Saving and Investing Money|Are You Caught In The Money Trap?

Saving and investing

If you think that saving and investing are the closely related or are even related at all you are sadly mistaken.  The primary reason why is because of inflation.

Saving money so that you build up enough to invest (meet the minimum deposit requirement) is ok and prudent, but letting your money sit in a savings account is just dead money waiting to go to the morgue.  

Don’t misunderstand what I am saying about having real hard liquid cash on hand for emergencies, that is part of being diversified.  You need to know that any real hard currency, especially the US Dollar is losing value literally by the minute.

Between the Federal Reserve General, Ben Bernanke and the national leader Obama, the US Dollar is losing value at a pace that is so intense it can be calculated in 24 hour intervals.

The political leaders don’t seen to have any clue about the value of the fiat currency that drives our world economy and how to control it’s value.

The situation is already beyond critical.  Between Obama and Bernanke there appears to be a war to see who can devalue the US Dollar more and who can do it faster. That is just on the local / national level.

Now that other national leaders and central bank presidents realize what these two people are doing they are in the race to devalue their currencies more than the US are. This is creating a real and true currency war that is impacting everyone and is likely to play hard ball with your savings and investment plans whether you like it or not.

How can someone in the Philipines afford to buy food if they only earn $2 per day and then within one month the US Dollar loses 50% of its value?  All of a sudden they are making $1 per day.  The reason why is because most of the Asian and African countries import everything used by their citizens, and when you import anything you are working in US Dollars.

Let’s look at some of the most recent financial facts:

1. First and foremost, gold has risen to more than $1,300 per ounce.
2. The price of oil has risen over 17% in less than 6 months.  Think about this for a minute.  The price of oil, one of the most desired commodities in the world has risen more than 17% in 6 months.  That is about 3% per month.
3. Sugar, which is one of the most desirable consumable commodities, has DOUBLED in price in the last 6 months.  Once again, take a minute and think about that statement.  Sugar has doubled in price in the last 6 months.
4. All metals are soaring in price.  Platinum and Palladium are out of control and Copper is worse.
5. Consumable commodities are skyrocketing.  We are not talking about the uncontrollable price of sugar; we are talking about consumable staple food products like wheat, rice and barley.  The price of wheat has gone up 85% in the last 2 months ending this week.  I do not think it will slow down very soon; actually, all the experts think the price jump will accelerate.

We are at war for sure without any doubt.  Our leaders do not have a clue about what is going on, or they have so much money stashed they don’t care.

When the other world governments finally get the full jist of how the US Federal Reserve is printing paper by the tons to lower its value through inflation then their will be a serious race between every government to devalue their currencies faster than the US.

If China invested a few Trillion (yes, that is not a typo, I said trillion) into the US Government through purchasing bonds and then the people we unfortunately have running our government and  banking institutions think they should devalue the USD to save a few billion here or there, what do you think China will do to preserve the value of their investment?

I will tell you what they will do.  They will start to devalue their currency and start putting pressure on the other countries they have invested in to start increasing the value of their currencies.

This may well sound a bit crazy, but if the US continues to devalue the USD it will not be very long until China starts to force the UK,.Germany, Brazil and Chile to increase the value of their currencies to offset the actions of America.

When that starts to happen then we have officially entered an all out currency war.  We do have two wars running that are controlled by a trigger.  We still have two wars running that are terrorist or drug related (or both).  We still have a very intense war going on in cyber space.

Do we need to have or start a war in the economy also?

Here is my high level financial advice just in case these guys read articles online;

STOP! All they need to do (Bernanke and Obama) is stop wasting and spending money that they do not have.  Just simply STOP.  

The US economy is incredibly powerful.  The state of California alone had a higher GNP than Japan up until 1989.  One single state in America had a higher GNP than a country, and Japan is not a small player in the world economy.

If these people would just stop spending everything the world would be ok, and it would be ok very soon.

If the world economy is based on the USD, then American officials have a global responsibility to shore up and keep the value of the USD high.  Forget about the US economy, with a high value US Dollar and a very high quality production output from US workers everything will work itself out.

In the 1970’s the word (no offense intended to anyone) “Jap Crap” covered everything from cars to consumable goods.  Today that slang phrase can be applied to anything from China and America.  Japan has risen to the top of the quality scale.  American companies are either having all their products produced in China or they are buying all their products from China and repackaging them for export.

This is a long story, but it takes us back to our original subject which is saving and investing, inflation and the USD.

If the Fed and the US President keep trying to blow up the US Dollar for the simple purpose of not having to repay legitimate debt, then you should run away from the US Dollar as fast as you can.

A good friend of mine recently went as far as to refinance his personal US residence through a UK bank to get his loan out of US Dollars.