by Steven Hilgart, Director of Conference Operations and Marketing
The presidential debate has caused quite a stir.
People are still extremely fired up about the issues. Obviously the economy is on such a crazy tailspin of doom that the debates should be filled with economic policy and solutions to this crisis!
But wait – neither candidate mentioned the economic crisis… at all… not even once!
Even if they had, I’m not sure they would have many solutions…
Police Chief Wiggum may deserve a PhD in economics for this line…
I hate to play Chicken Little here and speak all about doom and gloom (life was much simpler and easier before I paid attention), but don’t these people get it!?
The World Is Coming to an End!
Well – kind of.
Yes, the U.S. is some 16 trillion dollars in debt.
Yes, approximately 255 million out of the 311 million living in the United States are on some form of government subsidy.
Yes, the Fed is now printing 40 billion dollars per month in funny money.
And no, there is no real plan to fix all of that.
I’m optimistic though! While it is practically impossible for the government to shrink at this point (I mean, what politician in their right mind is going to vote away their main source of income?), I do believe individuals have a golden opportunity to prosper throughout and after the collapse.
After all – they say more fortunes were made during the Great Depression than in any other time in history!
In the near future, we will have some serious financial issues. It may not be life-threatening, but it will make it very difficult for people to maintain their lifestyle.
In my mind, there seems to be three major groups of people who will be affected differently in the coming collapse.
Being the “master” of human behavior that I am, I have a few predictions… and possibly, some solutions.
None of us will be able to predict exactly what will happen – but before I go any further, let’s just define one of the more likely scenarios in a “collapse”.
For simplicity’s sake, let’s say that things stay pretty much the same. Prices, jobs, wages, interest rates, etc. The only difference is that the government can no longer afford unemployment, disability, social security, food stamps, or other forms of payouts.
Before you jump down my throat, I realize how ridiculous this sounds and how many other problems this would cause. Again, we’re looking for simplicity for our discussion today. Work with me here, not against me!
The Average Joe
This is going to be an interesting group of people to watch. When I think of this group, I think of young adults just getting started or out of school, and young families who are trying to build a life for themselves.
Many of them could have a decent job – not lavish by any means – but enough to pay the bills and keep afloat in their credit card debt. Many others are on unemployment or some other form of government subsidies.
So how will the collapse affect this group?
The Average Joe is going to have to get back out into the world and actually become productive, or they will no longer have money to play World of Warcraft. They will have to get away from having “stuff” (what a shame, right?), sell off a lot of what they have, and live a more minimalistic lifestyle.
But what will happen when all of these people actually decide to stop playing around and actually TRY to get a job… only to find 3,000 people are applying for the same position?
If the recent riots in Spain or the previous ones in Egypt or in the Middle East are any indication, they may react violently. Riots, looting, and the general pissed-off-ed-ness that can sometimes define youth, will be prevalent.
But herein lies the problem. Usually, the anger from youth is misdirected (I would know).
For instance: the Occupy Wall Street movement. A bunch of young adults and kids decided it was Wall Street’s fault that they are having such a tough time moving up in the world. “THEY are the ones who caused me all this pain!”
My father has a fantastic saying I’ve adopted for my life, “As long as we can assess blame – the problem is solved!”
Obviously some guy working his butt off on Wall Street has little-to-nothing to do with the individual decisions this group has made.
He is not responsible for the choice to buy a home you can’t afford. He is not responsible for the choice to spend an entire paycheck on a 92” flat screen plasma 3D HDTV. Lack of personal responsibility…
I’ll get off my soap box now and give a simple solution to this group: Financial Education. This is the ultimate difference between the poor, the middle class, and the wealthy – their financial IQ. I personally started with a great book called Rich Dad, Poor Dad.
I would ask of you, that, if you have a young person like I described here, you would give them a nudge towards reading this book. It’s not going to solve all their problems – but it’s a step in the right direction.
Let’s move on…
The Baby Boomers
This is the group of people I am most worried about. My parents are in this group.
Maybe they get all of their income from social security. Maybe they still work. Maybe they are half and half – regardless, if the economy takes a crap, these people could be in serious trouble.
Many are in their 60s or 70s now, and my biggest fear is complacency.
For the first time in history people are living WAY passed their life expectancy. With the recent advances in health care and medicine there’s a good chance many of them will live to be 100(or older!).
Except – they don’t believe it. Somewhere, deep down, their belief is they are at the end of their lives so they should just eek by. Who cares if taxes go up? I’ll be dead soon anyways!
Dead soon? Actually you probably have another 30 or 40 years to live… you can’t possibly intend to eek by for 30 or 40 YEARS!?
It’s not actually that they don’t care – it’s that it’s “not so bad”.
THIS is what scares me the most. When people start saying things like that, they accept their fate. Then we have a large part of the population who just give up.
The last thing we need when the economy collapses is the majority of the population giving up.
If I were to step back on my soap box again and give a solution, it would be inspiration.
It doesn’t matter how old you are, it doesn’t matter what you’ve been through. Your past does not equal your future.
At age 66, Colonel Sanders decided he wasn’t satisfied with his first social security check of $99.00.
He realized he couldn’t rely on anyone else for his well-being. And if a roly-poly old guy in a ridiculous white suit can change the eating habits of a nation – surely you can get out there and make a few extra bucks and stop compromising your lifestyle because the government can no longer sustain itself!
But I’m sure you and I share the belief that ‘good enough never is’ which is why you are a part of…
The Global Wealth Protectors
(sounds heroic, doesn’t it?)
You, my friend, are in this category. You are financially educated and you probably have a bit of money to play with.
But – if I may be so bold, you are afraid of what is happening in the U.S. (and the rest of the world for that matter), and for good reason! The governments of the world are voting to take your hard-earned wealth, by force, if necessary.
But you won’t react like most. You won’t become violent or complacent – you will respond. Like water, you will go with the flow – instead of fighting a losing battle, you will shift your strategy and come out ahead like you always have.
Sure, building your own financial fortress will take some planning. It will take some foresight. It will even take time and resources. But in the end – you will have things that the other two groups don’t. Your wealth, your time, your security, and more importantly, your freedom!
Until next time,
Have a FANTASTIC day and live well!
P.S. I’ve been pushing Bobby to create a subscription service where we provide precious metals reports, stock reports, discounts on all GWP services and products, confidential asset protection strategies, trade secrets, and all that jazz.
I’m wondering if it would be something you would be interested in…? If you are, do me a favor and opt-in with your name and e-mail here.
If you sign up there I’m sure I’ll be able to convince Bobby to offer an early-bird discount on it as well. So be sure to put your name on the list by clicking here.