Sorry about the title but I wanted to make sure I had your attention. I hope by the time you have read this article you will discern everything that has been written here and do your own homework and due diligence. You need not take my word for anything.
Some time ago I watched a 60 Minutes segment called “401K Fallout”. This was a documentary on people in the United States who had reached the age of 50 or more who had placed all of their savings in the 401K system. Tens of millions of these people had their savings wiped out from a failing market. Many of these people were forced to go back to work trying to find jobs at 50 and 60 years of age. These Americans had little knowledge of the stocks in their funds and the fees they were paying out to manage the funds.
When the market failed all those years of saving and investing left them with nothing and forced them back to work competing for low paying jobs working with co-workers the age of their grand children. Yes they still own the funds but the likelihood the stocks will recover in their lifetime is nonexistent. Someone very close to me was wiped out completely. He lost everything.
In 1996 I had a half decent RRSP (Registered Retirement Savings Plan) mutual fund. When the Bre-X Minerals scandal hit I lost thousands in this fund. How could this be? I never even heard of Bre-X at the time. I never invested in this company but my mutual fund (managed by a major bank) did. This investment in a company I knew nothing of caused the fund to drop significantly. This was just one single stock. Imagine had it been numerous stocks.
In 2008 the collapse of Lehman Brothers almost brought down the world’s financial system completely. That was just one bank. Very few of the bankers who were responsible for the crash ever went to jail.
All of the markets right now are in a bubble almost exactly as they were in 2008. Analysts who believe the crash is coming say this will be nothing like the crash of 2008. Not only do they believe billions will lose their stocks but many suggest the banks themselves may fall in a currency crises rippling effect. This means there may be a period where you won’t even be able to go to the bank machine to get basic cash out. You could in fact loose your cash in the bank.
I have lost track of all of the banker suicides in the past two years. I will say a safe number of 48 banker suicides that I know of. I believe the true number is somewhere in the range of 71 dead bankers. Why are these bankers killing themselves? Conspiracy theory? How so? All these bankers are dead and the majority were major fund managers in some form.
Is there any Danger in Physical Gold hoarding?
Many financial experts are saying the only way to protect your savings is to invest in physical gold and silver. Thousands if not millions of investors have bailed out stocks and have gone “all in” buying physical gold and silver.
One of the leading experts on buying physical gold is Mike Maloney. Yet he is well on record saying that the price of physical gold is being manipulated. We are told that the price of gold is the barometer to steady the market. Gold has always stood the test of time as a means to hedge against inflation and back paper currency.
I ask the hoarders of physical gold this question: What happens if the currency crashes and the new currency is not a paper currency? What happens if the world moves to a paperless currency such as an ID card or some kind of paperless mechanism? It is the ability to print paper money via quantitative easing that got us into trouble in the first place. Does a paperless cash system have to be backed by Gold?
With today’s scanners, printers and copiers it becomes very easy to counterfeit paper money. Millions of counterfeit currency has already made its way into the world wide money supply. A paperless monetary system becomes the ultimate crime fighting machine for law enforcement. Every transaction recorded telling authorities where you are and what you buy.
A paperless system cleans up the underground economy so that there would be no more cash under the table transactions. This same system helps the governments of the world collect tax at all levels. With security and terrorist concerns on the rise are we really to believe the next currency after a crash will be paper yet again?
Many gold hoarders are not paying attention to the rapidly growing RFID technology. The initial manufacture of the RFID chip implant starting by using the technology for medical purposes only. This same chip manufacture has been acquired by a credit monitoring agency.
RFID chips are already in our credit cards and many of our banking cards. Wallets are now sold with RFID blocking features. The Technology is already in place that allows RFID chips to be implanted into body parts.
Did you know that the U.S. Social Security card started out as a medical purposes only card? Now today Americans need the SSN card to apply for a job, a loan the works.
Are you willing to risk everything that a paperless system is on the way and it will be backed by gold?
If the price of gold is truly being manipulated to steady the markets, the powers that be need only to release the true price of gold to the market to trigger a market crash on any day and time they please. Yes the price of gold will rise during a crash but I do not believe in the way gold hoarders are planning this scenario to go down.
I suggest that during the time the market is crashing traders across the board will be bailing out of stocks and running to the gold trust (GLD). This, in their view will be the only safe place to run. While this will cause the price of gold to rise, I suggest hoarders will have to move very quickly to cash out their physical gold. But where will they run to cash out their gold? A bank? A bank that has already crashed? A pawn shop? There is an abundance of evidence to suggest that the gold trust may not have the physical gold to support what the markets may purchase at the time of a crash. Many suggest the gold trust doesn’t have the physical gold now.
Do you really trust the Gold Trust ?
What happens if there is a fraud or a short fall in the gold trust? What if the gold trust doesn’t have the physical gold after a crash? How much will your physical gold will be worth then? What percentage of the gold trust is setting the price for physical gold ? Is there any risk in gold hoarding ? Are you sure ?
Perhaps it may be a good idea to have “some” physical gold and silver in your portfolio but I would be careful about going “all in” expecting some big pay day or transfer of wealth.
I recently had conversation with a few teachers here in my Province about the teacher’s pension. These teachers told me about the large sums of money that come off their pay cheque that goes toward their pension. The teachers I spoke to seem to believe that the teacher’s pension is untouchable. When I asked these teachers how much of their pension fund was invested in the markets none of them had an answer for me.
I have yet to find any teacher who can tell me what stocks the teacher pension fund is invested in. I gave you an example of how one failed stock in a scandal could change the value of a fund.
I question how many people are contributing to a work pension that may in fact be invested in the stock market. How many have done any homework into what might happen to their pensions if the market crashed. Will those stocks come back in their life time? Yet again I draw your attention to the 401k Fallout 60 Minutes segment. I wonder how many have a backup plan. Imagine saving all this time to have your pension lost in the market. I have demonstrated this already happened to the 401Kers who have gone back to work. Do you have a back up plan?
Private pension holders need to research how much of their pensions (regardless of the type pension) are invested in the actual stock market. If you can convince yourself that the markets may be in trouble have a back up plan just in case?
My private investigation agency does work for many Venture Capitalists who raise money for private companies. Most of these VCs have bailed out of the stock market completely. Many are now strictly into private equity and not bringing their companies public as a means to either raise money or get their money back. Many were burned during the internet dot com boom and the crash of 2008. I have one client in particular who said something that I think people should implement.. “If I can’t touch it, I won’t invest in it”.
It would seem that unsophisticated savers may find themselves with their juggler vein exposed waiting for the kill. A currency crises is on the way that is a mathematical certainty. Sure no person knows when a market crash will happen. I suggest that you don’t need to know “when”. You need to ask yourself if you truly believe that all of your savings in the market will be there by the time you retire. Do you have a back up plan if the market crashes?
A few hours of homework may help you to see that the experts are suggesting this crash could be very different. It could be a crash like the world has never seen. Many believe that a U.S. currency crash is imminent it’s just a matter of time. The U.S. has no choice but to crash the dollar to implement (or to reset) a new currency.
Don’t believe it ? Why is the U.S. spending so much time preparing for civil unrest via FEMA camps and militarizing the police? What are the preparations for ? How long can the U.S. Fed continue to inflate the dollar? Soon or later the U.S. dollar will fall. Is it possible that citizens in North America and Europe could loose their cash in the bank if the currency crashes? Fortunes could be lost in an instant and currency as we know it could be changed forever.
I remind people that there is fraud, and manipulation in the market. The crash of 2008 was partly caused by fraud.
Make a point of discovering other ways to invest. What is the point of making 9% interest in a fund in the market if your are in debt paying 19% interest on your credit cards and loans.
If there is ever a time to pay off debt now is the time. Do it now when there is so much uncertainty in the market.
Don’t take one man’s opinion in a blog to be true. Do your homework and research some of the points yourself. Decide if the stock market is really the best place for you. How much of your savings is invested in the market, what stocks do you own in your funds and pensions? What will be the effects if you loose it all? This should also include actual cash in the bank that could be at risk.
The start of the crash could stem from a currency crises. This means it could be bank related first, stock related second. Don’t assume that your bank could never fail. Don’t assume that banking insurance will be there during an economic collapse. Be reminded that banking insurance won’t cover your holdings in the stock market. Insurance companies go bankrupt all the time.