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THE SCENARIO: Your Wealth Is Under Attack
You read or hear about it daily. We are facing a whirlwind of economic and political wild cards that not only threaten our personal wealth, but indeed ultimately threaten our very way of life. Financial and economic expert analysts have agreed that the threats are real...and that they can, if left unchecked, destroy our economy and our financial structure - not to mention your portfolio.
1. The world, the U.S., and the U.S. stock market are highly volatile, facing an uncertain and unsettled future.
The U.S. is in debt to the tune of $500,000 for each family of four. The dollar is in a long-term bear market. The deficit is growing at an exponential rate. Investors burned in the stock market crash began allocating funds to real estate. Now, even this last bastion is showing signs of weakness. Interest rates are rising. Home prices have risen to "bubble" prices in some areas. The war in Iraq is costing billions more than expected. We have been in Korea for more than 50 years. How long do you think we will be in Iraq? What will be the ultimate cost?
2. National and personal debt are rising to astronomical heights.
As a whole, the U.S owes about $37 trillion. That comes to about $128,000 per citizen, or an outrageous $500,000 per family of four. And the pace of the growth of our debt is accelerating.
Low levels of national saving combined with a large and
growing deficit is setting the stage for major economic and financial problems.
3. Government spending is out of control.
The cost of federal, state and local government in the U.S. is in excess of $3 trillion dollars - more than the worth of the entire economy of France.
In one year, the American government spends more than it spent combined from 1781-1900...even after adjusting for inflation. Welfare spending amounted to roughly 12% of the federal budget in 1950... today it accounts for almost 40%. The war against terror, the war in Iraq, the spiraling costs of health care, the social security burden...all these factors, and many more, will cause the spending levels to continue to soar to unheard of heights.
4. The U.S. trade imbalance and the rise of foreign investment seriously imperil our economy.
During the 1980s, the trade deficit was a manageable $80 billion annually. In the 90s, it skyrocketed to the $300 billion range. By 2003, it exploded to over $500 billion. What's more, foreign investors now own enough dollars to cause massive damage to the U.S. economy. What happens if they decide to actually start selling their Treasury bonds or Manhattan real estate? We'll have an unprecedented crisis on our hands, and the consequences will be disastrous.
5. The U.S. dollar is collapsing.
The dollar is in peril. No longer the world's dominant currency, its value is falling almost daily.
The factors described above are the main reasons. An unstable and uncertain world and stock market, record personal and government debt, the trade imbalance and huge foreign investment, combined with a growing paper money supply that sustains a mistaken perception of U.S. prosperity, have poised the U.S. dollar on the brink of collapse.
Read More...THE SOLUTION: Experts Tout Gold.
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