Savvy real estate investors know better than to listen to the major media outlets; after all, they have been proclaiming the economy is in the midst of a recovery...of course, they are also the same people that couldn't see this coming in advance. However, even the most cynical investor may have reason to reflect upon the words of some of the leading economists and investors around the world. For those that aren't quite sure what to believe...or where to invest your hard earned dollars...here is a quick overview of where the best and brightest minds stand. In a nutshell, the news isn't good.
Soros - Billionaire investor George Soros didn't hold back during last week's Vienna conference. Not only does Soros believe the crisis is "far from over" but he went on to explain that "we have just entered Act II of the drama" and cautions that sovereign debt is likely to be the next crisis with nations far larger than Greece at risk for major collapse.
Faber - Marc Faber of the "Doom, Gloom & Boom" report has been a vocal critic of domestic policy for quite some time but recently the tone has switched from mere gloom to outright doom as Faber predicts a complete fiscal collapse and hyperinflation in the future for America.
Rogers - Jim Rogers, long recognized as a no-nonsense investor turned biker has all but given up on the current market makers - switching to commodities, precious metals and other hard assets to ride out the storm.
Roubini - Nouriel Roubini, one of the most respected academic economists of the era, is predicting a long and painful decline (at best) with the possibility of a major economic collapse at worst.
Celente - Gerald Celente, known for his trend reporting, predicts social unrest combined with rising crime rates and deteriorating inner cities due to a hyperinflationary economy combined with lack of services and deteriorating infrastructure.
So, wondering what the average person can do to prepare? As it turns out, quite a bit. Consider this little tidbit, there is currently $45,000 of actual money available to each person in the United States...however, $180,000 of debt per person. Obviously, even if the government was able to tap into every available dollar currently in existence, it wouldn't come near to paying the amount owed...and this doesn't account for the wide variations in income, savings and other assets. One thing each of the above guru's agree upon is the eventual advent of inflation...hyperinflation to be exact. Once that happens hard assets are the only things that hold their value - fiat currency is quickly used to pay back debt with worthless dollars.
Those that hold "reserve notes" will be wiped out. Those that hold hard assets won't. It's a simple lesson learned from every major economic collapse in history. The guru's agree, hard assets like real estate, precious metals and other investments retain their value or even increase in price while fiat currency collapses.
http://www.assetunlimitedfinancial.com/
Best regards
Martin Crawford
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