I've traded stocks, bonds, and options most of my life. I've made money, lost money, lost money on crooked investments that the SEC failed to see or regulate. I've read hundreds of books, far more than any given Business or Econ major does in four years.
What I want to tell you here is very important. The game is over. They are just sorting out the last winners from the losers.
This isn't a doom and gloom piece from some maniac that knows nothing about money creation. In fact, if you ask ten people right now, today, how money is created- you will get ten erroneous answers. Maybe one person knows the answer. Maybe one person knows that money is created from debt.
We are bankrupt. Our country is bankrupt. No amount of GDP growth can turn this battleship in a bath tub. And government shows no signs of slowing down- it has a voracious and undisciplined appetite. M3 money supply is cratering just like it did in the Great Depression. At the same rate.
The last great concentration of wealth in this country, about 13 trillion, is sitting in 401ks and retirement accounts. That money is not liquid. It is based on the value of the investments it owns and until you cash that 401k out, it is not liquid.
What I am saying is this. The financial collapse in 2008 showed us that real estate was not foolproof and that beanstalks do not grow to the sky. The same thing holds true for stock markets. They are beanstalks and in a mature economy, they simply quit growing. They have a lifespan. They grow rapidly in their youth, (India and China now) mature and bear fruit, wither and die. We are a fully aged and mature economy. European style. Doing European style things like engaging in socialism and taxing everything we can lay our hands on. We are no longer the best and the brightest nor do we engage in free market capitalism. Although we like to think we do. We are in the late years of this country's expansive lifespan. The twilight. We are the new Europe. China is what America was.
Your investments are being held hostage. They are the last great piggy bank that can be raided. Could government freeze those assets? Yes, by imposing larger taxes on withdrawal. Will the market go up significantly in the next decade? No. It simply can't, we have sold our future overseas. Government cannot pay the interest on our debt. They will begin taxing the hell out of everyone and everything they can get their hands on. A European style VAT tax is almost a certainty. Higher tax rates on everyone are a certainty. Inflation is a certainty. We have lost all of our jobs and our workforces to overseas workers. We have lost our capacity for GDP growth. Higher taxes mean less investment. Who wants to work and give all of their money away in overhead costs and taxes?
Oh, and the underground economy will really flourish. Tax evasion will be as common as beer drinking.
We're cooked. It's acceptance time. Quit pouring money into 401ks. Take all excess cash and pay off everything you owe. Save what you can, buy supplies and stores. Begin to prepare for a world where paper money is no longer honored. Become as self sufficient as humanly possible. Because they are going to raid the markets again. They are going to try and steal your money again. And what they miss, the government will have to try and grab. I cashed my 401k last year. If you worry about a 10% penalty now, you may be facing a 25% penalty just a few years from now.
The government wants your money. In fact, they have to have your money. And they're just going to take it, one way or another, one law or another, one tax or another. Reduce your exposure and school yourself. Pay attention. This is a debt landslide, a mudslide that will simply generate momentum. I am looking forward to it. We've earned this. Something wicked this way comes.