Can You Survive An Economic H-Bomb?

Were you prepared for the credit crisis that destroyed home values and created record numbers of foreclosures? Well, fasten your seat belts because…



Many experts predict that the U.S. economy will suffer an economic crisis that may be the financial equivalent of a hydrogen bomb explosion within the next three to five years. A hydrogen bomb is not designed to destroy infra-structure it is designed to destroy all of the people within range of the explosion. The coming economic explosion will do just that, family’s finances will be destroyed but the surrounding landscape will look just the same; with the exception of the sleeping bags on the curb.



You may not have heard very much about this coming crisis because, quite honestly, it is pretty boring to talk about actions of the International Monetary Fund, often referred to as the IMF. Most people don’t really know what the IMF does and because they don’t know what it does, they have no clue how it could possibly impact their family finances. In this case, ignorance is not bliss; ignorance may be the last stop before distress.



The IMF was created as an agency of the United Nations to provide a structure for nations to transact business beyond their national borders; the important thing to know is that the IMF uses the U.S. dollar to process most international transactions.



Here is the H-Bomb: the IMF is considering eliminating the U.S. dollar in processing most international transactions; in place it would use SDR’s (Special Drawing Rights) which it created in 1969. This move could potentially destroy the value of the dollar and plunge the American economy into hyperinflation until the dollar hits its new, reduced value.



This move by the IMF alone is enough to destroy the value of the dollar but that is not the only bad news on the horizon. The extreme amount of debt by the U.S. government has already reduced the number of potential investors of U.S. government debt obligations. Currently the U.S. has one major investor, by the way I’m not talking about investors who will buy millions of dollars of U.S. notes and bonds, I’m talking about investors who can and will purchase tens of billions of dollars of these debt obligations.



The one investor who has purchased these notes and bonds is the Republic of China. However, just like the IMF, China sees the growing U.S. government debt and envisions a collapse of the dollar. The China government, unlike the IMF, has already taken steps to protect itself from a dollar collapse. China is investing around the world in commodities such as oil in Brazil and copper in Chile and hedging the damage it would suffer from a falling dollar.



The U.S. Congress, Senate and President are either oblivious to the damage the growing U.S. debt will do to the dollar, or, worse, they place political ideology above the economic well-being of the entire country. Economists from around the world who have "no dog in our (political) fight" are sending the strongest possible message that America cannot continue to add to our already record-high debt load.



Sadly, no one in Washington, D.C. will listen; this is not a political issue, rather it is an economic issue that is being viewed through political eyes.



The IMF, China and economists around the world are warning of the potential collapse of the U.S. dollar; let me ask, what are you doing to protect yourself and your family? Now is the time to act to make sure you do not suffer a financial calamity when the dollar falls. Even if you were fortunate enough to avoid taking a hit in the credit crisis of the last two years do not tempt fate and hope that you are spared in the next economic tsunami.



There are three things you must do to protect yourself. First, you must get out of debt; when this next, and assuredly much larger, economic collapse occurs. The programs enacted in 2009 helped very few people; in the next crisis there will be no programs, you will simply be on your own. It will be a time that having a place to live that you own and control will become a luxury, do not allow that to be taken from you.



Second, you must follow the lead of our largest creditor and diversify your income by generating income from sources around the world. Remember that both the IMF and China are taking steps to limit the impact of the collapse of the dollar to the U.S. economy. The moves they are taking is to look beyond the U.S. economy and survive on other nations’ economies. Do the same; generate an income from countries beyond the shores of America. The internet may be your best friend in five years if you act now to begin your own home-based business.



When the dollar is collapsing is not the time to begin; your efforts will be those of desperation and pleading, not strength and foresight. People can tell the difference, they respond to leadership and vision that looks over the horizon and proclaims with assurance the way to prosperity.



Third, find an investment adviser who is willing to break with the "conventional wisdom" of Wall Street and look to investment assets that may be outside of your comfort zone. The spin you will hear from the media is that America has weathered the storm and is in a recovery; the question that is never asked is why experts all over the world are concerned with America’s rising debt.



Major stock market collapses in 1929, 1987 and 2007 have occurred because of debt excesses; learn from these mistakes of the past and live in hope and prosperity.



Visit David Doerr.com for more information about how you can plan now to protect your financial future.