Now is the time to get started with your passive income planning because there is going to be a financial collapse that will hit the world hard. Living in America, I look around and notice that we are severely affected by normalcy bias. We don’t see riots and people are still getting their welfare checks. Incredibly, everyone believes that all of this will continue because our government can just print money to infinity. But this kind of thinking is going to change when everyone wakes up one morning and discovers that they can’t get their money out of the bank. That’s when you’ll see even your own friends violently taking from the rich to give to the poor (themselves). If you don’t try any of the money making options from this blog, at least start a victory garden in your back yard so your family will be minimally effected.
Please note that Mr. Nenner says there will be a GRADUAL collapse starting 2014, not a total collapse.
Charles Nenner is someone who studies financial cycles and has amazingly accurate predictions because history repeats itself. His modus operandi is taking at least 5 years of data, isolating cycles using Elliot wave theory and then showing how the cycles will repeat in the future. Through his methods, he predicted the crash of 1987 and the housing collapse of 2007. He even knew to move out of New York two weeks before 911 based on what his numbers were telling him. We all know that no one is infallible but he does have an impressive track record and has consulted for Merrill Lynch and Goldman Sachs. Below I have placed some of his financial predictions that will help you gauge the severity of the times we are living in. My advice is to not place your faith in what he says, but to goad you into putting your financial house in order.
Gold will start to pick up in July of 2014 and will hit 2100 in a year and a half.
New York is not the place to live because of impending disaster. Conscientious New Yorkers should get out.
Dow Jones will hit 5000 in the year 2019
We have just entered a global cooling cycle. Historically, during cooling cycles the standard of life has always taken a turn for the worse.
Buy farmland because the land prices have bottomed out (as of spring of 2014).
Have multiple bank accounts; one for you, one for your wife, one as a joint account, one for your business etc. That way, if the government decides to give each American account a “haircut”, you will minimize the impact.
We have moved into a 100 year war cycle.
Don’t let people tell you to invest with the outlook that the financial situation is going to get better. It’s going to be difficult to make money in any market unless you are an extreme professional.
We are soon coming to a deflationary period where people won’t buy things with the knowledge that those things will be cheaper in the future. A government can battle inflation, but there is little they can do to fix deflation.
Another man that I respect and listen to is Michael Pento whose emailed newsletter I highly recommend. Lately he has shed some reality on our current situation that few seem to recognize. In December of 2007, our national debt was $9 trillion dollars and now, as of May of 2014 it is $17.4 trillion. The amount of private and public debt is $55 trillion dollars which is $6 trillion higher than it was in December of 2007. This is 250% of the US gross domestic product and 700% of US revenue. Michael states that with this level of debt, it is only a matter of time before we default on our debt payments to other nations. We will do this either by restructuring our debt or raising inflation. He also says that the fed’s claim that they will taper the purchase of mortgage backed securities is impossible because China and Japan are actively trying to sell our debt. Michael predicts that when our tapering of buying our own debt sinks from $85 billion a month to $20 billion (summer of 2014), adverse economic conditions will force Janet Yellen to take our buying level to OVER $85 billion a month. It’s easy to see that QE is never going to end until our ultimate default. But until that happens there is going to be volatile change between deflation and inflation, sometimes blindsiding gold bugs and other times ramrodding bond holders. Michael has created an investment strategy which hedges against both extremes.
Lately, financial expert James Rickards has been gaining attention in financial circles saying that the US can’t pay back its debt without creating inflation. However, he says that the government’s efforts in creating inflation have been stymied because of the of the week economy. Instead we have gotten a bubble in the housing and stock market which is going to burst like has never been seen before. The fact that the US dollar is the world’s reserve currency allows America to print money, thereby escaping a collapse. China and Saudi Arabia own a lot of US government debt and they are unhappy that their bonds are about to decrease in value through intentional dollar inflation. That is why China is buying all the gold it can. They know that gold will act as a hedge of protection when the dollar becomes worthless.
Jeremy Grantham is the chief investment strategist for GMO which manages over 117 billion dollars. His predictions are dire as well saying that he currently is not putting his clients in the market. According to his 7 year financial tables the stock market is going to diminish, putting long term investors in a horrible place.