A financial crisis is brewing in the United States and Europe. Central banks are pushing forward with their policies for stimulating the economies. These flawed policies will produce inflation soon enough. Probably hyperinflation.
In America the federal reserve has announced the third round of quantitative easing or QE3. This means creating fiat currency out of thin air. While the first two attempts had limits and an end date, this latest version has neither.
The FED has stated that they will purchase at least 40 billion dollars worth of mortgage backed bonds each month until unemployment numbers are satisfactory. They don't even clarify the last part. What is satisfactory? I guess that depends on whether you are listed in those numbers or not.
All of the QE efforts were designed to prop up the bubble economy in our country. This is where we have evolved. Our economy is a series of bubbles lacking fundamental strength.
The real estate bubble is a great example. During my time a a mortgage broker I could see the danger unfolding as home appraised values shot up while earned income was not anywhere near that pace. A sure fire sign of disaster. And when people used their home value as an ATM, it only hastened the outcome.
The federal government has inflated two more very large bubbles to keep the other ones in the air. The new gifts from our government would be massive currency printing and massive government borrowing. These new bubbles were needed to keep the very large stock market bubble from bursting.
But QE3 will not be able to fix the problems. It will be another short term band aid because runaway inflation is coming based on this current direction. With that inflation will come the job losses and retirement account hemorrhages.
Robert Wiedemer is a best selling author and managing director of Absolute Investment Management. His great book, "Aftershock: Protect Yourself and Profit in the Next Global Meltdown", provides an excellent, detailed description of the rise of the bubble economy in America.
He does know what he is talking about. He correctly predicted years in advance that this financial crisis was coming. He called out the real estate collapse long before it ever happened. He was skewered by the cable television "financial experts" as he described what was destined to occur. And he hit it right on the head. Those same critics are not as loud anymore.
This is truly a self help book. Mr. Wiedemer will explain the central banks roles in pushing though these monetary policies. He will give you guidance and methods to handle the next round of challenges. As I wrote in a blog page a while back, when I was a pilot, I didn't want the gauges to tell me a rosy story. I wanted the truth.
"Aftershock" will help you protect your assets and thrive in the future. He will explain in this book how he feels in the end our country will come out stronger from this financial crisis. Not without much pain and sacrifice. But still stronger.
I highly recommend "Aftershock". It is one on the most insightful books I have ever read. I'm reviewing his next book right now and will be passing along information soon on that edition. Click below for a video from Robert Wiedemer. It is a long one, but well worth the time.
Please share your opinions or concerns about the financial crisis!