The Aftershock Survival Summit Transcription
Broadcast on Newsmax Media
Aired Thursday, 2:00 PM

John:
Hello and welcome to Newsmax's Aftershock Survival Summit.

My name is John Burke.

And, I want to thank you for taking part in this very important discussion.

As you know, in 2006, while nobody = was looking . . .

Neither the Federal Reserve nor the Treasury . . .

Not Congress or even the White Hous= e . . .

The American economy began a catastrophic descent, as the early stages of the real estate crisis started taking shape.

Two years later, in 2008, the true scope of the devastation became crystal clear, as the stock market collapse= d, the credit markets dried up, banks melted down, and unemployment began to s= oar.

America was thrust into a recession= and a period of national misery not seen since the Great Depression.=

Every citizen in this country felt = the stress, the fear, and the uncertainty that came with not knowing how long t= he malaise would last . . .

And how deep the damage would be.

We all know this story by now.=

But why were the people in Washingt= on, whose sole responsibility was to prevent this kind of a meltdown, incapable= of protecting us from this crisis?

Why did the leaders of America allow our country to sink into this financial abyss?

Where were their voices of reason?

What does the future hold for our g= reat nation?

And how can you, and your fellow Americans on Main Street, stay safe from what lies ahead?=

We will be addressing these issues today.

And, you are going to meet a true v= oice of reason that this country needs right now.

You see, back in 2006, while the st= ock market was surging and real estate prices were soaring . . .


An unheralded team of economists was working tirelessly to spread the word about the impending dangers that threatened our great nation.


They released a book called "America's Bubble Economy" that accomplished what no one else seemed able to.

They predicted, with startling accuracy, what would happen when America's easy-money party ended . . .

Their analysis was not the "20= /20 hindsight" that is so commonplace today.

They were well ahead of the curve, = and swimming against a tide of financial optimism.

These maverick economists sounded t= he alarm about a chain reaction of crashes that were to come in real estate, t= he stock market, private debt, and consumer spending.

They laid out a clear and straightforward message.

The end game was near.

If the "powers that be" h= ad paid heed to these economists, the lives of all Americans would have been b= etter.

But their warnings were not welcome= d by the mainstream media or by those on Capitol Hill.

And, the devastation is still being felt to this day.

Sensing that the worst was still to= come, this team of economists returned in 2009 to pen the follow-up book "Aftershock."

This time, Americans were willing to listen to the unfortunate truth about our nation's financial health.

And, "Aftershock" quickly became a best-seller.

 

This incredible book predicted that= two more

massive bubbles the dollar and U.S. government debt

could burst by 2013 . . .

 

And, since the release of "Aftershock," we have indeed seen the dollar continue its dangero= us downward spiral.

And as our federal debt keeps surging to unsustainable levels.

It is clear that these three econom= ists were right again.

You need the real story and what st= eps to take to stay safe before a second, and much more destructive economic meltdown, possibly strikes the United States.

And, that's why we are joined today= by one of the three economists who have been helping Americans prepare for the coming crisis.

Bob Wiedemer, thank you for being here.

Bob: <= span style=3D'font-size:12.0pt;mso-fareast-font-family:"Times New Roman";mso-bid= i-font-family: "Times New Roman"'>
My pleasure John.

John:
Bob, my goal for this interview is to work with you to build an effective action plan for our viewers regarding their homes, investments, retirement savings, debt management, life insurance, and even jobs.
<= /p>

But I want to start by saying that you're also not going to mince words, or paint a rosy picture for our futur= e . . .

So Bob, is it safe to say that our viewers need to be prepared for your message that any signs of a recovery m= ay be nothing more than false hope, or simply an illusion?

Bob:
That's right John.

John:
OK, let's get started.

Basically, your message in "Aftershock" was that the recession was bad . . .

But that the worst was still ahead,= and Washington is still ignoring the problem.

Is that correct?<= /p>

Bob:
Well, yes . . . and no.

I do believe we have some very tough times ahead for our country.

And, most in Washington are refusin= g to address the true scope of the situation.

And, millions of Americans will face some difficult hills to climb to avoid getting caught up in this economic disaster I see unfolding.

There is no getting around that. We are past the point of no return.

And, people are starting to realize this.

CNN released a poll a little while = ago that stated 48 percent of Americans see our country headed into a second Gr= eat Depression in a year or two.

I slightly disagree with the timeli= ne, but not that diagnosis.

Fortunately, right now we are still= in a critical period.

A few simple decisions can be the difference between personal economic obliteration.

And financial prosperity.

This is a situation to be taken very seriously.

I can't be any clearer than that.

John:
Before we talk about what lies ahead, let me quickly ask you about the past= .

How did you predict this multi-bubb= le collapse, while nobody else seemed able or willing to recognize the dangers= ?

Bob:
Most economists looked at these situations as independent occurrences.

They didn't take a broader view to = see the chain reaction that could unfold.

Since most people aren't trained economists, I usually try to simplify this explanation.

[Show image of the balloon]

You start with a dramatic and artificial increase in home values and the stock market . . .

This basically put all the air in t= he balloon.

John:
Why do you say it was artificial?

Bob:
Because people weren't making the kind of money needed to justify these increases.

From 2001 to 2006, housing prices accelerated much faster than our income.

Now, we all know the housing price growth was due to the mortgage madness where people could easily attain loa= ns with no documentation.

"Liar loans" they were called.

So some lenders blatantly looked the other way.

And others repackaged those garbage loans into toxic investments.

John:
And, this wasn't happening before 2001?

Bob:

Not really.

From the 1980s until 2001, home pri= ces rose in step with inflation. And then in 2001 they exploded.

But nobody stopped to think about w= hat would occur when home prices weren't rising 10, 20, even 50 percent a year anymore.

John:
And, you saw a similar problem with the stock market right?

Bob:
Absolutely.

It was very susceptible to a massiv= e correction because, just like housing, the rapid rise didn't match the underlying fundamentals economists chose to ignore.

It's pretty simple.

From 1928 through 1982 you had abou= t a 300 percent rise in the Dow.

That's a 54-year period.

Yet from about 1982 through 2005 it rose another 1,400 percent.

John:
That doesn't sound like a bad thing though Bob?

Bob:
That would be fine if our economy grew 1,400 percent too. But it didn't.

Personal income only grew about 10 percent over this time period and company earnings about 300 percent.<= /o:p>

So the foundation beneath these mar= ket gains was very fragile.

And the balloon became massively inflated.

John:
So now you've basically got this economy that's completely full of hot air, right?

Bob:
Exactly.

Now the real estate market collapse applied enormous pressure on an already overly inflated stock market.<= /o:p>

And as foreclosures began to grow in numbers, and the banks became weaker, it became harder to get credit.<= /o:p>

Which was a shock= to the system, because Americans had become very spoiled by this easy money.

Between 2001 and 2005 an estimated = $2.4 trillion in wealth was created from the refinancing of mortgages and home equity loans.

This money was only available becau= se of artificially escalating housing prices.

But when this easy money spigot was = shut off, a private debt crisis was created.

Look at the chart on your screen no= w to see how fast Americans grew their debt compared to their income.=

So a real estate and Wall Street collapse dried up the easy money, and this led to a massive correction in consumer spending.

This is a big deal.

Many people don't understand that a= bout 70 percent of the U.S. economy is built on consumer spending.

These four bubbles bursting created= one massive American explosion.

John:
And, we all know what happened next.

$16.4 trillion in household wealth disappeared.

These losses were felt in our investment portfolios, retirement savings, real estate holdings, and salari= es.

It is still just stunning to me that you were in such a minority of voices that saw this travesty unfolding.

Hardly anyone was waving the red fl= ag besides you and your team.

Bob:
Most economists didn't see this coming, because they "couldn't see the forest for the trees."

John:
But you didn't stop there.

In 2009 you released the best-selli= ng book "Aftershock," which warned Americans of dollar and government debt bubbles that were set to expand from 2009-2012 and burst around 2013.<= o:p>

Well, in the last year alone, the dollar has dropped 21 percent.

And, since Obama has been in office, we've piled on another $3.7 trillion onto our already dangerous Federal debt tab.

And, serious minds like billionaire bond investor Bill Gross believe that the total tab could be $75 trillion or more when you account for Medicare and Social Security.

He's even gone as far as to say that the United States will default on its debt while picking the pocket of every citizen through inflation, dollar devaluation, and interest rate games.

Bob, our viewers would be in a bett= er place right now if you were wrong on these predictions. <= /p>

But unfortunately you have been rig= ht all along.

Bob:
Everybody wishes we were wrong.

Count me in that group.<= /span>

But ignoring a problem this large is not the way to stay safe from it.

John:
Before we dive deeper into what lies ahead, our viewers could use some good news.

Bob, you and your team have complet= ely updated "Aftershock" with new analyses, predictions, and powerful guidance.

And, you are releasing this bold, second edition with an even more blunt assessment of what's to come in the years ahead.

And, here's something that will get= our viewers very excited . . .

You are going to give everyone who's watching this interview, a free copy of your new book.

To get your copy click here

Even better, you are including the final chapter that was deemed too controversial to be included in the versi= on that will be sold on the newsstands and Amazon.com.

So this is a new edition of "Aftershock," right?

And, should the hundreds of thousan= ds of people who read the original, get a copy of this latest version as well?=

Bob:
This is absolutely a new edition.

And, if you found the first "Aftershock" helpful and informative, this version will be even m= ore valuable to you and your family.

John:
So just to be clear, only people watching this interview can get this book = for free as well as the hidden chapter, right?

Bob:
That's correct John.

John:
Well that's good news.

So what's in this hidden chapter anyway?

Bob:
Just like with the original "Aftershock," we've included a great = deal of analyses, predictions, and guidance for readers throughout this book.

Also, just like in the original, we paint a pretty grim picture of what America will be like if our findings co= me true.

And, we left this for the very end = in a separate chapter.

Well, the publisher believed this f= inal chapter would be found by certain readers to be a bit too aggressive or startling.

The publisher thought this could be= a problem for some who picked it up at the bookstore without realizing what "Aftershock" was about.

Now, it's not some sort of apocalyp= tic, end-of-the-world, kind of chapter. We just talk about what day-to-day life = will be like when the next great meltdown occurs.

We also reveal an additional, hidden bubble that is being ignored by everybody.

And, we put some great investing and personal finance advice in that chapter as well.

In fact, my team and I built a step-by-step wealth protection checklist into this chapter.

It covers how to approach your investments, personal finance, and debt, in the short term before the tough= est times arrive.

We also lay out a simple-to-follow = and effective long-term blueprint for safeguarding your finances when the econo= my really gets bad.

So this hidden chapter is one of the most important in the entire book.

But at the end of the day, the publisher didn't want to take the chance.

However, I imagine the people watch= ing this interview, right now, are a bit more prepared for this kind of analysi= s.

So my team and I are happy to personally send this chapter to our viewers.

I've even personally autographed the first 1,000 copies of it to give out today.

John:
Bob, this is a long interview.

So I'm going to ask my producer if = we can put the button up on the screen now so folks can make sure they can get= a copy of this new edition of "Aftershock" immediately, as well as = the hidden chapter.

Donna, can we do that for our viewe= rs?

Okay, we got the green light to go ahead.

So underneath this video is a chanc= e to grab a copy of the new edition of "Aftershock," while we still ha= ve books available.

Click Here to Claim Your 100% FREE Copy of Aftershock with This Special Offer=

And, if you are one of the first 1,= 000 to act, you will get one of the autographed versions.

Clicking on the button will not interrupt this interview.

It'll just open up a new window on = your screen so you won't miss a word.

OK Bob, let's talk about the future= .

What's in store for our economy?

Bob:
To put it simply, we now have a situation where the medicine has become the poison.

The Fed has done everything it can = to give Americans the appearance of a recovery.

It bailed out its friends at the ba= nks and automotive companies.

It has kept interest rates at historic lows.

And, it turned on the printing pres= ses and drastically grew the monetary supply by 300 percent. =

And, all this has done is delay the inevitable.

We will all soon see that while pri= nted money has been the medicine of the so-called recovery . . .

That medicine is about to become po= ison when the dangerous side-effects kick in.

John:
But this doesn't seem to be hurting the stock market.

Since bottoming out in March of 200= 9, it is up as much as 94 percent and many are saying that it could top pre-recession levels in the near future.

Couldn't that be a sign of a possib= le recovery?

Bob:
That's all an illusion.

Look at this chart and you'll see t= he stock market's initial gains simply shadowed the money-printing trail.

And, it won't be very long before this money from heaven becomes a path to hell.

That hell being inflation.

You see that 300 percent increase in the money supply we've experienced . . .

Much of it is sitting in excess reserves at the Fed and with the big banks.

These funds haven't made it into the markets and the economy yet.

But it's a mathematical certainty t= hat once this dam breaks, and this money passes through the reserves and hits t= he markets . . .

Inflation will surge.

John:
So why don't they just stop printing money?

Bob:
Because they don't think it's a bad idea. They've seen how it has propped up the stock market and a good portion of the economy.

And they believe they are fighting = off deflation.

They aren't worried about inflation.

And, some of the more liberal-leani= ng economists are calling for even more aggressive money printing.<= /span>

For example, Paul Krugman has stated he thinks the Fed might need to print $8 trillion to $10 trillio= n to save our weak economy.

That's preposterous. And, to think = that Krugman was awarded a Nobel Prize in economics!=

Frankly, liberal voices like his are winning out over more fiscally conservative ones such as mine.

John:
So Bob, how bad do you see inflation getting?

Bob:
I dedicate an entire chapter of the new edition of "Aftershock" to inflation.

And it's a very serious issue, which needs a very long discussion.

But I'll just say that by the end of 2012, we will likely start to see the first signs of aggressive inflation.<= o:p>

I'm talking about 10 percent, using= the Fed's calculations, which we all know are drastically underestimated.<= /o:p>

And from 2013 through 2016, it's go= ing to get much worse.

John:
Are you talking hyperinflation?

Bob:
Absolutely not.

That's a bit extreme. We definitely will NOT see hyperinflation.

Hyperinflation is 50 percent a mont= h, or thousands of percent a year.

We aren't Zimbabwe.

And don't listen to any economist w= ho says it'll get that bad for us.

But we absolutely could see 100 per= cent annual inflation for a three-year consecutive stretch.

Which of course w= ould be a complete disaster for those who are not prepared.

John:
100 percent for three consecutive years?

That seems unfathomable.=

Isn't that extreme?

Bob:
For Americans, it is.

But what many don't know, is that t= he most damage will be felt between 10, 20, maybe 30 percent inflation. <= /o:p>

After you get past 30 percent, it'll just be bad all over.

You eventually become numb to the effects, because there isn't much left to take from you at this point.=

John:
How can 10 or 20 percent be a harder hit than 100 percent?

Bob:
Once you hit 10 percent inflation, 10-year Treasury bonds lose almost half = of their value.

And by 20 percent any value is all = but gone.

Interest rates have to be dramatica= lly hiked up at this point, which causes real estate values to collapse.

And the stock market will plummet a= s a consequence of these other problems.

So after 10, 20, even 30 percent in= flation, the vast amount of damage has been done.

John:
You just touched on interest rates.

So you are saying that raising them after the big inflation has kicked in is dangerous.

But that's what President Reagan and Paul Volker did during the stagflation of the late 1970s early 1980s.<= /o:p>

So why can't the White House, Fed, = and Congress do it right now before inflation gets out of hand?

Bob:
Interest rates will absolutely be going up in the future. The market will s= ee to that.

But before I answer your question, = let me say that the Fed is looking to every other solution before taking the st= eps that Reagan and Volker did.

That's why they have been buying our own bonds and calling in favors across the globe.

The United States and other countri= es will make dramatic efforts to save the dollar and unsuccessfully stave off serious inflation.

Especially the Chinese central bank.

They've bought over $1.1 trillion of our Treasury debt to prop up the dollar's price so they can boost their exp= orts to us.

On top of that, they've got about $3 trillion of U.S. securities when you add in their other U.S. bond and physi= cal dollar holdings.

Japan is sitting on $900 billion in= U.S Treasury debt.

And since 1980, the percentage of U= .S. debt held by foreign investors has more than doubled.

Frankly, the United States has put itself in a position where it owes some very powerful countries like China a lot of favors, which is not good for us.

Imagine if we start leaning heavily= on the oil-rich countries in the Middle East to prop up our dollars?

These countries aren't really pro-America.

John:
That doesn't sound like smart foreign policy.

Bob:
It's not. And it will end, whether the U.S. wants it to or not.<= /span>

Based on my analysis, I predict for= eign investors will begin to significantly lose confidence in their U.S. holdings sometime during, or shortly after, 2013.

China is already beginning to worry= .

But this will get much, much worse = when we hit 10 percent inflation.

And, by 2016 a mass exodus of forei= gn investment could very well occur in the United States.

And, whether we like it or not, we = need foreign investment in our stock and bond markets to keep them strong. =

John:
So that brings me back to my question.

Why not put Reagan and Volker's plan into play right now and aggressively r= aise the interest rates.

Bob:
From a purely economic standpoint, hiking the interest rates as Volker did would end inflation quickly.

But remember, back in the 1980s interest rates on loans for businesses and people were hitting over 20 perc= ent.

You had massive protests.

Farmers actually drove tractors thr= ough D.C. because they were outraged that they couldn't afford to operate their businesses.

So it's a politically brave move. B= ut it's not one without public backlash.

But the biggest reason we can't aggressively spike the interest rates is it's economically impossible, given our current government debt situation.

John:
Can you go into a little more detail about that?

Bob:
Absolutely.

Right now we collect about $2 trillion a year in taxes.
<= /p>

But nowadays, Washington is spending almost $3.5 trillion.

That means more than four out of ev= ery $10 the government spends comes from borrowed money.

And, government debt is mostly short term in nature.

About 36 percent of it is in loans = that last under a year.

So Washington has to constantly roll this debt into new loans at the new interest rates.

So what if rates rose to 10 percent= ?

We would have a hard time just payi= ng the interest!

So they will start with small raise= s in a futile attempt to curb inflation.

But at the same time they will print more money to help keep from drowning as the interest rates hike the annual deficit.

John:
That sounds like one step forward and two steps back.

Bob:
It is.

So modest interest rate hikes are coming in the near future.

It won't stop the inflation.

But, still Washington will exhaust = all other possible options because they know that aggressive interest rates will crush real estate, stocks, and bonds.

And, it will pop the bubbles they've inflated through reckless economic policies.

So instead of acting now, they'll w= ait until there is no choice and the devastation is unfolding before they make = the uncomfortable and unpopular decision to dramatically spike the rates.<= /o:p>

John:
Do you think one of those revenue-boosting options will be to raise taxes?<= o:p>

Bob:
Unfortunately, yes.

And, it won't matter who's in the W= hite House in 2013.

I don't think there is any getting around that.

I don't like it. But it's the lay of the land.

They'll target the wealthy at first, because politically it's the easiest road to take.

But that won't get them enough mone= y.

They'll need to go after middle-cla= ss Americans.

They'll target average investors heavily.

Seniors who live off their investme= nt income will have a harder time getting by.

And, all of this over-taxation won't solve the debt crisis.

And, it's not the only problem Americans are going to have to worry about.

John:
Let's discuss one of those problems.

Housing.

Recently The Wall Street Journal announced that national housing prices fell for 57 months straight.

What lies ahead for homeowners?

Bob:
In the immediate future, we will continue to have a slow fall.

Median housing prices dipped 8.2 percent in the last year.

In fact, the beginning of 2011 brou= ght about the worst single quarter in real estate since the recession began.

But some people may get their hopes= up once our market improves or at least flatlines.=

But mid-term, foreclosures are expected to jump 20 percent this year.

So I believe people will lose, on average, about another 5 percent to 8 percent of their home's value in 2012. Some places will be much worse, some will be better.

And, long term we are going to witn= ess a massive collapse, I believe even worse than the first.

Right now, research shows that more than one out of every four homeowners is willing to walk away from their ho= mes.

Once the inevitable interest rate h= ikes set in and the values of people's homes drop even further, that figure will jump even higher.

John:
Because paying off a mortgage won't make as much sense as simply walking aw= ay and renting right?

Bob:
Exactly.

The scope of the damage will be determined by how high interest rates eventually go.

Famed housing expert Robert Shiller believes home prices could fall 25 percent in= the next five years.

I think it could be even worse.

Consider this, if mortgage rates hi= t a reasonable 7.5, it'd basically mean home prices would have to decrease by as much as another 32 percent.

And 7.5 percent is very reasonable.=

My parent's mortgage in 1968 was 6.5 percent. When I graduated college it was 15 percent.

John:
Bob, in a few moments I'm going to tap into your mind, so our viewers can g= et your investing, personal finance, real estate, and even job tips.

And, we'll give everybody watching this interview a copy of the second edit= ion of your rewritten, and updated best seller, "Aftershock."

Click Here to ReserveYour Copy

Plus, the hidden chapter your publi= sher didn't print in the version available on newsstands and online sites like Amazon.com.

But before we do, let's hear details about what lies ahead for the stock ma= rket and investments in general.

Bob:
OK, here's how it'll play out.

And, just remember there are always incredible opportunities in the markets, no matter how bad it gets.

You just have to know where to look= .

In the short term, the massive money printing we've seen over the last few years will continue to prop up the st= ock market.

But starting in 2013, and growing w= orse and worse through 2015 and 2016, the medicine will become the poison on Wall Street.

High inflation, rapidly rising inte= rest rates, and the heightened risk of U.S. debt will create a poisonous cocktail like we've never seen.

So government investments and those tied closely to them will become pretty dangerous bets.

But these higher interest rates will hit the overall stock market just as hard too.

Companies will also be spending more money on borrowing costs as opposed to business expansion costs.

That means lower profit margins, lower dividends, and less hiring.

Plus more layoffs.

John:
OK, so put a specific number on the impact this will have on the stock and = job markets.

Bob:
In the first edition of "Aftershock," I laid out a situation wher= e we could see as much as a 90 percent drop in the stock market and 50 percent unemployment rate.

That is the worst-case scenario.

And, I stand by that assessment.

But, let me make it clear that regardless of how bad it gets, this will be temporary.

We will recover from all of this eventually.

John:
Bob, what will life in America be like if what you predicted in both editio= ns of "Aftershock," comes true.

Bob:
I believe many Americans, who don't listen to my advice in this new edition= of "Aftershock," will lose most of their money.

But these people won't starve in the streets.

Compared to most countries, America, and Americans, are still very rich. <= /span>

Even if our GDP dropped in half, we would still be a $7.5 trillion economy.

But many people's savings could be drastically lower.

Just about everyone's home will be worth much less in five years.

Bonds that back up a lot of pensions and insurance policies will be destroyed.

Pensions will become unstable. Some forms of life insurance could be eliminated.

The stock market will plummet.=

And, all of this equals more job lo= sses

But people will not be rioting in t= he streets, although there will certainly be many angry demonstrations, like we recently had in Wisconsin.

Remember, we didn't see rioting during the Great Depression. The pain was f= elt at home.

And, that's where it will be felt this time as well.

John:
And, this is all because our government has not learned that, as you've put= it, money from heaven is a path to hell.

You aren't exactly painting a very positive picture for our audience Bob.

Bob:
Look at it this way . . .

If you had pneumonia, and all your doctor did was tell you to not fret, take two aspirin, and you're cured, wo= uld you still use that doctor?

Of course you wouldn't. This situat= ion is no different.

People need the honest diagnosis co= ncerning our economy and the best medicine for keeping their money healthy and safe.=

John:
You are right. So let's discuss the ways our viewers can protect their weal= th in the troubling times ahead.

I realize you go into greater detai= l on all of these points in the new edition of "Aftershock" that has j= ust been released.

So our viewers can use the copy they are going to receive to get more information.

And, they can look to the "hidden" chapter that won't be seen by those who grab the book fr= om Amazon or any retail bookstores, for greater insight into what caused this crisis and how bad it's going to get moving forward.

Claim Your Copy of Aftershock Now

You even reveal a hidden bubble in = this chapter that nobody is talking about, but could have serious consequences f= or millions.

Most importantly, this chapter incl= udes a step-by-step checklist our viewers can follow to protect their wealth now= and in the years ahead.

But let's focus on solutions now.
What should our viewers be doing right now to stay safe?
<= /p>

Bob:
First and foremost, I advise people to stay away from real estate. Real est= ate has not hit bottom.

Higher inflation, mortgage rates, a= nd unemployment will suffocate the few breaths remaining in the housing market= .

In my opinion, strictly from a financial standpoint, people should consider selling their homes while they still have a chance, and rent instead.

But I understand that's not practic= al for most people.

And, the emotional attachment to a = home goes beyond financial matters.

So if you are stuck in an adjustable rate loan, I advise you to immediately refinance into a fixed rate. And I m= ean, right now.

Don't put this off until tomorrow. =

John:
Should people staying in their homes, who have a fixed-rate mortgage, look = to pay it down faster?

Bob:
Absolutely not.

Higher inflation in the future means you will be repaying a cheaper mortgage since the dollar will be weaker.

So stick to the minimum payment for= now. Use that extra money for shrewd investments and paying down more important debt.

John:
What about non-real estate loans?

Bob:
The most important one is your car loan. Especially if = you are still working.

An average car loan for Americans n= ow is about $12,600.

So it's not a small chunk of change= .

But a repossessed car is no good for you now, or when you need to secure financing for another one in the future= .

John:
What about credit cards?

Bob:
Well many credit cards are simply adjustable-rate loans.
=

Even the fixed-rate credit cards ha= ve loopholes that allow them to hike your rates.

So when interest rates rise, so will the rates on many of the cards you are holding.

So pay these off as soon as possibl= e.

If you take my advice and pay just = the minimum on your mortgage now, you can use the newfound extra money to pay y= our credit cards down faster.

John:
How should our viewers approach insurance?

Bob:
Good topic for this discussion.

Once inflation hits 10 percent, all life insurance policies will be susceptible to very big losses due to their heavy exposure to long-term bonds, commercial real estate, and stocks.

Some insurance companies could even crumble.

So given our current situation, in = my opinion, it does not make good financial sense to own whole life insurance.=

If you do, you may be able to take = out a lump sum payment now.

This will be much more valuable to = you to properly invest now, than when inflation really kicks in.

Check to see your policy details on that though.

You can also focus on term life insurance instead, since it's much cheaper.

John:
It seems people are putting off retirement until later and later in life.

Wells Fargo recently released a sur= vey that says people in their 50s on average only have $29,000 saved up for retirement.

And with Social Security, Medicare,= and the unreported tens of trillions of dollars in future costs pressing down on our economy, the safety nets many have relied on may not be there in the ye= ars ahead.

So for our viewers, who may still be working and do not have enough saved up for a comfortable retirement, if we have a serious spike in unemployment, what careers will be the safest in the years ahead?

Bob:
This is truly a sad epidemic.

Given the pullback in income growth= as well as other economic factors like inflation and a weakened dollar, the retirement age would now have to be raised to 73 for average Americans just= to maintain the same standard of living as in the 1940s.

Since the average life expectancy is currently about 78, millions will now have to work until they drop dead, instead of enjoying their golden years.

Plus, Washington seems incapable of having an adult conversation on the entitlement issue.

So I personally see people working later and later into their lives, because they have no other choice. <= /o:p>

However, jobs will be tight, especi= ally for people over 55.

So for those se= eking job security during the coming crisis, the necessities sector is the place to be.

This is composed primarily of healthcare, education, utilities, basic food, basic clothing, and government services.

Unfortunately, these aren't the hig= hest paying jobs.

John:
Whether people are still employed or living off their investments, they are worried about the government taxing away more of their money.

So what can our viewers do to help protect themselves from higher taxes?

Bob:
Well, we need to see how this one will play out, and obviously our viewers should really build a specific strategy with their accountants.<= /span>

But, I'd quickly recommend looking = into estate planning, regardless of your net worth.

Because for tax reasons, giving gif= ts to your children and grandchildren now can be very beneficial.

And, you can get creative here by selling assets to buy gold to gift to your heirs now as opposed to in your will.

This will be much more valuable than cash or real estate when inflation hits hard.

John:
That's a good segue into investing advice.

So it seems you are a fan of gold still, even though it's been soaring in value.

Bob:
Yes!

I'm not a "Gold Bug" by a= ny means. But I know what investments are right for different conditions.

Gold will continue to be a favorite safe haven for countries across the globe.

Right now, only 10 percent of the world's total gold is purchased by the United States.

Which puts us rig= ht in line with Turkey.

India currently buys more than 20 percent of the world's gold, China 18 percent, and other countries will increase their stakes in this precious metal as confidence in the U.S. wane= s.

But gold is just like any other bubble. It will burst eventually.

John:
When do you see that happening?

Bob:
I could see gold's bull-run lasting another decade or more before the bubble bursts.

And, we'll see truly remarkable pri= ces during that time.

We dedicate a good bit of one chapt= er in the new edition of "Aftershock" to explaining the smartest way= s to invest in gold now, and over the long term.

John:
Could you touch on some of those ways?

Bob:
As an alternative to carrying physical gold, you can buy it from a gold depository.

With a depository, you have legal ownership of the gold, but don't have to take physical possession. You can = take it anytime you like to though.

You can also buy gold ETFs that are= 100 percent backed by physical gold, which we discuss in the book.

We've seen many billionaires and hedge funds begin to pour more and more of their wealth into gold over the last few years.

I also like gold mining stocks.

In fact, gold mining stocks have be= en outperforming physical gold recently.

But not all gold mining stocks are created equal, so my team and I point out the strong ones and how to identi= fy the best opportunities in the new edition of "Aftershock."

John:
What about other investments?

Bob:
Other precious metals like silver and even platinum are good choices over t= he long run.

Until serious inflation hits, short-term bonds are OK.

After inflation really sets in, you will need to keep cash in short-term investments such as money markets, TIP= S, and Treasurys.

Their low returns don't exactly make them very attractive, but they will protect you against inflation much bett= er than longer-term debt.

I highly advise our viewers to stay away from long-term bonds.

Let me stress that again. Avoid long-term, government bonds.

John:
What about some unconventional investments our viewers may not have conside= red before?

Bob:
Foreign currencies are a great play right now for investors.

I like the Canadian dollar, Swiss franc, and the Nordic currencies, such as the Norwegian krone.

Trading currencies directly can be pretty risky so that isn't for everybody.

But you can buy ETFs on the major foreign currencies, like the euro, yen, Canadian dollar, and Swiss franc. <= o:p>

You'll want to hold them as longer = term investments that'll appreciate as the dollar continues to fall.<= /span>

You can actually buy an ETF called = the UDN that trades all of the currencies in the US Dollar index against our currency.

So the weaker the dollar, the higher the UDN goes up. And, the more money y= ou make.

John:
And what about advice for our more seasoned investors?

Bob:
A very large portion of the new edition of "Aftershock" addresses tips for investors of all shapes and sizes.

For example, the more-experienced investors may find a great deal of benefit reading up on what kinds of opti= ons we think are suitable for profiting during the days ahead.

Or how to properly take advantage of U.S. agricultural commodities.

Because when the dollar weakens, lo= ts of countries will be buying our commodities with their stronger currencies.=

"Aftershock" is perfectly= suited for everybody, because along with all of these great investing tips, we also offer advice for real estate, personal finance, money management safe retirement, and even our viewers' careers.

We don't leave any stones unturned.=

John:
I couldn't agree with you more Bob.

We've just scratched the very surfa= ce in this interview. These are all very serious topics that need more time th= an we have today to truly go through.

Bob, you are giving our viewers an incredible opportunity to build an unbreakable wall around their wealth that will protect them when the economy hits the very rough times you forecast in the new edition of "Aftershock."

Get Your Copy of Aftershock Now!

And, your message that the time to = act is right now, is very clear.

Bob, I wish our leaders at the Fed, Treasury, Capitol Hill, and the White House had listened to your repeated warnings over the years.

But they didn't.<= /p>

Fortunately, over 250,000 Americans grabbed a copy of the original "Aftershock."

And, they flooded Newsmax with letters showing = their appreciation.

I'd like to show a few on the screen now.

And, the reviews from the press and prominent figures were just as positive.

Obviously, "Aftershock" w= as viewed by many as a vital resource for Americans.

But what was your motivation behind creating this entirely new edition?

Bob:
John, my team and I still had a lot more to say.

And, now that a couple years have passed, we had an opportunity to analyze the economy again, update our predictions, and offer even more advice for staying safe.=

We created the second edition of "Aftershock" so people who enjoyed the original book would immediately recognize it and look to it for guidance.

And, people who had not yet read the first edition still could protect themselves.

Because there is still time left to= do so.

Not much though.<= /p>

John:
Bob, as you know, Newsmax believed so much in t= he first book that we gave away tens of thousands of copies for free with this special offer.

This came at a great cost to the company. But your warnings and guidance needed to be heard.

And, your second edition of "Aftershock" picks up where you left off. It's remarkable.

The message is even more important now. The solution is even more critical = for survival in the dangerous economic times that lie ahead.
<= /p>

So Newsmax is going to do it again.

We are going to give out a copy of your brand new, second edition of "Aftershock" to everybody watching this broadcast right now.=

This book is going to be sold for $= 27 on newsstands and online retailers like Amazon.

The first 1,000 copies will be personally autographed by you as well.

But the version Newsmax is giving away will be a little different than the one that is
going to hit the stores, isn't it?

Bob:
Yes, you see the publisher wasn't exactly comfortable with our outlook for = the future.

So they requested we omit a very important chapter that offered a grim assessment of what we saw occurring when the dollar and debt bubble burst.<= o:p>

And, this chapter also describes a third bubble we saw on the horizon that absolutely nobody is talking about.= But they should be.

Plus, we added some very specific t= ips for safeguarding your wealth in this section and a step-by-step checklist for preparing your investments, retirement savings, debt, job, and much more.

John:
Given your track record, Newsmax wants this "unpublished chapter" read.

So every viewer will receive it when they accept their copy of the new and rewritten edition of "Aftershock."

Click Here to Claim Your Copy of Aftershock Now

In this new edition, you discuss the need for Americans to build a short-term and long-term protection strategy = to prepare for the crisis you see starting in 2013, right?

Bob:
That's correct.

We lay out specific investment, personal finance, and everyday changes need= ed for both of these strategies.

The second edition of "Aftershock" is very comprehensive, because Americans face a comp= lex and serious situation in the years ahead.

John:
Newsmax wants to do its part to help ensure you= have the guidance you need to get these strategies in place.

So, in addition to sending you a co= py of the new and re-written, second edition of "Aftershock" . . . <= o:p>

As well as the "unpublished chapter" that was deemed too controversial to print and distribute to bookstores and online retailers like Amazon . . .

Newsmax is also going to send you a copy of the critical briefi= ng: The High Income Report.

Because as the economy begins an even more dangerous freefall,= you will need more income immediately to safeguard you and your family's wealth= .

As well as sound = guidance on managing your money.

Disclosed in this report are:<= /o:p>

The High Income Report has a $99 dollar value, but it's y= ours for free with this special offer.

And for your long-term protection strategy, we are including The Financial Intelligence Report. The Financial Intelligence Report is Newsmax's flagship investment publication.

It combines the vast knowledge and = expertise of some of the world's most trusted voices in politics, the economy, and investing.

Here you will receive powerful stories that aren't being reported by the mainstream media on the issues that affect your wealth.

Plus, you'll receive investment recommendations so reliable that since 2003= , 85 percent of all picks have been winners. And the returns have more than trip= led those of the S&P 500.

Because you have decided to take the necessary measures to protect yourself in these troubling times, Newsmax wants to do our part to help you.<= /span>

Bob Wiedemer, thank you for sitting down to talk with me today.

Bob:
It was my pleasure John.

John:
You gave our viewers a great deal of guidance and insight.

And you are going to give them a gr= eat deal more when they claim a copy of the re-written second edition of "Aftershock."

This now concludes Newsmax's Aftershock Survival Summit.

You can claim your copy of the new edition of "Aftershock" by clicking the button below this video n= ow.

I want to thank you for joining us today.

I'm John Burke.

Stay safe!