THE IMPACT OF THE GLOBAL CREDIT CRISIS ON ASSET PROTECTION

In today’s address I am going to explore the impact of the Global Credit Crisis on Asset Protection.

If you have been following current economic affairs, especially in the United States, you would agree that the Banking sector is in serious trouble. And that has serious implications for investors and business people all over the World. The whole financial system of the Western World is imploding. The Banking Sectors of The U.S, Australia, England, New Zealand and Ireland are all suffering huge losses.

This decline of the Western Banking System also gives rise to Geopolitical implications for Asset Protection Planning which I discuss in my Loss Prevention Asset Protection series “Money Secrets of the Super Rich”.In early 2007 I predicted a Worldwide Banking crisis that would commence in the United States and spread to most Western Countries that have a paper based debt money system.

What I mean by that statement is that the whole western world has a banking system that is backed by nothing but paper. The currency notes that you trade with in your respective nation, have no intrinsic value and are worthless in the event of a monetary collapse. There is no Gold backing as is commonly thought.If you had $100,000 deposited in a Bank for example, and that Bank became insolvent; You lose your money. There is no exchange for Gold in the event of a financial collapse. Some governments do have a deposit guarantee scheme like the Federal Deposit Insurance Corporation in the U.S which provides relief for those that lose their money as a result of a Bank Failure.

But Just one Mid Sized bank failure like the teetering “Washington Mutual”, will Bankrupt the FDIC which only has reserves of $53 Billion. You need to have a viable asset protection plan in place to protect your savings, retirement benefits, real estate, business and other assets because the entire banking system in the U.S is in the process of dissolving. Most people don’t have a clue what is coming.So far only a small number of Banks have failed, but in reality hundreds of U.S banks are destined for the graveyard of bankruptcy. Wachovia Bank just reported a quarterly net loss of US $8.9 Billion and Washington Mutual a second quarter net loss of US $3.3 Billion.

My question to our listeners is “Have you asked yourself the question on how this scenario will impact you and your family personally, financially, emotionally and physically.The current sub prime debacle and Banking Sector Collapse has been in the making for many decades. One only has to look at the inflation that has taken place over the past forty years or so. Inflation is created by creating too much paper money and not enough corresponding productivity.

That is exactly what we have been doing in the west for some time now in an effort to create value out of nothing. It will work for a while but there is always a day of reckoning. And that day is Now. U.S consumers have run out of easy credit, which has in many cases completely stopped. And that is causing businesses to lay off employees who now don’t have the income to support a mortgage and as  a result they are losing their homes as well. You need to get your asset protection plans in place immediately if you are to protect your business and family assets.

The Federal Reserve Chairman says that the U.S government has an electronic technology, that allows it to produce as many U.S dollars as it wishes at no cost. He is of course referring to the printing press, a road to certain financial disaster. If you remember your history, that’s what the Weimar Republic did in 1923. You would see German women exchanging a wheel barrow full of “Reich marks” for one loaf of bread.  

The current situation in the U.S is unwinding daily as the banking sector has racked up more than $500 Billion of losses to date.However as Nouriel Roubini from New York State University says the worst is still ahead in 2009 with Bank losses predicted to rise from the current $500 Billion to as much as $2 Trillion.And he is not alone in that prediction with the Giant U.S Hedge Fund “Bridgewater Associates” estimating Bank Losses will reach $1.6 Trillion and Citi Group says there is much worse to come in 2009.

And there is of course the issue of Freddie Mac and Fannie May, the two quasi government financial institutions that underwrite over 60 per cent of Home mortgages in the U.S.The collapse of the sub-prime mortgage market impacted these financial institutions to such a degree that they have become Balance Sheet Insolvent. Or in lay mans terms; they’re Broke.As a result the U.S government have just passed the Mortgage relief Billwhich approves up to US $300 Billion in funding guarantees to keep them afloat, but that only goes part of the way to an estimated total bailout of around US $1.5 Trillion.

What we are dealing with is a debt based Global economy that is built on nothing but valueless paper, stacked like a house of cards and manipulated by International Financiers. It was Daniel Webster in 1833 who referred to our current predicament so long ago when he said quote” We are in danger of being overwhelmed with irredeemable paper, mere paper, representing not Gold nor Silver; no sir, representing nothing but broken promises, bad faith, bankrupt corporations, cheated creditors and a ruined people” end quote.

I urge anyone listening to this address, whether you are retired, about to retire, own a home, run a business or invest in any way to take advantage of our Free asset protection assessment to the right of the radio buttons on our home page. Being forewarned is being forearmed. Until next time, I wish you all the very best.