The Euro is in deep “doo doo”. The U.S. unfunded liabilities and deficits cannot be paid, the math just doesn’t add up. Peak oil is here but traders look at immediate demand to determine price. You cannot get the truth from Economic Officials because they want to manage “perception” for the greater good, thus they lie to us. Denial is rampant. Voters are pain adverse and keep postponing the pain for greater adversity in the future. The pathetic interest rate on CD’s is pulling us into this economic minefield. Financial fraud is everywhere and honest people are punished. What are we to do?
We must shrink our living expenses by using a zero based mentality. Look at your monthly expenses and scrutinize each expense and with minimal emotion, determine whether you need that expense. Is there an alternative? Credit cards are time bombs if you can’t pay them off monthly.
Investing is a tremendous challenge now. Protecting your principal must be the number one prerequisite but this is nearly impossible in today’s environment. Hidden inflation is the insidious thief that is robbing your principal while your receiving less than 1% in interest. Increase in taxes and healthcare are chipping away at our wealth.
I continue to believe in physical asset investing for the following reasons:
1. The global population continues to expand and people have to eat, stay warm, and travel.
2. The current infrastructure paradigm is a high energy consumption-based reality. We can talk theory and point to large energy deposits.
3. The Quants (financial engineers) are taking over the market gambling casino called Wall Street.
The following video will bore most readers but if you can last through it, you will gain a perspective of the complexities that are taking over the global banking industry which will ultimately cause its collapse: