This post was written by Lynn Roger of the Financial Revival Group.
I Read a great article yesterday titled, "No longer deniable: Under runaway debt burden, America's currency is headed for total collapse." You can read the article at: http://www.naturalnews.com/033135_national_debt_financial_collapse.html
Ever since we opened our doors at The Financial Revival Group, we've warned that the country is moving towards the popping of the "US Dollar Bubble." We strongly believe at some point in the next few years (or sooner) that the US dollar will no longer be the world's reserve currency. What happens then? Prices on everything will skyrocket over night, and your dollars will be worth pennies.
When we talk with people about this, the next question is always, "What should I do with my money?"
First of all let us point out that we are not financial planners, and that you should always consult with a licensed financial professional before buying or selling products that could lose value. That being said, we do believe there are things you could consider to hedge against what's coming:
1. Do you have a financial advisor? If so, are they on board with what's happening, or do they have blinders on because their income is overwhelmingly tied to the traditional market (i.e. Wall Street, stocks, mutual funds). If you're hearing, "we invest for the long term," or "it's all about income averaging," or "we've got you in Blue Chips, so there's nothing to worry about," or "there's no way the US dollar will be replaced as the world's reserve currency," or anything that only supports the status quo type of investing, we would suggest you get a second opinion from a financial advisor that is free to speak honestly. We're not saying your current advisor is lying to you – what we're finding is that most are simply too afraid to look at the truth.
2. Have you looked at your 401(k) portfolio lately? On a daily basis we see that most people are overwhelmingly invested in equities (stocks, mutual funds). Our opinion is that this is incredibly risky moving forward. Bonds are also on the table for potential huge losses. Most people don't pay attention to what they have their money in – they just watch the combined total of their 401(k). Unless you're ok with another large drop in that number, we suggest that you do some rebalancing sooner rather than later.
3. As far as "cash on hand," have you looked into gold and/or silver as part of your plan? Frankly, we prefer silver because it will be much easier to buy a loaf of bread with. Heading to the store with a bar of gold could be problematic. Ok, we realize these sounds "crazy" to a lot of people, but do your homework – for instance, you can easily find articles online about governments massively buying gold and silver right now. Why would they be doing that? If/when the dollar collapses, what will take its place? Gold and silver have been tradable currencies since just about the beginning of time, and even after people stopped physically passing the metals back and forth, our paper dollars were backed by gold…until the Nixon administration abolished that gold standard. 40 years compared to all of history – we're just sayin'.
4. If/when the US dollar loses its status as the world's reserve currency, what will the world's reserve currency be? Again, do your homework, form your own opinions, and you might want consider converting some of your US dollars now.
5. What about other commodities? There's no denying that food and fuel prices have gone way up, especially in the past year. The only reason they haven't gone up much more is because they are tied to the US dollar in the world market. The riots we saw on the overseas this past winter and spring were caused by food prices – people hungry because they can't afford food. What will $10.00 per loaf of bread do to your family budget? Having a stockpile of food makes sense on many levels:
- If the food supply chain is disrupted for any reason (weather, terrorism, and domestic violence) you'll be able to eat. How long could you go STARTING RIGHT NOW if there was no way to get to the store, or if the store was closed for an extended period. For most people, it’s about 3 days.
- If your dollars can't give you the buying power you need, a pound of coffee might. Get the picture?
Show us a farm house that doesn't have six months to a year's worth of food in it and we'll be shocked! Farmers know how to prepare, and the importance of preparing. We'd all be wise to take a lesson from them.
For the unprepared, the collapse of the US dollar could be the final straw in their financial house of cards. It will leave millions permanently poor. Taking just a little bit of time to prepare could make all the difference. Are you ready to wake up America? Regardless of what's going on behind closed doors in our nation's capital right now, you do have the power to control your personal financial destiny if you pay attention and do something about it.