Home > Family|Finances > Finances > What's in Your Financial Future? Part 2

What's in Your Financial Future? Part 2

Published Mar 21, 2005
[an error occurred while processing this directive]

Edit page New page Hide edit links

My predictions are not based on special revelation from God, just common sense and knowledge of public affairs. I also believe you can’t go wrong if you depend on sinful man being sinful man! There will be major political battles in Congress that will bruise egos and might destroy careers. I also think that Islamic terrorists will strike mainland U.S. with repeated, devastating blows. I think the economy will meltdown with results lasting for decades!
You can’t do much to affect the terrorists but you can make decisions that will help you survive natural disasters, congressional decisions, and financial devastation, so make what adjustments you can to be ready.
In the last few years the world has seen an economy grow like never in world history—China has exploded on the world scene. Five years ago, China made no laptops and now makes 40% of them that are sold worldwide. They produce almost 40% of the world’s cell phones and half the shoes of the world! The Chinese make the television sets that Americans watch. Chinese peasants are saving 40% of their meager incomes and Americans are saving none! Of course, since we spend 10% more than we make it is impossible to save.
Millions of jobs have been lost to Mexico, India, and the rest of the world. Bankruptcies, personal and business are at an all-time high. The clock is ticking and Americans are sleeping. After all, this is America. Moreover, “it can never be like it was during the Great Depression.”
Michael O’Higgins, Money Manager wrote: “When you say it can’t be like 1929 through 1931 [when stocks lost 89 percent of their value], you’re right. It could be worse.” Fear mongering or just the facts?
A financial expert warns: “In a country where savings are negligible, spoiled and pampered people are commonplace, millions of people enjoy subsidies and half the people can’t scrape a thousand bucks together, you have the formula for national bankruptcy….”   James Cook, financial advisor and author
Another expert said: “The numbers are big and bad…tens of trillions…fiscal clock is ticking…a dangerous budgetary and economic spiral…ultimately hurt every American…our projected budget deficits are not manageable!” David M. Walker, Comptroller General of the U.S. and Director of the U.S. General Accounting Office.
Dr. Kurt Richebacher, financial wizard was asked: What’s the nature of this recession you predict? He answered: “It will prove unusually severe and long.” 
“Asian Central Banks alone hold $US 1.4 TRILLON in liquid U.S. ‘paper’. If just a part of this immense stock of funds lent to the U.S. were to start to run for the exits, the entire U.S. financial system would be forced up against a wall and then off a cliff.”   Bill Buckler, Newsletter Editor
We are told by the talking heads on television that the stock market has bounced back, but they don’t know or don’t tell the viewers that the market also bounced back following the crash in 1929—only to crash later! Furthermore, there is more to the economy than the stock market.
Moreover, remember that not one famous Wall Street oracle told us to SELL before the dot.com market started sliding. No, it is always a “buying opportunity.” You see they are called “brokers” because if you deal with them very much you will be broke! Do you know that none of the Wall Street hot shots or television pundits told us to sell Enron even as close as a couple of weeks before it sank! As the ship was going down, it was time to buy more shares of the Titanic!
While I am by no means a financial expert, I can read graphs and make comparisons. I would not be in the stock market except for gold and silver stocks or unless the fund I invested in had some kind of insurance guarantee. Of course, if the whole economy goes down the tubes, most “guarantees” would be worthless. I would use any “bounce” in the market to get out especially if I could make a profit. Then I would put that money in rental property. In most areas, you can purchase doublewide mobile homes for a very reasonable amount and rent them for $600 or more per month. Before making a commitment, you should check all local ordinances to make sure there are no prohibitions regarding mobile homes.
Try to scale down your lifestyle in preparation for difficult times ahead. Do you really need an expensive home or automobile? Many have second mortgages having been sold on “taking your cash value” in your home; however, your home isn’t a life insurance policy. It is your home. In addition, home prices fluctuate. Very foolish people take another mortgage on their home to purchase other items or to pay monthly bills! Some even borrow money to invest in stocks! That is a scenario for disaster. You can’t borrow yourself into financial freedom.
The money managers in the U.S. Government have kept down interest rates so that young couples find it difficult to resist borrowing to finance their high standard of living, but such decisions are insane. Thus far, it has worked. In fact, that has probably been what has kept our nation from going bankrupt but Ludwig von Mises was right when he advised: “Expansion of credit does lead to a boom at first, it is true, but sooner or later this boom is bound to crash and bring about a new depression.” 
China is manufacturing the goods and debt-ridden Americans are purchasing them. China then buys American treasury bills and that puts us at the mercy of the Red Chinese. (Been a long time since you have seen them called that, hasn’t it?) When China sells, it will mean a major financial crisis for the U.S.  In the January 23, 2004 issue of the Asian Times, they opined “All Beijing has to do is to mention the possibility of a sell order going down the wires. It would devastate the U.S. economy more than any nuclear strike.”  Let me remind you that the dollar lies limp on the floor of the worlds’ stock exchanges at this minute.
Those of you who are in your 60s should look very closely at your finances. If you have a choice of taking a lump sum retirement or monthly payments, I would go with the lump sum. Many pension plans are billions of dollars under-funded. I don’t mean to scare you but some funds may not survive the next few years. Washington insiders are very concerned about pension plans, and the federal insurer behind 31,000 U.S. pension plans has confessed that there are “multi-faceted and profound challenges” ahead of Americans.
It is time to reevaluate your financial position, and make decisions to cover various contingencies whenever possible. Simplify your life, scale down your lifestyle, and get out of debt. The party is almost over.


Add a Comment

Please be civil.

(Use Markdown for formatting.)

This question helps prevent spam:

Browse more...


Help support this work:

These donations are not tax deductible.

All payments are calculated in U.S. funds.

Please add 15% to cover shipping and handling of any books.



Short tower banner ad
The God Haters Book Hot Off the Presses - The God Haters Book in Paperback