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Wealth Management – Recovery Built On Sand?

It is amazing to watch every government in the G 20 trying to sell us on the idea that everything is now fine and the collapse in 2008 was just a glitch in the financial system.  The fact is that the world currencies are mainly fiat currencies and faith in them is continuing to erode. Many of the governments are printing money to cover their debt level without any real support for their currency.  The main world currency, the US dollar, is weakening daily compared to other stronger economies.

What Does Fiat Money Mean?
Currency that a government has declared to be legal tender, despite the fact that it has no intrinsic value and is not backed by reserves. Historically, most currencies were based on physical commodities such as gold or silver, but fiat money is based solely on faith.




We all know that what happens in the States will always affect what will happen globally.  If wealth management is your goal then you should stop basing your wealth on fiat currencies.  Not only are they eroding in confidence but there is a real slow destruction because of the printing press attitude that these governments have. It is comparable to a Mickey Mantle rookie baseball card.  It is valuable if there is a limited supply but if someone found 50,000 in their attic the value of the card would drop drastically.

The scary part of the “Recovery” that is happening now is that it is based on consumer confidence and forty six of the fifty states are teetering on the brink of bankruptcy and the same goes for municipal governments.  What is going to happen when these governments can no longer pay their bills?  Job loss inside and outside of government, financial stress for government suppliers plus consumer confidence is going to plummet.  So where does that leave us?

Well, the first place that we don’t want to tie our wealth management strategy to is the US economy.  That is going to be like sticking our head in a guillotine and waiting for the blade to drop.

One of the best places to get direction is from a newsletter that has just been released called CrashProof Prosperity.  These folks have had stellar track records and have just teamed up to pass along their ideas.  Remember, with a newsletter you don’t need to follow their direction if it doesn’t sit well in your tummy.  Here is the link for you to take a look. If you truly want wealth management to be a part of your overall strategy I would urge you to take a look here.  This macro based newsletter is contrarian which I like and not a “follow the herd” mentality.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.