As most of the world knows by now, the Fed and most of the world's governments are printing money. In fact, they've printed more money in one year than has been printed in the last one hundred years. So the question is, where has the money gone? If trillions have been printed, why are so many businesses failing, why is unemployment climbing, and why are homes being lost to foreclosure? Some people have received a lot of money, but have YOU received your share of bailout money?
Everyday, the Fed is printing tons of dollars. The problem is that this hot money is not getting into the hands of those who need it most. The money is going to those who have connections. The top groups to receive this hot money are the US government, foreigners who borrow the money at zero percent interest, Wall Street, and big corporations. There is not much left over for ordinary people. This is why foreclosures increase, small businesses fail, and unemployment increases.
If you are rich and know how to borrow money, there is a lot of federal money waiting for you. The Fed is printing money, but you have to know how to borrow it.
There is a lot of money looking for smart people, so please do not use the excuse, "I don't have any money." If you get smarter, money may start looking for you.
Those that know how to short the market or use put options will grow rich off those investing for the long term. Obviously, study and take courses before risking your money in ANY market.
Since our schools do not teach us much about money, it's up to you to invest in your financial education. The worst thing you can do is follow the old financial advice of, "Work hard, live below your means, save money, get out of debt, and invest for the long term in mutual funds." That is disastrous financial advice.
Why work harder when the government is raising taxes? Why live below your means when inflation is on the horizon? Why save money when the government is printing money? And why invest for the long term in the stock market when interest rates are near zero? All the Fed has to do is raise interest rates and the stock market will crash as money runs into the bond market. Don't take any advice at face value. Get your own financial education and follow the advice that you think is best for you.
This crisis will go down as the biggest wealth transfer in the history of the world. That means that many of today's rich and middle-class will be tomorrow's poor. A wealth transfer also means that even if you are poor today, you could be rich tomorrow. This is the crisis you have been waiting for. It could be your biggest opportunity, but that depends upon you and the choices you make.
Crisis or opportunity,it's up to you.
There are trillions of new counterfeit dollars floating throughout the world. If you do nothing, these counterfeit dollars will steal your wealth via taxes, debt, and inflation. Workers and savers will be the biggest losers.
So where is all the money going to? It's going to those who have a great outlook on life, know the old economy is gone, and live life according to the new rules of money.
