I have found in life that most issues of any importance can be very confusing. Especially politics, religion or just about anything of importance. It has been said that opinions are like ass holes, every body has at least one.
Since my web site is primarily concerned with stock trading and the economy, I will focus on that. On any given day there are articles in the news on the internet with widely diverging views of the economy. Recession, depression, the market is going to tank, stocks are cheap, buy this, sell that, horde gold and silver, raise cash, sell gold and silver. Whatever your view of the economy you can find some body supporting that view. They can’t all be right.
Even among reputable economists and financial advisors there can be and is a wide divergence of the future and the economy. First off I don’t put much faith in the government, establishment view, aka the Fed. They are wrong most of the time. People that have been right such as Michael Pento, Peter Schiff, Marc Faber, Egon von Greyerz, and many others; even they have variations as to the economic future.
I have found from experience that it is best to keep things simple. Very similar to Occam’s razor, generally the simplest answer is usually correct. I apply this logic by reducing the question to it’s most basic level. How to state the problem in its simplest form? Having said that lets reduce the problem from the government and the economy as a whole down to one individual.
I know from experience that I can not survive very long financially if I spend more than I make and have saved. What is the out come If I do? Bankruptcy. Therefore what is the out come if the government spends more than it makes in taxes? Bankruptcy!
The difference between the individual and the government in this case is the government can get away with it for much longer than the individual. Years, decades even centuries, but eventually bankruptcy. History is littered with failed governments, none are too big to fail, it’s just a matter of time. In fact every government or empire has eventually gone bankrupt, no exceptions.
That’s the bad news. The good news is that there is always money to be made somewhere. You don’t think some people got rich during the great depression? Not very many but some did. The trick is to be aware of the future and to know how to profit or at least protect and preserve your capital.
If things are going to get as bad as they say, what are some of the simple things we can do to protect and preserve our capital? Own hard assets, things that the government can’t manipulate. Own gold and silver, it’s real money and will hold it’s value, it always has. Then there’s real estate, collectibles, antiques, art. Always keep some cash on hand for when the banks and ATMs are down. Have you been paying attention to Greece?
Keep informed, read the many articles I link to on the Home page for more information and ideas. Hope for the best, prepare for the worst.