Here is an interesting way to look at the US government economy. Here is the reality. Take 8 zeros from the government economy and imagine being you or your family.
Your family annual income is $23,000. You spend $38,000. Overspent by $15,000 and put it on credit, called short term debt. Your credit card debt is $164,000, $16,400,000,000,000 government debt. Amazing isn't it. Only in government can this happen. Your credit card company would already have cut your ability to borrow a long time ago. Well, our government goes to the Fed and continues to borrow money. The Fed is not Federal, private bank, with no reserves, therefore the Fed prints notes out of thin air and loans to the government at an interest. Who pays for that interest? We do. Now here comes the BIGGY. You already have a mortgage of $1,140,000. Could you get out of debt? The only answer is no. Well, neither can our government. Adding the 8 zeros back it gives $114,000,000,000,000 of government obligations like social security, Medicare, etc. The reality is that this is NOT sustainable and it will collapse during the current administration. Then the question is how prepared are you for the aftermath of the economic collapse? The government reports an inflation of 4%. The real inflation for most of us is running at about 15%. Is your income growing at 15% so you can keep up with inflation?
1) Where does financial security come from? Security comes from the speed of our learning, knowing and producing. Never waste a second and learn all that you can to protect you and your family.
2) Where does one find security in a volatile world? Invest all you can in you and those around you.
3) How financially secure are you? Security no longer is where it used to be, in a good job. Security today is in multiple streams of income like dividends, royalties, passive income, and profits from businesses that will prosper in an inflationary economy.
4) What are assets and liabilities? Assets put money in our pockets and liabilities take money away from our pockets. Invest in assets and reduce liabilities.
5) Where to invest for a secure future? Have enough short term cash. Have only debt you can service even in the worse economic scenario. Above all, have the ability to generate income from goods and services needed in the new economy.
6) What is your ability to generate income no matter the economic scenario? Be adaptable and continuously expand your entrepreneurial capabilities.
7) Prepare, prepare and prepare. Those prepared ones will prosper in an economic collapse. Economic collapses occur very fast. Those prepared are not surprised by it.
Belong to a community of people that are masters in survival skills. Have the ability to survive independent of economic scenarios.
Be blessed and be a blessing to others!
Carlos Fontana, President of Phalanx
Co-author of the book Follow to Lead (The 7 Principles to Being a Great Follower)
Author of the book PRICELESS (Sixty-Six Simple Stories of Reflection, Love, and Legacy)