Tax & Financial Consulting Services
Just when Wall Street was hoping for some relief from surging energy costs, crude oil prices surged more than $3 on Friday ... spiking to nearly $128 a barrel ... shattering all prior records ... and driving prices at the pump perilously close to $4 per gallon.
Worse, next week, despite the highest gas prices in U.S. history, millions of U.S. drivers will start hitting the road as Memorial Day kicks off the summer driving season. And last week, despite a last-ditch attempt to head off the expected crisis, President Bush failed to persuade the Saudis to pump more oil.
Ladies and gentlemen, the crisis we have been warning you about is here. But it's far from over ...
- Housing industry experts now predict that this will be the greatest foreclosure crisis of all time, with millions of Americans defaulting on their mortgages.
- The International Monetary Fund now predicts that big banks and brokers will suffer nearly triple the huge losses they've already reported — total losses of close to one trillion dollars.
- U.S. government data now confirms that, with oil prices surging,inflation is about to burst onto the scene with gale force.
- And most worrisome of all, the Federal Reserve is responding to this crisis by pumping paper money into the economy with wild abandon, trashing the value of the U.S. dollar.
But there's a simple reason for the crisis we face today — a single disease that infects almost every aspect of our economic life: Debt in huge, almost unimaginable amounts.
For many years, financial experts have warned us about the consequences of excess debt. They've issued their warnings so many times that their words have fallen on deaf ears, and their voices have seemed to fade into the background.
But throughout all those years, the excess debts kept growing, and as a result, we now have ...
- $49 trillion in interest-bearing debts, according to the U.S. Federal Reserve Board ...
- $50 trillion in federal contingency debts, according to the Government Accountability Office (GAO), and ...
- $164 trillion in derivatives, according to the U.S. Comptroller of the Currency (OCC).
That's a grand total of $263 trillion in debts and obligations, twenty times more than the total size of the entire U.S. economy.
If Washington would only recognize that excess debt is the true cause of this crisis ... if they would deal with the true disease and not its symptoms ... if Americans would be willing to make the needed sacrifices to reduce their debts ... then the future of your money might be very different.
But that's not what's happening now and not what's likely to happen in the foreseeable future — certainly not in this election year. Instead,
> Our fellow citizens are so willing to walk away from their debts, they're abandoning their own homes.
> Wall Street's shakiest corporations have so much political clout, they've persuaded the government to cover their huge losses.
> And our leaders in Washington are so anxious to paper over the debts, they're threatening the one thing that has made America the leader of the world, the one economic force that helped win the Cold War and that attracted trillions of foreign investments to our shores: The U.S. dollar.
You don't have to look very far to see the consequences. You can see it in the surging price of crude oil, gasoline and diesel. You can see it in the surging price of bread, milk and eggs. Plus, it's evident in the sickening slide of the U.S. dollar in foreign exchange markets.
It's in the foreign exchange market — Forex, for short — where the dollar has taken the worst beating. And it's in the Forex market where virtually every other currency in the world goes up when the dollar falls.
If you aren't securing your wealth right now who is? One thing for sure it's no the government. Please set up an appointment soon to discuss what you can do to secure your wealth in these times, because there stilla re investments turning double and triple digit returns if you know where to look.
Tax & Financial Consultant, RFC
866-361-3872 toll free fax
"Those who do not learn the lessons of history indeed are condemned to relive them."
LEGAL NOTICE: This work is based on SEC filings, current events, interviews, corporate press releases and what we've learned as financial consultants. It may contain errors and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility. G&G Associates expressly forbids from having a financial interest in any security that is recommended to our subscribers.