Diary

Fighting For Your Financial Future - Action Points

Big Government Debt is a massive threat to our lives, our jobs and America.  The Government Debt Bubble will eventually pop.   The average American has the Common Sense to understand that, when you eventually spend more money than you’re making, you go bankrupt.  Nobody will lend you more money since you can’t repay it.  And then you start selling off your assets to pay your debt.  In this case, though, the Government has a taxing authority – the ability to increase taxes on Americans to pay for its excess spending.
But what does the European debt crisis have to do with America? European countries, with their vast entitlement programs, are going to topple like dominoes across the vaunted European Union.  The crisis started with Greece:

In early 2010, fears of a sovereign debt crisis, the 2010 Euro Crisis[1] developed concerning some European states,[2] including European Union members Greece, Ireland, Italy, Portugal[3] and Spain.[4] This led to a crisis of confidence as well as the widening of bond yield spreads and risk insurance on credit default swaps between these countries and other EU members, most importantly Germany.[5][6]

The crisis was long predicted to spread to other countries like Portugal, Ireland, Italy and Spain, giving rise to the acronym PIIGS.  Portugal-Ireland-Italy-Greece-Spain.   Just this last week in the headlines, Ireland appealed for a European Union bailout, trigging a fall in its bonds and default of its major banks.   Portugal has denied that it needs a bailout.  Spain believes that it can rely on budget cuts to avert a crisis.  I think this is wishful thinking. The European Union, if you bundle all these countries into one lump, is the world’s largest economy.  The potential failures of Italy, the world’s 7th largest economy, and Spain, the world’s 9th largest economy, will have a global impact.  Remember that the failure of Lehman Brothers was trigged by a real estate subprime banking crisis, a loss of clients and debt defaults.    These problems are plaguing European countries and the United States.  And Germany, the disciplined financial pillar that bailed out Greece, is expecting its own financial crisis.   In the article, an economics professor notes:

“Germany cannot keep paying for bail-outs without going bankrupt itself,” said Professor Wilhelm Hankel, of Frankfurt University. “This is frightening people. You cannot find a bank safe deposit box in Germany because every single one has already been taken and stuffed with gold and silver. It is like an underground Switzerland within our borders. People have terrible memories of 1948 and 1923 when they lost their savings.”

In a globalized world economy, a hiccup in Beijing matters to the financial markets on Wall Street.

In order to make sense of the burgeoning debt bubble and to put my money where it will either be safe or prosper,  I’ve been reading several sources.

1.  I regularly receive and read reports from Martin Weiss, a financial analyst and investment advisor.  Over the last fifteen years when I’ve read him (not consistently I’ll admit), he seems to have been right 80% of the time.   There’s his MoneyandMarkets.com website and his series of investment reports.  I read both. You can get his reports for various prices but even the Safe Money Report (at less than $80 year as I recall) will help you understand the crisis and put your money into better vehicles.   For example, they discuss how

2.  Check on ShadowStats.com to examine government statistics on unemployment, money supply and more.  Yes, look at it with a grain of salt but, if government statistics are manipulated for political reasons, (“Can that really happen?”), then awareness is key.   Another site that discusses

3.  Check out SaveYourCity.net. This site is dedicated to doing videos and creating awareness about California’s corrupt and spendthrift Sacramento politicians from raiding – yes raiding – your city’s funds for their excessive spending.   I actually started a site called SaveOurCity.com but this one is better.

4.  Website:  Inflation.Us I haven’t explored this site too much but Inflation and hyperinflation is a big worry.  Learn more about it now.    Their motto:  “Preparing Americans for Inflation”

5.   Buy my ebook:  “Citizen Soldier Handbook: Fighting Big Government, Bigger Taxes and the Biggest Idiots”. Yes, this is a shameless plug but if you want to take an activist role and be a leader, then I think that it’s a great starting point.  It works on Intel Macs and Windows with the DNL Reader.   Split the cost with friends and do something – anything – because the clock is ticking.

My “Citizen Soldier Handbook” series is moving along with books on two topics:  Fighting Terrorism and Fighting Big Government.    I’ve been asked why I wrote on these topics by readers.   “Citizen Soldier Handbooks” fulfill an important niche in today’s world.  They are all about taking action. Some Actions are small and incremental, building momentum.  Some Actions – like joining our great military – are huge life changing steps.  But everything makes a difference.