Where The Economy Going and How Will Your Self-Directed IRA be Impacted

So where is this economy going? This is a question that we ask ourselves everyday. So, in order to make sure that we help you understand how to properly manage your self directed Ira and be best prepared for self directed ira investments, we will go through some data to try and help give you some guidance.

One thing that we see for certain is that things are not going well economically speaking, and that we may be in for even harder times. The following is a list of problems or threats to our economy:

  • Real GDP is -2%. The government and media would have you believe that we have a 2% GDP, but through the magic of numbers and politics, that figure is reported as 2%. The -2%  value means that our economy is shrinking and has been shrinking – not growing as you’ve been told. We recommend that you visit shadowstats.com to understand how these numbers are calculated.
  • Real Unemployment is 21%. The current government figures and the one that the president wants you to believe shows 8.1%. But as is true with so many numbers, the devil is in the detail. Here again we recommend that you visit shadowstats.com to understand the source for these figures. This shows that people are not working, which means that they are not spending or investing or paying taxes. This is a contractionary situation for GDP.
  • US Debt is 380% of GDP. This is the number published by the US government. What person or business can survive for long with that much debt. One thing that is for certain, this number will drive the government to engage in policies that will be inflationary, and anti-business, high tax, removal of freedoms and liberties. Bottom line is the government is going to print more money to deal with unemployment and reduced taxes.
  • Personal, corporate and government debt is $40 TRILLION! That much debt can and does put a big drag on an economy. Currently, the Fed is restraining interest rates, but at some point it will not be able to keep that in place. So, when interest rates go up, the drag from the debt will increase as the interest payments increase that debt.
  • The world’s major economies are all in trouble simultaneously. The events of Europe, US, a slowing China, struggling South American countries, is almost a perfect storm of economic chaos. Every major country in the world is facing deficits of major proportions. Everyone is printing money. Everyone is reducing spending. There is nothing positive or indicative of growth in any major world economy. The problems facing most of these countries will take years to correct themselves assuming that they make the right decisions now and implement them now. That’s a big IF!

The bottom line here is that mathematically we are dealing with extremely large problems that cannot be changed or solved in a very short time. You compound that with the politics, hidden agendas, political gridlock, central planning mentality, self serving politicians, and it starts to look like no one will solve the problem. One thing that seems to be clear is that we are not hearing about solutions to fix these problems.

So, its our opinion that we may be heading for a brick wall at 100 mph. If that’s the case then what does this mean? Well we believe that the smart money will be in solid, tangible assets such as metals, real estate, small businesses, loans, trust deeds, and any other asset that is not controlled by Wall Street or the federal government.

Timing of this crash. As all things in life there are no guarantees or certainties, but it looks scary out there, and its best to be prepared. There is a theory known as chaos theory  and fingers of instability. So as not to belabor the topic, suffice it to say catastrophes are hard to predict. Its the pile of sand scenario. You keep adding sand to the pile, but at some point its that last grain of sand causes the pile to collapse along those fingers of instability. Our economy is much the same way. We know that we’ve piled  alot of sand on, and we are starting to see some cracking and shifting, but at what point the pile collapses is unknown. We could get really smart really fast, and quit adding to the problem and start removing the sand, or we could continue down some path that has varying levels of new sand added. We believe we are on the adding more sand and not getting smart path. This means that we may likely see major events over the next 12-24 months.

So what should you do?

We believe that the self directed IRA is a mission critical tool for your retirement planning because that is the only place where regular people can hold the right types of asset classes to protect themselves from the economic storm on the horizon. This means its time to take action. So, if you have not setup that self directed IRA account, then now is the time. Its time to look at metals, real estate or some other non-traditional asset class that you know and understand. Its time to act and protect yourself.

Disclaimer: The above information is for educational purposes only and is not intended to be investment, tax or legal advice. You should consult with your own advisors before making any self directed IRA investments.