
financially illiterate to someone that people followed for economic insight and investment education.
And through it all, I was able to build a $100 million real estate portfolio, and 3 different multi-million dollar companies —
primarily because of my knowledge of money and economic fundamentals.
I was approached by a major publisher to write a book that talked about why the financial industry is so underhanded, and share insight into smart investment strategies.
That book ended up becoming a best-seller, and the #1 book in its category.
All this happened because I took an interest in my money, the economy, and what was really going on behind the headlines and talking heads on CNBC.
This is my call to action for you.
Because we are living through one of the most incredible and dangerous financial periods the world has ever seen.
Yet, most people have NO idea what is really going on.
It astounds me that people don’t realize the significance of the debt crisis that is currently facing the U.S., and the consequences that the world could face if things get any worse.
The U.S. debt crisis is mostly an example of just how self-serving the politicians really are, placing their own political gains ahead of the interest of the people.
If you don’t understand what the debt crisis is about, let me break it down for you in simple terms.
The U.S. government has been creating massive amounts of debt in order to offset the financial crisis that hit in 2008. The U.S. debt has gone from about $5 trillion only a few years ago, to more than $14 trillion.
If the U.S. were an individual person, that person would be considered bankrupt.
I mean, how long can you go borrowing more money to pay off your old debts?
The U.S. is literally running the world’s largest ponzi scheme, right in front of everyone. Yet almost no one sees it for was it is. They keep borrowing money from new investors (mostly foreign) in the form of U.S. bonds, to pay off the old investors.
In fact, the U.S. has taken on so much debt, it threatens to hit the “credit limit” set by U.S. Congress — and the “debt crisis” simply means that
the U.S. is going to run out of borrowing room on August 2nd.
Of course, the politicians see this as a great opportunity to thump their chests and pretend that they’re trying to act on behalf of Americans. They’re demanding reform. Obama wants to increase taxes, and the Republicans want to cut spending. The same basic argument the 2 parties have been having for decades.
The problem is, both parties have contributed to the mess the country is in. This isn’t a political problem. It’s a leadership problem, and compounded by the lack of economic intelligence in the decisions being made.
So, what is likely to happen is that they’ll continue to fight it out, trying to gain political points.. meanwhile the credibility of the U.S. around the world takes a beating.
At the last minute, they’ll finally work out a deal to raise the borrowing limit, averting a financial catastrophe. Everyone will celebrate. Disaster avoided!
The problem is the real issue doesn’t go away – and that issue is that fundamentally, the U.S. is broke. Bankrupt. Borrowing money today to pay the interest on old debt.
There IS no way out of this.
Make no mistake.
The U.S. economy
is going to collapse at some point.
The U.S. dollar is going to zero.
That explains why, in part, there is still massive hidden inflation in the U.S. economy, even though you’d expect deflation in such a negative economic environment.
Throughout history, every single fiat currency (such as the U.S. dollar) has collapsed and gone to zero, because the government was too greedy and self-interested, and drove the value of their currency to zero.
I believe that I’m going to see this collapse occur within my lifetime.
I’m not saying it will happen in the next couple of years, because I still believe the U.S. will continue to push this problem forward, and avoid complete collapse for several years to come.
What This All Means To You
Look, I’m not trying to scare you, or convince you to buy a bunch of guns and canned food, and find a cave to hide in.
The reality is that it’s during turbulent economic times when the most money is made.
No, the reason I’m telling you all of this is because
I’m trying to compel you to realize that if you don’t have financial literacy, you’re doomed to get wiped out by the economic events around you.
If you learn how to make smart decisions in uncertain economic times, you can not only protect yourself against what’s happening .. but you can actually make a lot money from it.
I’m going to start injecting my economic views and insight into this blog, because I think it will help you become more aware of what’s really going on out there.
I want to show how you can make a LOT of money if inflation explodes. How you can profit if interest rates rise. What kind of investments to run away from in these economic times, and what markets are going to produce the next generation of Rockefellers.
As a business owner, what you can do to position yourself for massive financial success, instead of gut-wrenching economic failure.
I want to show you how what’s going on “out there” actually affects you .. and how you should be responding.
We are truly in a new world, and it’s the people who choose to understand what’s going on around them that will prosper.
So, this is the first in a series of articles I’m intending to write for you that will give you economic advantage, and financial power.
If you liked this article, PLEASE post a comment below.
What parts of the economy do you
NOT understand?
What do you want me to talk about in future articles that will help position you as a successful business owner and investor in the future?
I want to hear from you so please post your comment below!]]>
174 Responses
Sounds very realistic !Critical “advice”,but constructive and
I think helpful,because so many “experts today” only try to sell
“opinions”,seldom facts for reflective thinking !!!!!!!!!!!!!
Please more from the same stuff.
Gunther
Loved this article and completely agree that there’s a lack of interest which I think is due to a lack of understanding that you talked about. Very excited to see what other conversations you bring to the table and what people have to say!
By the way, I recently watch a documentary made in 2008 called I.O.U.S.A. about the deficit. I’d highly recommend it to anyone looking to understand the talks going on in the news and the back-story.
IOUSA is a great movie that outlines not only what’s really going on, but how incredibly ignorant the media is to share the real story. While there are alot of fringe people and projects out there around government conspiracies, etc., which tend to reduce the credibility of the argument, it really is incredible what the governments do in full view of the public, and yet there isn’t a major uprising. Movies like IOUSA help create a little more awareness out there, which is a good thing.
Thank you Greg. I believe that on the other hand the opportunity is waitng the one who has insight of this situation as well. We can find the opportunity in any crisis as well. I’m living out of US and work as an employee with tradig stock as by side line. Currently the stock index looks good in both US and Asian. What is your opinion about putting most of the money into stock?
Monetary debt is the problem, politicans have no idea what they are doing, they are just puppets. The Private Banking cartel having been playing this game for hundreds of years, the New World Agenda has been to collapse all the major currencies for a long time, recessions do not happen by accident, they happen because Banks take money out of circulation. They are creating this problem to push the idea of a New World banking system to end all our problems. Governments should be issuing the money instead of the banks, I say KILL THE BANKS FOR GOOD, get control of money back in the hands of a Democratic Government. KILL THE FEDERAL RESERVE – it’s a sick joke. Watch Money Matters on You Tube by Bill Still, for the full historical background to the current economic crisis.
Want to understand: 1) how overall national wealth is created. 2)relative value of tax increase vs tax decrease to solve current US debt crisis, short and long term.
Thanks Greg. Love to hear your ideas to grow our money during this crisis.
There is so much “noise” in the media, so it’s great to read good research & analysis so one can sort out the facts from fiction. Yes, I’d like to see more of this kind of information.
Where do you see gold going in the near future? It’s been interesting to watch the correlations of gold, silver, dollar, & bonds!
Is this a good time to have your money in the markets then?
What are your thoughts on buying Real Estate in the US? We are planning some shortsales and some long term rentals. Where do you see the most money being made in the next five years? ten years?
I have a few people who I really admire and trust and yet they have opposing views on making money in the US versus Canada.
Would it be safer to invest in Canada? We are able to buy homes in Regina SK now that cash flow $800/mth.
Thanks for the article. I would like to know what is going to happen to the Canadian dollar. Is the Canadian dollar going to do the same thing as the American dollar because our economies are so closely linked? Or is the Canadian dollar going to do better? I realize this is happening but I do not have the knowlege to know where to invest my money considering that the American debt situation.
Well, this blog post indicates a problem but I am interested in solutions. How much teaching are you willing to give to us in a free blog post? The current amount is not enough to hold my attention. It needs to have more content or it will end up being an “infomercial” buy my product for three low monthly installments….but wait there is more…. My interest is truly peaked, but I am waiting for the valuable content.
Wow. Nice attitude. Apparently the world owes you everything you demand. Frankly, I have no product or anything I offer around this topic, but I felt it’s critical for business owners to understand. I don’t really care if this is enough information to hold your attention, because that’s not my job. if you don’t appreciate the views, you’re welcome to read someone else’s and I encourage you to do so if you’re going to bring such negative energy here.
I really like your doings, all of it, including your temper and how you vent. There is a line in a movie that says: “ It’s business, not Christmas.” This goes also for costumers to be, or not to be, just the same as for the entrepreneur, who draws a line and threats business as such, meaning – it is not personal. This is just a little skill, but a vital one. Other than that, don’t change!
Make no mistake – it’s not about emotion when I let someone know how I feel. it’s about client selection. I don’t want victims, whiners or complainers to be a part of my community. It’s really that simple. Anyone who is offended when I share my opinion is probably not going to ever be a close part of our tribe, so I’m simply doing everyone a favor of being clear about who I am and how I operate. I don’t have time for people who choose to be victims, or who believe they’re entitled to something simply because they’re on the earth. Takers have no place here, and that’s why we have such an incredible group of people who come here!
“I want to show how you can make a LOT of money if inflation explodes. How you can profit if interest rates rise. What kind of investments to run away from in these economic times, and what markets are going to produce the next generation of Rockefellers.”
Thanks Greg! This statement I copied and pasted is what I am interested in knowing more about. Thanks for your article it was easy to understand.
Thank you Greg, I value your sharing. My financial skills are limited by being based on hard common sense and I love to see the greater picture portrayed by experts in the field. Your sharing contributes to the wellbeing of the whole. We cannot grow ourselves without considering the good of the whole – in this case the human race. I agree with the view you presented and the downfall of the US economy and more likely the whole world will probably be a necessary step in the evolution of mankind. I foresee that there could be a totally different humanity after this process. To facilitate a healthier future in the long run we need to educate the young generation and in fact there should be economics and household management classes in all the schools.
Very good article. I am thankful that someone is finally putting some information out that will actually help people. Keep up the good work….I want to know exactly what I need to do to make the $ you spoke of. Thank you.
How can we best protect our cash assets ,retirement and realstate ?
it is sad that Politicians, in reality are only out for themselves and really do not care what happens to their constituents. Thank you for the information and looking forward to reading more about what to do in these economic times. Thank you.
Thank you Greg. I agree with your analysis that the collapse will “kicked down the road” with patches and other short term fixes.
Though I lost most of savings 2 years ago I still have excellent credit.
Do you have any thoughts on how to leverage unsecured money loans? (credit cards)
Thanks.
I look forward to your next blog.
BH
Thank you Greg! I have seen you as a trusted source of information. I want to learn more. I just wonder why people (investor) are so reactionary and actually cause the market to go up and down just because of speculation. It is maddening to me.
What would you suggest people do at this time? I know we need to get out of debt personally and have income streams. What recommendations would you make? Thank you for the article and sharing your perspective and wisdom.
Congressional leadership and jumbo shrimp, both oxymorons. Republican ideologues are economic terrorists, extorting what every little the middle class has to create a corporate oligarchy. Spineless Democrats are selling the farm and bleeding the middle class dry to give welfare loafers and illegal immigrants a middle class life-style for free. Where is the America my ancestors fought and died for? It is being held hostage to narrow special interests that could care less about America remaining strong and free in the 21st century.
I am totally on board with what you are saying Greg BUT all these predictions are based on some assumptions that are not necessarily true. Like Energy costs for instance…
However, you have my FULL UNDIVIDED attention and I am looking fwd to the upcoming posts
Great article Greg! $7 Trillion in public debt over in the U.S. What would be their best case scenario? How the Canadian economy will react to their worst case scenario?
It’s clear that here in the US the real estate market is still a ticking time bomb with huge shadow inventory and weak demand. Eric Shilling predicts we are in for further declines of up to 20% by 2012. I would appreciate you sharing your insights on how this scenario, combined with the debt crisis will affect other markets (stocks, commodities, forex, consumer) within the next 2-3 years. Many thanks!
Greg I live in the Caribbean and the reality of the looming economic crisis is stark. As vulnerable countries I believe its even more important for me to understand what’s going on so when I saw what you aim to do I am more than grateful and anticipating every post. Thanks again
Where is a safer place to invest Greg? Right now I’m moving a lot of my money to silver because I understand that fiat currency has no intrinsic value.
Thank you and I will continue to read your blog. I am interested in knowing who you read and whose advice your respect. I am trying to become financially literate and ensure that we have the necessary funds to cover our retirement years. It is difficult to know who has the know how.
Greg;
I’m a self-employed pianist, composer, studio owner in Dallas. I’m wondering if i should liquify some of my Portfolio at Raymond James to have a little cash cushion. My wife a practicing psychologist and I have very little debt besides the remaining mortgage on our house. I am getting anxious with whats going on w/ the GOV and Economy. I know a little about your business background and your Music Production company you created and sold in the early 2000’s. To KEEP my Sanity I think Income (what i can do to generate Value) and not Wealth. I need to stay flexible and be able to respond quickly in the Music Business. Any Advice Greg?
I’m in the Uk. We always follow the US and we are inextricably, it seems, tied to Europe. So how can we protect ourselves from the inevitable loss in value of our currency?
Hi Greg, What about RRSP mutual funds – I recently changed my portfolio around with my Advisor (my initiation) from major Canadian holdings to U.S and Emerging markets – which was good timing over last few months – with Aug 2nd as date US will go broke do you think it’s best to move funds out of U.S? or will this news affect the stock market and is it ok to have U.S holdings. My funds are locked in for 3 more years with company so I can’t self direct but I can go see Advisor to make change. I really don’t get all of this and look forward to your guidance to understand – I don’t want to find myself needing my retirement money in another recession time like 2008 – 2009. I want my money to grow – not lose money. Banks and Mutual Fund companies are making big money with our investments – the little person is struggling to make the slightest gain.
Thanks for your post!
Greg… as you mentioned, it is the same debate that the “left” and “right” have been having on every single issue they are confronted with for many many years now. The one thing they count on is that an ignorant public will continue on being ingnorant and then rejoice when the huge crisis is “averted”. Thank you for having the courage to speak up openly and honestly. Financial literacy is cloaked in mysterious language and scrolling numbers that make it seem impossible to understand. Yet the fundamental policy of spending less than you’re earning are simple enough for a child to understand. It’s time for people to wake up and take control – both financially and in holding politician’s accountable for their irresponsible actions that benefit only their political careers. Please keep up the great work…
I am most interested in hearing your insight on what types of investments people should be making now, and your recommendations for people who have been hit very hard by the last wave of this crisis and what they can do to recover and even prosper during the next waves which are surely coming.
Hey Greg,
Great article! I’m a 21 year old university student but I have been studying the economy in great depth and trying to wrap my head around everything that’s going on and how that will affect my situation here in Canada.
The thing that totally blows me away with the economy in the US is what Obama has done since he’s come into power promising change and how he’s going to “clean up” Wall Street and have balanced budgets. Yet when you begin to analyze what he has done, the US dollar has dropped another 50% in purchasing power due to QE1 and QE2 from the Fed (thanks Bernanke), he’s got the US in 5 wars now: Afghanistan, Pakistan, Iran, Iraq, and Libya being the latest, and he’s reappointed the same people that have caused the financial crisis in the first place. I mean come on, Henry Paulson (former CEO of Goldman Sachs) is now the Secretary of the US Treasury?
But rants aside, my question to you Greg is when the US’s currency goes into a hyperinflation, what affect will that have on the Canadian dollar? Will Canada follow suit? I know that if the US dollar gets weaker our export market gets hurt.
I’ve bought silver as hedge because I think it has a lot more upswing potential due to being an industrial metal and that world inventories are lower than that of gold right now.
What other investments would you recommend looking into during a crisis such as this? Any thoughts you have on this would be much appreciated!
Speak soon,
Michael
I agree with your decision to purchase silver as a hedge. For convenience of purchase and resale, I like the Kitco par value silver coins which they will redeem at par when you wish to sell. They also have a precious metal storage program. Their fees seem reasonable. Kitco is a Canadian company with established credibility and stellar reputation.
Thanks Greg, I really appreciate your knowledge, insight and candor. What I am curious about is how to best go forward helping people who are committed to moving forward become prosperous and healthy while at the same time operating within a monetary system and a standard of value that is outdated, debt-based and intrinsically exploitive. This is something that I know i need to do, for myself, for my loved ones and for the world. Please help. Thanks:-)
It is so heartening to hear an aamerican not frightened to speak the truth. go Greg!
Hi Pauline – I’m actually a Canadian, but I appreciate the comment nonetheless. 🙂
Hi,.
I agree with you completely and this situation will not go away as long as the people let it.
Too many people do not realize that they create the situation not the GOVERNMENT(WHICH IS THE PEOPLE) and they have the moral decision to change it not play into the hands of those who make it sound like they are fighting for the common people.
Lloyd
Thanks Greg for your informative article about the Economy. It’s refreshing to see someone’s else point of view.
I am intrested in investing in real estate and would like to hear your advise on this subject.
Thanks and keep up the good work.
Great Article Greg! I completely agree with you. What about the PIIGS? and the discussion of how all the other countries are buying each other’s bonds and how this is creating a domino that will have far and deep reaching consequences. Please also discuss how to protect yourself with business and investments?
Many U.S. citizens are taking the approach of living in other more affordable countries part of the year to help stretch their available income. Other citizens are taking a more final approach and moving permanently out of the U.S. and are going ex-pat to rid themselves of continuing U.S. taxation. This is an increasing trend that is statistically higher than ever before but I challenge you to try to get those stats…ha!
Hi Gregg, I live in the Uk and realise between the Euro problems and the USA $, theat the British pound is well and truly caught out hard! Is there anything that I can do over here to protect my finances other than buy gold. I have bought some gold coins but have been advised to buy Swiss Francs too. Do you think this is a good idea too or another red herring? All ideas are very welcome over here too!
Thanks for sharing your article with us. I find your views to be refreshing, in sounding the alarm bells. Main stream media, both US and CAD speak nothing about this crisis that we are already living in. I would like to learn more on how I can protect my wealth. I think the age of buying gold and silver has past us, once you hear informercials on these things it’s already too late to get in and buy the stuff low because it has reached its peak value.
What do you think is the next step we need to do to get ahead of ‘the game’?
Best wishes,
RC
It is not too late for gold and silver. How many people do you know who own it? I know one person through word of mouth…..that is not a bubble. As long as the debt is not dealt with, gold and silver will continue to rise. Those infomercials are to buy your gold, not sell it to you. When people are lined up to buy gold and silver, the way they lined up to buy real estate a few years ago, then we will be close to the peak for metals.
This probably needs to be discussed further, but say we do buy gold or silver. The US government at the moment is facing the crisis in finding more money to finance its big government machine. The Democrats are proposing to raise taxes to 70%. Which classes will this 70% tax bracket affect, I’m not aware of, but that’s the thinking of this government, whereas the Tea Party doesn’t want to raise taxes and wants to cut government spending.
Say I were to buy gold/ silver before the ‘boom’ happens, and a few months later I see some nice returns starting to occur within these commodities, however the government has raised taxes to 70%. What will your ROI be after taxes? You can’t hold on to this commodity forever, due to its cyclical corrections.
What do you think?
We hear so much about the US economy. How will the collapse of the USA empire affect Canada?
Denis
Hi Greg,
I am glad you are writing about economics and finacial literacy again. It was several years ago when you would talk about gold, the Canadian dollar and interest rates on a frequent basis and that was what first attracted me to follow you. This topic has become a passion of mine and I follow several people ( all Americans) on a daily basis in order to get the latest thinking. I am really excited that you have taken this topic on again because I can’t find any creditable source in Canada who wants to discuss these very pressing issues and how it relates to Canada. I agree with you that the USA will collapse in our life time … but the timing is anyone’s guess. I read a quote from someone who said “Just because it is inevitable doesn’t mean it is imminent” but I have a feeling it will happen sooner than later because of the debt problems in the EU and the fact that all of the US banks have significant positions in the European banks. We could see a domino effect right back to the US and then possibly to Canada.
Topic suggestions:
Inflation vs. deflation – there very smart people on either side of the debate. I have built my portfoilo around inflation but watched an interview on the Kiezer Report with an economist who made a very good point for deflation. He stated that you need wages to increase before you can have true inflation. The banks are hanging on to their money and not lending to individuals and countries around the world are implementing austerity measures, raising taxes and cutting governemt jobs … hardly tactics that would cause inflation. You may want to touch on how the US government and our countries around the world need inflation to get out of trouble but they are constantly changing how inflation is calculated to hide it from the average person.
I know you have followers from around the world but it would be great if you could touch on how the US collapse will impact Canada directly? Canada exports 75% of its goods to the US and in Alberta the oil and gas is land locked with the only customer the US. The current US government is hesitating on putting the Keystone pipeline through and BC and the natives are blocking the pipeline to the west coast. If we dont start to diversify our economic partners fast we could easily be pulled down with the US starting first in central Canada and then moving west. Real estate would crumble? There is lots more to cover from a Canadian perspective but we can flesh this out as you go.
Finally, the topic that not a lot of mainstream “trusted authorities” really want to discuss and that is what does the world look like when this does happen. What happens when city, state and Federal governments no longer have the money to pay cival servants (police, fire etc.), pensions, social programs etc. etc.. How do we best insulate ourselves from this situation.
As you mentioned in your post, very few people really understand what is going on in the world and governments are playing on their ignorance. It is difficult to find anyone to really discuss these issues. You did a great job in exposing the financial planning industry and mutual funds for what they really are. I believe this topic could have an even bigger impact on people. I dont want to overstate things but I but I believe you could impact more lives with this discussion than any other topic you have tackled to-date.
I am really looking forward to your posts.
Great work as usual.
A.J.
I am writing a paper for my PhD in Marketing on the Effects of the Global Financial Crisis on Consumer Behaviour so this just came at the right time. If you have more information please share with me. Thanks a lot
Excellent article. What does the USA crisis mean in the future to countries like Mexico? We have a saying here that goes: “If the USA got the flu, we are going to have bronchitis”.
I could’nt agree with you more Greg.I too am watching the situation in the US and I look forward to your perspective.I have invested in physical silver and am considering purchasing more. What are your thoughts around the precious metals?
Thank you Greg for sharing your wisdom. I am interested in everything you say. Presently I live in central Europe, in Slovakia trying to sell my property here for the past 3 years after my husbandś death and I than want to return to Canada. I would like to know what you think of the price of real estate ahead in time in Canada, namely west coast, Victoria and Vancouver since I am returning to Victoria and my son is in Vancouver still renting and waiting for the priceof the real estate to go down.
Do you think that USA is going to have the same problem like some of the european countries namely Greece have now and who is going to bail USA out if that happens?
Looking forward to your next articke.
Maria Nielsen
Great article Greg – I would like to understand what things to invest in – gold and real estate always make sense to me. Do you see a service oriented business being able to grow in economically hard times? Looking forward to learning more.
I would like to know what to do with 401k. Sould I pay of my home? should I be converting dollars into Euros or some other currency? I have so many questions…
Thanks,
Jasmin
I would like to know what to do with 401k. Sould I pay of my home? should I be converting dollars into Euros or some other currency? I have so many questions…
Thanks,
Jasmin
I would also be interested in your opinion as to how a US dollar collapse will impact Canada. Thank you.
I would also be interested in your opinion as to how a US dollar collapse will impact Canada. Thank you.
Hi Greg,
great article. I think as you that most people are not aware of what is going on with regard to the economy and the shift that is going to happen as to economic power in the world.
But what to do as an individual is also very important, as most of us in the daily work are not taking enough care to protect our own interest.
if you could help with ideas and suggestions that would help a lot of people. Thank you,
best regards
Manfred
Great article, Greg! For several years now, I’ve been wondering how all of the people who currently receive Disability and Retirement benefits are going to survive when the Government runs out of money and can no longer support them. I would love to know how to position myself so that I, and my family members, won’t have to rely on these sources of income for the future.
I would also love to know if my current business (a nonprofit) will see me through (if I have the right strategy), or if I’ll have to switch to another kind of business altogether – one that might potentially take me out of my “Genius,” as Jay Niblick would say. If the later, I’d like to know how to build a community of “Geniuses” whose strengths can be flexed for the other business.
Thanks!
I am very grateful for all the excellent information you send out. My understanding of the economy is limited in all areas. I am currently learning about credit cards and credit reports, but don’t have an understanding of government economics at all.
Looking forward to more of your expert information and sending many Thanks.
Thank you Greg for a most enlightening and informative blog. I live outside the USA on an island which depends upon tourism for its existence. I would like to know how would the collapse of the American economy impact nations outside of the USA.
I would like to understand what to do with investments as the collapse comes. Take money out of the system for a time? And what is going on in the other parts of the world – like Greece, and how does this impact the US? The problem I have found is that there is a lot of talk about what is going to happen with the econonmy and the US dollar and global markets, etc from and an old world, financial and even spiritual perspective, but based on what I do, I can’t find anyone who is actually talking about WHAT they are doing or WHAT to do with our money – if money will even matter after the collapse and we move into Unity Consciousness. Until then, I am very curious to learn what you are doing with your money and what others can do to keep it in a positive and healthy place and move us forward rather than keep our money part of the sick system. Thank you!
I understand there are ways to get rich ..at least for a while in the short term, but that, as you point out, doesn’t detract from the fact that the economic system is broken, once a system has passed it’s threshold limit, it can’t be fixed , it will have it’s limits broken repeatedly. Getting rich isnt a fundamental solution, just like the borrowing or taxing more isn’t.
Pretty basic information that has been out there if you’ve been paying attention. Hello fellow FOX NEWS viewers! A good place to start if you haven’t been paying attention. We don’t really need so many politicians now. People have access to the internet, let’s vote on everything. Put all the under/unemployed IT people to work coming up with a secure system. TD Bank seems like more of a money service store than a “bank”, maybe they are ready they ARE everywhere on the east coast. Public works could be services performed by the under/unemployed–have people work for the benefits. There are plenty of workable ideas but the politicians have to be sure they pay personal “I owe you one”s back while getting somebody to owe them. They are not serving the public’s best interest.
Guilty as charged! I’m one of those who didn’t take bus & econ in college “back then” (in the 60s) because I thought it would hurt my grade point avg. (and it SO would have…). And ever since then it hasn’t seemed that there was anything written that had a broad enough, deep enough view, and that I could understand. So now I’m on SS disability (soon to be SS), married, with retirement funds I’ve been tapping into and a younger (52) husband who left corp. computer engg after 25 years, can’t tap into his retirement $$ without penalty, and is trying to start a small business that doesn’t seem to have big-buck potential (PC tech for very small bus & homeowners). So do I need what you have to offer in these blogs? Yup. I’m glad you’re sorting through the info — it’s pretty overwhelming…
Okay Greg. You’ve got me interested in following you. I’m just hoping once you have our interest that you don’t charge us to follow your blog.
Great Article Greg! Exactly what I needed. I am the type of person who just puts my head in the sand and thinks that this finacial crisis crap will all just fix itself. You woke me up and I have decided to become a student and try and understand what is going on. Thanks
Really appreciate your info and comments in this post and your offer to continue. I’ve been following you for some time because I want to start at least two businesses. I’m involved in art, design and the environment.
I’m finally getting a handle on the practical aspects of my personal finances – but this has now led me to confront more starkly the issue of what I want my money to do in the world. I would like to know more about the interaction between current financial system/practices and personal financial actions, and what to do when personal values seem to be at odds with those in the financial world. For example, when reading below about others investing in silver, my immediate thoughts were ‘I wonder what kind of environmental and social impact silver extraction and processing have and if there’s any environmentally friendly silver mines in the world?’
I realize I need to catch up on some basic information about how the current system works, but I my immediate intuitive feeling is that we need to going full on in a positive direction (by that I mean environmentally-compatible, people-friendly, financially responsible way) – that includes becoming ultra conscious what our money is doing at many levels, using this information to act in an integral way as possible, and really championing innovative and compassionate ways of doing business and finance. I’m interested to know your views on this, and if you think the current system needs reforming or perhaps even replacing and how (I have a few ideas myself).
Please be more specific about the reason you think the economy will completely collapse. I am not just interested in making money, I am also interested in how we can help alleviate suffering for others by taking proactive measures. If I had to choose between making money and alleviating a collapse and untold suffering I would choose the latter. What are some proactive measures that can be taken to help minimize the effect of the crisis not just for myself but for our country and world. Thanks
I agree, the idea of ‘making a ton of money’ in a market where my brothers and sisters could lose everything feels awful. How can we just help get the economy back on track so the most people benefit? People worrying about themselves and not the collective is what got us into this mess in the first place.
Quite simply, start a business and create value. Employ people. If that’s what the government focused its efforts on, the economy would turn around faster than anything they could do otherwise.
Thanks Greg, look forward to hearing more. I would encourage people if they have not already done so to watch the documentary Money Masters which you can Google and watch online and also to read the excellent book “How an Economy Grows and Why It Collapses” by Peter Schiff. It is written so simply even a kid could understand it.
My primary concern: Where is money safest for growth? I am underemployed after being downsized just over 2 years ago so my ‘rainy day’ fund is dry and can not be replaced. Savings is minimal in an IRA, and there is a small college fund in a mutual fund started for my 12 year old. I don’t have the luxury of not paying attention to what is going on, but I don’t have a clue how to protect what little money I have left, as well as, how I can grow it during this mess.
I am blessed with very strong intuition which I am learning to trust more these days and thankfully I followed the strong urge to look at buying gold nearly 10 years ago when it was in the $200’s even though it had been stagnating there for years. It had doubled by 2004 and from then on headed to 1000 over the next few years as we all now know. I thought this would be a good safe haven when I researched the price of gold through the great depression I was amazed to see that it had not sky rocketed. I then found out that this was because all gold was confiscated from the public back then. Will they not just do the same next time?
Greg, thank you for sharing this information. Can you discuss how this will affect buying real estate here in Alberta? Should we continue with this type of investment?
King regards, Grant
I believe that we indeed are entering a new dimension of energies on earth, and money is one form of energy. So there will be change and transition, the likes of which humans have never lived through before. No need for fear, but time for Enlightenment. So Greg, simply share with us what you have learned in a loving and neutral way. I’m sure it will enlighten us all. Thank you for what you offer us.
Thank you very much for your explanation, In your next blog please explain,what we should do.Buy gold/Silver? Some say Silver is the best buy.–
Hi Greg,
I am interested in your opinion on growth. Can a finite world sustain exponential expansion?
I appreciate your focus is to accumulate wealth. However do you think it is time to acknowledge that it is the distribution of resources that requires attention. Why should 1-2% of the population have the majority of resources. How does your analysis address these questions.
Many thanks,
Jeremy
Passed this on to my OffSpring. If you can learn this information early in life, your life is bound to be easier IF you put it into practice.
I enjoyed your info but was wondering about
Real Estate in USA. I bought a condo in Phoenix & after
hearing what you had to say, it has me wondering. I do not
want to become fearful but informed. I was married to an American & receive US widow’s pension so I am very concerned
about the US currency. The condo was a foreclosure & I was
able to purchase it at a good price but it still has me wondering
about the economy. Does one wait it out or sell? I appreciate
any feedback.
Thank you,
Doreen
Hi Greg, thank you for sharing.
I have total different prospective and that is Islamic Finance which bases on sharing of wealth and mutual benefits. It’s about ‘giving’ not just ‘gaining’ only. No interest-based products or transactions allowed, I have nothing credit bases and i am living in UK even not taking any interest money on my saving accout.
Do have thoughts or insights about such system to previle or could be an alternate?
Thanks
Our current economic system is not broken, it cannot be fixed. It can only be changed. That change can only come from you, me, we – the collective. Only when we work together as one, the collective whole, will we return to a system of abundance, flow, and freedom. The collapse is necessary and will happen. When? Probably sooner than we think. Will there still be a monetary system after the collapse? I cannot answer that with any certainty. I only know that we have entered a New Paradigm, a New Era and we must learn to think outside the box and create that which is in alignment with a new and higher frequency. If anyone is ready to work with a team and build a new system, contact me at [email protected] (Forget the old, it no longer works.
Thank you, Greg, for being willing to bring this into the light of day. Most of us Americans know we are being lied to and that we are on a very dangerous road. And your are also right, that most of have absolutely know idea how to protect ourselves.
I am very appreciative for the information you are willing to share with us and how to protect ourselves. I look forward to more of your blog posts and information!
Really.. commerce is mostly being done now over computer exchanges now,one click and a million dollars changes hands. I’ve seen this new world money order coming for a long time. Plastic instead of cash, debits instead of checks, automatic payments, governments and banks even dictating how much a dollar is really worth, etc. As ridculous as a movie it is see “Idiocrasy”, as a “C” movie it’s in theory not far off the mark. What did it feel like when we went from gold to paper anyway? What did it feel like after the civil war when confederate money was instantly worthless? Because of our growing interglobal interdependence i think we already have more than a toe in the ocean of new forms of money that we can’t see past that piece of paper we carry around that we call a dollar. Trading goods and services on a local level can help but it’s small potatoes. History seems to show that until humans can get a grip on greed, that these crisis’s will continue. I believe there really is enough for everyone if there was a change in consciousness…BIG QUESTION, who exactly is making this big dough from the interest on our debt, people say china, but what organizations actually collect the interest on the us debt, someone is making some big money who is it specifically, i was just curious?
this is absurd, $14 trillion? How can the US survive? Whats going to happen to the people? I’m quite worried because my siblings are there… Can You explain further? What are the least possible solutions to their problem? Appreciate if you will reply on this.Thank You
It is the law of nature that the only constant will be change. history of mankind proves that no single individual, monarchy, society, corporation, nation can hold on to number one position or remain at the top. the laws of nature will eventually prevail. how the story unfolds is different. for people living through the current times, the events and happenings are inescapable and for some the events will be happy and with will provide opportunity (as Greg has pointed out) and for others there will be pain. but fast forward into future and look back in time and this will be just another chapter in history. having said that we the people have to execute our time and many many people will need help and guidance of the learned. i would add that it is not that the people in the western world will face problems because of the economic follies of a few governments, but globally. as far away as India, a common man has to deal with less on his plate because of runaway inflation that is being stoked by the dollar economy. a poor man does not understand the relationship of hedge funds with international crude prices, but he is impacted all the same.
Hi Greg,
I’m interested in what you have to say and appreciate what you are doing.
I know that you want to help.
So, for me I would like to know more about the fundamentals. What are the fundamentals we should be doing. Should we invest in this or that, should we be staying clear of holding on to cash other than for quick emergencies, or should we have as broad a porfolio as possible. Spread risk or keep to our own area of knowledge and apply more leveage to our skills / expertise or product.
Thank you.
Thanks for putting this on, much appreciated.
I would like to know what would be the investment for in this time of crisis? Gold? Silver? Or perhaps materials like copper etc.? thanks for your advise, i am a big fan of yours….
Regards
Adrianos
Hi Gregg and all the commenters. A great article and some in depth replies. I share Susan’s perspective about change happening with each individual. I wonder if it is not money that will change worth but values. For example…in times of strife and great earth change, commodities such as water, wheat, building skills, first aid become the golden currency. Maybe in order to see how things will be valued, we need to see where the world is moving as a human race. For sure we are caught up in systems for lack of education and insight. But consciousness means we can change that, beginning with ourselves, then community, then nationally. I have friends who looked down on me because I am a tenant and they borrowed on the collatoral of their £ Million K house. Now they are sick with worry and embroiled far more in the system than me with my modest lifestyle. In fact, every day, I look out over paradise, claim the freedom do do what I love and base my values on those that are sustainable… health, fun, family, environment, art, culture, serving others. They are worth diamonds and I feel like a millionaire every day. My point is that if we shift our focus to the importance of values and commodities in the CONTEXT of today’s world, we may begin to make some sense of it. I for one am grateful for your savvy over-view to help me make the right decisions in this quest. I am also a conscious, engaged entrepreneur who helps people to get their messages out to serve others. Since I believe that empowering others is a service worth gold.
Sincerely,
Dream Warrior Jenni P
” . . . health, fun, family, environment, art, culture, serving others.”
Absolutely, Jenni. I share the same values, and couldn’t have said it better.
Thankyou for connecting Gordon. Would you like to continue the conversation?:) Very warmly, Jenni
Definitely, Jenni. I’d love to hear your views on the values we share. Here are mine:
Health: Regular exercise, mostly healthy food (no beef, lamb or pork); reading, writing and meditation. Between them, they keep body, mind and spirit from falling apart.
Fun: All of the above, plus dining out, movies, listening to good music (alternative, classical, modern folk, fusion, modern jazz, rock), especially with friends.
Family: Having just returned from an entertaining weekend with two of our three children, their spouses and ‘our’ four grand-children (ages 1 to nearly 5), I wonder how I’d survive without them.
Environment: I’m both a landscape designer/writer, and an environmental campaigner, that puts me at odds with vested interests and conventional designers.
Art. I studied art-photography at the National Art School, Sydney. My business tagline is ‘The art of eco-friendly gardens’. Favourite artists: post-impressionists and beyond; some modern artists/sculptors.
Culture: I love living in this forest clearing, with 360 degrees of eucalypts on the distant horizon. But I miss the bars, bookshops, eateries, buildings, cinemas, activities, ethnic mix, and buzz of our former haunts in inner Sydney. The KultureVulturati may differ, but that’s my idea of culture.
Serving others: Veteran St Vincent de Paul Society food parcel deliverer; founder member of the Australian branch of international peace movement Pax Christi; human rights/social justice campaigner.
BTW, Google couldn’t find your website.
Over to you, Jenni.
Regards, Gordon
I agree that each of us needs to return to our core values. Being led around by others hasn’t worked and the pains are now showing up in mega proportions. Each of us needs to take responsibility for learning what we don’t know and working together to change things for everyone.
It is a global problem and it will take global commitment for things to change for the better. We can take what Greg teaches us and teach others.
Hi Greg, I Like It. As an inveterate financial semi-literate who seldom reads the financial pages, I confess the thought “sounds like watching paint dry”, had crossed my mind. But before I’d finished reading your article, I unexpectedly found myself looking forward to the next one!
Q: What parts of the economy do I not understand?
A: None of it really. Except, according to my understanding, to avert financial collapse (or was it due to insufficient gold to meet demand?), paper money replaced the gold standard. And the instability of paper money and abuse of financial markets (?), are now contributing to the approaching financial collapse.
Q: What do I want you to talk about in future articles?
A: 1. How best to outsource/out-task financial/business admin, (to free up more time for TAF, develop talents, and support favourite causes.)
A: 2. Your views on the prospect of property values plummeting, in a repeat of the second wave of the Great Depression.
I agree with all what you sad. I can see it happening. I think the Government knows something, but they don’t tell it to Public.
Thank you first of all for sharing your knowledge with us ( your readers). I think you’re absolutely right that majority of the population have no idea what really is going on. It always was on my list to do to understand how global financial network dictates stocks to rise or fall, oil, gold, money and actually the whole picture. After I read your Blog Greg, I’ve come to realize, that this is a mandotory knowledge in the modern world for anybody that own properties, stocks, etc
Thank you Greg again and Im looking forward to gain that knowledge from you!!!
Alex G.
I am an illiterate in the financial and economic playing fields. I am getting stronger as a conscious money manager.
Still have oodles of room to grow!
Thanks, Greg, for putting your Self and your work out into the world so all may benefit.
I agree with Hillary…there are a lot of experts talking about what their predictions are in term of what will happen to the US economy, but not too many of them share their plan to survive this economic crisis. I am interested in finding out what kind of investments you are focusing on at this present time and what are your exit startegies if the US economie collapse.
Thank you again Greg. There is no doubt that we are entering new era – change of thinking and doing things if we want to survive as humankind on this planet. This change should take place in each individual, working towards prosperity as a whole versus as an individual.
The values, for the good of whole versus materialistic individualism. In simple words – we can´t eat, drink and breathe the money, oil gold, silver atc…
It is time to come back to basic values and act accordingly. Others will follow…education and personal example is needed.
Investments into sustainable, green industries is needed for our well being and for our survival.
Greg, I believe that, indirectly you are trying to move things in this direction. After all, you already made enough money and your thinking is different than most investors.
Maria Nielsen
We know that economic situation in the USA is going to collapse ,The U.S. dollar is going to zero,
there ae going to be inevitable massive inflation.This finacial crisis happend because of some
Macro mistakes,and the great debt,and the bad situation of the global market spurchase.
This difficult economic situation can and will all just fix itself ,by the time of some years.
We know from the hystory of the USA,that there was worse situation in the time 1929.There was in those time finacial crisis and collaps of the econonmy of the US.It was fixed.
Afte some years the economy prosper and thrive little by little.
The circolatory of the economic situation described in Gallop curve.
This finacial crisis fix itself when the USA will find new economic resources,the GNPwill grow up,
the unemployment proportion will be lessen, and fiscal ,monetary fixing will do.
I’ve heard all this from numerous other reliable sources. You’ve hit the nail squarely on the head! I’m looking forward to future post. Thank you for sharing your knowledge
Travis
I would love to hear about what the best investments are in a time of high inflation and high interest rates.
I have some insight but I would like to start with the basics and go from there. I do not believe in borrowing money and by living on that principle has save me from a world of trouble. No debt No risk. Thank you for allowing me to undersand the importance of values. I made a decision to never borrow money again. Give me the basics!
Wow, very sobering to hear someone finally call out exactly how serious the U.S. debt crisis is, and the government’s failure thus far to recognize it and address the problem. I don’t understand why Congress doesn’t see this as an impending disaster if we continue on the same trajectory of “borrow and spend, borrow and spend”.
Hi Greg,
Good post, and I completely agree with the thought that while these may be very challenging times, they are also presenting great opportunity.
I’m a little surprised that you lay most of the blame for the staggering and escalating US debt on the politicians, and not even mention that the money they’re borrowing is coming from a privately owned entity (The Federal Reserve – which isn’t federal, and has no reserves). Listening to The Creature From Jekyll Island gives great insight into this. I think the politicians are primarily ignorant pawns who end up being swayed by lobbyists and old party policies. Most of them have no idea how the monetary system really works.
I look forward to your future posts, as I agree that this kind of information needs to get out to more people.
Best of Success,
Dan Giercke
The politicians are the ones passing the legislation, and don’t think that none of them are aware of what’s going on. Ron Paul has led the charge for years, putting what’s really going on out in front – and it’s completely ignored. Ultimately, it’s the law that allows what happens to occur, and until the people really wake up to what’s going on, the laws will never change, which means the process and system won’t either.
What practical, simple steps we can take now to leverage ourselves, especially those of us who are not working for someone else, and limited funds after spending “investing” building own business to be more financially independent, and not being an involuntary puppet for those who have?
Hi Greg, Thank you for your counsel to be aware and learn about economy in these times…I live in S America, and am used to inflation. But how can I profit from this situation? How can I help others to prevent falling in debt? I am very interested on learning what you have to say. Thank you again. Ingrid
Greg,
I hope to discover globally how the economics of countries affect one another and how we can move forward out of pain and suffering into a steadier environment. As always, I am eager to learn from your experience and wisdom.
i am interested in finding out more about the possible US collapse and what steps to take to avoid going down the tube with them.
I would love to learn and hear about option investing, fundamental analysis and debt free money. I have read that North Dakota has a state bank that utilizes debt free money and is one of the few states that have a surplus not a deficit
I would like to know more information on how to make money as inflation goes up. Thanks
Thank you so much for courageously stepping into your true authority. Once we understand the principles of Think and Grow Rich and such books we absolutely must take the next steps of learning forces we work with and against. The belief and desire that most success authorities promote is only the very beginning of success. Desire and belief open your mind and energy to be able to LEARN and DO what it takes to turn your desire into reality. Don’t forget to remind us that we are capable of understanding what you are teaching because we have a burning desire to do whatever it takes to live our purpose with financially productive results. Again, thank you.
What am I to do? I’ve been a fool with my money and my life up to this point. I was a typical lower middle class (OK now poor) American. I lost my job 2 1/2 years ago and have struggled to find work and there is no unemployment left. My savings is used up and I have thousands of dollars of credit card debt. I am on the edge of the cliff. Accounting gives me anxiety. I am just now coming alive from a year of sickness. But I am determined, not only survive, but to thrive. But all I hear is doom and gloom and how the banksters and government bureaucrats have put us in such deep debt that we as a nation and the world economy can not hope to recover. I greatly appreciate your perspective and understanding. I have paid my bills up to now but I am at the end because I have not taken responsibility for my financial health. I have let fear and lack of self discipline and “hope” control my spending and not plans and goals. Now I am paying the price dearly! Where to go? What to do? I am not alone in my foolishness and plight. I am determined not be just another sheeple but I and many others have a hard uphill battle to climb out of the hole that I have dug.
Thank you for the invitation and sharing of your knowledge, it is greatly appreciated. I am new to the industry of investing outside the realms of my Owner Occupier home and a couple of capital city median priced properties in Melbourne, Australia. Though I live in Perth the other side of Australia. I do realise there are differences and similarities of the property industries in the USA versus Australia. So the details will be my responsibility.
I have put MY context in so as to give you a gauge as to what I am interested in and WHY. As it tends to give it a sense of perspective as to why I want to know something that will benefit, my wealth creation plans. I do apologise up front for the length of this response.
I purchased 2 Melbourne properties in 2007 based on my ability to negative gear. My intent was to kick start my learning curve with an investor starter kit of 2 houses and then work my way up over a doubling period of 7-10 years. Buying some 6-12 properties with most of them “Positive Geared”, the initial houses negative geared and reliant on government tax incentives. Having reached a zenith of ability and the small self sustaining at around the 6 year mark, with a LVR of some 50 / 50 then paying them all off by some 15-21 years, cutting out reliance on the banks.
The intent was to have in effect a self governed Pension Income that would realise some $150k net Income and I would not be relying the government for anything. I am 52 so time is not friendly to me. Since then I have been forced to sell my starter kit as a result of the GFC.
I was not strong enough financially for 3 reasons: It was early learning days (3 years) and the starter kit was in “fledgling mode”. 2nd: I lost my job/contracts in IT Project Management as the Australian resource sector cautiously cut back all projects by early 2009 as a result of the GFC. Though I geared our commitments, based on my partners income and some of my pensions as the minimum threshold. We would have been able to JUST cover commitments and a little bit to live on. If it not for the 3rd reason:
The 3rd reason is that while I was leveraging off very good Income and my skills, my other half on the side, who was earning a 1/3rd of the total household income (Cash flow of some $300k plus gross) decided to relax and go into some $50k-60k of Toxic Credit, with NO ASSET Value to relieve the pressure. Of course this affected cash flow % ratio of debt to income ratio when I lost my earning capacity and hence we had to sell our “Buy & Holds” to pay off the ”TOXIC DEBT” and we are still not clear totally today. We did agree NOT to get “Toxic Debt”, though one argues the merits of credit cards at the time (Not me – I don’t like BAD DEBT – GOOD DEBT yes).
So my early “L Plates” days of investing started off really well while I was building financial strength and intelligence and having to leaver off myself and my skills only. I was learning the strategies to then leaver off others – systems – strategies that work. I was shot in the foot, both legs cut off from underneath me by the CYCLES of “Greed” not just politicians but by “Greedy Bankers” (GFC). As of yet CEOs over here are only just poking their heads out, and regaining confidence to start up more projects. I still do not have my old industry to go back to yet it has been 2009 to 2011, I am packing shelves with “Woolworths” at the moment to make ends meet.
What I would like to know is there a fast track “Learners Kit” that gives one confidence to earn as you learn and still affectively kick start my initial “Plan A” over the next 10 years of wealth creation and hit the mark I set of a net gain of $150k PA for the rest of my time, CPI indexed, reliably giving up “Cash Flow” from the “Well” I build now through my retirement years.
In the mean time the above gives you clues as to what interests me and that is property, the affects of GFC, toxic credit and some strategies to curb the human psyche to want to be rewarded now and not wait until things are strong and stable. That is Toxic Credit to buy things you today versus waiting a number of years for your Assets to grow and produce cash flow, then buy what you want within the boundaries of that cash flow .
Though I am aware of the cycles of gold and silver versus a crisis in Stocks and Bonds versus a crisis in property. I would like to learn more about those relationships and if there is a $50 punt to get in, all the better at the moment. Should such a thing exist. I also realise no pain, no gain and education is a KEY. I would like to learn and apply the lessons. Hence earn as I learn, my small but significant wealth creation strategies.
Thanks, Mike C
I am interested in making an investment in the usa mainly NYC in real estate or any thing else and I have available 100000$ what would you suggest as I am a french citizen living in Nepal !
instead I have my money tied up in the bank and I know it sitting there like a dead duck not making any money on it as I feel I am not litterate in the investment department !but i feel good about real estate .
best Yasmine Rana and thank you for helping !!!!
Feeling empty and anxious isn’t healed by knowing how to avert financial collapse – but it certainly helps to learn these things from someone who knows what they are talking about.
Well said Gregg, people need to wake up to it. The politicians, what a total crock of crap these people talk. Full of shit they are. Always have been and always will be. Never voted in my life. I wonder why.lol. America are not the only ones, the whole worlds a mess.
Greg the delema is not just in the USA. It is a global issue and the greed is like a wildfire that is out of control. Were will the world leaders get the money to keep a capitalist system going? They must and I beleive will go after the old money that has been hidden from everyday sight. They have painted themselves into a corner and the average person is not in a position to pay or accept any further taxes. The religions are on their radar as they in most part are tax exempt and for the most part the masses are apathetic at best about any so called religion. Under the current situation, they will all have little or no choice but to start stripping her bare.
Hi Greg, I really loved this article, It would be wonderful if you can write an article about all the classical financial schemes. ex: What to do when you think that the interest rates are going to rise? What to do when you think that the euro is collapsing? etc..
Thanks a lot for posting all this articles, it really inspires me
Hi Greg,
“I called the Lehmen Brothers collapse before it happened, and suggested that General Motors was going to go bankrupt, well before it did.”
What’s your point?
If it’s your ability to have a crystal ball and predict the ecomonic future, then tell us publically what will happen to what companies in next 12 months?
Thanks,
Susan
My point is, you can see these things coming if you know what you’re looking for. My goal isn’t to predict what’s going to happen – it’s to teach people to UNDERSTAND how to do it for themselves. Is there something you’re annoyed about that causes you to post such an abrupt comment like this?
Hi Greg,
How to UNDERSTAND to do what themselves? Predict the timing and fate of individual companies as you claim to have done?
Did you short sell CFD’s? buy puts? What? How did you make massive amounts of money on your prediction coming true whether gold, exchange rates, GM or Lehman? What did you do?
Can I ask that your next predictions are publicised before the event and not after?
thanks,
Susan.
Actually, I did publish them before they occurred. That was my point Susan. I did it on my blog here and the blog posts are there for you to see. I predicted gold would go up. It did. I predicted the US$ would weaken. It did. That doesn’t make me a genius. It simply shows that I understand how to interpret some of the financial and economic fundamentals that give me an idea of what might occur in the future. I’m not perfect and can’t foresee everything. I’m just trying to shed some light on things for people that are actually open to listening (unlike you).
My goal is to help people understand what’s really going on so they can make their own decisions – rather than just blindly following the “experts”. Yes I made money on the Canadian/US #$ exchange. Yes, I made money on gold.
Not sure why you’re so negative – but perhaps your attitude is the first thing you should look at working on before trying to figure out your financial plan. Clearly you’ve got some kind of pain or problem going on that makes it difficult for you to listen to anyone.
If you have anything constructive to contribute, please post. Otherwise, don’t bother dragging your negative energy in here, because there’s enough of that in the world already and that’s not what we’re about.
My first reaction when facing bad news is either 1) ignore it 2) panic. So it is good to read a blog which properly defines the problem without shrieking that I have to take the crash position NOW. It is a relief to hear you advocating a reasonable plan of action – i.e. get educated.
In fact I think the more of us who can be encouraged to start planning in a cool, reasonable, resolute manner, the better it will be for everybody.
So thank you for your measured, thoughtful and generous approach.
Sorry for my financial illiteracy… but if USD is going to zero, how can I preserve its value? By purchasing gold or another currencies? And what is the effect of this to rising economies, like Brazil?
If you were to take money out of your 401 k were would you put it where it wouldnt be taxed again and still earn interest.
Greg, you asked what parts of the economy do we not understand. I can’t say I understand any of it! Some of the decisions I’ve made in the past have been wrong and I feel like I’m chasing the carrot instead of driving the cart. I have some money in the market, in a retirement account, and think it may be a good idea to take it out before it evaporates and do something with it. But I don’t know! I’m looking forward to reading more. And thank you very much for your help.
Greg, two questions:
1. Will you be discussing the ‘strawman’ concept of banking and taxation? (My straw man is an artificial person created by law at my birth via the inscription of an ALL-CAPITAL LETTERS NAME on my birth certificate/document, which is a document of title and a negotiable instrument. My lawful name of birthright was replaced with a legal, corporate name of deceit and fraud.)
2. Have you ever tried asking your bank the following questions (assuming you’ve ever had a loan with them)?
– Please provide me with accounting proof that you actually loaned me money.
– Please provide me with a transaction certificate, as required by GAAP to prove that an original lawful loan deposit actually took place.
– Please tell me if you recorded my original promissory note as an asset on your books and, if so, its value.
– Are you in possession of an original, lawfully binding contract between us?
– Please send me any records you have in your possession with regard to the securitization of the alleged debt into a special purpose entity and confirmation that you had my permission to do so.
– If I pay off the full outstanding amount owing, please confirm, in writing, that you will immediately return the original instrument of indebtedness to me.
You will get no response, or otherwise very vague generalities to otherwise extremely pertinent questions. Would love to see you discuss this in upcoming blog posts.
Thanks for all your insights and sharing!
No, I’m not going to get into this kind of concept, simply because for the most part it’s well beyond the context of most people – and understanding it doesn’t really give most people any advantage in terms of what to do with it. My belief is that spending a lot of time trying to prove how the government is “out to get us” is not only a waste of time (since it’s self-evident the government isn’t here to work in our favor), but it makes more sense to me to create profitable strategies to work with the system, as opposed to trying to swim upstream. Never mind that fighting the government and trying to expose loopholes is playing the game with their rules, which you can never win. I’m about practical reality and strategies, not trying to “change the system”.
What is the timeline before you believe the US Dollar will start to drastically lose value? Is the Canadian Dollar a safer haven?
We own a US stock that has recently appreciated considerably and that we believe is poised for some dramatic growth over the next 6 months or so. Is this a safe timeframe or would you advise selling now and converting the proceeds to Canadian dollars? Is Gold and/or Silver a safe play right now? What is your short/longterm outlook for either commodity? Is US real estate investment a bad move in this pending economic climate? Is Canadian real estate safer? We own a distribution company in Canada. We have the exclusive Canadian rights for a product line based in the USA. Recently the owner (who wishes to retire) approached us about our buying them out and taking over the company. They seem to have a thriving US domestic business as well as International (approx. 20 countries). We intend to review their financials shortly. Even if their balance sheet proves to be as healthy as we suspect would you consider this aquisition and probable necessary relocation to the US to be bad timing?
Any recommendations on how to accelerate the learning curve on this topic?
Thank you very much!
The time frame is already opened – the US dollar has dramatically lost its value over the last 10 years and beyond. It’s not a currency that is safe or riskier – it’s what backs the currency that affects its risk. The Canadian dollar is likely more secure simply because the Canadian economy is largely commodities and resources-based, which the world will always need in the future. The US economy has eroded almost all of its production capacity, meaning that it doesn’t produce anything of real value. It’s a consumer instead of a creator, and that imbalance cannot sustain itself forever.
To be clear, I’m not here to give anyone investment advice, nor to suggest what someone should or shouldn’t invest in. What I want to do is help people understand the context of making investment decisions based on fundamentials and sound investing principles. It’s impossible to say whether something is a good or bad investment without knowing the timeframe, the context, the goals and risk profile of a particular investor. There is NO such thing as a good investment or bad investment for everyone.
Great teaser. Now where’s the ‘meat and potatoes’? where’s the information?!!
This wasn’t intended as a teaser of anything, only setting the context of what I’m going to be posting about in the future.
I like to know more about the crisis and how you could still make more in this difficult economic time
Does your government considers the effect of their desitions which damages also other countries if not all of the world?
As long as there is this much debt the interest rates have to rise in order to try to offset the debt.
Very good Article… I said the same thing about GM some time ago… too diversified. Have an awesome day!!
Thanks Greg. I look forward to each of your insightful articles. I really need the knowledge base to be able to take concrete action steps to help both preserve and build financial security.
Hi Greg, I am one of the friends Pascal from Kenya shared your link with, and I really appreciate all this good advice. It comes at the right time too as I am trying to assist my son start up the project of his dreams – and none of us have any financial knowledge at all. We enjoyed your 4Ms etc and will plan with it in mind.
Over here in Africa we are all watching th US and wondering when that giant crash will happen. It’s like a bridge over a void where the support pillars are slowly crumbling. Sometimes we humans can be frighteningly shortsigted (or maybe that is more the rule than the exception?). And it will affect the whole world and no mistake.
Personally I am also wondering what the american army is doing waging expensive wars abroad in other people’s countries especially with this debt burden. Any private business in their right senses would cut their losses and get out of impossible situations like that.
Thanks a lot for all your great commitment and willingness to share your hard won knowledge
Greetings to your wonderful looking family who must be so proud of you
Realy appreciated
Anne Bruntse, Kenya
One suggestion to the financial problems facing the US. Withdraw all troops and support from the 4 wars that are raging at the moment. Instant savings of billions of dollars to redirect to the ailing ecomony. The wars are un-winnable anyway and are like the proverbial bottomless pit when financing the cause. The US needs to take a serious look at itself and realise that they are no longer a “superpower” and lick a few wounds while China and India take the reigns of the world. As for the GFC that has been thrust upon us poor unsuspecting individuals through pure greed by the US property tycoons. Thanks for nothing. I have lost the proceeds of 40 years hard work by deflating property prices in Australia amounting to several millions of dollars. All through something I hav nothing to do with. America sneezes and the world gets the flu. Thanks for nothing guy’s.
I’d like to know what you think impact on Australia will be, and what financial strategies would be appropriate here. Also for those of us with a significant investment in Superannuation, what is the best invement strategy – put everything into cash, or fixed interest etc?I imagine shares will take a thorough beating if the uS conomy collapses……..
Thank you for bringing this subject to the forefront. I continue to try to learn all that I can. There is no doubt that at some point in the future, maybe sooner rather than later, the interest the US is required to pay on its debt will go up and someone will come to the conclusion there is no alternative but to stop raising the debt ceiling and deal with the consequences. It won’t be pretty and I worry about all those who are more interested in the Casey Anthony trial than in world events. The more people we can reach, and educate, the better. Thank you for stepping up!
I firmly believe we’re headed for a complete economic collapse. I could go into a long dissertation about the signs and how it will happen but we’re on a steep and slippery slope. The current structure of taxes, banking, jobs and politics is not sustainable. With the collapse I think we’ll revert to a more agrarian society with many entrepreneurs and smaller businesses working more cooperatively for the whole. The underlying concept that “more is better” is not sustainable. With the collapse, the dollar does indeed have to lose its value. I think we’ll go back to a literal goal standard and much more bartering. Greg, I would love to hear your views on this aspect.
Thank you, Greg. I appreciate your efforts to help others where your strengths lie. Since a young age, I’ve saved money, invested in the US stock market and accumulated a decent wealth for myself. Since I am heavy in cash (USD) and my investments are in the US stock market (including 401K), what suggestions for diversifying my cash out of UDS do you recommend? Thank you so much, in advance!
Hi Greg,
What’s the sense of my understanding more and more in detail the general economic danger when I’m still working on how to earn an income, keep up with paying bills, help a few people, and chip away at debt in a responsible manner at the same time.. I’m just me. Doing the best I can.
My heart is O.K. I’m not gifted with business acumen.
I don’t understand the question. How do you possibly expect to CHANGE your situation if you continue to operate on the same knowledge and beliefs that got you where you are?
The point is, becoming educated is the ONLY way to change your situation, period. If you don’t see that, then I am not sure what else I can say.
Business acumen isn’t about being ‘gifted’. It’s about making a decision to gain the acumen through education, experience, research and listening to those that have been there ahead of you.
Greg,
I agree with your insights and acknowledge that everyone is in CRISIS – not just the U.S. I am not certain I agree with the dollar going to zero in the future as I believe the American resolve is simply too strong to allow the poor decisions and shortcomings of “our leaders” to completely derail the American Spirit.
I do agree the crisis will escalate – and you will definitely continue to see turmoil in state, local, and national political offices and elections. New leaders will emerge during this crisis and begin to apply similar principles to what you teach – value creation, entrepreneurship, independent thinking, etc. and our country will rally behind those leaders and principles with new found energy and allegiance. From this “revolution” a new American and World Economy will emerge…..
At this point there is no country immune from the turmoil and this CRISIS will involve Global ramifications that in the end will propel us all forward with new found hope.
Thanks for beginning the conversation and I look forward to hearing more from you.
Thank you so much Greg for addressing this looming crisis. I have been watching global signs for some time now, and I know you are calling it correctly. I am just starting a new business (coaching others on how to start a small business) and I would really like to hear your thoughts on the potential for success for my business and for those whom I coach. Is this good timing to help others build their income, or bad timing since they may not have enough money to invest in a business?
Good Stuff – many thanks for sharing your gifts of knowledge :~)
THANK YOU!!! This is exactly what I’ve been looking for. I look forward to your next article.
Thank you so much for the content you give us, to call us to take action and become financial literate.
Hi Greg,
This is fantastic, great thinking and variable analysis. Please let us focus at our thoughts. These problems are the results of our previous reckless thoughts meaning that for us to come out of this mess we need to take responsibility by thinking responsibly. Please continue writing on the benefits of thinking responsibly and how it can make our world a better place to live in.
Do I sell my US Bonds before August 2nd?
As I said in the article, I strongly believe the U.S. will reach a deal, and the world will breathe a collective (but misguided) sigh of relief. We’ll likely see the U.S. dollar rally a bit in response, but then the reality will set in that the problems aren’t over, and it will continue it’s overall slide. Timing markets is always a dangerous thing and almost impossible to do.
More details the better. I don’t pretend to understand anything when it comes to economics. Things aren’t always what they appear to be.
Great observations, Greg. I continue to be amazed at the relatively low number of people who understand how serious the debt and other monetary problems are. The facts are not that hard to understand. And the dilemna, of course, is for each of us to figure out the best way to deal with it in terms of investments and other assets. The Brazilian economy appears to be one of the strongest at present as they have enormous natural resources, a greatly expanded middle class, and a strong currency (at least over the past few years).
For myself, I believe it wise to minimize U.S. dollar-based assets, hold some strong currencies such as the Brazilian Real and Swiss Franc (although I’m not sure how the crumbling Euro might affect the Swiss Franc), and beware of U.S. real estate. I have found very low cost real estate in Las Vegas but there is nobody to lease or rent. Some professional real estate people (with good track records in forecasting) are now saying housing may drop another 20% in value before hitting the bottom.
I look forward to your future comments on this incredibly important issue.
Absolutely, moving out of U.S. denominated assets is a wise thing. U.S. real estate, you can’t make a generalized comment about one class across a country – while I agree there are alot of dangers in the market, if you know what you’re doing you can move in and out, and generate substantial upside. It really depends on the market you choose, where the cycle, and your own investment profile. I know people in Vegas doing really well renting out condos and generating cash flow. Again “no one to rent” is overgeneralizing – some people who don’t know how to manage have high vacancy, yet others who do are generating nice cash flow. That’s the challenge – it CAN be a good or bad experience, depending on what angle you look from.
Well Greg, I agree with all you say. I will though say that your expected “end time” needs to be revised. The USA Ponzi scheme and all the other worldwide Ponzi schemes will collapse in late 2012 (NO doubts in my mind). Come the start of 2013 and we will see a different world, first though we will have to go through a lot of pain and re-structuring, but in the end the changes will be positive. Much of the debt, crooked politicians, corrupt bankers WILL be swept away and there will be little or no regrets or sorrow for them from those who remain.
Hi Rick, thanks for your comment. I don’t know that we’re going to see a complete breakdown next year. The U.S., while it has absolutely disastrous and structural problems, is incredibly resilient. Being the global reserve currency gives it a LOT more power than a typical country. While it’s always possible, I don’t believe we’ll see a complete meltdown of the U.S. for at least several more years. But it’s a timing issue – it’s not a question of if, but when. Getting educated and positioning yourself now is always a good thing no matter how soon or later it might come.
I’m in. What I see from the comments are that people are interested in empowering themselves but in helping others benefit as well. I would like to know your thoughts on what specific actions we can take to avert what’s coming.
Thanks Greg
thank you greg, love this info. Instinctively thats exactly what i am doing – creating value and employment in my business and increase tangible assets. looking forward to learning more..
Hey Greg, very nice article. I like people who in this kind of economic time is honest and share personal stories of their own life. High five mi amigo!!! You said you changed your point of view and started to learn more about how money and how economics works. What are some of best books, workshops or seminars that impacted your life the most in the financial area?
Thanks 🙂
I am fortunate to be working in the compliance field for the government and banks. Sometimes in my work I see what is behind the “news”. You may not like what I am saying, but is what I have seen and heard first hand. The bottom line is: P & P, Power and Politics. No matter which party is in control it is the same. However, now it is so obvious and blatant. I have seen the details of many bills that were passed in the last year. The truth is, they don’t want you to know what the details are. The fact is that more then $2.5 billion in debt can be eliminted in the next two to three months. However, the controlling party will not do it. You will see in the next few months new taxes that were approved last year. Remember, this, you will see at least 3.5 – 4.75 per cent increase in federal taxes as the result.
Not only does that not surprise, it’s exactly what I am saying – it doesn’t matter who’s in office. The vast majority of politicians are not interested in “serving the people”. They get caught up not only in the partisan elements, but realize that all that matters is the next 2-4 years until they need to get re-elected. It doesn’t matter who’s in “power”. The left and right are contrived concepts to give people a simple way to polarize – and distract by allowing people’s emotions to get linked into legislation and whether it should be passed or defeated. The political system, sadly, is broken. Unfortunately, eliminating $2.5 billion in debt does nothing to make a dent in the actual debt problem.
how does government come to this mess when they they got all resources ,knowlede ,best financial expert please explain how this economy business works.
patel
Listen to interviews on http://www.kingworldnews.com as often as possible. You will learn from the greatest minds in the investment world and you will be informed better than most economists. I have been listening for over 2 years now and on top of the fact that the interviews are so intriguing, it has served me extremely well in my investments decisions and in helping others via my web business. I agree with everything Greg has to say and it is wise to learn as much as possible about the economy before its too late. The greatest transfer of wealth in history is under way. Get on board!
I think too that all the congress and senators, matter of fact they should all have the same benifits we have and the same medical, what give then the right after there four yr term to receive retirement and benefits for life! Let them also contribute ti ssi , not this behind the wall program they receive aren’t they as we are American! I know when I retire after 65, I get nothing like the do and I still have to provie benefits for my family out of my pocket! They do not! How much is that costing us!!!!!
I don“t understand what currency should i make my investements if dollar is going to collapse?
Wow, Greg. What do we need to understand? I think we need to understand the fundamentals first. For those of us who never took an economics course–and frankly don’t have the luxury of time to do it now, we need an understanding of the fundamental principles of how things like interest rate, inflation, debt, etc. interrelate. The Readers Digest version?! Embarrassing, but perhaps this IS what is needed to educate the general population as well.
Thank you for speaking truth and reality. I’m certainly not prepared! And I agree I want to help all of America, but I can’t help anyone, if I fall!
A FINANCIAL education is EXTREMELY important to me!! I do intend to PROSPER TO the highest of HEIGHTS than I’ve ever dreamed and then SOME!! I feel that it is NOT such a good thing to NOT WANT to learn the SKILLS needed TO MAKE ONE’S way successfully within THIS HORRID “system’ NOWADAYS that we call a US ECONOMY/JOB MARKET,, contained herein OTHER SUB-SYSTEMS designed to NOT hold down the POOR/MIDCLASS but to hold MANY OF US DOWN!!
Hi Greg,
I agree with your views. Can you tell me what is most likely, High interest or high inflation on property values as the dollar declines in value. Now how can that effect me in Canada. I own 65 rental suits and apartments and houses in Canada and am nearing retirement. Should I sell or wait until the property values go up to sell? Is it potable that we could see hipper inflation and I could only sell a small part of my holdings to get out of debit. Will there still be people that can purchase properties if we see a total collapse of the dollar?
Thanks again Roger E
I would suggest high inflation AND higher interest rates, because they come together in most cases. I’m not able to provide advice or tell you what to do. I have no idea where your property is, what kind it is, or about 20 other details in order to give you any kind of direction (and even if I did have that, I still wouldn’t give you advice so please don’t ask.. 🙂 Real estate generally benefits from higher inflation. If you have strong cash flow and fixed debt, you’re in a good position if inflation comes quickly, because the inflation will erode the debt. If you’re in variable rate financing, then it keeps pace with the inflation and becomes a serious threat.