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 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? John 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? Bob 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. 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 How did you predict this multi-bubb=
le
collapse, while nobody else seemed able or willing to recognize the dangers=
? Bob 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 Bob 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 Bob Not really. From the 1980s until 2001, home pri=
ces
rose in step with inflation. And then in 2001 they exploded.
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.
Bob:
That's right John.
OK, let's get started.
Well, yes . . . and no.
There is no getting around that. We are past the point of no return.
Before we talk about what lies ahead, let me quickly ask you about the past=
.
Most economists looked at these situations as independent occurrences.
Why do you say it was artificial?
Because people weren't making the kind of money needed to justify these
increases.
And, this wasn't happening before 2001?
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.
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.
And as foreclosures began to grow in
numbers, and the banks became weaker, it became harder to get credit.
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.
But unfortunately you have been rig=
ht
all along.
Bob
Everybody wishes we were wrong.
Count me in that group.
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.
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.
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.
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.
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.
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.
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 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 Bob 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. John Bob 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. 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 Housing. Recently The Wall Street Journal
announced that national housing prices fell for 57 months straight. What lies ahead for homeowners? Bob 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 Bob 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 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. Bob 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. John Bob That is the worst-case scenario. We will recover from all of this
eventually. John Bob But these people won't starve in the
streets. Compared to most countries, America,
and Americans, are still very rich. 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. John You aren't exactly painting a very
positive picture for our audience Bob. Bob 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 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. Bob 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 Bob 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 Bob 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 Bob 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 Bob 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. You can also focus on term life
insurance instead, since it's much cheaper. John 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 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. 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 So what can our viewers do to help
protect themselves from higher taxes? Bob 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 So it seems you are a fan of gold
still, even though it's been soaring in value. Bob 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. John Bob 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 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. 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 Bob 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. Bob 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. You can actually buy an ETF called =
the
UDN that trades all of the currencies in the US Dollar index against our
currency. John Bob 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 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. Fortunately, over 250,000 Americans
grabbed a copy of the original "Aftershock." 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 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. John 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. So Newsmax
Absolutely.
Right now we collect about $2 trillion a year in taxes.
That sounds like one step forward and two steps back.
It is.
So modest interest rate hikes are coming in the near future.
Do you think one of those revenue-boosting options will be to raise taxes?<=
o:p>
Unfortunately, yes.
They'll target average investors heavily.
Let's discuss one of those problems.
In the immediate future, we will continue to have a slow fall.
Because paying off a mortgage won't make as much sense as simply walking aw=
ay
and renting right?
Exactly.
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."
But before we do, let's hear details about what lies ahead for the stock ma=
rket
and investments in general.
OK, here's how it'll play out.
That means lower profit margins, lower dividends, and less hiring.
Plus more layoffs.
OK, so put a specific number on the impact this will have on the stock and =
job
markets.
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.
And, I stand by that assessment.
But, let me make it clear that regardless of how bad it gets, this will be
temporary.
Bob, what will life in America be like if what you predicted in both editio=
ns
of "Aftershock," comes true.
I believe many Americans, who don't listen to my advice in this new edition=
of
"Aftershock," will lose most of their money.
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.
And, this is all because our government has not learned that, as you've put=
it,
money from heaven is a path to hell.
Look at it this way . . .
You are right. So let's discuss the ways our viewers can protect their weal=
th
in the troubling times ahead.
What should our viewers be doing right now to stay safe?
First and foremost, I advise people to stay away from real estate. Real est=
ate
has not hit bottom.
Should people staying in their homes, who have a fixed-rate mortgage, look =
to
pay it down faster?
Absolutely not.
What about non-real estate loans?
The most important one is your car loan. Especially if =
you
are still working.
What about credit cards?
Well many credit cards are simply adjustable-rate loans.
How should our viewers approach insurance?
Good topic for this discussion.
Check to see your policy details on that though.
It seems people are putting off retirement until later and later in life.
This is truly a sad epidemic.
Whether people are still employed or living off their investments, they are
worried about the government taxing away more of their money.
Well, we need to see how this one will play out, and obviously our viewers
should really build a specific strategy with their accountants.
That's a good segue into investing advice.
Yes!
But gold is just like any other bubble. It will burst eventually.
When do you see that happening?
I could see gold's bull-run lasting another decade or more before the bubble
bursts.
Could you touch on some of those ways?
Bob:
As an alternative to carrying physical gold, you can buy it from a gold
depository.
We've seen many billionaires and hedge funds begin to pour more and more of
their wealth into gold over the last few years.
What about other investments?
Other precious metals like silver and even platinum are good choices over t=
he
long run.
John:
What about some unconventional investments our viewers may not have conside=
red
before?
Foreign currencies are a great play right now for investors.
So the weaker the dollar, the higher the UDN goes up. And, the more money y=
ou
make.
And what about advice for our more seasoned investors?
A very large portion of the new edition of "Aftershock" addresses
tips for investors of all shapes and sizes.
I couldn't agree with you more Bob.
And, they flooded Newsmax with letters showing =
their
appreciation.
John, my team and I still had a lot more to say.
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.
The message is even more important now. The solution is even more critical =
for
survival in the dangerous economic times that lie ahead.
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 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: 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. 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. Bob Wiedemer,
thank you for sitting down to talk with me today. Bob John 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!
Newsmax wants to do its part to help ensure you=
have
the guidance you need to get these strategies in place.
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.
It was my pleasure John.
You gave our viewers a great deal of guidance and insight.