By Al Thomas
And you will lose your 401K or other savings.
You may not want to read the rest of this and prefer to keep your head in the sand or some other dark place.
U.S., Europe, Middle East, Asia, South America every country is on the path to financial destruction with no hope of correcting their financial mistakes.
It is not that they don’t know. It is a matter of ideology and psychology. A few actually believe what they are doing because of their ideology. Others are afraid that if they try to correct the errors of the past 30 years they will not be re-elected. The latter is pure greed.
It is the politicians who have caused the meltdown that is coming.
Those now in power recognize the financial system has gone beyond the point of no return and they cannot tell this to the voters.
The voters, those who do the work that creates real wealth for their country, are so involved with their everyday work they have not had time to learn what is going on right in front of them.
Mr. Hard Worker has been told that all the free stuff the politicians have been giving him is down there. “There” is the hole he has been told to dig and each time he tries to understand the politicians tell him it is a little deeper. Keep digging. He is so deep now he can’t get out of the hole.
The political system has made the banks borrow more and more money until now the interest on the debt is more than the workers can pay. Yet the politicians still refuse to tell the workers the truth. No one in the world will loan them any more money. The hole is going to collapse in on them.
The politicians continue to try to figure ways to borrow more money to keep the diggers from crawling out of their hole and voting them out of office. It is too late. As one country after another goes bankrupt the stock markets collapse and the savings of those hard worker disappear. Financial tentacles reach from one country to another. It is the domino effect and cannot be stopped because every country has been playing the dangerous game.
History has shown there are long term cycles. This one started from its high in the year 2000 and probably won’t find a bottom for another 5 or 6 years. If history repeats, as it usually does, these next few years are going to be very difficult especially for those known as the “middle class”.
What the politicians have done has gone beyond the point of return no matter what they tell you.
Don’t count on any paper assets like stocks and bonds. They will have depreciated in value. Hard assets should be accumulated now including food and safe shelter.
History will tell you if these are true words.
Al Thomas' new book, "If It Doesn't Go Up, Don't Buy It!", 3rd edition, has helped thousands of people make money and keep their profits with his simple 2-step method. The method made 10% during 2008. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know. Copyright 2010 Williamsburg Investment Co. All rights reserved.