With the re-election of President Obama some states are talking of succeeding from the union (CNN article). Its kind of funny and it is ridiculous to consider in actuality, but it shows the underlying of a big problem in this county.
Most of the succeeding states are those that feel they have been left out of the socialist, left leaning, Chicago political machine that has grasped Washington and New York. The grand state of Texas, who accounted for the most job creation in America since the recession (politifact) has over 100,000 signatures (Examiner)
So with the fiscal cliff, Obamacare, talks of succession (even though they are absurd) and the political polarization between those that receive benefits and those that pay benefits, I wonder if America really is the safest place to put your money.
Now this is not a question for large amounts of money that can afford a team of accountants and lawyers working in Malaysia, Cayman islands, Hong Kong and Singapore. For those who have the multiple zeros for their net worth they are already in line to move it out of this country, even faster than the past 30 years of capital chasing yields from the West to the East.
But lets say you only have around $100k-500k, like most of the clients I talk to. What can you do to avoid the volatility of socialism and free markets colliding? What can you do to stop the eroding dollar (Long term, not short), the artificial housing market and QE infinity?
Simple answer? I do not know and I think you are screwed. Sorry, you worked hard and bought into the lie, Social security may not be there either if the current contributions into it fall again due to a recession.
But there are some options available. In short its non-traditional investing. We have been used to legal formats that reward ingenuity, hard work and equity investing. We have had a light total tax structure and you could keep most of your money, and actually spend it how you liked. That's so 20 century thinking, as my generation would say (I am 21).
I recommend Gold, simple as that. It has no national origin, no heritage and no tie to a central bank or political regime. Gold is God's currency and the only true store of value. I have came to this conclusion after searching endlessly for a safe long term investment that has minimal political, legal, inflationary, market and other risks.
Now some say, "Well you need diversity". Ok, you can collect aluminum cans, copper wire, silver jewelry, palladium auto parts and old platinum medical supplies. All of these metals have different valuation methods and their uses only increases as technology brings us closer to space, Nano and Neuro based economies (I am thinking very long term, 20-40 years). My inspiration for this comes from the 60's science fiction novels like Dune (For those who do not know what dune is), not from the constant dribble we are fed in financial media.
No stocks, no bonds, no ETF's, no swaps, no derivatives, no real estate, no none of this. All of this stuff assumes a functioning government that rewards shrewdness and discourages insider trading.
If you are really tired of losing money in the market, or just wanting to preserve what you have made so far, I advise you do as I say, keep those old beer cans, strip houses/trailer, buy scrap jewelry and anything else to get your hands on some metal. Keep it in a spare room, basement, bury it, just make sure you can access it and see it. You will really appreciate your hard work when you can see it and touch it instead of relying on a decaying system propped up by the deadback (Dollar).
Thanks guys for reading my article, have a good day and go make some money, I need my subsidized loans/EBT/energy assistance check and other goodies paid for somehow.
(Michael Morrison is not an accountant, financial adviser, lawyer or any sort of professional. Michael Morrison is a college student in my 3rd year at Augusta State University. Please do not follow this advice without consulting someone that has some letters behind their name and have assets that you can sue if they mess up).
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: I AM NOT A PROFESSIONAL, I AM A COLLEGE STUDENT AT A STATE SCHOOL.