THE NEW GREAT DEPRESSION WILL HIT THE WORLD
If a country files Bankruptcy -like USA would do around 2016-21018- this country will not able to pay its debts to AMERICAN PEOPLE such pension, retirement and other ones.
Will it happen? Yes it will. Why? Because USA is almost BROKE.
In 2013, USA is the biggest DEBTOR of the world. USA owns money the whole world and it has no sufficient money to pay Social Security and Medicare (Unfunded Liabilities).
The USA Federal Reserve Bank (FRB) , will continue printing dollars until 2016 - 2018, in massive amounts, and they do this simply because the U.S. government has a huge debt; in order to be able to pay its debts. This process is called "Quantitative Easing" (QE), which means "crap and easy money", and in the upcoming years will see more printing of trillions of dollars, and perhaps quadrillions to quintillions.
You'll see that....
As we said, today we see the gradual fall of "The stock markets " and if we apply the principle that "There are cycles in the Markets and Business", we can confirm the occurrence of two events that will affect the entire world:
- USA Stocks Markets would collapse around 2016-2018, and USA will enter into a ECONOMIC DEPRESSION with HYPERINFLATId .
- Then all stock markets of the world will collapse, leading THE NEW GREAT ECONOMIC DEPRESSION, which will last another 10 to 15 years.
DOES IT MAKE SENSE TO SAVE MONEY IN THE LONG TERM?
The answer is NO. It is better to invest if you know where, and how!
1) Because the purchasing power of your savings will be diluted against inflation. For example if your savings are deposited at a fixed term of 7% for 8 years, and then there is future global inflation of 10% to 15%, who does lose? You lose all your money, and mainly if you save in U.S. dollars.
2)You will lose your money if you place your savings in mutual funds. Because these ones will be reinvested in almost 95% in the stock markets, but you know that the Stocks Markets will collapse between 2016-2018; so your savings or pension would be worth almost ZERO, or your money will have evaporated. This would happen with most retirement plans, which are administered by private entities or the government itself.
Based on the following principle:
INFLATION means dilution of the purchasing power of the currency at any country, we will see that if your savings are used to purchase "retirement plans" such as 401 (k) in USA or RRSP in Canada; you will lose gradually the value of your money during 2013-2016, due to global inflation, and you might lose everything around 2016-2018, unless you do something different.
ALL SAVINGS LOSE VALUE DURING INFLATION!
We can see that all these "financial problems" from Governments and Individuals, have something in common: "LACK OF FINANCIAL EDUCATION"
What are the most common problems that people and governments face?
What is it that 95% to 99% of the population expected from governments?
By 2016-2018 the big challenges for the majority of countries around the world will be "How to cope the effects of The New Great Depression (2016-2018), and How to get more income to finance most social spending, etc".
What do "countries with financial problems" expect from the BIG countries?
To get financial help, How? "Being Rescued" = it means getting more debt to pay off its debt, by which it will create more taxes, and more inflation. But at the very end it will not work. Some European countries including some PIIGS countries (Portugal, Italy, Ireland, Greece and Spain) will go bankrupt in the next two years, as well as the State of California in the U.S., simply because they are already broke.
So you have to get ready and prepared because the world financial system will become very hard during 2013-2016, with more global inflation, but there is still some way to protect yourself and your family.
I know this sounds horrible, and pessimistic, but unfortunately it's the reality, but there is still good news if you act now.
Now you know this reality and it is up to you to validate this claim, do what you are doing or ...