Ominous clouds on the horizon. Europe is barely hanging on. Its two-year-old strategy of austerity isn’t working. And there is no Plan B. The latest evidence that government spending cuts are driving the euro-zone deeper into recession came Wednesday with a report on soaring unemployment in the zone’s weaker economies.
As Europe goes, so goes the U.S. We are inexorably tied to their woes. Back in 2004 I began warning my mortgage clients that a catastrophe was on the way. Anyone in the market could see the looming bubble. I was telling people to either sell or consolidate their positions. I remember many long term clients telling me that real estate would never fail. I’m no genius or financial guru, the writing was on the wall.
I see more pain and misery on the horizon. Europe is on shaky ground. So are we. If you’re in the camp that believes cutting taxes is the answer, you’ve got your head in the sand. As the dark clouds continue to form, if you’re in business, you’re guarding cash. You get a tax break?… you’re saving every dollar. We are NOT expanding and WILL NOT for several years. This is a time to get liquid…be it gold, cash, or staple commodities like, food, clothing, and shelter. The Mormons get this one right. I don’t care what your current money position is, you had better be stocked up on a one-year minimum supply. This includes water. Once you’ve achieved this, you should then start socking away liquidity. This means exchangeable instruments like dollars and gold and silver coins. PUT THESE IN A SAFE PLACE and this does not mean a bank. Invest in a fireproof safe and bury it in your floor or wall. Mattresses are so 1950’s.
This advice is free. I don’t give a flying fuck if you like it or not. BTW…I’d also keep a gun handy, and plenty of ammo.
You like your money in stocks? Real Estate?…don’t say I didn’t warn you.
