What To Do About the Crash of The Future

I recently read “The Dollar Crisis” by Richard Duncan. Duncan, who’s a former advisor to both the World Bank and the IMF, paints a frightening picture of the future. In his talk at a recent event, he spoke about how China will be the next country to implode due to excessive debt and government stimulus (most business loans issued by the Government will never be repaid in China. Over 50% are already in default)

The issue at hand during the event at which Duncan was one of the keynote speakers was the monster crash that is still coming and how you can not only survive but also profit from it. Some of the different ways discussed were:

1. Buy gold and silver. For most people this is the simplest way to protect your financial future. As long you can purchase gold under $2,000 and silver under $50 an ounce, your chances of surviving the coming crashes are good—if you can afford to accumulate a stockpile of gold and silver. The nice thing about gold and silver is that's a good investment, even for financially brain-dead people. It doesn't take much intelligence to go to your local coin store, buy gold and silver coins, and hide them.

2. Invest in oil and gas. For doctors, lawyers, and other high-income people, oil and gas production is a great investment. The reasons oil and gas are good investments for high-income people are the tax advantages and monthly passive income, if you invest with a good drilling company. For example, if an investor invests $100,000 in an oil project, the government grants a 70 percent tax break to the investor. And if—and that is a big if—the drilling product strikes oil or gas, the investor receives cash flow from the sale of the oil or gas every month. If an oil well produces oil for twenty-five years, the investor receives passive income for twenty-five years. On top of the passive income, the investor receives a tax break for twenty-five years on the income. That means that rather than pay taxes on their income, which they'd pay if they saved money in a bank or invested in a retirement plan, the investor gets a tax break.

3. Invest in real estate. Investment real estate, property other than your primary or vacation home, is by far best passive income investment with low to zero taxes. Unfortunately, since the Tax Reform Act of 1986, doctors, lawyers, accountants, and other such licensed professionals aren't afforded the same tax advantages professional real estate investors are granted.

The people who will do the worst when the crash comes are employees and the self-employed. When the crash comes, the central banks of the world will print more money, which will cause inflation. When inflation hits, employees and the self-employed will probably work harder and demand more money to cover their higher cost of living. This will drive them into a higher tax bracket, which means they will work harder and make more money, but they will also pay progressively higher taxes.

As stated in Conspiracy of the Rich, the recent best seller by Robert Kiyosaki, the rules of money changed in 1971. Today, millions of people are being wiped out by following the old rules of money like go to school, get a job, work hard, save money, buy a house, get out of debt, live below your means, and invest in a well-diversified portfolio of stocks, bonds, and mutual funds. Most people following these rules are working harder, trying to save money, struggling under mountains of bad debt, and clinging to hope in retirement plans filled with risky assets such as stocks, bonds, and mutual funds. On top of that, the people following these old rules are having their wealth siphoned from their pockets by the government through taxes.

While no one wants a crash, a crash is unfortunately inevitable. Those of you who've read Conspiracy of the Rich know that the Federal Reserve Bank—which is not federal, is not a bank, and has no reserves—is the primary cause of the crisis.

These organizations have done a lot of good as well as a lot of bad. Rather than protest and riot, as people are doing in Greece, I think it's smarter to learn the New Rules of Money and not be a victim of the ultra rich. We can only do this by increasing our financial education.