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Nov 07 2012

Obama Wins Second Term

Published by at 1:31 pm under Building Wealth,Economics,Personal Finance

I am sure a lot of people are happy Obama won a re-election for different reasons then what I am about to share with you. The Fed has talked about QE to infinity and beyond along with keeping interest rates low. What does this mean for the average investor? Governments do not want to pay back their debts with a strong currency. This is why the cost of borrowing is next to zero and good old helicopter Ben is printing money out of thin air.

For real estate investors. With housing prices still suppressed and borrowing costs next to nothing investors can scoop up houses that cash flow and pay off the debt with inflated currency. Jason Hartman talks a lot about inflation induced debt destruction. Helicopter Ben has promised to keep interest rates low until 2015 and to buy up to 40 billion in mortgage backed securities every month making it easier to get financing.

With negative interest rates no one is going to keep their money in the bank. People are forced to speculate in the stock market which is great for traders and people getting ready to retire. With negative interest rates stocks will be greatly inflated in the future. Helicopter Ben has promised to keep interest rates low so where will investors put their money?

What is the best insurance during  times of high inflation and political uncertainty? Gold and Silver. Gold and Silver have been in a bull market since 2001 and are now stronger than ever. With Helicopter Ben committing to buying 40 billion worth of mortgage backed securities every month (ie printing money out of thin air) we can expect to see some massive gains in gold and silver.

Right now is the biggest wealth shift this world has ever seen. More people become wealthy during depressions than any other time. What are you doing to increase your financial intelligence? Below is a video by Robert Kiyosaki explaining the difference between an asset and a liability.

http://youtu.be/ipLKbIqRl4o

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