And The Next Crisis Is…

Its hard to say what the next financial crisis will be in this country. Will it be housing again? Commercial real estate? Or will it be Social Security or Medicare going bankrupt? Maybe the U.S. dollar collapsing or most likely the Japanese yen going bust?

I think there is a good argument to be made that it will be the pyramid scheme we’ll refer to as student loans.

The Next Crisis?

Our politicians wont let this happen because, you know, “it wouldnt be fair if someone couldnt go to school only because they couldnt afford it.” I mean we just heard the President say this again in another campaign speech earlier this week: “its not that we need equal results, everyone should have equal opportunity.”

I hate to break it to people but thats not life. You make your own breaks. If you are older than the age of about 10 you should have realized this. You level your own playing field or you dont. Its that simple. I would have loved to have Wayne Gretzky or Bobby Orr coach me my whole hockey career but its not that simple. You cant make life FAIR no matter how hard you try or how many government programs you scheme up.

They are going to try and make college free someday, MARK MY WORDS!

The President may mention it before he leaves office. I would put money on it actually.

Americans have to realize that they cannot have their cake and eat it, too.

You cannot be the most prosperous and free country on Earth and think you can still pay for everyone to sit home and produce nothing.

The printing of money will only get you so far, just ask the Romans! Our joy ride WILL come to an end if we keep traveling down this delusional “shared wealth” vision.

If it worked then America would have been modeled after every other country that existed prior, but it wasn’t. There is an excellent reason for that.

The Death Of The American Dream

Financial Education Blog

Why the Impending Financial Crisis is Creating a New America

Posted July 23, 2013  By Robert Kiyosaki

I believe that the American Dream is dying because many of us have lost our moral compasses. Our schools are not fulfilling the educational needs of our students, nor are they being kept safe. We see so many kids, especially from poor neighborhoods, who turn to street crime and violence.

Rich dad often said, “Needy people become greedy people. Greedy people become desperate people. And desperate people do desperate things.”

The greatest gift my rich dad gave me was showing me both sides of the Employee-Entrepreneur coin. He exposed me to the life of an entrepreneur and offered me an environment in which entrepreneurial thinking could thrive. Today, I do not need a job, a steady paycheck, money, bonuses, government support, or Social Security and Medicare.

Financial independence

The Rich Dad Company propelled Kim and me into financial independence. We do not need paychecks. We work because we love our work, sharing what we know so others can also grow and prosper.

While we make a lot of money, most of that money does not go into our pockets. Most of the money is spent on growing the company, investing in new and better technology, more people, and new product development. That is what true capitalists do.

But Kim and I are the exception, not the rule. Today, in America, we have a growing problem. People are becoming increasingly dependent on the government as the gap between the rich and the poor continues to widen.

The rich are getting richer

According to the Congressional Budget Office, the increase in incomes between 1979 and 2007 in the United States looked like this:

Poor: Income grew 18% over 30 years
Middle Class: Income grew 40% over 30 years
Rich: Income grew 275% over 30 years

Then in 2007, the bottom fell out when the boom went bust. Today, incomes for the middle class and poor have stopped going up, yet the rich seem to be getting richer faster.

In 2011, the number of Americans living in poverty grew to 46.2 million people. That translates to approximately 1 in 6 Americans who now live in poverty, and that number is growing. When a person has no property, they join the ranks of the poor and become dependent upon the government to take care of them. Oftentimes this leads to increased violence, both on the streets and in our homes.

Students on food stamps

Nearly 47 million Americans rely on federal food assistance benefits (food stamps), a 12-year high attributed to the weak US economy and high rates of unemployment over the last five years.

A lesser-known fact is that college students are among the fastest-growing segment of our economy to rely on food stamps. As tuition fees go up and financial aid opportunities vanish—and parents who were once a source of financial support have lost jobs or homes and become ineligible for college loans for their children—students have had to fend for themselves.

The next poor

Are teachers headed for the ranks of the poor?

In 2011, the California State Teachers Retirement System, CalSTRS, realized it faced a long-term deficit of $56 billion. A deficit is the gap between assets and estimated
liabilities.

CalSTRS collects $6 billion a year, but needs $10 billion each year to meet its obligations. A shortfall of more than $4 billion a year is a lot of money, especially for government bureaucrats who do not know how to invest or how to make money.

If the California teacher’s retirement plan goes bust, the taxpayers will be stuck with yet another massive bailout. Worst of all, millions of teachers will slide from the middle class and join the poor.

Again, repeating the words of John Bogle: “The whole retirement system…in the country is in, I think, very poor shape and it’s going to be the next big financial crisis in the country….”

The new America

All of these statistics translate to one thing: the American Dream of go to school, get a good job, buy a house, andinvest in a portfolio of stocks, bonds, and mutual funds is dying. Financial crises are creating a new America. Today, the middle class is disappearing and the gap between the rich and the poor is growing.

For some, this is discouraging. Many people choose each day to give up on their dreams and to be increasingly dependent on the government. They give up their freedom for security—though if CalSTRS is any indication, that’s not security at all.

In today’s new America, there are only two options: increase your financial education and learn to create your own wealth by playing by the rules of the rich, or become poorer and poorer and rely on the government and the rich to take care of you.

Which sounds more secure to you?

I fear our financial crises will only continue to grow. The rules of money have changed and you must adapt. Today, I encourage you to first come to grips with the new America and then to resolve to do something about it.

By increasing your financial education and starting a business or investing, you can set yourself up to thrive while others struggle to survive. Start today.

A Theory About Cyprus

This may be a month or so after the bank deposit raid that took place in Cyprus but it is STILL relevant because it hasn’t happened here yet, but will in due time.

I believe one of the big reasons it got such little media coverage in the western world is because that is the plan going forward here. The media dictates what they think the public can handle – just like the government gives you just enough money left over for what it thinks you need to live on.

I think the biggest reason for this silencing of the raid was due in large part because the heavy-hitters are not ready to show their cards yet. We are on the “turn” and the powers-that-be are not ready for the “river” quite yet. They are still gathering all the gold and silver they can find and stashing it away while the public blindly believes that the economy is on the road back to recovery. I mean hey look, the Dow is well over 15,000 and continually setting new highs, right?

We have seen ebbs and flows, recessions and depressions before, but we have never seen anything like what is coming in the future; an economic collapse on a global scale.

All the past hiccups were between only a handful of countries. Now, nearly every country in the world minus some African countries are involved in this debacle. Add to that, this is one of the first times the gold and silver market has had such a massive audience.

When things start hitting the fan people will ultimately turn to the world’s only real money: gold and silver. When they do its going to be the same gold and silver we have been trading around for thousands of years. Yes, we have obviously mined more in that time but the quantity still remains fairly low – a little over 5 billion ounces.

To put that in to perspective, we are about $17 trillion in debt as a country alone. Then you look at the world and we are on the hook for quadrillions of dollars in derivatives. See, governments can print money, they can’t print gold and silver.

When it all comes crashing down you are looking at nearly the same quantity of gold and silver being ravaged by a consumer base hundreds of millions of people larger than the last bubble in 1980.

Talk about a bidding war.

We are going to see prices in the stratosphere for people who want to preserve their wealth and not be totally wiped out by the reset that WILL take place.

And it WILL happen.

We are printing $85 billion a month, have been for years and will continue to do so for another 2 years. This makes the money you have worth less and less each day, don’t believe me just watch:

What has the price of gas been since 2008?

What has the price of milk been since 2008?

What has the price of sugar, wheat, rice, etc. been since 2008?

This isn’t something that happened because of which President came to power in the last few years. I mean some helped more than others. But George W. Bush and Barack Obama were focused on bailing the “too-big-to-fail” guys out while you were footing the bill.

This really started once we created the Federal Reserve in 1913 (Woodrow Wilson) and compounded it with Social Security (Franklin Delano Roosevelt) and Medicare/Medicaid (Lyndon Baines Johnson) and then ultimately coming unhinged when the U.S. (Richard Nixon) took the world off the gold standard.

This is when savers became losers and debtors began to win.

Financial education will help you through this mess and give you a fighting chance to survive the decade or two of turmoil we have ahead of ourselves.

 

Some recommended books to start off your education:

“Why ‘A’ Students Work For ‘C’ Students and ‘B’ Students Work For The Government” by Robert Kiyosaki

“The Creature From Jekyll Island” by G. Edward Griffin

The Real Obama Documentary

Obama’s re-election campaign is coming out with a 17-minute documentary to highlight his achievements in his first term as President. While the documentary in and of itself should do enough to highlight the horrifically progressive policies he has passed, there is a real documentary that describes just what “Change We Can Believe In” and “Fundamental Transformation” really entails.

Fundamental Transformation Part 1

Fundamental Transformation Part 2

Fundamental Transformation Part 3

These three links will provide you with 30 minutes of scary truth and a few things about the 44th President you may never have pieced together in the past.

News You Need To Know

Attorney General, Eric Holder, plays the race card. Amidst the allegations of the “Fast and Furious” scandal and multiple lawsuits against specific states and not defending the law (Defense of Marriage Act), Eric Holder claims these are all bogus allegations and the reason this is all coming up is because certain people are out to get him because he is black. Are we not adults? This is the definition of childish. The fact that some people actually go along with this is mind-boggling. How can some one, or many people, come up to you and present you with all these facts and your response is “well you just don’t like me because of my race”. The only thing more troubling and ignorant than playing the race card to get yourself out of a jam –  which the Democrats have been playing for four decades – is conservatives and the media letting you get away with it. The only word I can think of to explain all of this is: disgraceful.

Glenn Beck takes apart Obama’s ‘New Nationalism’ speech. Recently, Obama gave a speech in Kansas underlining his re-election strategy. He trashed capitalism and touted socialism as the path to prosperity and vowed to follow in the footsteps of his progressive heroes; Teddy Roosevelt, Woodrow Wilson, and FDR. He said the free markets have never worked and we need to distance ourselves from the capitalist system and embrace the redistribution of wealth policies of socialism. It was a very uplifting and Presidential speech.

Media Pundits Meet with Obama at White House. I will cover this later in the week, but check out this quick post from Jake Tapper of ABC. Progressive media stars meet with Obama in the White House. Can anyone say Obama 2012 staff? Incredible. These are the people supposedly “watching out” for us.

Hugo Chavez calls Obama “Clown” and “Embarrassment”. Earlier this week Venezuelan dictator, Hugo Chavez, called out President Obama and told him to worry about the disaster he has created in the U.S. instead of worrying who Venezuela associates itself with. When you have a marxist dictator telling you off and calling you out, you know you aren’t doing something right. Somewhere in Los Angeles, Sean Penn is in a bind.

Military Mondays

There have been some disparaging remarks made lately about Service members and their families by some of the “Occupy Wall Street” protesters. These protesters are unfortunately, extremely misguided. Most want to collapse the system and end capitalism, they want the heads of all the big bankers.

This of course, is insane.

The congressman they voted in – Chris Dodd and Barney Frank – are the people who forced the banks to shell out unsustainable loans. The “greed” these protesters talk about lies within the congressional ranks. And it is a greed for power and votes, not money, that many are convinced of.

Military and “Occupy Wall Street”

Progressive Profiles: Michael Moore

Periodically, I will put a spotlight on: liberal, progressive, marxist, anarchist, communist, or socialist activists and politicians who have agendas opposite of what our Founding Fathers envisioned. These people are threats to the American Dream and you must not let them fool you with their emotional smooth talk, documentaries, websites, or class warfare. These people play on your emotions and those that are uneducated.

Today the spotlight is on Michael Moore. This is a man who has benefitted greatly because of capitalism and will bash it at every opportunity. He has made countless documentaries bashing the exceptionalism of America.

Most recently he has been at the forefront of some of the hot topics fueling today’s political debates. Specifically, the “Occupy Wall Street” protests and the execution of Troy Davis in Georgia a few short weeks ago.

He supports the anti-capitalism protests around the country and the destruction of capitalism. He also is boycotting Georgia after they executed Troy Davis. A man who shot a passerby and killed an off-duty police officer in the parking lot of a fast food joint.

Moore is a mis-guided man whom I believe is in it to sell his brand and make money, ironically, through capitalism…

Troy Davis Execution

Moore Blog – Occupy Wall Street At Bottom 

Days Of Rage Videos 

What Is The Days Of Rage?

News You Need To Know (10/7/11)

This is possibly one of the scariest videos I have ever seen: U.S. Politicians Calling For Socialism 

NFL Player Called To Serve 

Obama Marching With Radical “New Black Panthers” 

Herman Cain Up Big in Certain Polls 

See how the 53% of people in the country paying income taxes are reacting to the “occupy” protests: I am the 53

‘Days Of Rage’, Continues

Hysterical ‘Days of Rage’ Protestors

This is what is happening everyday in the streets in and around NYC’s financial district.

Imagine what would happen on the news if the Tea Party was acting like this (but notice vast majority of people involved in the ‘Days of Rage’ are misguided college students).

Protests with people who don’t believe in free markets and capitalism never turn out well though, so what do you expect.

Elizabeth Warren: “The Rich Didn’t Get Rich On Their Own”

Elizabeth Warren is the special advisor for the US Consumer Financial Protection Bureau running for senate against Scott Brown in Massachusetts in next year’s election. She was also the first chairman of the Congressional Oversight Panel, appointed by Harry Reid. She is the one who approved TARP, so you can see she has a good track record.

Here she is saying that nobody got rich on their own. She claims that rich people use the roads, school systems, and police that everyone pays for (oh wait except for half of the country who don’t pay income taxes). Elizabeth Warren

So my question to her is; “How the hell did anyone become rich before this country had roads, or a police force, or school systems?”

Socialists will come right out and let you know who they are. You just have to be adept and alert enough to peg them. Their arguments are petty; based on emotion, greed, and jealousy of people who work hard. It drags the country down by letting those with less believe that success comes from the government instead of their own hard work.

What does this teach a person? It’s like going to the store with your child and buying them every single thing they ask for. They never learn the incentive of hard work to achieve success. They expect success to be given to them.

For some reason – well I know how its become this way, but that’s for a different time – this country has developed this, entitlement disease. People expect that since we are a prosperous nation that every single person in the country deserves health care, a good job, benefits, a pay raise every couple of years, a good home, good food, etc.. Somebody please tell me where in the Constitution you are guaranteed those rights?

You are secured the right to life and liberty by our creator; other than that you are on your own – in other words, it is up to you to keep it. It is up to you to become skilled, educated, efficient, and prosperous. If you want to be lazy and a bum, then go ahead, its your choice. That’s the great thing about America; you have the freedom to choose.

The BEST evidence of this is our ancestors; they came over here for that opportunity and freedom. They left their homelands behind because of oppressive, handout, entitlement governments. This is why our country is the greatest on Earth and a beacon of hope for every person on this planet.

Ben Franklin was asked by someone right after the signing of the Constitution about what kind of government we were given. He replied, “…a Republic, if you can keep it.”

We have become those very people who our ancestors struggled and many risked their lives to escape. We are not keeping our end of the bargain.