YES – it affects you.
A lot of people mistakenly believe that Greece, the European debt crisis, inflation and all these other concepts don’t really matter to them.
They think that they can just have a “positive attitude” and manifest themselves to a world of abundance and beauty.
This morning, we saw yet another sign that the economic wave of 2008 was not a one-time event – and in fact, may have just been the warm-up act for what’s about to come.
Now before you dismiss me as a negative thinker, a gloom and doom critic of all that is good, understand that I am a VERY optimistic and positive person by nature.
Granted, you may not believe that from what I’m sharing today, but it’s true.
However, I’m also not willing to ignore the stark realities that continue to show themselves in the world and in the economy.
Every day, I get up and ask myself what I need to do personally to assure the future of my son Cooper, and his entire generation. What can I do that will have a positive impact on others?
For the past several months, I’ve returned to the roots of what caused my love of teaching and educating to begin with — which is the world of investing, money, psychology of wealth and the economy.
Not only because I LOVE it and find it fascinating, but because I believe we have some massive turbulence ahead — and the signs are now starting to appear.
And in Germany today, we saw a glimpse of what’s coming down the pipe … the “canary in the coalmine” if you will.
Last week, Germany offered a 2 year government bond with a ZERO return. In other words, you lend Germany your money for 2 years, and they return it back to you — with NO interest or benefit.
Why on EARTH would someone lend their money out knowing they would make NOTHING on it?
Because people are so scared of losing their money, having it held by the government is the only alternative they see as “safe”.
They don’t want to hold their money in the bank because they’re afraid the banks are going to collapse, and they’ll lose their money.
They aren’t putting their “money under the mattress”, because they’re afraid inflation is going to ravage it and make it worthless (or the very currency it’s held in may collapse).
Well, it got even more interesting today .. because the German bonds actually went NEGATIVE.
What that really means is that if you bought that bond with a negative return, you are absolutely guaranteed to lose a small part of your money.
Guaranteed.
That’s the BEST case, assuming Germany doesn’t run into financial problems in the next 2 years.
Remember when government bonds were supposed to be the safest, most reliable way to earn a predictable return on your money?
For me, this is a watershed moment for our global economy.
And one reason is that this is what happened in the U.S. as the 2008 global crisis gripped the world’s money and economic systems.
U.S. Treasuries went negative for a short time – and this signaled MASSIVE trouble, and a complete disconnection of fundamentals and logic.
I hate to be the bearer of bad news .. but we have some serious economic waves headed our way (and I mean all of us, regardless of where you happen to live).
In fact, I believe
the perfect economic storm is now forming — and it’s going to be MORE painful than what we lived through in 2008 and beyond.
The result is going to be what I call the Middle Class Meltdown.
The middle class is literally going to be wiped away, and we’re going to be left with the rich, and the poor.
If you do nothing, and just “hope for the best”, by default your wealth will be wiped away, stripped by inflation, government controls and chaotic financial and currency markets.
But here’s the good news — if you
get educated and understand what’s really going on right now, the irony is that this is going to be the
greatest financial opportunity in your lifetime.
I know it sounds ridiculous to say that the economy is going to collapse, yet it’s a great opportunity for you .. but that’s the simple truth.
Think about it — it’s during times of massive change and turbulence when wealth is created faster than any other period.
You’ve probably heard that more millionaires were created during the Great Depression than at any other time.
Think about the time since the internet came to be – consider all the millionaires (and billionaires) that have been created as a result of the massive change and disruption to business created by the internet.
What’s the deciding factor that determines whether you
benefit from the changes, or get wiped out?
Simple — there are 3 things.
First, you need a knowledge and understanding of fundamentals and principles. These are the things that never change, such as understanding what inflation and debt are, and what causes interest rates to rise or fall.
Second, you need ongoing, unbiased market information. To make good investment decisions today, you need to know what’s happening in the market today. You take your fundamental knowledge and then apply the current market realities to help you determine what to do today.
And then
third, you need to take action. Obviously, all the knowledge and insight in the world does you no good if you don’t take appropriate action, at the right time.
Now, let me be clear – I’m not saying that the U.S. dollar is going to zero (at least in the near term). When I say the economy is going to collapse, I don’t mean everything stops and goes to zero.
Obviously, life continues — but all the rules get rewritten, and those who prepared for the changes get massive benefit.
Put another way,
we’re setting up for the greatest transfer of wealth the world has ever seen – and this is your chance to respond TO it, rather than get destroyed BY it.
You’re going to start hearing and seeing me focus a LOT on the economy, investing, and how to protect yourself in this unique and unprecedented time of our history.
And hey, if you don’t like it – that’s your choice.
But if you’ve ever said things like “I’m not good with money”, or “my spouse handles it”, or “I just don’t understand the economy” .. it’s time to change your attitude.
ANYONE can learn what’s really going on, and it’s not that complicated when you start to educate yourself.
Remember, the financial industry PURPOSELY makes it complicated so that you blindly hand your money over to them — the wolves in sheep’s clothing.
It’s time you say “ENOUGH” and take control, because whether you think I’m being overly dramatic or not — your entire financial future depends on your willingness to be accountable, and take control.
And that’s what I’m planning to help you do over the weeks and months to come.
I’m going to be sharing my personal views of the economy, and what’s happening.
I’ll tell you
what I’m doing with MY money and investments right now.
I’ll share what I see coming, and when – and how to prepare for it
NOW, rather than react when it’s already upon you.
This is your warning call — if you want to stay in the clouds and believe that “everything will take care of itself”, then I’d suggest you stop reading my blog posts and emails.
I’m about to get very real, very direct and very focused — because you are literally running out of time to educate yourself and be prepared for what’s ahead.
I’m on a mission to help change the financial future for the people in our community, and that’s what we’re going to do.
So strap in and get ready, because we’re about to take an incredible ride that will determine what side of the equation you end up on!
Below, I’d love to hear your comments and what YOU are most concerned about when it comes to the economy.
What are you confused about? What are you most frustrated about? What do YOU feel you need to learn to better navigate the economic conditions?
Let me know as I want to provide the answers to you over the coming weeks.]]>
274 Responses
Gary would you recommend getting into the real estate market as a first time buyer at the moment? Or do you forsee a collapse in house values?
The wrong question to ask – there’s no such as “the real estate market”. You need to understand the specific market you’re talking about, down to the street and the neighborhood. It depends whether it’s investment or principal residence. Depends on whether you’re paying cash or using debt, and whether it’s floating rate debt or fixed. My goal is to help people to understand the questions they need to be asking, not giving people answers that may or may not be right for them.
I have a Ira with some money in it. where should I move it? to a private owned stock? thank you
Move it to Apartment homes with cashflow… Do it and you’ll thank me later.
Before you ask those questions, you need to understand the fundamentals of economics and finance. And while I know that sounds dry and boring, it doesn’t have to be. That’s my goal, is to make it engaging and interesting for people so that they can gain the right knowledge, and then make their OWN decisions instead of asking other people what they should be doing. No one will take better care of your money than you!
Hi Greg, my biggest fear is a massive deflationary credit collapse that will spill over to canadian credit and real estate. Is deflation the biggest fear or will money printing prevail and create hyperinflation? What do you think?
Eric
I agree with Eric’s question… with the greatest generation in the midst of retiring and downsizing, along with all the economic challenges, do you see deflation as a widespread issue in the next few years? If so, will it be as broad across most sectors as some have suggested? So many forces pulling the economy in so many ways, hard to see where the big picture will rebalance itself… Perhaps economic woes will keep the babyboomers working longer and inflation will indeed prevail? Interested in hearing more! Thanks for the timely blog…
Just like talking about “the real estate market” being good or bad, there are always components of a market that are good, and some that are bad. Deflation is the same way. It will affect some asset classes worse than others, particularly those exposed to leverage. I do think deflation will get worse but the biggest problem will be inflationary pressures driving the value of the dollar down across all currencies.
Both! In my view, we’re going to see some deflationary pressures set in (we’re already seeing them in certain asset classes). But beyond the shorter term deflation, we will see inflation really take off as a result of the money printing, and all countries in a race to debase their currency. Ironically, I believe we’ll see the US dollar gain alot of strength this year as Europe gets worse. That will make people believe that the US is somehow rebounding or strong. And that will just set up the next stage where the US dollar collapses and catches a lot of people off guard in the next 2-4 years.
Put your money in things that have inherent value no matter what happens to the dollar and the economy — food, water, land, community, relationships, your own education (NOT a college education, but one that teaches you to be resourceful no matter what happens around you).
Alexis, you are on the right track.
@Alexis I like everything you said but the relationship part, I’m a “sociopath” and all the people in my circle have been dumb down by conventional education..Can I be your friend?
Basically, information providers, analysts, commentators and politicians cannot be trusted. How do we know information is accurate? The markets are manipulated. So, my concern is not whether I can take action but what should I base my action upon? I subscribe to many newsletters, read books, etc. but most information is simply opinions or entertainment. Two weeks ago almost everyone was saying buy stocks, everything is fine, etc. but what has really changed in two weeks other than the market itself and what people are now saying? So, what can we do to insure we are not deceived and lied to so we can make good decisions. It really is quite simple but so difficult.
The main thing is to question the advice you get from someone when they make money based on your investment decisions. Seek out unbiased opinions and beliefs that are completely disconnected with the decisions that you make. That, fundamentally, is why our financial system is so messed up and leading people to slaughter.
I agree with you, Greg, that clear, accurate, and unbiased information is needed in complex times. My comment is this: no matter the world circumstances, the most valuable sets of assets each of us owns continue to be our unique sets of talents, abilities, and skills. I’m only mentioning this because this point is often lost in stressful times. I know it’s something you’re well aware of. Just putting it out there to help all of us stay anchored in our own strengths, even as we explore our potential weaknesses and blind spots. When the game gets challenging, its a good idea to inventory what we have in the ammo box.
Don’t have my head in the sand, just don’t have much to lose anymore so I’m not scared like I used to be Greg. As a spiritual person I’ve been waiting for this to happen. It’s no surprise to me. I just don’t know what to do since finances, other than having enough for the basics are not my passion.
Not being worried is step one, but being prepared and capitalizing on it is step two. And they don’t have to be your passion, but they need to factor into your education, because without it you won’t be able to pursue your real passions.
Thanks, Greg, for being a standard bearer. I have been watching some of these events unfold over the past 3-4 years, and you are spot on with your information.
I agree, the transfer of wealth is coming, sooner than later, and those who bury their heads in the sand will suffer.
There is nothing safe with IRA’s or stocks, nor real estate.
Looking forward to your next info.
HI Gregg, I live in the Caribbean and want to thank you for your forewarning. You are right, this has implications for the entire globe and hence looking forward to your counsel on the matter. Thanks again for caring.
My portfolio is 50 % equities and 50% cash ( not bonds). Rates are unstainable at these levels and dividends is the only way to provide any decent returns in this economic period. You should also be holding gold etfs as a hedge for inflation with the oversupply of money printing in the US and Europe
I have no idea what your current situation is or who you might be – but in my opinion, holding 50% in equities right now is lunacy. Why are you suggesting people have exposure to gold, yet you’re in 50% cash position? Not saying that having cash right now is wrong, but your opinions and statements are not congruent.
Negative bonds! That is insanity! Inflation concerns, and buying bonds when you know you will get back less then you put in anyways. Even if positive returns inflation will likely be greater!
I would expect to see a flight to gold, silver, and commodity’s in general to hedge against the coming inflation.
I agree – long term – the crazy thing is, we’re going to see the US dollar strengthen this year as money flows out of Europe and into what has traditionally been a safe haven – the US dollar. Even though that’s a completely ridiculous concept today, it still holds true. The question is, for how long. At that point, then precious metals will explode as money moves out of the US dollar and the world comes to terms that fiat currency is a losing strategy, no matter what currency it is.
However, we are already seeing signs that the flight to safety wasn’t just the U.S. dollar, but included the Australian dollar and the Swiss franc. Fiat currency will still be around in the future, in my opinion, but as a basket of countries, not unlike the euro.
Very cool.. Really looking forward to your insight.
So much is happening very fast and it’s hard to know what moves to make during this wealth transfer period.. As well as timing for getting in and out.
Would like to learn your thoughts on:
– Inflation/hyperinflation
– Currencies, if trading or diversity in assets is necessary
– Asset protection/diversification
– International/Overseas options: relocation, investments
– Investment opportunities: Real estate, businesses, stocks, commodities, etc.
Thanks..
All topics that I’m going to be talking about over the coming weeks! Thanks for the feedback.
We were just talking about this topic yesterday! My first response was: BUY LAND – in different countries, on different continents, whatever you can afford. But at least have one piece where you can go off-the-grid and self-sustaining if needed – somewhere like Costa Rica.
If worse comes to worst then at the very least you have protected whatever piece of the environment you can afford to protect.
The last 2 generations of my family have had to flee countries due to political/financial circumstances. The first due to Hitler, the second due to President Kenyatta saying “Africa is for Africans” meaning black Africans only. And let me tell you, you can only smuggle out a very limited amount of money in these kind of circumstances.
At the end of the day, your only security is this: Can I take away every dollar you have, every asset you own, can I plonk you down in the middle of any country/city in the world and can you make money? Yes? Then you’re good.
That is the training and skillset I am giving my 3 children.
Being able to grow food and preserve it properly is also pretty useful.
It will be interesting to see the strategies you come up with.
No No No… This is so negative and toally out of line.. You need to go back to Macro Economics and get off the negative world band wagon. Sorry. So many holes in your ideas that it’s almost laugable. It’s like using information just to say what You want it to mean. Starting about 2020-2021 thw world will be on fairly equal footing and the next 30+ world wide boom will kick in Asia, Europe & America. The Big Boys don’t talk it up becaue it’s not Sexy in the news. Did you know this Crash was predicted in 1990? What they missed was that it was world wide. Thats because it was figured in that Deregulation “would have their day and a 7 year run!” What was not figured in was that Europe would deregulate and get into the game that was desitined and predicted to be primarliy on in America! Well, maybe this is why I missed Crashing! Ummmm Ya think? I challenge everybody to copy this blog and come back to it in 24 months. What the changes before your eyes..
Wow – what am I doing, sharing my opinion? You’ve got the ability apparently to see 10 years into the future. Maybe you should start a blog. And I would love for you to come back to this blog in 24 months and see what changes have occurred, and whether I was right on anything. If you go back 2 or 3 years ago, you’ll find on this very blog that I accurately predicted a great deal of what was to come, including interest rates, the housing market, the price of oil, gold and various economic indicators. Was I right on everything? Nope. But most of it I was, so I’ve got a track record. What’s yours? And more importantly, it was based on economic fundamentals and principles, things that you seem unclear on if you really believe the world’s going to be in a “bull market” in 8-10 years.
Tell me, how is the US going to pay off it’s debt and more than $100 TRILLION dollars of unfunded liabilities? Start there and show me how you’ve got it figured out and everyone else is wrong.
Greg, you asked for it so here goes – I want a trusted advisor who can tell or show me how to invest 17, 27, or 47 dollars and turn a profit on it. I want to know how to scale up a paltry sum into a modest fortune. There are so many programs that start at $97, $197 – 997 some per month that the middle class you wrote about will not take advantage of because if they spent the $97 per month they would not have anything left to invest with. Make it step by step, make it no nonsense, make it scalable and you will have a winner!
Hi Mark – price is not what makes something valuable or invaluable. I know of $20,000 programs that are useless and complete garbage, and I know of programs that are $10 a month that give you better insight and practical knowledge than the $20,000 program. I also know of very high priced programs that can change your life if you apply what’s inside. While there is a lot of information “out there”, at the end of the day my experience is that people value the information based on what they pay. So someone could give away the best information in the world for free, and most people would ignore it. I’ve heard countless arguments about why I should give all of my information away for free and then let people pay me out of the proceeds. Unfortunately, that violates the Universal Law of Value, and it simply does not manifest results. I agree that people need access to affordable information, but expecting the world to deliver it for free is an entitlement mentality, and not what creates success.
Greg, I’m not arguing with you about a value proposition. There is no doubt that you add value to all you do. What I shared was in ref. to a demographic that is needy of more education in more affordable ways then big price tag chunks of $97 – 997 etc. I don’t like entitlement mentality either which is why I advocate for a paint-by-numbers approach or a proof prior to profit demonstration. I’m sure it’s obvious that people are tired of being parted from thier hard earned paychecks and seeing no return on incomplete or unrealistic skill set requirements for middle classers who want to attain the brass ring of the upper class. Many of the comments here reflect that sentiment and you can be that hero to bring it to the masses, that is what I would like to see. Thanks for replying to my post and I am most grateful for this dialogue. ~Mark
I agree, but the flaw in your theory is that people can actually get a “paint by numbers” solution. That’s ultimately the problem – thinking there’s some magical formula or solution that allows you to substitute it for thinking or hard work. My objective is to teach people how to ask the right questions and how to draw their own conclusions so they can make better and more confident decisions. Anyone who tells you they have a ‘paint by numbers’ system when it comes to financial security is a liar, or a fool. But that’s what our brains look for – simplicity – and why it’s a billion dollar industry selling them.
I can’t promise a “fast, easy paint by numbers” system – but what I can promise is showing people how the system really works, the questions to ask, and the criteria to use when making decisions.
Everyone has a different financial situation, different goals and expectations, different risk thresholds and different values and beliefs. There IS no simple, magical system that fits everyone.
Hi again Greg, I have learned a tremendous amount just by reading your blog post and this incredibly active comment thread. Thanks again for your insight and for repeating the real key to asking better questions! Looking forward to your future posts and products, programs, and services 🙂
~Mark
Hi Greg,
I agree with you, in one of my businesses, our statistics show that the most successful people in the last 12 months were presented with the largest investment, there is not any difference or advantage for the business when a person choose the smaller or larger investment, except that the person who invests the most tends to be more committed and takes the business more seriously. Saying that, the highest price can’ t be to high because it will scare people giving the circumstances in today’s economy.
Greg, Please tell me about one program for 10dollars a month that delivers great value. I go for that
Leila, visit Gaiam TV at http://www.gaiamtv.com/ – ten dollars a month will buy you more than you can handle 😉
Here is a program that is absolutely free that can help
http://karatbarstv.com
http://www.karatbars.com/?s=johnsparks
http://www.rejvc.com – $9.99 per month for all the Real Estate Inve4sting Advice you ever need.
You have definitely given me something to think about. I just have my money in the bank sitting there and not sure what to do with it. i don’t want to lose any of it in the stock market and i would like to know how to know how i could grow my money short term.
I am all ears and will continue to hear you out.
Unfortunately our public education system does not even teach high school students the basics when comes to personal finances. They are given credit cards with no jobs by the banks when they are 18 and attending college or university in Canada. Consumers must wake up and take accountabiulity for their own finances yet most do not have truly unbaised “‘advisors” to guide them. (and don;t get me started on trusting the banks for financial “advice” . I attended your recent session in san diego and loved hearing what you envision launching to assist consumers with their financial well being. Look forward to being involved. Cheers, Eric
I will buy gold and hide it in a place where nobody can find it apart from me of course……
What do you think about this “move” ?
Raffaella from Italy
I do believe precious metals are an intelligent thing to consider in this economy, especially long term. The challenge is that the volatility will be significant, so it will be hard for a lot of people to hold through the downs and the ups. But ultimately, the future for precious metals is bright.
I understand the big picture but how can I grow my business and quit my job? I want to contribute to the world’s economy in a big way but if my business cant grow so that I can quit my job, it seems like I will be subject to the crisis in more ways than one.
Lorne
lorneSwellington.com
Hi Greg,
I don’t believe will see the wipeout of the middle class, however, like you, we are entering into a new financials realm, people who don’t see it and prepare for it will see hard money times, we are going through a period that first have deflation symptoms that will be follow up by inflation, what we will see is a huge adjustment in the economy to the real value of things.
We must take cAre of our finances, what strategies are the best? Some say invest in precious metals, but that is just a small part of the equation. When inflation hits, and it will, a dollar could hit the equal to 50 cents of today, or even less, imagine if somebody slash 50% of your income right now! Solutions? Well, from the income point of view be in the solving problems business, in other words, sell people what they need to solve a problem, usually it is related to increase their income, save money or stay healthy. Investing in some precious metals, in companies that are following the new trends, and very important, in new business education, I am not saying college degrees, those are obsolete. The info you get in many cases is useless, I am talking investing in trainings by people who are the trailblazers, I am excited more than scare about the new opportunities that are coming, being fearful is negative because blind us to the opportunities to come.. Enough talking, thanks Greg
Thanks for your comments!
Well, that’s all very scary and you sound like you know what you’re talking about but….I don’t see you saying anything about what action to take to protect our middle-class selves! “Strap in and get ready….” doesn’t sound like much of a solution. Waiting for the other shoe to fall…
The sky is falling!!
Is it? I guess it depends on your view! I don’t think it is, just that clouds are passing by and we’re expecting rain!
Greg, I would like to hear what you think is going to happen in the near term 3 to 6 months, then what you think is going to happen in the next year and the next three years and the next 6 years. I think there are huge opportunites if one positions themselves corrrectly. I remember we talked about this the one night a few months back.
This isn’t really the place to talk about projections or where I think things are going in detail, but fundamentally I do not expect any major catastrophes in the next 6 months – primarily because the US election is in November. The administration will do EVERYTHING they can to keep things together and make votes think things are okay. I think this year is more about Europe unwinding, and into 2013. I believe the bell is going to toll for the US in 2014-15 in a serious way, driven by a major decline of the US dollar. Canada continues to churn along, and while it will be affected by what’s going on globally, it will continue to be the strongest economy in the G8. If I didn’t already live in Canada right now, that’s where I would be moving and investing. It’s where the resources are, a much more stable financial and banking system, and far less economic challenges than most other countries.
Thank you Greg for keeping us aware of what is going on in the world and how it will effect many of us if we are not educated. ..The amazing thing is the fact that you take the time out of your busy schedule to up date us with latest news and what it means. Thank YOU, Thank you.
You’re welcome Tahani, and as you well know I love talking about this stuff! 🙂
Btw the US 10 year bond is effectively negative return. The yield is 1.6%, and inflation is around 2.5%, so you get a negative return. Why? Because it is a BID system – the market wants to the US bonds so much, they have bid the yield down to that point. The market is working effectively. Now all we have to do is get the politicians working effectively, to fix the systemic problems built in over the last 10 years.
You’re right – factoring inflation in, treasuries are negative but because most people don’t understand, they still seem like a safe place. It’s crazy that given the US government is literally insolvent by definition, that the world continues to seek the US dollar as a “safe haven”. But that WILL change, it’s just a matter of time.
Having invested a substantial amount of money in real estate and what were considered “guaranteed investments”, I totally hear you! Our retirement is in jeopardy as I am sure it is for thousands of people. Keep talking Greg – I’m listening!!!
There’s no such thing as guaranteed investments (aside from the fact that it’s against the law for anyone to claim an investment is guaranteed other than the government!) Ultimately, real estate can be a fantastic investment – but it can also be horrendous. ANY investment is risky if you don’t truly understand it, and don’t understand the market fundamentals.
Greg, so many of us are so confused and do not know where to turn or who to believe. I respect your history of knowledge and your perspective, and will look forward to your guidance.
Thank you Jean – my job isn’t to tell anyone what to do, but rather to help them gain the knowledge and confidence to decide for themselves. That’s the measure of whether I’m successful – if people take what I give them and then have the ability to make better decisions for themselves, rather than relying on “experts” to tell them what to do.
Thanks for sharing this with us, Greg. This meltdown has been brewing for years and our government employees keep kicking the can down the road, hoping the bottom doesn’t fall out under their watch. I eagerly anticipate your follow up blog posts.
Here’s one I don’t hear much about. It’s about the U.S conspiracy and about how the U.S has infected the world with it’s currency and now it’s the U.S that must lead the world out of this financial issue that was created by them? It’s a crazy theory and what i do agree is the world will not come to a stop. I think personally the government will do “whatever is needed” to weather this storm because if they let it reset “naturally” the government has “forever” lost the “people’s trust”.
Doing “whatever it takes” ultimately relies on one assumption – that the rest of the world will continue to buy U.S. debt. And that continues to be true today, but one day it will not — and that’s where you will see a lot of chaos economically.
Thank you for that! Lets go! What reading material, which specific books can we read to help us begin to understand the economic and financial community? Specifically in relation to debt,inflation and interest rates?
Robert Kiyosaki has a lot of excellent books that help someone understand the basics of finance. Rich Dad, Poor Dad is a classic – it’s light on heavy economic or financial education, but it’s about a different mindset. Beyond that, Conspiracy Of The Rich is a great book that pulls the curtain back on the money system and the games the government plays. Michael Maloney’s book on investing in gold and silver is another great study on the money supply, and where the economy is headed. The Dollar Crisis by Richard Duncan is pretty dense, but a great study of the problems ahead for the US dollar. If you’ve never watched the video “Money as Debt” which you can find on Youtube, that’s a pretty eye opening education as well.
I really don’t believe in apocalyptic predictions, like yours above, and those Mike Dillard makes on his program “The Elevation Group”. Will you start promoting i by the way? However I have to say that not being aware of economic trends, and not educating yourself to cope or take advantage of those trends, could prove devastating. Not trying to spoil the party here, just trying to raise the bar, I hope to see your upcoming assessments with a big dose of reality and lots of facts from reliable sources. Bring it on!
I know that hearing about negative outlooks is not a pleasant thing, but you MUST recognize what’s really going on in the world. And then, NOT wallow in it, but act in spite of it, in a way that creates value and benefit. But ignoring what’s going on is not an option any more.
Excited to hear your insights on this Greg.
Good to see you man! We’ve got a ton of new training and content and we’re on a mission to educate people when it comes to money. Lord knows the world needs it!
You are obviously such a caring person Greg, I can see why many would
trust your judgement. Gail
Any advise will be fully appreciated.We are Tier 3 manufacturer in Mexico.Fully dependant of USA economy as we supply auto parts for US firms.What the impact will be?
Bring it on brother! We need it fast and without sugar coating it. The “so called” financial experts are now clueless and just winging it and everyone in the political world is absolutely a joke with ZERO integrity or ethics that no one should listen to. Pass on your insight and give it to us straight between the eyes.
HI Greg, you and Mike Dillard are some of the very few telling it like it is and offering solutions. So many people need this info but have never been taught to make the right moves at the right time… Im an American living and working in Germany, and at 64 after many successful years of having my own pro photography biz, Ive lost it all and am deep in debt almost being forced to declare bankrupcy. I like you, see the tsunami coming, but what can one do who is already out of funds… how can we ward off this coming chaos to protect our families and be able to move thru this worldwide financial minefield ??? any offers of liable solutions would be gratefully accepted. I truly agree with what Mark Edward Brown wrote. High priced programs could be worth it and make the author rich, but those most in need wouldnt be able to afford it and have to pay rent and put food on the table.. hope you can relate and can walk the talk. Blessings, Will
Hi Will – thanks for the kind words. What people seem to forget is that when you sell a program or membership, it’s the cumulative cost of all the years getting the experience to share, PLUS all of the resources and time that go into delivering it. I have no plans of selling high priced information or programs and I am working on bringing out programs that are accessible to the vast majority of people. And for those that still cannot afford it, I provide alot of insight and guidance through my blog. Ultimately, the answer and solution for anyone is to create more value in the world. That’s how you’re compensated, and it’s a universal law that never changes.
Some time last year I heard Mike Dillard talk about a retirement plan that seemed very very interesting. He never mentioned if it was only for americans or europeans as well. I heard it because Greg recommended it. I trust Gregg even though I still haven’t done his program. I don’t know why but my guts tell me he is honest.
Its because he is authentic. A word most miss. It’s easy to see someone who genuinely cares about people.
My only concern is this: should I learn Spanish or Chinese?
Learn Mandarin and Cantonese
The thing that concerns me most is knowing that I lack ALL of the pieces of the puzzle mainly because they’ve purposely been withheld from me. Pieces that could help me make smart decisions with my money, and allow me to see the hidden opportunities that the wealthy already see. I’ll admit, I want to be one of those wealthy people, too. Teach me how!
That’s the plan!
This is a VERY interesting topic, Greg, and THANK YOU for bringing it up. However, there is a slight problem with its fundamental logic: If one approaches this as a true economist (which, incidentally, I am not), one needs to recognize that the fact that the Bundesbank (or any other bank or country or some other financial institution) successfully sold bonds or any other instrument with the clear, predictable message that the buyers will either make no money or lose money says almost nothing about the actual reality of the economy–although it is influenced by some aspects of it. It mostly says something (clearly) about the EXPECTATIONS of said entities, both the German bank and the buyers of their bonds. Just because the Europeans’ expectations about the economic prospects are gloomy doesn’t mean that the economy will in fact turn much worse in some near or mid-term future.
So, again, we need to make sure we keep two things distinct here: expectations and actual reality. Your blog post title seems to strongly indicate you’re talking about reality, as if it already happened (“we KNOW it’s coming”) when in fact the post only talks about the expectations of the people at the Bundesbank and the people who bought their bonds.
I am not saying they are wrong; I am only saying that they MAY be wrong. In fact, if we were to take the scientific view based on the historical data’s ability to predict, it is more likely that they are wrong than they are right. When I say “they” I mainly mean the buyers. As to the German Government bankers, it may be that they are playing exactly to the general feeling and expectation, and decided they could get people to give them money for nothing in return; like all issuers of instruments, they respond to their view of where the market sentiment is. And short term they appeared to be right: people bought their bonds! 🙂
Again, I am very grateful to you for bringing this up. I simply want to make sure we keep distinguishing between the map and the territory, as it were.
Hope this makes sense…
The inevitable challenge to speaking about something as complex as the global economy is that you need to simplify the discussion and context so that people can follow. I agree with some of your comments but ultimately here’s the point — is it good news or bad news that the German government is able to sell zero (or negative) return bonds? That’s the issue here, not the technical economics behind it.
Spot on!
Greg, I’m very honoured to know you personally and the fact that you are stepping out like this shows even more of the person you are, how you care about the world and so on. It’s very hard to ‘trust’ people in this day and age, and since I’ve come to know you and the people you are surrounded by, I can easily post that you are one of the most trustworthy people I know. Because of your direct, honest nature…you’ve made ME get up and take notice of many things … and this will be no different! Thank You!
Thanks Joey – and I hope you know it’s your job to take the message and spread it into your amazing community as well! 🙂
I’ve been borderline financially poor all my life. My life is rich, but I haven’t gotten a handle on my finances yet. I’ve been spending lots of time learning about money and the law of attraction and things are starting to change. Is there any hope for me and my children? How do I change my thinking and training so that I can enjoy the rest of my life? Progress seems slow and I’m concerned that with a quick major change in the world I will not be prepared. I am a 55 year old divorced mother of 2 boys, 16 and 20.
Christy – been there done that as a single mother of two kids. What helped me was getting a financial education. Pick up a copy of “Rich Dad Poor Dad” and “Cash Flow Quadrant” both by Robert Kiyosaki. Learn how to do your own financial statement. Know where your assets are and where your liabilities are. Once you know what to look for, you will know better what you should be doing. There are no easy answers. But knowing what the questions are helps. Best to you.
Thank you, Greg, for this post!
Here are my comments about your “The middle class is literally going to be wiped away, and we’re going to be left with the rich, and the poor.” statement:
I believe that the greater opportunity for many of us entrepreneurs today is to serve those moving into the mass-affluent, affluent, and ultra-affluent ranks. As Dan Kennedy teaches, it is difficult or impossible to become and remain the low-price leader, and there is no special distinction in being the 2nd-or-3rd-lowest-price leader. Instead of trying to be the low-price leader, I prefer to serve those who place high value on what I offer.
Greg,
The whole “system” is damaged. There is almost no personal responsibility for what is happening in our world. I found I could change the way I thought and the way I looked at life. When I did that, my whole life changed.
I began to introduce three intentions that help you increase your self-awareness and happiness. These three intentions help you make better choices. If you want to be happier and prosperous, these three intentions will show you the way.
The Three Intentions are:
I
AM
ALWAYS
HONEST,
POSITIVE,
AND
HELPING
OTHERS
Hi Tom, great thoughts. I totally agree that it’s important to hold positive intentions, but you have to also become educated on reality. You can’t sit in a room and hope for good things. You have to educate yourself and take action.
Great post Greg! Definitely too many people out there are financially illiterate and need a good financial education. I’m glad that you have shifted you business and are moving in that direction, because I know you & Kourosh can really make a change for the better when you get your message out.
Thanks Paul, I appreciate your comments!
yes! i agree that the world is on the edge of fianancial melt-down. helped by a massive depopulation via ‘avian flu’ terrorism (read elsewhere) but it is my belief that they only currency that will mean anything at all is ‘food’. and a return to a medieval ergonomic system where you pay your taxes in food you produce by your own hand and anything over will be subsistance survival with a strong and flourishing bartering black market in any other commodity. forget paper/gold/jewels – you can’t eat them and what happens when the shop shelves are empty because no-one is being paid to re-stock them because money is worth nothing. maybe you can remember germany after the second world war. i can and that was in a world of surplus and a strong US$. your plans to refloat a world economy are little more than the dreams of the ‘i’m alright jack’. it is not we will get through this come hell or high water – i hate to tell you – but if you believe that any paper action will help you weather the coming storm – you are living in cloud cookoo land. the only people who will survive are those prepared (or able) to get their hands dirty with good old fashioned mother earth. (or be a war-lord that these situations tend to breed like flies). how many of today’s children in the inner cities actually know that milk comes from a cow never mind actually ever having seen one in the flesh. and how many adults would know how to butcher one if they actually managed to kill one in the first place. no money – no work – no living – no electricity – no civilization (or at least not as we know it but certainly as we did know it. but how many people actually can stretch their memories back that far.) all of a sudden – drought – famine and disease ridden africa sounds like a good place to live! have fun playmates but don’t come knocking on my door with a 100 trilliion dollar note (zimbabwi) and ask for a square meal because it won’t even buy you a handful of rice.
Many don’t have a clue. I remember my neice being shocked that I made home made french fries. But my kids (both adults) have gardens and are familiar with smaller livestock. They could cut up a chicken by age 10. We can raise rabbits instead of cows. They require less everything and can eat the things we can’t from the garden. Their pellets are excellent to add to the compost and they don’t make noise to allert theves like chickens do. Their bodies could also potentially heat a small greenhouse. No we don’t live on a farm but came from a culture of self suficiency. (Thanks Mom!)
I saw Nortel Networks demise, I lost it all working in Natural Gas too, its not even close to being over, some of these companies will be gone in 9-12 months, but I couldn’t be happier. I used the experience to get ahead of the pack and build what I think will be the most transparent, honest, investment club model for resource based commodities that uses ways to reduce risk that everyone should have access to. I won’t promote myself on Greg’s blog, but soon I shall share with him what I am on the brink of that is fabulous, timely and what seizing the moment is all about. Have no fear, have an idea.
Greg, how does “life go on” but “the middle class will be wiped out? They seem to be two contradictory statements.
It means a tough future for a lot more people than today. They’re not contradictory at all – simply means that there will be less people in the middle.
Thank you so much for continued insightful and inspiring posts. I’m really glad to hear you will be educating me about finance because I really need it! Ive been feeling for a while like something Is coming and at the rate I function around money, I will be stuck on the wrong side… I’m in Europe at the mercy of the Franco-German banks new fiscal policy (I understand this to mean never ending austerity measures, which everyone knows don’t work), and I really don’t want this for my kids. I’m really looking forward to an economic collapse, the potential of it, I just want to be sure of the family. Thanks again.
No – in fact, it’s the reverse which is the very reason that France is in serious trouble. Their new government is socialist, and is not only rejecting austerity measures, but wants to implement massive tax hikes. They’re going to accelerate the problems, not reduce them!
#2 problem is where do I. Invest? Everything you said is right on…except that the #1 problem is that America has turned it’s back on YHWH and refuses to repent.
I have a 401K that the company ads nothing to and I’m pulling it out at the end of September and don’t know where to invest it.
I will not put it anywhere close to a bank or banking institution.
Thanks for all your hard work.
Investing in the US has a number of serious risks, which we’ll talk about in the weeks to come. The US banks are not going to collapse any time soon – we are going to watch Europe’s financial system unwind before the US – but it will come down the road.
Why will it take weeks to deliver this info? I get that you would charge for the value you are delivering but if the situation is so dire don’t we deserve to have the opportunity to buy it urgently?
First of all, most people don’t have the time to consume everything all at the same time. Second, we’re not charging for all of our information, and we want to provide people time to consume and apply it. What we do charge for, we’ve learned that when you deliver a whole whack of content all at the same time, it overwhelms people and they get paralyzed. Perhaps you’re one of the very few minority who would sit and watch hours of training in one sitting – but most people will not. Have delivered dozens of training programs, I’ve learned what most people want and how they can best learn what I teach.
Bogus. As if Greg “knows” what’s going to happen. The MOST likely scenario is the COMPLETE OPPOSITE to what Greg thinks. Notice neither Greg Nor Robbins Nor anyone “actually makes money on the economy” – they “sell ya” the news to sell ya their product. Keep going as you are, ignore the gloomers Just as you should have ignored the positives in the boom days too!
Hey, great advice Chuck! Yes, everyone just do what you’re doing. Keep investing in those 401ks or RRSPs. Don’t worry about how hard it’s become to borrow money. If you don’t acknowledge it, maybe it won’t affect you. Keep hoping and praying, diversifying and holding for the long term.
After all, look at where it’s gotten you!
Chuck, I wish you all the best, but unfortunately you’re going to be one of the people that get crushed when reality sets in.
I’m not painting doom and gloom, I’m just saying it like it is and pointing out the obvious — and it’s SO obvious, most people look right past it.
Perhaps you can explain how the U.S. government is going to meet its obligations of over $100 TRILLION dollars that are coming due, by INCREASING their debt by $1-2 Trillion per year.
They’re LITERALLY taking cash advances on their credit cards to pay for yesterday’s bills. It’s unsustainable, and will end up destroying the U.S. dollar.
And this isn’t just theory or opinion – it’s fact and history. Every single fiat currency in the history of the world has gone to zero. It’s about the only perfect track record that exists.
So go on your happy, merry way, and don’t worry about what’s happening outside your window. I’m sure it will turn out fine, since your future will be in the hands of the politicians.
Good luck with that.
And by the way Chuck – I have made most of my money from the economy (as a professional investor) and through my businesses. Over $250,000,000 in sales and transactions over the years.
That dude is a heck of a lot of money!!!! I only found out about you in the last six months with your authority course. Why have you been off my radar all these years? I follow gurus carefully. Did you really make THAT much ? I meant THAT is HUGE!
You win. I accept honest defeat. But this also means “oh HolyCrap” – what do I do now ? !!!!! Short the market long term !!!! ? .. what else can we do ?
I’m all ears. I see lots of different kinds of comments below – positive, critical, confused, etc. I think it’s important that we see Greg posting his views the best he understands them. We’re allowed to disagree, but I believe Greg’s motives are good and the blog allows us to help see differing views which makes the whole thing a bit of an adventure. Sure beats hiding, anyway.
And I’m totally with Mark Edward Brown. My sentiments exactly!
I am confused about how to respond in a carefully thoughtout way to the issues that confront us With the governments attempts to manipulate and try and cheat economic principals it hard to know when and how the piper is going to be paid. There are so many counterintuitive focres in play it is frustrating to navigate
I have a 401k self directed Pershing acct. which is comprised mostely of DRIP equities and a small amount of cash.
Should I reposition?
How can I protect it from takeover and resistribution?
RC
We’ll be talking about some of the questions and issues you need to consider when making these kinds of decisions. The goal is to give you the ability to make your OWN decisions, which gives you complete control.
Greg, I’ve followed you for awhile now and completed your program. Our structure and laws are so different than the U.S. I’d love to see you start something similiar to EVG (Mike Dillard), but for Canadians.
There’s no doubt there exists a massive gap for education where people can learn the important things without being sold investments or getting biased advice. That’s our goal and where we’re headed, not just for Canadians.
Wendy, I agree, so would I. EVG is very good but we need something like that directed for canadians. At this time I am in central Europe trying to sell my property for the past 4 years since my husbandś death and when I finally sell it, probably with a huge loss and return to Canada I will want to know how to safelly invest whatever is left since that will be all I have.
Hi Greg:
I hate leaving long comments – I am not that kind of person BUT…
I know you said the Middle class in N. America is going to be wiped out. Yes and NO!
What I think you mean to say is that many routine, medium to low skilled jobs are going to be wiped out due to further automation & globalization. Millions of middle class jobs will disappear and the working class or poor will grow due to inadequate government support like social security.
The rich will remain rich. The upper middle class full of creative people and professionals (doctors, lawyers, scientists, writers, executives, etc) will actually expand and earn a greater share of the wealth.
The polarization of the classes will grow and cause further separation of activities, lifestyles and values. That I can see myself.
If your readers get caught up in bonds, stocks and gold options and want to know where to put their money, they are not looking at the bigger picture.
We are in for some dramatic changes in our lifetime and all forms of equity and securities will be uncertain until the global recession has ended.
If we can’t trust banks, governments or stockmarkets – who can we trust?
Only people who own land, houses, property, trademarks, patents, businesses or skills that are in demand will be able to be secure that whatever happens, they will be okay in the end.
Everyone should read “Rich Dad, Poor Dad” to understand how wealth and finances really work. Your banker, insurance agent and neighbours can’t help you even if they appear to be rich.
By the way, the sky is NOT falling. This is more like an social & financial earthquake than the end of the world.
What do you think?
Pats, I couldn’t agree more.
Yes and no. I did mean that that middle class is going to get crushed – which is the similar argument that Kiyosaki makes. And by the way, doctors, lawyers, etc are NOT by default part of the wealthy. Most ARE middle class – it’s a huge myth that doctors and lawyers are among the wealthier of society. Some are, but most aren’t because they never learn how to manage their money or invest properly. Your job or profession have very little to do with whether you end up wealthy or broke.
Hi Greg, I’ve read half a dozen articles by informed people talking about the future of doom and
gloom for USA. I just read a small booklet I received in the mail, by Martin D. Weiss, Ph.D,
called the “American Apocalypse”, free, 1-800-236-0407. He is a well known invester and
forcaster for 40 years, the founder of Weiss Research. His team is located all over the world so he
knows what is going on world wide. It agrees with your blog report as well. The middle class
will be wiped out. Life as we know it in our country is about to drasticly change. We already see
some of them, inflation inceasing, employment at its lowest ebb, our congress is a joke, there is
nothing they can do to slow down the coming disaster. Yet, there is always hope even in a hopeless situation. This is the greatest time for increase in wealth. There are more millionaires
being created than at any time in history. Such as the app industry. Dr. Weiss has some interesting suggestions to survive the approaching storm.
Harold Ward
[email protected]
Hi Greg,
Thanks for so generously sharing your expertise. We have most of our current & future wealth tied up in real estate but are concerned over managing the mortgages in an economic disaster. People still need housing but can they pay for it? Looking forward to your next blog.
I have the same questions Judy. We all want passive income but empty houses and renters without jobs doesn’t make that happen does it? I am a firm believer in RE investing but wonder if something like storage units or multi unit props would be better than single family homes to mitigate the economic problems most are facing.
Looking forward to your analysis and advice.
It’s so true Greg. We are discussing a global issue. It’s not Europe or US. Everything is connected deeply and if there are problems on one side of the planet this will affect the other side as well. Gold went 4% up today – an increase we haven’t seen for the last 3 years. Markets are highly volatile, and the release of german government bonds say it all. Thanks for keeping us up to date!
Volatility indicates uncertainty, and the market HATES uncertainty. It’s going to get a lot worse as well.
I would like to learn what to do with all the RSSP’s my husband has that he has been building for 40 years of working for a company. These are our future retirement dollars? We would take some loss by doing this, but this is our greatest investment. His company matches his investment as long as he doesn’t pull it out before he retires. Age wise plus years he could retire and get the minimum gov. pension. My retirement dollars are not that much as I have been a part-time employee for the past 30 years as a teacher (resigned though 5 years ago). I would like to know what to do with the bit of debt we still have. I would like to know if we should invest in the apartment block our family currently owns half of? Should we borrow to buy out our partner at this time if they are willing? Our city and province are currently going through an economic boom. What to do? I want solutions for a Canadian person.
The goal here isn’t to provide financial advice to anyone, since every situation is different. What I want to do is help give you the tools you need to make the decisions confidently for YOURSELF. That’s the fundamental problem with the financial industry – the purposely confuse and complicate things so you feel foolish, and have to rely on “the experts”. You need to know how to find someone you can trust to give you that advice, and we’ll talking about that in the weeks to come.
Pat
Go to the Library and get the book Greg wrote on RRSP investing.
And how much will you charge to provide those answers? Your way of preventing yourself being part of the Middle Class meltdown appears to be to use those very people by seemingly creating doom and gloom and urgency and offering them advice for a price because you presumably somehow know what they should do – and in so doing create a huge income return. You are no different than government organisations or financial institutions in that respect. If you were soooo concerned about people and their financial future you would be doing things differently.
Really? Like sharing my comments for free on my blog for people like you to take potshots and criticize?
Oh, I’m already doing that. Right.
The difference between me and the government is that I create VALUE. The government creates none. That may be outside of your scope of understanding, but that’s the underlying fundamental fact. The government creates NO value, only reinforces and supports status quo.
So tell me, Lilly, if I were sooooooo concerned about people, what SHOULD I be doing?
What about contributing the money to build a school in Africa, where it would be the only chance that 261 Ugandan children would get an education (and break the cycle of poverty)?
Wow, that would be powerful, wouldn’t it?
Oh yes .. did that too.
Sorry to make you an example, but your message demonstrates the very entitlement and unconditional criticism that has led to alot of today’s economic problems.
This isn’t about “using” anyone – it’s about sharing my opinion and views, and hoping that a few people hear me and think a bit differently.
Well said Greg! The future is also about less rigid thinking.
Lilly
Have you ever taken one of Greg’s programs? I have taken 3 of them.
If you have taken one you would know that Greg offers loads of information and shows you what must be done, not like some others that only give you some of the information then pitches you another program to get the rest of the information. Simple Wealth only offers something for sale if Greg has used it and it has worked.
Darlene
Vancouver BC, Canada
Thank you for your comments, Darlene. Much appreciated, and I definitely stand behind what we do and how we do it! 🙂
Hi Lilly, I hear your disillusionment, like me you have probably been signing up for programs that tell you what you need to do but not how to do it starting from where you are. It is frustrating knowing you are in a difficult situation and can hear people telling you, you need to do this or that but your priorities limit your ability to do things the way others suggest so you see no way out. I am in a similar situation, in fact I took a risk and signed up for Greg’s Trusted Authority Formula a while back trusting that if I couldn’t make it fit with my priorities he would refund my investment 100% no questions asked. As it happened I did need to request that refund and Greg absolutely honored his guarantee and I got the refund plus I got to keep the tools I had received to that point and I met some inspiring people along the way whom I now have built friendships with. I know the timing wasn’t right for me to complete that program but the networking and the information and just having positive people encouraging me to keep taking action toward a better life for me and my family my way has made all the difference. Feel free to friend request me as I would like to offer this same encouragement to you.
And yes, actually my situation has dramatically improved since I took that leap of faith and it is improving every day.
I’m a single mother to a young child committed to creating a strong foundation for her. There are no finances to speak of and I refuse to get caught up in the no-food-on-the-table-to-success-story. Theres got to be a balanced way to get to financial success. Will you also provide information on how to start from wherever you are??? Then i’m listening. I’ve got great ideas, motivation, energy and will.
I’m going to do everything I can to help you get that kind of insight. I am grateful for you being on my blog and sharing your story. The world needs a different approach, so we’re going to do our best to bring it.
AM, If you have an interest in NLP check out the offer from Steve G. Jones for a NLP training certificate. Might be just what your looking for.
Hello Greg.Two things for me.Can you explain the meaning behind the language used by econimists without losing the depth and scope of the meaning…and will the meaning of most of the Economic language be current today anyway? 2nd question and I ask this with respect…why can I implicity trust you to guide me with my finance.Warm Regards. Yolanda Price.
One of the biggest challenges for most people is being intimidated by the language and “complexity” of the economy, investing, etc. That’s what I am working to remove so that the average person can actually understand it and translate the garbage that gets reported in the newspaper.
In terms of trusting me – that’s something that ultimately is your decision and not something I can convince you to do. All I can say is that I’ve earned the right to share my opinion because of my experience, and having created alot of investment successes over the years — and also some failures.
The truth is, I’ve learned more from my investment struggles and failures than I ever did from the successes. I’m grateful that the successes far outnumber the failures, but I don’t regret any of the lessons I’ve learned.
One thing I have discovered is that anyone who claims they’ve “never lost money” as an investor or educator simply hasn’t been doing it long enough. Every sophisticated investor loses money at some point, sometimes all of it.
So your goal isn’t to listen to people who are perfect and never failed, but to those who have the experience and track record to have learned from both their ups and downs.
As I move forward, I worry less and less about the global economy, and more about just my own. Let us, we here on sites like this, just make our own underlying economies. Our small businesses, our private investors, our LLC’s, our whatever…no banks, no gov’t, etc. other than the basics of what’s needed such as taxes and such. Figure out a way to do that and we’re all FREE.
Could we start with what you suggested is the first step…understanding inflation, debt, interest rate rises etc? As a member of the middle class who is trying to stay a float & create opportunity for getting ahead, I could really benefit from beginning at the beginning and ensuring my foundation is solid. Like many, I’ve decided to invest in myself, now it’s about knowing how to leverage from that, during these economic times.
That’s what we’re going to try and do Michelle! We’ve committed a tremendous amount of resources and energy to bring alot of new education and insight into the world of investing, the economy and finances for the average investor. So stay tuned, because I think you’ll like what you see.
Radically Simple a book and Netflix documentary asks us if we are willing to live within the footprint of 7 billion people and millions of other species that are going extinct 200 species a day. Our true wealth is inversely proportional to the size of roof over our head. Our time is really what we are spending !!
Hi Joseph, Absolutely! Over-consumption and species extinction concern me too. You may be interested in:
New Scientist vol 182 issue 2450: 5th June 2004:
Felled by fungus: “Our passion for exotic plants is creating nasty diseases that have the power to alter natural landscapes forever. Stephanie Pain reports from the front. . .”
and
Sudden death: “The rush to fill our gardens with exotic plants carries a hidden danger. . .”
If interested, contact me: [email protected] and I’ll send you the full reports.
Greg, I have had the intuition to invest money in companies that develop “green” sustainable technology and/ or work in different ways to turn our society ecologically sustainable, and I have had this intuition for several years now. But have I acted?! No… So I love your comment here on acting.
Also, I love your determination, focus and seriousness about this. There is nothing wrong with that! It resonated in my heart, because I could easily exchange the words in your text about the “economy” to words about the “ecology” of the world, and your message beautifully translated into exactly what I am trying to increase awareness about in the world about the ecology going “bancrupt”, so to speak.
Economy or ecology, either way the time to open our eyes is now, the time to educate ourselves is now, and the time to freakin go into some focused, real and serious action IS NOW!!! We are supposed to live on a beautiful, green and abundant planet in happiness and creativity, not on a polluted landfill in greed, aggressiveness and sorrow…
THANK YOU FOR THIS INSPIRATION, WONDERFUL GREG!!! <3
Love from Helena from Sweden
Thank you Greg! I am glad to know the truth and I truly want to know what is ahead. I want to know how to prepare. How can we prepare? Thanks!
Wow! Great post Greg!! Obviously the tone is negative, so that’s not what I mean when I say great. I’m referring to the message and underlying theme of this post. For the record, I also believe you are spot on! I’m not trying to steal your thunder, but since you I asked I’d like to post the items I feel are our greatest threats, especially for Gen-Xers, Generation-Y, Millienials, Echo Boomers and Generation Z etc. Last year I officially wrote my first book and it should be published this year 2012. In my book I list what I refer to as the 8 Major Threats/Outliers to the X-Generation. Naturally, I first provide my basic thesis, which is in five parts, then I reveal the threats. I take the remaning chapters to break these threats down in further detail and finally offer some solutions and strategies. The irony is this post by Greg sounds eerily similar to a few of my chapters, so I think we’re on the same page. Here’s what I’ve isolated as the 8 Major Threats/Outliers:
1. Future Tax Rates
2. The Stock Market Itself
3. Potential Loss or Reduction of Entitlements
4. The Credit/Debt Bubble
5. Devaluation or Destruction of U.S. Dollar
6. Inflation or Deflation (yes, I mean to say that)
7. Failure to Save and Savings Erosion
8. Outdated Financial Planning Methods
I hope and pray we are wrong, but frankly no matter I look at I always come back to the same conclusions…Greg is sooo right! WE MUST TAKE BACK CHOICE AND CONTROL!!!
Maybe we are forgetting to address the cause of the underlying apathy exhibited by the majority. In the UK, I have been astounded by how few actually vote or get involved with everyday issues that will and do affect them. Land grabs by locals councils previously left to the people is just one tiny example of apathy creating the loss of a valuable environment, breeding ground for birds and animals and the tyranny of yet more concrete on green spaces. The issues we currently face are vast and overwhelming and a natural response by most ordinary people is to withdraw and pretend that everything is going to be fine. This is a valuable discussion/debate about things that concern us all. It needs a wide audience to reach the many searching for an honest answer to our current woes. At least we still have a modicum of freedom and democracy but that is also fast disappearing. We must act now or lose our individualism and zest for life to a controlled, monitored system that takes away freedom, dignity and hope. I grew up in such a country (NOT UK). Nearly 20 years ago, I saw signs of this country becoming similar to the country I grew up in. Nobody wanted to listen. Increasingly, our freedoms are taken away. Greg, you are doing a wonderful and valuable service for all of us and I for one am extremely grateful to have found you. Kathy .
Should I sell my house ?
Those of us who have nothing to lose need to know what to protect or to get in order to weather this coming storm.
Solid comment Alexis!! I would also specify precious metals, such as gold and/or silver. Stocks and ETFs are great, but in this regard I’m referrig to Hard Assets. You can’t eat/consume gold or silver…
Thanks as always Greg. I have purchased some products through you before and am amazed at your knowledge and the ease in which you communicate to simplify ideas. Just bought the High Performance Academy Mastery Course through your affiliate and couldn’t be happier. Thank you for opening my eyes to people like Brendon Burchard, and also people like Mike Dillard, etc. People like you and groups like REIN and others are doing your part in keeping us elevated and empowered. Much thanks!
We do our best! 🙂 At the end of the day, I don’t know anything so my goal is to bring the best of breed to our community and we are very thoughtful about who we promote. Glad that you’re getting value out of the people I’ve introduced you to and I appreciate the feedback.
Hi Greg,
Thank you for this post. I’ve read through the comments and there are a lot of different points of view. Makes for very interesting reading and understanding many perspectives.
I know for myself I need this knowledge and I’m open to receiving it.
I am looking forward to your future blogs and I’m hoping to get an answer to my own question. I just refinanced my home last fall and now wonder if that was the right thing to do. At the time I wasn’t in a position to sell although it was a possibility and I did give some thought to it. Like many others I didn’t know what the best choice would have been. I have been a single mom of three for the last 12 years and after being downsized out of my 15 year job I took a two year course. That really put a dent in my income and put me in bad possition. Like many others, I suppose, I tried to stay afloat.
If anyone thinks that their bank will be understanding and work with you think again. When it comes right down to it, it doesn’t matter if you’ve never missed a mortgage payment or if it’s your second home through that bank or even if you’ve been a client of theirs for 30 years. If you run into trouble because you don’t have a full time income while your in school they won’t refinance with other debt when your mortgage renewal comes up. Then when you’ve fallen behind with a credit card and finally get that full time job a few months later they won’t refinance you because now you are a bad risk Been there done that! Funny though how another bank through a mortgage company could.
Question – sell my house and get out of debt and rent for a while. Invest possibly 20 to 40K but in what? I took a one year mortgage because the thought of getting out of debt by selling has a really good feeling to it.
I remember many years ago, not sure what year I was pretty young, but my brother got caught up in the substantial rise in mortgage rates which trippled his payment. He and his wife literally walked into the bank and handed over the keys. They had three young children and a decent income but just couldn’t make it.
If this is what I have to look forward to I know part of my answer, I just don’t know where to invest the profit of the sale. I have to be honest about the feeling of urgency to do something because I feel like my window is starting to close.
Education = Awareness; but Education that USES the brain, all of it; not knowledge, school-type that carries forward from previous experiences, to fill a curriculum but the type that ask the REAL questions and questions anything going; at least verifies if what was true even yesterday still applies.
I believe there is NO safe places; safety is illusory. In case someone has not noticed, life is NOT a safe place; adaptative systems, awareness, decision making, action, are essential.
But frankly, Greg, some directions, based on observation of the real dynamics are most welcomed.
Andre
There is no doubt the situation in the world economy is a scary one. Canada which is currently still in a reasonable economic viable position isn’t likely to last forever despite what people read in the National Post or Globe and Mail. Sooner or later the bubble is bound to burst. It is important to know what one should do with their investments and make intelligent decisions.
I agree with your analysis and look forward to your future articles. I wonder if your focus is a US audience and whether the outlook will vary significantly in other countries such as Australia or Brazil or India.
Bless you, Greg, for saying it like it is, and helping some of us who aren’t as tuned in to the global financial picture.
Thank you, also, for sparking the conversation.
Hi Greg,
I’m part of that diminishing middle-class. Lost my corporate job 5 months ago to “restructuring in the new economy.” Currently living on husband’s wages, which are under 90k/annually. We calculated that it’s less costly for me to stay home and take care of my 5 yr old child and 83 yr old father w/health issues, than to work another corporate job and pay with time away and da/care for both. Don’t get me wrong, we are blessed to have what we still have and I am thankful. I know many good people who have lost much more. We are just not in the position of having a whole lot of extra money (if any) after paying the bills to do much “investing” in anything- gold, real estate or otherwise.
I am very interested in your suggestions on how we can best position ourselves to protect what we have now – sort of a “stop the loss” plan, and also any options for us (with limited budgets) to optimize, maximize our circumstances while noting areas to profitize in local environments. It would be helpful to have that for the current economy and also the future as the global/national financial situation further collapses.
I do not expect you or anyone else to have a crystal ball but please know that all of the information you provide is very much appreciated.
Thanks,
Mary in MI- USA
That’s what I’ll be sharing over the coming weeks. How to protect yourself from what’s coming and what to avoid.
Greg ~ I know you are against Greece refusing the austerity program because it will cause the meltdown of the Euro. That will painful for sure but it isn’t sustainable so maybe in the long turn ending these fiat currencies sooner rather than later is a good thing.
I hear very little about what would happen if Greece doesn’t give in to the EU’s demands and refuses to pay. I also hear very little about what would replace the euro if it crashes. Do we have the consciousness yet to set up a sustainable currency or do things have to get worse first?
Thank you.
I believe that Greg is pretty much totally correct on his observations here: stable US economy through the Pres election, the flow of wealth from EU to US (temporarily), precious metals, massive financial volatility in 2013 or 2014 and thereafter, etc. I study this quite a bit. For what it’s worth.
One thing to add is that the stock markets go in 15-17 year cycles. The last uptrend from 1983 ended in 2000. Thus we are having a sideways trend from then until appx 2015-2017. NOTE: The values in the markets could stay fairly stagnant (Dow = 10K-14K, etc) but still be RELATIVELY dropping due to inflation at the same time (if the cost of everything else doubles but the markets stay at the same levels, then the markets dropped 50%, relatively speaking because if you cash out you can only buy half as much “stuff” like food, housing, etc.)
Now, many people talk about Greece and Spain leaving the EU. That is unlikely as they are not disadvantaged in any way by staying in. They benefit BIG-time, because they get to keep on their unsustainable lazy entitlement freeloader paths longer. In fact, it appears they are “blackmailing” the EU in a way by threatening to leave, thus screwing Germany and others out of their “investments” thus far, and once one or two leaves, then the EU would almost certainly fall apart from total disagreement and no rules. What is more likely IMHO is that Germany (and maybe France) would leave. I would if I were them! Dump all the lazy entitlement freeloaders.
No matter what, the whole EU thing is a political & BANKING disaster, as this excellent post shows: http://www.ritholtz.com/blog/2012/05/meanwhile-back-at-the-ranch/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+TheBigPicture+%28The+Big+Picture%29
My wonderment is about mortgage debt, do I pay it down rapidly or invest in more mortgages. I heard somewhere, and I may be mistaken, but when inflation hits big time, money is actually easier to come by, so it becomes easier to pay down debt or mortgages. I’m having one of the best years I have ever had, and am putting everything down on my mortgage, it’s actually a line of credit, but against the house
Inflation doesn’t necessarily make money easy to come by, but it destroys debt – assuming you have fixed rate debt. If you have a $200,000 house and $100,000 mortgage, and then inflation drives the value of the house up to $400,000, you now have triple the equity but the same amount of debt. So all things being equal, you want to have lots of fixed rate, long term debt in an inflationary market. Challenge is, if you go through a deflationary phase first, you can get killed by the debt (the same situation in reverse – equity goes away, debt remains – which is what has happened to many people in the last 3-4 years).
Great blog Greg.
I agree with you we have to be prepared and we can only blame ourselves for not doing so and it starts by listening to people like you because you have the ability to bring out the best in us too..
We need to take full responsibility as the world goes through the experience of a lifetime.
I too am not a negative person but reality speaks to us every day and every minute.
The storm is not only brewing but moving at an alarming speed.
What I remind myself everyday is to be BE AWARE and ACT with a responsible and positive attitude in shaping my future and those around me.
It is going to be interesting.
I am looking forward to hearing more from you.
Thanks a million.
Adam from Australia
Quit dying. Get my essay on how not to die and be here 200 years to not let the neo=con crooks crooks win. Defeat for them is easy and we all have wonderful brains to evolve and monetary, peace,liberty, destruction of false leaders etc elaine johnston. My book, “Think and Don;t Die by Elaine Johnston
What does dying have to do with this article?
Out of curiosity, how are you confident you can teach people to live to 200 when you haven’t done it, and no other documented human being ever has?
First – thank you so much for tackling this subject!
I’m concerned because our debt is out of control – this has been coming for years. I read the WSJ today and they’re talking QE3. I’d like to know what your take is on when this comes home to roost – what’s going to happen.
I’m so glad that you are bringing this up and putting your attention where it matters most right now.
Being educated about your financial future is key to walking out on the other side of the storm. And it doesn’t matter whether you can invest $500 or $500,000.
And age doesn’t matter too 🙂 I started my financial education at 21, learning about real estate, precious metals and other vehicles.
Also, coming from you, this does carry a lot of weight to a lot of people (including myself). As we trust and respect your opinion.
Can’t wait to hear more!
Simona
Middle class meltdown? You mean there is a middle class still? Middle class has been long eroded and disappeared, how do think the poor and rich classes got bigger?
Hi Bob – you’re right, the erosion is already happening. But we believe that events will accelerate the process much faster.
Hi Greg a lot of interesting and charged comments here. I know you are in EVG and honestly the world does not need another EVG. As someone mentioned the $97 tag is ridiculous for many who would be better off investing that $97 in something secure (like metals for example). I don’t know what you are putting together,but it would be great if it were more accessible than EVG, did not have “experts” who were among the costliest in the nation. (The average Joe does cannot really apply investment guidance from someone who guides the top multimillionaires – there is a communication and reality gap there.) So education and resources that are usable by people who may need to start small and build would seem to fill the gap that EVG misses.
Also please leave out the doom and gloom. Mike seems to be hanging with doomers, as I call them, and has even gone so far as to recommend that everyone load up with ammunition and guns to fight off those who would be looting your goods. (EVG is supposedly about investment strategies, not survivalist warfare). You get what you focus on and expect, buy ammo and you’ll be looted because that is what you are expecting. I was disappointed to see Mike go this direction.
We need positive (not fear generating!) useful information that will fit ALL sizes and is not predicated on “scare tactics” please.
Well put Amy, I agree! ~ Mark
Hi Amy – I absolutely agree with you. I believe EVG started with a strong mission, but things have changed and unfortunately, they’ve taken a road that is going to get complex with litigation, etc because they’ve been recommending investments and being paid commissions. I know Mike and Robert personally and I’ve always said Mike has good intentions, but the financial industry is a completely different animal.
Personally, I am not a subscriber to the guns and dried food theory, or that the government is going to kill people, that sort of thing. I think that’s extremist, and you won’t hear me talking about that. However, I do believe it’s important that people understand the real risks and threats that we face economically right now. That’s not doom and gloom, that’s simply reality.
So I would say our goal is to be real and honest with people, but to provide a more positive outlook and vision of the future that is abundant.
We also recognize we can’t help everyone, so what we offer and do cannot serve the needs of everyone. However, as I’ve said before our goal is to continue to publish great information that is completely unbiased, and will help people make better decisions. If they decide to engage with us further, great, but regardless we will help people get more educated.
And your suggestion of information that fits all sizes – therein lies the problem. What I’ve learned after teaching a lot of people about investing and money is that there is no such thing, yet that’s what most people think they’re looking for.
Investing and money are very personal and unique experiences, so you have to seek out information and then customize it to yourself, instead of trying to find something that you can just follow and substitute for your own critical thinking.
I appreciate your thoughts and are considering alot of those sentiments as we move forward.
Greg, I completely agree with you. Canada is not USA and canadians don´t have to become extremists. We are basically peaceful people and don´t need guns for protection. What we need is education and information and than customize it to our own needs.
Greg keep up the good work and just ignore the negative comments. Having purchased your book on RRSP’S when it came out and in fact purchased a few extra copies as gifts for collegues and friends I have no doubt what ever you offer will be tremendous value to the end user. Give my regards to Kourish who offered me advice in time of need that was both insghtful and more so to the point. Keep up the good work
Thank you, I appreciate the feedback. And I really don’t mind the negative comments – it simply challenges me to make sure I am thinking from all angles. Everyone’s entitled to an opinion, and if I never heard any negative, I’d wonder if I was sparking intelligent discussion or just leading a bunch of people who don’t think for themselves. And I want the latter!
Where DO we invest the money we’re saved so it doesn’t slowly dwindle away to nothing? I have a small mutual fund portfolio. Are you focused more on investing in companies or land or certain business sectors, renewable energy…? If our money isn’t under our mattress or in a bond, where do we put it?
Sorry I typed too soon. Great comment threads below and I’ll look more into your packages. Thanks Greg.
Mutual funds are among the worst places to have your money, and that’s just proven out by the numbers. Ultimately, you need to understand what’s really going on economically, and then based on that make your decisions. For me, I believe the long term trend is that inflation is coming, and possibly in a very serious way. Hard assets benefit from inflation, so precious metals is one option. Real estate is considered a hedge against inflation, but it’s not as direct a correlation as precious metals, because leverage and debt are so important in real estate and inflation can create imbalances on the debt side. Really, there are no “one size fits all” answers, but hopefully we’ll be able to help provide some of the important questions that people need to ask.
I’m really worried. I’ve known this was coming for a long time and have been positioning myself as best I could given my particular situation. Been educating myself on finances, real estate, hanging on to a job that has only been 3 days a week for a couple of years, buying silver (much more affordable than gold) since it was $14 an oz. Have food stores, a garden, books on how to cultivate seed, raise chickens, rabbits, refinanced to a low fixed rate. And although I’m not 100% sure it’s ideal, cashing out of out of state real estate. I also put 30% of my 401K into Gld, although who knows if it physically exists. It was the absolute least worst option. Told them 2 years ago we needed precious metals and commodies. They (the 401K administrators) told me I shouldn’t “chase” the market.
It’s the blind leading the blind. And friends and even some family don’t have the ability to hear or want to hear. Or their trusted athority is the main stream media. They would rather just go on spending their money on junk that may make them happy for a little while. Honestly some days I wish I didn’t know what I know. Then I snap out of it and keep doing what I can to get ahead and pray it is enough for ourselves and those we love.
Don’t think you have to be a CFO to figure this out folks. I’m a receptionist/admin assistant. Just listen to those you trust and who have a history of integrity, knowledge and sucess. Greg is one of the good guys. No he’s not going to wave his wand and make all the bad stuff go away. But if you listen and act you might survive with some dignity. And don’t forget to pray.
Sounds like you’re making some intelligent, unemotional decisions with your money – congratulations! And you’re right, it doesn’t need to be really complicated. You just need to understand the WHY, not just the WHAT and HOW.
Love it. Most exciting time of our lives. And very tragic.
It is only tragic for those who had the chance to learn and understand it so they could respond, but didn’t.
Don’t want to offend anyone so forgive me in advance if I do here, but I have seen the hand of God preserving our country more than once. Ask and ye shall receive. Please don’t forget to ask for help from the man upstairs. I like the saying that goes something like “Pray like everything depended on God and work like everything depends on you.” Thats my two cents for whatever it is worth.
I said last time, and I’ll say it again, so long as we have a debt based monetary system which is inherently parasitic in nature, there will always be severe economic problems like the ones we are experiencing now. Banks should not be permitted to issue money out of thin air as debt, but as real money against the gross national product which would benefit everyone. This sytem existed at one time but guess who steped in and ruined it? I’ll give you three guesses! The sooner we rid the world of Private Central Banks the better. Democratically elected Governments should take responsibility for issuning the nation’s money – not Privately controlled Central Banks.
The challenge is that central banks provide the governments – the politicians – to magically “solve” financial problems by printing more money. Take away the fractional reserve system, and then they have to deal with real numbers and real constraints. Good luck finding politicians that will stand behind that for very long. Politicians do not act in the interest of the people for the most part, they act based on remaining in office. The opposition party in Greece that’s leading the polls for the June 17 election are saying they’ll cancel the austerity measures and tax the rich – the 2 things that will guarantee the complete collapse of Greece and exit from the Euro. The politicians just want to give the people what they want, not what they need.
I agree completely. NO one is addressing the real issues and I really doubt they will. The crats have their own agenda and it does not include us. So, as in Schindler’s List, how to we protect ourselves and (honorably) profit in spite of what the crats on doing?
Hi Greg – thank you for your post. Really understanding the basics as a first step is what I need. My ex husband always took care of the finances – as a single mom trying to understand the ‘right way’ to do things, trust is an important factor when getting advice. It would be good to get educated with what is going on. Having done the Trusted Authority and met you in San Diego Greg, I feel your authenticity so I’m interested to know moreI
Hi Lindsey – that’s what we are going to try and do – help people really understand the basics and fundamentals to set up a strong foundation, rather than having to be told what to do by “the experts” without understanding the reasons or consequences.
“The rain falls on the just and the unjust alike”,The bad economic situation in Greece,can make financial projections all ovet the world.
Invest your money in real estate.
Real estate is not the ideal or perfect investment vehicle – there is no such thing. It all depends on who you are, your goals, and what market you’re talking about.
Les, you want to buy my property? It´s nice..and the price is right..oh, and in a nice spot too..you would love it…..deal of a life time..
Hi Greg!
I am a retired person with no income nor any pension nor any State benefits except my own moderate savings. However, I have aspirations to see the world and build relationships and I think your guidance will be very useful to me.
Use the time honored hebrew way. Convert all your assets into diamonds. Move to the Cayman’s. Go to the beach & at the tiki bar order a pina colada. Then pray the diamonds don’t run out before the rum does.
Hi Greg, thank you so much for your post that I read this morning at 3am.
I live in Italy and I have
– JPM US SELECT EQ D,
– BGF EUROPE
and the the rest all BTP (treasury bills), is that tragic?
Dear Greg:
Thanks for the update on the Titanic beneath our feet. It really cheered me up to know that you guys have a bunch of life rafts for sale. Now, if I just have enough cash left to buy into what you have told me. By the way, is there any Porzac in the first aid kit? Thanks again for making my day so much brighter….JB
Sorry, just ran out. No life rafts for you. We don’t allow whiners on board. Hope you can swim!
Hi Greg ….. The Law of Attraction states categorically that what you think you bring into reality. Now are you not guilty of spreading gloom and doom to everybody …. many of whom who may not have the wherewithal in them to be able to analyse and say to themselves …. yea maybe there is a bit of truth in what Greg said .. but lets all pray and seek God’s help and try to solve the problem. Being culpable of spreading gloom without trying to offer a solution is not right in my dictionary for whereas you have the brains and capacity to solve your own personal problems …. many do not and will be left floundering even more than before. Be gentle with people .. try to lift their spirits .. give them solutions … simple ones that may improve the quality of their life.
This is an open note to all ….. that we create each and every moment of our lives with our thinking is a reality that is considered one of God’s truth. We call it the law of attraction and therefore make it sound more complicated than it is. In reality it is the story of all our lives. This argument in non-negotiable and sine die is a truth for all of us.
The interesting part is that God does not force you to believe in anything you don’t want to. The choice is left in our own hands …. so what do you choose is the only question you need to ask yourself. Disbelief leaves you just where you are but belief …aha …that’s another ball game altogether. Belief puts you above terra firma and right next to the stars ….. and life then becomes magical and you feel you have the midas touch for
everything you touch will turn to gold. But there is a certain way of thinking that is an absolute must to master. Its not difficult at all and truly simple to follow and this secret is easily found in MasterMind my book. It shows you how to link to God and this is the only way it works. MasterMind is available here.
http://www.mastermindbyrodalangrana.com
http://newauthoronamazon.wordpress.com
http://www.rodalangrana.com
As we are connected as children of the One God all our actions are linked to each other. The ultimate aim of all of us is to learn to connect to God to make our own lives easy.
That is the gift I offer you when you get MasterMind for this is my destiny and my one true labour of love to put you in direct contact with your maker.
A positive attitude is healthy. BUT: You still buy insurance for your auto, home, health right? Isn’t that a negative thought that might bring on an accident, fire, sickness? No. It’s just insurance and I’d rather have it than just thinking good thoughts. And I’d rather have the information to protect my loved ones from the likely financial collapse that is coming. BTW I don’t think those good thoughts are going to feed your family. Action along with a positive attitude should be what you are striving for.
Acknowledge reality and take appropriate positive actions. That’s it.
GREAT point – and I couldn’t agree more. There’s a difference between recognizing risk, and living it every day.
I understand and respect the Law of Attraction, but unfortunately movies like The Secret have completely bastardized the concept, and misled people to believe that if they just close their eyes and think about something hard enough, that it will magically manifest.
Am I manifesting more gloom and doom? I suppose if you want to believe that, it’s your prerogative. However, I’ve been extremely clear that while we have to recognize reality today for what it is, there are tremendous opportunities. I am not saying “here are the problems” and then stopping there. I am simply pointing out what I see, and then leading a discussion towards how to turn it into opportunity moving forward.
So no – I don’t think I am. But if you’re one of the wishful thinkers that thinks talking about ANYTHING negative whether it’s true or not is somehow upsetting the balance of your life, and you instead would rather just ignore reality and envision a world of perfection, abundance, beauty, etc. then that’s not something I subscribe to.
After coaching thousands of entrepreneurs and investors over the years, I can tell you the ones that do the best are the ones that are interested and open to what’s really going in their world, and then focusing on the opportunities in the circumstances. They don’t ignore the reality of what’s going on, but they also don’t soak in it.
It’s not about wallowing in fear and anxiety – it’s about accepting that things are challenging, and then developing a plan to benefit and do better from it.
Most people close their eyes, hope for the best and pray for abundance, and then end up broke and homeless because their effort of “being positive” isn’t working.
Greg, I rarely read many the comments on any blog, but given the nature of this topic and more importantly having followed you now for over 2 yearsplus having purchased and used one of your programs, I could not help but read every comment. And there are some great ones. I especially liked Amy’s comments. Over the last two years I have learned to value and trust your advice. As a Canadian, I also trust that any advice or strategies you offer will be relevant to Canadian tax laws. Really looking forward to your program.
The benefit you have is that I’m Canadian and while I do study international economics and don’t have a tunnel vision of just Canada, we’re extremely familiar and versed in Canada, and that inevitably comes through our content.
Hey Greg, I am a 20 year old college student in a family of 3 with no real savings. What do you think are some important actions us younger folks can take to build and sustain wealth in order to secure at least the basic needs of our family and loved ones around us?
great info, goes along with what I am actively teaching on my blog.
Hi Greg,
I look forward to your creative approach as you are perceived as a balanced “trusted authority” by us, your followers.
Our decline appears to be linked with outsourcing producing and becoming service providers controlled by financial managers.
Historically most countries that have made a leap forward have achieved it by developing advances in technology and producing goods that people want and need.
Money being a man made concept for bartering is a means to an end not the end product – you can’t eat money (or not yet).
We need to invest and develop in the products that someone is prepared to pay for.
What to invest your money in for the best return my be completely different to previous financial planning. Investing pensions in a person, group or start-up company or new technology may be more viable in the long term. This is how historically immigrant communities with their own infrastructure and networks succeed.
Regarding the financial situation, our advantage is our small size and can respond quickly to changing circumstances whereas large companies and governments are like super tankers heading for the rocks when the winds rage.
I look forward reading more about how you are thinking and how to take control from an informed position, keep it going!
Best Regards
Grant (in UK)
Couldn’t agree more – the entrepreneurs are truly the future of the global economy. Anyone who thinks that a company, the government or someone else is going to take care of them is mistaken. You must step into it and become your own master, because it’s the entrepreneur who’s going to move the world out of the mess that it’s in!
Hi Greg, am from out of town (Nigeria, West Africa) but am ardent reader of your newletter which has given me a lot of insight into wealth generating ideas. Thank you again. That there is an imminent middle class meltdown is an understatement because in most African countries you have either the rich or the poor, the middle class was wiprd off 20-25years ago and has left many countries poverised mainly due to bad leadership and all. My question is this: in a growing/developing economy such as our (Nigeria), how do you harness these economical/financial information to impact positively on the citizens especially rural dweller who can neither read nor write?
The best advice I can give you is to focus on making your money and building wealth where it makes sense, and then build up resources to help your people. For example, if you started a business through the internet that doesn’t rely on selling locally to people with little money, you could build a business with profits which you could then turn around and use for good in your local area. Don’t feel like you have to try to create a business locally. That’s the amazing thing about the time we live in – you can have an international business online because of the internet from anywhere.
I develop software to support start-up and growing businesses
Burke,
please read my comments to this post. I may have some ideas that can help your clients in the manner in which you are looking.
Seann
[email protected]
Hey Burke, I’ve used your software in the past and thought it was helpful. Keep up the great work!
I hear everyday how people are concerned about their retirement, how they are losing money in the market place, how they pay to much tax, how they can’t get their money to work for them, etc, etc.
When people “hope” their investment creates profit, when they “hope” they will have enough for retirement, when they “hope” they will get a tax refund, all it means is they have not taken the time to research where there money is going and how to make it work more effectively.
People don’t have to invest blindly into a mutual fund with full risk exposure to their money. There are ways to protect your funds from loss, guaranteed.
People don’t have to pay tax on every dollar they earn, there are ways to easily create some tax deductions by simply making some minor changes….might even make some extra money on the side 🙂
People don’t have to worry about losing their savings for retirement and running out of retirement savings when they are too old to go back to work. There are programs that guarantee 5% return per year while saving for retirement (even if you lose all your money, your guaranteed account still grows by 5%) and then the investment will pay you income for the rest of your life (and spouse’s life) even after all the money is gone and at a much higher rate than an annuity or GIC.
Stop going to the bank and buying RRSP’s only to pay more tax down the road.
Stop paying compounding interest on your mortgage.
Don’t buy mortgage insurance, it only helps the bank and you may not qualify for it AFTER you are dead.
I could go on but…..
and one more thing, if you are self-employed STOP paying for your medical expenses with after tax dollars out of your pocket, there are ways to have your company pay for it and the expense be a 100% deduction against business revenue without it being a taxable benefit to you.
Ok that should be it for today.
I would like to know if you or your company invests in community business ideals that bring jobs and community interaction / connections. If so please contact Lebron Riley founder of Urban Jungle at [email protected].
No.
Well I would like to know what happens to the middle class. Is it the gov. officals rewriting the changes. If our currancy is finished what will we use? Where should we save our money, what banks will survive, will it be credit unions?
As happens with every fiat currency, there will be some painful “resets” of money and currency, and new systems will evolve. This won’t happen in a single day, and the world won’t stop turning. But there is a lot of turbulence and chaos to come, that is really the point to understand. And now is the time to work at developing an understanding of what is causing it, so that you can position yourself in the best possible way.
“So strap in and get ready, because we’re about to take an incredible ride that will determine what side of the equation you end up on!” My dear Greg Habstritt. I’m a big fan but I’m afraid you’re wrong on this one. Here is the real deal. The Central Banking System of the western world, the Federal Reserve, The Bank Of England, The ECB are PRIVATELY HELD CORPORATIONS THAT LEND MONEY TO THE GOVERNMENTS OF EUROPE AND THE USA AT INTEREST FOR PROFIT AS THEY PRINT MONEY OUT OF NOTHING. This is a fact. Any discussion of the crash of 2008 and today’s economy without including this reality is simply ridiculous. The truth is the turmoil we are witnessing are merely the birthing pains. We are at the dawn of a New Golden Age of Humanity, a New Renaissance. Gotta look at history bro! Galileo proposed the earth was round as it traveled around the Sun.The Inquisition attacked his ‘blasphemy’, put him under house arrest until he died. All this Apocalyptic doom and gloom is just the Inquisition 2012. Are you proposing a PRIVATE BANK should continue to print money instead of the US Treasury? Do you believe we should let this charade continue while we follow your plans to leverage the strategies you propose? If so, my friend I believe you are a ‘flat earther’ that believes civilizations revolve around banking institutions instead of the other way around. And that’s OK! Who cares! The earth sure LOOKS flat as the sun dances across the sky. Just can’t circumnavigate the globe or fly to the moon with that way of thinking, that’s all. And lastly, it’s not the ‘greatest transfer of wealth’ as you say, it is a ‘theft of wealth’, designed, manged and executed by privately owned central banking institutions, void of any natural economic principles, plain and simple. The world is awakening. End The Fed!! Restore sound money!! Greece knows this. The American people know this. Do you?
Thanks for the entertainment. Apparently you needed to show how much you know about the fractional reserve system and the federal reserve system. And all the CAPITAL LETTERS really make it clear you know it all. Wow.
Nothing I’ve said to this point disagrees with the fundamental problems of the federal reserve system, and yes, I am aware of everything you’ve outlined in your comment with respect to the system. Yes, I’ve read the Creature From Jekyll Island. Perhaps I know a LOT more than what you seem to think I don’t, simply because I didn’t the entire containment of my knowledge base.
Next time I post an article, I’ll try to cover every element of every angle with respect to the economy, money, currency, investing, psychology and commerce. Oh, and politics, conspiracy theories, and everything else. It’ll take me a while to write that article so don’t hold your breath.
I don’t know if you’re not getting any action, or just frustrated because no one gives you any recognition for being such a genius. I can’t help with the first one, but I’m sure impressed by your knowledge, but even more by your gentle and open minded approach.
Your rants make you sound like a lunatic, and it’s too bad because you might have something intelligent to say if you weren’t such an ass they way you communicate.
And by the way, if you think what’s happening in Greece right now is because they want to “restore sound money”, then you clearly have no idea what’s really going on beyond your tunnel vision of the evils tracing back to the federal reserve system.
Greg, conspiracy theories, capital letters, communicating like an ass? Looks like I hit a nerve there, dude. lol… I was just stating my point of view. I believe today, we are at the dawn of a New Golden Age of peace and prosperity that will make the Industrial Revolution look like a teenage growth spurt. The signs are all around us.
Your entire blog post was a discussion about a ‘Middle Class Meltdown’ as if it was some sort of natural occurring event or part of an open market system. It’s not. Our economy is a closed system where a fiat currency is printed by a private bank that lend to the government at interest. That is a fact not a conspiracy theory. You talked about the ‘coming storm’ and ‘stark realities’. The realities are the ‘crash of 2008’ and the supposed coming ‘storm’ originated through the use of CDO’s, and Credit Default Swaps which resulted in a big nasty toxic debt monster. Ooooo! VERY SCARY!!lol… Sorry, it’s not frightening. It’s a joke. It is a fairy tale land created by an antiquated fractional reserve banking system that digitally creates money that doesn’t or ever will exist, out of thin air. When the US treasury was in control of the money supply before 1913, the United States saw a growth that unrivaled anything seen before in history of civilization. 70 percent of industry was recapitalizing without the use of banks. The powers at the helm have organized itself to take that wealth away through fear and deceit just like the Inquisition a few hundred years ago. What was the engine of change back then? The printing press… Today? The Internet… Same ridiculous crap different smell. Then as now I’m sure those in power see it as fair play. They can do to us only what we the people let them do. But now most of us are awake and know this is the Land of Oz and this non existent debt crisis is just fear mongering from the goofballs behind the curtain. If you believe in something different, if you believe it is the role of the people to live in a bank centric universe, it’s all good, bro. It just does not wash the way I see it.
And lastly, if you want the real deal on Greece? Here is the place. http://youtu.be/coalJcqFpQE
That’s all of course just my opinion. And you know what they say about opinions… 😀
All the best.
Thanks for your reply – the issue wasn’t that you were stating an opinion, you were stating it as fact. The distinction is that while I understand the fractional reserve system is ultimately the root of many of today’s economic problems, it’s not something that is going to be changed. So we can debate it all day long, but what really matters is how to profit and capitalize from it. The people who scream “End The Fed!” (which by the way you did) miss the point that it’s about changing the system, it’s about working within it. No different than trying to stop the flow of a river – makes a lot more sense to swim with it and use the momentum to your advantage instead of against you. And ultimately, that’s what I am all about, teaching people how to use the system to their advantage. God bless people who exercise their right to protest in front of the banks and government offices, but those are the people who get crushed by the system because they don’t understand they’re playing the wrong game. You can be right, or you can be rich. You can’t be both. And sadly, most people are committed to being right.
So I agree that the debt crisis is not a surprise to many – but so what? That doesn’t equip anyone to actually do anything about. The reasons or bigger powers “behind the curtain” make for interesting discussion, but that’s not how you create wealth.
I totally respect your opinion but could not disagree more. You believe the Fed is here to stay. I say the world trend is on the move away from Dollar hegemony and the central banking system as we know it. Saddam Hussein tried started selling oil in Euros in 2000, Oops! wrong move. Former IMF chief Dominique Strauss-Kahn tried to add emerging countries’ currencies such as the Chinese yuan, to the IMF’s Special Drawing Rights, (SDR) basket which is currently composed of the Dollar, Sterling, Euro. No-no-no! Bad boy. Here’s your go to jail for free card. Gaddafi was about to start selling oil in Gold Dinars in an effort to bring a single currency to Africa. Sorry! No can do, dude. Leon Panetta tells Congress he didn’t need their approval for action against Libya, Congress drew up articles of impeachment against Obama. Bills were introduced and almost passed to audit the Fed from Congress. Now, Hollande President of France is pushing all of Europe to do what DSK was dethroned for that is the use of Eurobonds to diversify central banking stranglehold over Europe. Just the other day former Italian leader Silvio Berlusconi who still welds power in government says Italy should bail on the Eurozone, fire up the printing presses and print it’s own Euros! WOW! The world is awakening. The real revolt is not coming in the form of Bilderberg protesters screaming “end the Fed”. It is coming from every power center and from every corner around the world. The dawn of a New Golden Age is just around the bend, my man. Since the days of Jesus and the money changers, Bankster tyranny is finally on it’s death bed. You see it everywhere! I believe to create wealth you must push fear to the rear and prepare to bask in the blazing light of Life, Liberty and the pursuit of Happiness. Invest in what trends away from the fiat money world we see today. In what is solid and here to stay. That’s what I say. And by the way… God Bless our young beautiful country! God Bless America!!!! 😀
Guillaume, I never said that I believe the Fed is here to stay – you’re not listening to what I’m really trying to say. I am saying that I’d rather focus my energy on WHAT to do, and how to capitalize on the way things are, rather than arguing about the theory of what should be.
Like you, I do believe there is a reckoning coming, but it makes more sense to me to position appropriately for that outcome. I don’t think it’s coming as quickly as most people think – it will be a slower, more painful evolution than one day the banks all closing down and no one accepting currency any more. The truth is no one can accurately predict what’s going to happen.
So I agree with everything you’re saying from a conceptual perspective that the world WILL eventually move away from fractional reserve banking. The issue is, you can jump around and get angry about it and cheer that the end is coming, or you can do something to be on the right side of the shift when it comes, instead of being one of the protestors with a sign, a sore voice and empty pockets.
As for your last line – I have no idea how you can then go patriotic, in light of what you apparently believe. If you really believe everything about the Fed and the evils behind it, there’s nothing patriotic about your administration, your government or its history if you’re in the US. In order to believe that the Fed is controlled by a small few in the world and that it’s all orchestrated, you also have to believe the President and leaders around the world are in on it, and complicit.
That’s not where I am, but again, whether that is true or not, the important point for the average person is what to do about it, and how to take advantage of the circumstances.
I’m not trying to scare people or create fear – I’m simply recognizing the reality for people and their money. I agree that you can’t stay in a place of fear, but you first must realize things as they are, and the threat that exists, before you can expect to be motivated to respond to it.
Greg, are you saying that Mike Dillard’s products like “Infinate Banking” is a scam?
Huh? I don’t remember making any comments about Mike’s programs specifically or strategies being a scam. Specific to the infinite banking concept, that’s an old strategy that’s been sold by the insurance industry for many years. While it sounds sexy and amazing, it’s just life insurance. So is it a scam? No. Is it the right strategy for everyone? Definitely not. In fact, for most people it’s probably not the best solution, but it sounds pretty cool to have your “own bank” (which it is not really giving you). So no, that particular strategy isn’t a “scam” per se, just not necessarily the magic bullet that some people claim it is.
And that goes for EVERY investment strategy – there IS no such thing as the perfect strategy. If there was, everyone would be doing it!
In terms of their currency trading system that they promoted a few months ago, I do think that it may have been a scam, which is why I warned my clients to stay away from it. I just couldn’t get any good answers to questions so couldn’t determine whether it was legitimate or not. And in Mike’s own words, he doesn’t know if it’s a scam or not. And if he doesn’t know by the point, then I’m not sure how anyone could. So that one is definitely suspect, and could turn out to be a total scam, or just an overhyped strategy relying on an incompetent team. I have no idea. What I do know is that there were a lot of red flags, and if you’re going to invest in things like that, you might as well save yourself the time and fly to Vegas to put all your money on black or red.
I think their intentions were good, and that Mike has integrity. But I think he’s gotten involved in an industry that he has no background or experience in, and that’s becoming an issue. The financial industry plays by completely different rules.
It’s frustrating how many investors just look for the easy answers, the “sure bet” and for someone else to tell them what to do. My whole philosophy is think for yourself, be skeptical, and never let someone else make your financial decisions. I don’t care who you are, there is NEVER a good reason to do it.
So that’s what I’m doing – giving people the tools and insight to make better decisions. I will never sell an investment or recommend an investment to someone where I get any compensation for it. I’ve been in the investment world for a decade, and have been involved in promoting investments and strategies. It’s not what I do any more, because I believe the world truly needs an unbiased source of financial content and knowledge, and that’s the path we’re taking.
Thanks for your unbiased opinion Greg. I do believe that you have people’s best interest in mind. Keep me posted on what you guys are doing because I find it increasingly difficult to tell the fortune tellers from the prophets!
Be well, Steve
Can we still think of doing business as usual when we are trashing so much of the natural resources?? Instead of investing in us we can invest in the Earth who is challenged with this monetary world that forgot to honor the environment that supports humanity…
How can we live with in our means. Ghandi said “there is more than enough resources for our need, not for our greed ??
Maybe less stuff and more spirituality ??
I agree that the earth cannot just be harvested blindly without considering the long-term implications. The problem in my view is that neither the corporate side, nor the environmentalist views are right – the solution is somewhere in the middle. Unfortunately, as it happens with most debates, the parties become polarized and it is more about winning than it is creating a sustainable solution. There are ways to utilize the earth’s resources in a way that it doesn’t create long term problems and damage, but everyone’s more focused on being right than coming up with good solutions.
Hey Greg, as always I’m interested in reading your blogs. As a contribution to it, I would like to share a documentary that explains the monetary system. I believe most (almost all) people are clueless about how this system REALLY works. Therefore, I strongly recommend to watch this documentary, or at least the first 22 minutes, to understand this system. This will help you understand what is causing the economic and financial problems that we are facing. I’m also very interested in your opinion about what is shared in this documentary! So please watch it and reply or share your thoughts on it in your next blog.
http://www.youtube.com/watch?v=1gKX9TWRyfs
I think movies like Zeitgeist, Money as Debt, videos from G Edward Griffin, etc. are interesting things to watch, as they open someone’s mind to the fact there is a lot more beneath the surface than they might realize. However, I also think it’s important not to get fascinated and obsessed with the system, but rather to understand how to benefit and position properly because of it. I meet a lot of people who are happy to discuss and argue the merits and evils of the money system, etc., yet they’re broke and have no idea how to actually create wealth in such an environment. To me, I’m happy to leave them to their intellectual discussions, and instead focus my attention on how to respond to it.
Thanks for your quick response. As this system is not likely to change anytime soon, I agree about your thoughts of focusing on how to respond to it. However, like you mentioned it is important to understand this system, so that you know what to respond to. It’s explaining debt and inflation. Hence, it’s part of the first step you are talking about in your blog. I’m curious to find out how you explain this first step, and other steps as well of course. Good luck! Looking forward to your next update.
Great Post.
I would like to know when you think we will see a major deflationary event. Will we see high inflation first or deflation first?
You’re already seeing several deflationary events – just look at many of the housing markets in the US as an example of that. A deflationary event doesn’t impact all asset classes equally. We’re seeing deflation in some assets, yet inflationary pressures on others. The most likely scenario is that we’ll see additional deflationary pressure if Europe’s crisis begins to spread, which is very likely. Credit will dry up like 2009, and that will impact the ability for people to borrow and spend money. People will save, demand will go down, and we’ll see some price deflation pressure in a lot of markets. However, the medium and long term will see massive inflation simply because of the dollars being printed by every major country in the world right now. It’s a race to see who can print more money and debase their currency to keep them competitive on an international basis. So that means we’re in a risky period because it’s challenging to respond to both deflationary and inflationary pressures quickly.
This is the single best description of how both deflationary and inflationary forces can and are occurring. It’s not one or the other, it’s both. Make all decisions respectively. Well done.
Thanks Perry – this is the thinking behind the next blog post I’m writing.
As you know Greg, I have very little experience with high finance so I trust you will start with the fundamentals of teaching us to understand what inflation and debt are, and what causes interest rates to rise or fall. As always I will be looking forward to your next blog.
These are the days when you have to clearly think where it is you really want to invest not only your money. But all of yourself–time, energy, resources, finances. And be sure what you invest on is something you feel passionately about.
Absolutely! However, you can’t confuse that concept with needing to get versed on critical knowledge. In other words, a lot of people tell me “I’m not passionate about investing” or “I’m not excited about learning about money”. That’s like saying “I’m not passionate about learning how to have a strong marriage”. Learning about money, investing and the economy is something you need to do, regardless of whether it’s “exciting”. You don’t need to become an economist, but you need to understand the basics.
Those are the kinds of critical elements we’re going to be helping people learn and explore, so they can gain some confidence in their own decisions.
Greg,
Sooo true what you have stated. Thanks for addressing this when many other leaders in our industry are just saying “look at the positive and all the opportunities.” No problem with that except unless coupled with what we need to prepare for the upcoming economic tsunami, will have that “dream beach vacation” turn into meeting the Grim Reaper! Thanks for stepping up and leading!
Who you choose to listen to these days can make you, and more often than not break you. I recommend anyone on here looking for financial advice contact a licensed certified financial planner that handles investments for a living. A professional that has handles investments day in day out.
People that dole out financial advice through blogs are not licensed or monitored by FINRA so they can spout any opinions they choose. Do not be stupid with your money and only take advice from a well educated, licensed, and certified professionals.
Why spend money on some info product on investing when you can have a seasoned pro do it for you? Your risk is simply to great to listen to someone who is not regulated by the government.
P.S. I can already anticipate the responses including Bernie Madoff, high fees, and other crap responses. Choosing a planner you trust is obviously paramount.
Hi Bob – while I understand your point that it makes sense to find someone that is capable, the problem is that assuming you’ll get good financial advice from a “licensed certified financial planner” is completely false.
I can only assume you’re from the financial industry, since no one knows what FINRA is except those who are licensed by it.
There are a lot of good people who are financial planners, and some that are bad. The problem is not only the ability of the planner themselves, but the fact they’re operating in an industry that makes it virtually impossible to truly represent the interests of their clients.
So your argument is complete the opposite – do NOT take the blind advice of an “expert”. Gather more than one opinion, and be accountable to learn and understand your own financial situation, instead of abdicating it to someone who gets paid to sell you investments.
I don’t suggest that people do NOT have a planner – only that they gain the appropriate knowledge themselves to know whether their planner is providing them good guidance or not.
Financial planners can be a part of a great financial plan – as long as you know how to tell the difference between a good one and a bad one. And unfortunately, the industry makes that almost impossible.
I struggle with the fact that I have a relatively fixed income, even with putting in 40/hr weeks – I also have a high debt to income ratio, thanks to school loans, high interest rates on a car loan and medical bills. If I only have, say, $20 a month to use for investing… how can I possibly come out ahead? Savings accounts that don’t have a minimum balance have laughable earned interest. It’s really sobering to be fully aware that my job will be gone if 2008 happens again, to see it coming, and not have the first clue how to use my paltry resources to fortify myself against it. Maybe I should start buying cartons of cigarettes, cause if the economy tanks (when it tanks?) tobacco will probably be worth more than greenbacks….
Hello there; As I am not a financial savvy individual, I get your drift. I would like for you to help me by explaining what is it that I have to do in laymans terms:-step1 , step 2 and so on – await your timely reply.
Regards,
DEB
Alexis, I resonate with your comment, and I couldn’t have said it better.
I have reached the point where I an now able to save and invest 35% of my monthly income…Where do I put it to earn a respectable and SAFE income?
I am currently looking at world dominator companies that also pay dividends. Am I on the right track?
The stark reality of this article is sobering for all of us. If you are looking for a way that the middle class can insure themselves from the impending doom of the dollar I would highly recommend the following links:
http://karatbarstv.com/
http://www.karatbars.com/?s=johnsparks
My confusion is this: A lot of people get rich in times of bad economy. A lot of them do get wealthy in good times too. But a crash like entire countries going bankrupt, such as Greece and now Spain does not inspire confidence!
I understand the basics about the economy. But I’m not sure how I can ensure a bright economic future for myself and my family. I work full time now and am developing a Life coaching practice part time, on the side. I think that if I loose my job because of a crash, there won’t be too many folks who will spend their precious time and moneys on a Life coach! Hummm….
Not sure what to do with the “bad news”.For starters, I’ve stopped watching television. Sigh…I feel much better already!
Thank you for your post. You’re a good man. You’re smart and I’m going to keep reading
Best regards,
Marie-France
I would like to know what to do if you don’t have much spare money, time and are in debt. What is a simple strategy to implement.
Steve Keen an Australian academic economist managed to predict the crisis and has a different take on economics to the dominant theory (neo-classical economics a la Friedman et al). He has a blog Debt Watch.
Fear and uncertainty mainly comes from the unknown – as you say Greg the financial industry has made everything sooo complicated that is easy to wish it would all just go away and in time will come right again. The best place to start is with yourself – what knowledge and understanding do I need to have to allow me to take control over the money I have rather than money have control over me. Money is increasing loosing it value so what can I do to increase it’s value – doing nothing is not the answer.
What we do have to acknowledge is all businesses do not play by the same rules.
Small and large business have one set. Countries (yes they are a business also) play by different rules. When they run out of money, they often just wind up the printing presses and create more money. If we did that it would be deemed to be illegal.
History has a way of repeating itself, though never quite the same. In today’s world, communication is instant and as a result for every action there will be consequences.
How we as individual respond to that is up to us. May that response be proactive rather than just reactive or as most do silent. It is just easy to blame.
I look forward to reading the commentary from both Greg and the postings.
Hi Greg! sound interesting what you said, but in my case, I’m not working since 2010, no personal income, a reduce already check from my hub and my son leaving highschool on 2013; with small opportunity to go to colegue, sound hopless, isn’t it?? I’m far from middle class, ther is hope for me too?, Thanks, Blessings.
I absolutely believe a massive collapse is coming, and have no idea how to prepare because I’m a small start-up business with large debt and consistently insufficient income, no matter how hard I work.
I’ve lost half of my investments in erratic stock market moves, ( the stock market acts like a bipolar person with ADHD these days) and really need to know what I can do to get consistent income, ( worker harder is out ) get out of debt and secure investments that will retain their value in a collapse.
I’ve beenself educating to try to improve income, with only marginal success and am lost as to how to handle the other two points. Where do I get unbiased information, and affordable help to manage debt and investment?
Traders unfortunately become bipolar in their actions and existence eventually, this is reflected in the stock market, rapid cycling is a symptom of long term illness which is now being reflected in the market.
Studying this human condition over 30 years I think your throw away line is very close to the underlying problem of the total instability society is now displaying. How can anyone trust a system that sells you a gambling chip for hard cash that nosedives in value if a large number of fellow gamblers decide to cash in their chips at the same time.
This blog is crap.
Of course it is! It disagrees with whatever opinion you’ve formed. So instead of sharing your opinion and debating it, you dismiss it. Or perhaps you have none to share. In either case, thanks for a thought provoking comment and adding to the discussion.
Just found the site and believe I will become a regular reader. I too am not a doom and gloomer, however, what I see taking place on the global economic stage clearly suggests that there are many major changes about to take place.
I believe Europe may very well be the catalyst for the next wave.
Being an Investment Advisor here in Vancouver, it is my goal to help Baby Boomers prepare for the coming changes.
I believe there’s a difference between “gloom and doomer” and a practical realist. I think there are some very serious challenges facing the global economy, and they’re growing – yet, in every challenge exists a bigger opportunity. So it’s not about focusing on the negative, but recognizing it and then planning accordingly.
My concerns:
It looks inevitable that the U.S. dollar will be depreciated at a large rate, causing potential hyper-inflation. Countries like China & Russia are now trading commodities like oil without converting to $dollars first. There will likely be a basket of world currencies that will compete for the dollar’s world dominance. The U.S. has the largest economy in the world especially because it is driven by our consumerism, unlike China, and will likely keep us as a component in any world trade (currency basket) for as long as we are alive, but in a less dominant role. Point being, if the dollar loses tremendous value, how are your inflation-sensitive assets (housing, real estate, gold, cattle, foreign currency, whatever) going to keep up with the dollar’s decline? Even a millionaire doesn’t want to wake up one day & only be worth $500k.
Also, if the gov’t needs more of a tax base to exist (no more easy printing of money) and they decide to end tax-deferred vehicles and start taxing your 401(k), life insurance, annuities, etc., where will you hide? Gold bars in your safe? You don’t likely own gold through ETFs (unless you’ve done your homework), you own a stock certificate, more or less, with many claims on that same bar of gold you think you own (see MF Global collapse). And are you really going to walk into your grocery store with a golden nugget and trade for some oatmeal and honey? Not likely. We are on a paperless system as it is.
All investments (bonds, commodities, stocks) were highly correlated when the market collapsed in 2008, the only place to hide was cash. So what do you do when your cash just lost 60% too? I agree that it is not worth fighting the system & plan to prosper off of it, but really curious as to how you plan to pull this off with all the moving parts. Timing? Maybe. I know, I know, future blog posts, I’m sure is the answer, but my time is now.
Well Greg,
I do not care what anyone says about you. You tell it to us like it is. Many people do not like to hear the truth about things. They rather believe in the sweet little lies until they get stuck and caught up in what’s happening. As for me, I like the truth. It has already begun happening. We see and feel evidence of it all around us. People prefer to close their eyes and then those same people complain and say they never knew this would happen. Hello! You warned us about it and they did not take heed. I can assure you that if God were to come down this very minute to earth and tell people what is going to happen, they would call Him a mad man. Keep believing in yourself. I believe in you. I know you are real and people like me love real people like you and Dean and Brendon.
I read your book Think and Grow Rich and I stumbled upon your blog via Garth Turner, whom I thought knew more of what he was talking about until he critized you in opinions I do not share.
Anyways, I stumbled upon more things. Until today, I was looking for financial freedom. I found out I was looking at a glass ceiling and what I really wanted was simply freedom, of many kinds. Chris Duane changed my mind in showing me that there were needs beyond that http://thegreatesttruthnevertold.com/ & http://www.youtube.com/watch?v=ynLVswBrk1s&feature=BFa&list=PLD31E34390C5017E8
Hi Mel:
Thanks for your comments. To me, it’s not about whether someone agrees with me on my views, but rather at least has an intelligent position.
Garth Turner has the dubious distinction of being one of the only “economic gurus” and financial geniuses to have been more wrong with his predictions that Harry Dent.
His comments about me were entirely inappropriate, especially about family and my motivations when he clearly doesn’t know anything about me.
The funniest part is that he criticizes me about using fear, yet this is from HIS book:
—————-
“Oil prices and commodities surging. Real estate tumbling.
Trillions rushing into stock and bond markets. Taxes jumping, America staggering and a pension crisis gripping 11 million Canadians.
Between now and 2015 investors, homeowners and savers will hardly know what hit them. If you’re not prepared for higher taxes, the incredible fallout from the Boomers or crashing house prices, you’re not paying attention. The road ahead is paved with change. Already so many people are losing their way.
In “Money Road” financial guru Garth Turner explains why the global financial crash did not end in 2010, and what this means for stock markets, home values, gold, your paycheque and your retirement. Like no other Canadian guide yet, this one book is packed with hands-on strategies and tools you cannot afford to ignore”.
—————-
Seems like he’s happy to use fear and greed and any emotion he can to sell his own stuff, but no one else is allowed to talk about risk or problems.
He’s just a garden variety financial advisor who works for a big financial company. His motives are clear, as is his ability (or lack thereof) to predict the future.
He’s a politician. He uses hyperbole, controversy and unfair attacks to get attention. It’s sad, really. That’s why I didn’t even bother to reply on his blog. You should never wrestle with a pig — the pig loves it, and you get dirty. 🙂
Frankly I’d just like a new stream of income to replace the one I lost in 2009 after being laid off on the last day of maternity leave after being on bed rest. I cannot describe the futility of sending out resumes I know are being trashed immediately for being a 99er and “unemployable” for daring to have a baby at 39 after putting off having children for the sake of career.
Any ideas on how to start from absolutely zero when your husband’s reduced salary is barely enough to provide the basics?
Hi Greg,
I was just watching your webinar: https://www.middleclassmeltdown.com/replay
And was hugely disappointed with the littering of factual errors, biased information, etc. A friend suggested I post them on your blog so you had them and I didn’t know where else to post them so here it goes.
Fannie Mae costing the US $6 trillion – would love to see the references on that info as far as I can tell it’s a garbage stat.
The graphs shown of the markets, highly selective in the dates (picked to show the peaks of the chosen markets, for example if you’d shown the US markets 22 years before instead of the Japanese markets there would have been a huge gain) and not reflective of how real people realistically invest or are taught to invest (ie. dollar cost averaging). I get the marketing, but frankly it’s deceptive and not authentic or transparent in my view.
Section on Big Threat #2 reflected massive misunderstandings in how the monetary system works that would require a lengthy explanation to clarify some quick bullet points are:
– US and Canada as well as some other countries can’t go broke so long as their debts are issued in their own currency
– There is NO comparison to Greece because Greece can’t print their own money, which we can, which makes all the difference in the world
– “This is no different than if you were to spend a lot more money every year than what you made” yes, actually it is completely different, the guy simply doesn’t understand how the monetary system works, to better understand you should compare it to a corporation that issues new shares rather than paying cash, the retained earnings inside the company will go up and the shareholder value will dilute, this is essentially what happens in government, the big question is with government how fast is the cash (productivity of the nation) rising relative to the dilution in shareholder value
The statement that every fiat currency is doomed is simply unsubstantiated opinion, fiat currency is arguably the best system created in history and not likely to go anywhere until we come up with something better. For a detailed conversation on why this is I’d be happy to discuss.
The stuff on the history of the monetary system is almost 100% historically wrong, for a better, though also flawed history of money check out the documentary The Secret of Oz, which you should be able to find on Youtube.
Now that’s not to say it was all bad, some of the information was solid and insightful but overall I was pretty disappointed by the factual inaccuracies. Hope that helps.
Thanks for your feedback. Of course, I disagree with most of it and it sounds like you’re believing a lot of the same rhetoric that our politicians do.
The reality is that the content within the realm of economics, financial systems, monetary systems, etc., is extremely complicated. Our goal is to bring the general concepts down to a point where the average person can understand them. That requires simplifying concepts which in your mind means misrepresentation, or changing the facts for some marketing purpose. That’s not what we’ve done, and in fact a lot of your assertions are as baseless and incorrect as what you’re accusing us of doing.
The fact you think fiat currency is the “best” monetary system there is tells me as much as I need to know about your understanding and perspective on economics and monetary systems.
If fiat currency is such a great system, why has ever single one of them collapsed to zero over history? That’s not unsubstantiated opinion, that’s FACT. Read some history books if you’re not already aware of that. The best money system without a debt is gold – the problem is, governments and politicians are too greedy and crooked to allow that system to actually work.
The dates for the graphs where not highly selective, and simply reflect a long term period which proves the fallacy of buy and hold investing, particularly in the current environment. The point being made is not that there has never been a time when money could be made, but rather showing in the current context what is going on. If you believe you’re going to make a bunch of money in the stock market by buying and holding for 22 years in today’s world, go for it.
And you’re right – we don’t teach, nor believe in dollar cost averaging, because it’s generally a dumb idea that’s designed to keep brokers making money while getting investors to do foolish things, like buying assets as the price declines. It’s a strategy that works in a very narrow band of assumptions, which almost no average investor understands or follows.
As for currencies, whether Canada or the US can go broke, etc., again if that’s what you want to believe, you’re entitled to your view. The problem with your assumption is that a time comes when you cannot print yourself out of trouble, because no one will buy your debt. That WILL happen to the US, it’s simply a matter of time. And when that occurs, their only option is default – conceptually bankruptcy. If you consider yourself knowledgeable, I cannot understand how you would even try to argue that point. In your estimation, I guess we just keep printing money forever and everything works out in the end.
Whether Greece is similar or different based on their ability to print money is beside the point – the actual point we were making is that what you’re seeing in Greece will come to other countries, including the US and Canada, at some point in the future. It’s just the timing that’s questionable.
You’re absolutely entitled to your opinions, but many of your comments are simply subjective opinions that aren’t based in fact.
Hi,I am Lina, from London, I would like to know if you have any special books or information for young people, my childrens are absolutely mad for economics….
Thank you!
Put your money in things that have inherent value no matter what happens to the dollar and the economy — food, water, land, community, relationships, your own education (NOT a college education, but one that teaches you to be resourceful no matter what happens around you).
Well it has finally started and will not be easy. Doing nothing is not an option although that is what most people will do. If you do nothing you will lose everything. I am not alone in saying buy gold and silver. Ditch all your bank shares asap. Yes I know they have already cost you too much. But better to have something than nothing. Debt is a big problem and i mean Government debt which they are never honest about. Like little Cyprus who have been offered and accepted a sticking plaster to cover a huge wound. they will NEVER i repeat NEVER be able to repay this money so will be forced to default. Along with many other countries including possibly the US. OK now you think I am mad. Don’t say I have not told you. Get cracking transfer your assets into Gold Silver and hoard food and water and batteries. [email protected] – my name is Michael
How Relevant Is The Debt Collapse Video By Mike Maloney About Gold, Silver And The Economy
Year and a half ago Mike Maloney from goldsilver.com uploaded a video in YouTube about gold, silver and the debt collapse. In this video he explains how the monetary systems work, what causes the financial crisis, wealth cycles and why to invest in precious metals like gold and silver. Since then the video has over 880,000 views which is a lot.
to see full detail here
http://bitterbananas.com/how-relevant-is-the-debt-collapse-video-by-mike-maloney-about-gold-silver-and-the-economy/
the financial industry PURPOSELY makes it
complicated so that you blindly hand your money over to
them
Articles from all you “guru’s” just like this one never REALLY help at all. Publicity and hype for you, nothing but anxiety and wasted time for us. Give some real answers and predictions that we can bank on, or tell us who has them so we can get them. Tell us the trades you do, the areas you deal in real estate, etc. You make money, have money, and multiply your money. Tell us how to do the same. Don’t tell us how tires are important, and then not explain how the rubber actually meets the road for us.