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Date: February 21, 2008
Subject: G&G Financial T.O.W. - "Don't You Get Caught Slippin"


This is
G&G Associates
Tax & Financial Consulting Services
e-newsletter


Imagine a bunch of PhD economists puttering around Washington.

They're not just Wall Street's finest. They're brilliant - the tops of their classes at Yale or Harvard or Georgetown. They're the ones the President turns to when stocks are plummeting. And, when the dollar's tanking...even when the real estate market suffers dramatic declines.

But, the fact is these brilliant minds - who essentially run the world's largest and most influential economy - know absolutely nothing about money.

The ones "In the Know" Don't Understand...and Strangely, that makes sense.

Frankly, this makes sense when you look at the markets right now.

Why would a bunch of economic intellectuals allow the markets to reach this "emergency" status if they really knew what to expect? Why would the world's largest banks crumble under the weight of their own short-sighted investments?

Why would huge mortgage lenders bet on people who actually can't afford to own their own homes and think everything will turn out fine?

Why would the government think they can heal broken markets by shoving more money into the marketplace and somehow avoid inflation?

It's a conundrum...if they had studied history they could have foreseen this horrifying situation in our future.

In the late 18th century, post revolution, the French government was flat broke just like the U.S. government is today.

The entire nation had fallen on hard times...massive droughts, failing crops, fruitless orchards and dying cattle. Its citizens were in dire straits.

And the solution was simple. The French government would alleviate the financial woes by simply putting more money in the people's hands. Of course, the belief was with more cash, the people would spend more, support more of the craftsmen, boost trade and more.

The French government confiscated Church lands, and issued promissory notes for the land. These notes (much like U.S. Treasury bonds) worked for a time, but eventually this debtor's short-cut completely eroded the French currency's value.

The similarities to our current Federal reserve, which papers the world with more dollars to heal the government's spendthrift nature, was clear. How could the President's team of PhD's ignore the lesson? This cautionary tale of inflation has happened since the dawn of paper money, how could they let such a tragedy happen over and over?

Here's what to do when the PhD's fall asleep at the switch.

Make sure to invest in real assets, with real values, and leave the paper promises to the sucker governments that created them in the first place. Also, dive into the alternative investments that are far removed from this government play-money nonsense.

Stay tuned for future investment recommendations.

Thanks

Gary Gray
Tax & Financial Consultant, RFC
G&G Associates
877-817-6031 toll-free
866-361-3872 toll free fax
www.gngassociates.net

"If you are in a hole stop digging"


 

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