Your wealth is at risk. Economic imbalances that have built up over the past 65 years are coming home to roost.
The signs are are all around us:
- High levels of debt – government, personal and corporate.
- Exploding federal deficits,,
- Volatile energy prices,
- Rising food prices,
- Unfunded obligations to entitlement programs such as Social Security and Medicare,
- Underfunded pension obligations in state and local pension plans
- Unfunded lifetime medical care guarantees to those same state and local pensioners.
All these issues reaching a critical state together does not bode well for the health of our economy or our standard of living.
It can be easy to ignore the signs… With the responsibilities of family and career it is tempting to tell yourself that “everything is going to be okay“, the government will take care of it. And why not, the government has “taken care of it” for decades now. But at what cost? The federal government is largely to blame for current conditions. And if the federal government succeeds in “taking care of it” again their solution will benefit the government and the banks, not you or I. In fact, massive government money printing – trillions of dollars of borrowed or created dollars – has done little but delay the inevitable.
Millions of people cannot find a job, cannot pay their mortgages or car payments, or put food on the table. The only reason we don’t have bread lines in our cities to rival those of the Great Depression is because the federal government has gone to great lengths with welfare programs, such as food stamps, to mask the true extent of our problems.
The web is full of blogs discussing, disecting and predicting the apocolypse. Many of them are well written and informative. However, knowing what’s coming and being prepared to take advantage of it for personal profit is another thing. At Prepare and Prosper we provide you with specific strategies designed to protect your wealth and make money (perhaps alot of money) as the crisis unfolds. In short our goal is to show you how to prosper during this crisis.
How do we accomplish this:
- We examine history – what has happened in similar circumstances in the past,
- We examine current global events – how are they likely to impact markets,
- We make an educated guess about what could happen next,
- We apply our understanding of markets and trading – stocks, commodities, currencies, options and we provide the tools and insights to enable you to grow your wealth.
The mission of the Prepare and Prosper blog is three fold:
1. To educate as many people as we can about the true nature of what is occurring in the global financial markets and the halls of government:
- We’ll discuss how great empires of the past have risen and fallen,
- We’ll examine how past events relate to what’s happening today.
To those politicians, economists and media pundits who claim “this time is different”, we say “those who ignore history are doomed to repeat it”.
2. To prepare Americans for the coming economic, political and social “perfect storm” that was unleashed with the beginning of the global financial crisis in 2008. It is our belief that the global economy is on the edge – “at the crest of the tidal wave” – of fundamental change; change that will:
- Lower our standard of living,
- Destroy a lifetime of wealth accumulation for many,
- Present great difficulties for most, yet offer extraordinary opportunity for those who are prepared.
3. The coming economic storm will trigger a massive transfer of wealth in this country. We want to ensure that any transfers are into our pockets. We’ll do that through education and providing the tools to enable you to prosper.
We believe that a combination of forces will, over the next decade, change the economic, social and political landscape in which we live. These are the primary forces at work:
Debt – at all levels – consumer, corporate and government. The United States now has more than $75 trillion in total debt obligations. Our budget deficit in February of 2011 alone was a record $222.5 billion – more than the deficit for the entire year of 2007. Our 2010 cash budget deficit was $1.3 trillion, although once you factor in unfunded liabilities for Social Security and Medicare, our real budget deficit for the year surpassed $7 trillion.
Peak Resources – the most discussed is Peak Oil. Peak Oil is a reality. Peak Cheap Oil is here. New technologies are making previously unrecoverable oil reserves viable. But, at what cost? The days of sinking an oil rig in the desert sands of Saudi Arabia or the Texas brush and pumping oil at a cost of $10 or $20 a barrel is nearly over. These new sources of oil have far higher break even points of $60+ per barrel. Oil prices will reach permanently higher levels and continue rising as demand and competition for dwindling supplies increase. Even if we are able to maintain supplies at current levels, increasing global demand and the higher cost of drilling and processing ensure higher oil prices. There are more than three billion Chinese people who want the wealth and prosperity that America has. Prosperity requires energy. We derive the majority of our energy from fossil fuels – namely oil. China has 10 times the population of the United States, yet uses less than half the oil we do. What happens as China continues to develop and they accumulate more wealth and access to more resources? Peak Oil is merely the most visible peak resource. Food, industrial metals and water are all in short supply globally.
Demographics – perhaps the least understood, yet most powerful force at work. The aging of the population in most of the developed world will slow growth and increase medical and government social welfare costs, and, as retirees cash out their portfolios to buy goods and services, may lead to the greatest global stock market crash in history.
When you understand the challenges facing our nation and world, it can get a little overwhelming. You may ask yourself (I know I have) How am I going to protect my family and our wealth?
That’s why we started Prepare and Prosper. Perhaps more so than at any other time in modern history, it is imperative that you take the time to understand what is going on around you, how to protect your family, and – most important- how to profit from what is coming. We probably cannot stop the looming crisis. We can however understand:
Prepare For Crisis, and most important
The crisis we have entered is not a typical business recession, but, instead, a major debt deleveraging. It is the biggest economic event since the Great Depression.
Economic deterioration, societal rot and political malfeasance have become commonplace and accepted.
The next 20 years are going to look very different than the last 20 years. It is our goal to help you make the next 20 years better than the last.
The wealth of many Americans will be destroyed during the next decade. But it will also be an opportunity for a small number of Americans – those that are prepared – to prosper and perhaps become wealthy.