Robert Wiedemer is an economist and bestselling author who prophetically predicted both the real estate and stock market collapse in his book, America’s Bubble Economy (2006).
He’s written a follow-up book, Aftershock, which immediately topped Amazon’s bestseller list. Dow Jones said Wiedemer’s work “is your bible, read it, get into action, and be a winner.” Standard and Poor’s says his “track record demands our attention.”
In this video, Wiedemer sounds the warning that we’re heading toward even worse times, but the pols in Washington DC are ignoring and not telling us about the true scope of the problem(s). The federal government is doing and will continue to try everything it can to stave off the collapse of the dollar, by buying back U.S. debt. (Don’t ask me to explain that because I sure don’t understand how our government can buy back its own debt.)
Here’s my summary of his main points:
- Government will raise taxes, no matter who’s in the White House in 2013, beginning with the rich — which Obama just announced — then the middle class. But this won’t solve the debt crisis.
- By end of 2012, we’ll see 10% inflation, which means a 10-year treasury bond would lose half its value. We could see 100% annual inflation for three consecutive years after.
- This means many people’s savings will become drastically lower. Some life insurance plans will have big losses. Pensions will become unstable.
- Two more bubbles will burst probably by 2013– of the dollar and of government debt.
- By 2016, there’ll be a mass exit of foreign investments from America because of the dollar collapse.
- The housing market will continue to be depressed. Homeowners may lose 8% of home value in 2012. Home prices can fall more than 20% in the next 5 years, once the inevitable interest rate hike comes in.
- Retirement age will increase to 73. Many will have no choice but to keep working until dead.
- The worst case scenario is a 90% drop in the stock market and 50% rate of unemployment. But this won’t last forever. America will recover.
What to do to protect yourselves:
- Stay away from real estate because it hasn’t hit bottom. Sell your home and rent instead. If you stay in your home, refinance at a fixed rate mortgage, then just pay the monthly minimum, i.e., don’t pay at faster rate.
- Save as much as you can for a rainy day.
- Pay off your car loan.
- Credit cards are really adjustable rate loans, so pay off your credit card loans as fast as possible.
- Once inflation hits 10%, life insurance will be hit with big losses. Take a lump sum payoff now.
- Safest careers will be in healthcare, education, utilities, basic food, government.
- Stay away from long-term investments like 10-year bonds. When inflation really hits, put your money in short-term vehicles like CDs.
- Gold will continue to be a favorite safe haven. Right now, only 10% of the world’s gold has been bought by U.S. The gold run will last at least another decade before the gold bubble bursts. Gold investments can be purchasing physical gold, gold depository, or gold mining stocks.
- Other precious metals are also good over the long run.