Wednesday, October 11, 2006

So You Think That Investing in the United States is Safe?


Part 2

Judging from the past is not a good guide to judge the future

Things do change and they can change quickly and violently

Billions have been made by investing in the Untied States, but the past does not mean that it will continue.

Many people from investing gurus, their clients and even the man in the street think that the best or one of the best places in the world to invest is in the United States. They often point to history to support their claim.

Looking at history is important, but it’s only a guide. It’s a map, but it’s not the land, if you know what I mean.

Events, whether they be political, economical, social, or what-have-you do not continue in a slow gradual movement. Events from time to time do change violently and un-expectantly—for those who don’t know what to look for.

Let’s take a look at the 1920s for example. Work was plentiful, there was peace in the land, people were productive, and we had great manufacturing. And of course, people were making money in the stock market. But what happened? There was the stock market crash.

So what happened in the country that had all the possible blessings from Heaven? It collapsed.

Moral of the story: Don’t judge by the past and assume that things will continue. Look behind the scenes in areas that are not covered by the investment community or by investment newsletters to see what is going on in other areas of society that can effect your investment.

Those who knew about the loaning of money to buy stocks, and the inflated price/earnings ratio would have known that trouble was brewing in 1929, and would have got out of the stock market.


The US Market a Dangerous Place to Invest

So what is going on today behind the scenes that could make investing dangerous? There are many, and I won’t cover all of it here.

The United States government is the highest debtor nation in the world. They keep borrowing and don’t pay back, so something has to give. Will they tax the people more? Will they inflate the dollar away? Will the confiscate your wealth? Something has to give. You don’t have to know exactly what they will do, nor do you have to know when they will do it. All you have to realize is that they will do something, and whatever they do will not be good for your finances and possibly your health.

Possible Revolution?

A possible revolution or a situation such as we’ve seen in Yugoslavia when they broke up is very real in the United States. No nation in history can absorb diverse cultures, religions and races and have everything go along smooth and peaceful.

The Mexicans and others from South America are invading our country—given the green light by the U.S. government. It’s just a matter of time before they take over politically and socially.

As an astute investor, you should not be afraid to look behind the scenes and come to some conclusions, even if it’s “politically incorrect.”

It has been reported in the news during the demonstrations last summer of Mexicans carrying signs, making statements, of announcements on web sites owned by Mexican social groups within the United States that they want “Whitie out!” people have carried signs that says, “This is our land. Go home gringo!” (Meaning go home to Europe.)

If you think this is just individual people ranting, go ahead and continue to think like that. Follow the heard of the rest of the Americans. But you will be “fleeciest” so don’t complain!

That is why millions of Americans and Canadians have moved their assets and their asses out of the country. So, if you don’t feel like that, fine, but you have been warned.

I guess somebody has to be there to turn the lights off on the United States!

There are millions of illegals, and so-called “legal” Americans there who think that others owe them a living, a job, social benefits and money, and them not getting as much as they like. Guess what? They will be looking at taking this out on somebody, and they will look at those who have a nicer home, a nicer car and make life very difficult for you.

So, prepare accordingly—and I don’t just mean financially either.


posted by Health Smart @ 7:11 PM 0 comments

Prepare Your Survival by Knowing the
Country You Are Investing In


Part 1

Many investors think that they have done everything with safe guarding their investments, such as putting their money in safe stocks, or having their extra cash in an off-shore bank, but are completely ignorant of the country that their investment is in—including their own country.

They also think that having their investment is some secure stock, they are doing well. But that is only part of the story. For example, what good is it having stock in Google, if your money is within the jurisdictional reach of the US government (assuming you don’t like the policies of the government)?

Not very good. It’s just like having your money in some African country governed by a dictator—your money can vanish over night.

Some of the things you must look out
for as to where you invest your money

Is the country that you have your money in politically stable?
Is it socially stable?
Is it economically stable?

If the answer is no or questionable in any of these areas, look else where. What good is having your money in either a safe stock or even one that gives you high returns if the government, for example is unstable and by the passage of some law tax (read: confiscate) a high percentage of your profits vanish?

If the country in question is socially unstable, with communist revolutionaries ready to confiscate what you have—not to mention killing you—what is the purpose of having your money there?

If the country is highly in debt—such as the United States—there’s a good chance that they might inflate their way out of it. Not a good thing for a dollar-based investment.

I get a laugh when I look at investing gurus

Most of them talk about the investment itself and nothing else. They might say invest in South African gold mine company XYZ. They go into the history of the company, the history of the stock prices, and say that it’s poised for a 100% increase in price. But they never mention the political/social/economic/racial conditions of the country.

What good is all this information when the black controlled government is doing all they can to get the white people out of business, off the farms and off the land (with over 200 white farmers murdered in the past few years)!

This is a real-life example. So any investment in South Africa is like investing your money on the roll of dice at some crap table.

The investment advice might be good, but without considering the political, social and monetary parts, that advice would be worthless.

If your investment newsletter doesn’t cover the political and social news of the country, you better—even if you have to buy another newsletter that does just this.

More can be said on this, but I’ll leave this for another time. Check back to The Billion Dollar Book blog for more information.


posted by Health Smart @ 7:08 PM 0 comments