Are We Seeing The End of Europe?

Robert Kiyosaki reports that he is currently on a flight from Germany to England. So far he’s been to Warsaw, Poland; Tallin, Estonia; Prague, Czech Republic; Stuttgart, Germany; and now London, England.

He says the question that he has been dealing with on his journey through Europe is: If the Euro crashes, as the dollar eventually will, what will happen to the European Union? Already, the doom-and-gloomers are predicting a horrifying future for many Europeans.

In London, the headline of the British Newspaper, The Independent, reads: WELFARE CUT. PENSIONS CUT. SPENDING CUT. (AND TAX RISES TO COME)

The same basic headline can be found all across Europe. In other words, Europe is crashing and the people that are paying the price are the poor, the pensioners, and the middle class.

On an interior page of the same British paper, the headline blares, "OSBORNE'S BOMBSHELL: CHANCELLOR DECLARES WAR ON MIDDLE-CLASS WELFARE."

George Osborne, the English Chancellor, warned the cabinet that the spending party is over and the middle class is going to foot the bill. The article states that benefits for children, the unemployed, and the sick and disabled will be reduced or cut altogether. Also targeted are tax credits, special benefits, and the generous pensions paid to public servants. That does sound like a war on the middle class.

The same thing is going on all over Europe. In Germany, their newspapers announced that Germany's chancellor is preparing to cut $100 billion from the German economy. Many citizens are angry, not at Greece, but at France for pressuring the EU to bail out Greece. It seems that France wants the bailout because Greece owes the French a lot of money, and the German taxpayers are upset that they have to share in France's bailout.

This puts Germany at odds with France because the French seem to want control of the EU and to be more liberal while the frugal Germans are willing to have poor countries go bankrupt. Could this be the end of the European Union and the European Central Bank? I don’t think so, but who knows. The point to remember is that this is the conspiracy in action. The objective of the Rich Progressive movement is to make people poorer through higher taxes and inflation while they get richer.

The tragedy is that most people are angry but seem content to let their government leaders solve the problem.

What does this mean?

To me, it's ironic that the US is increasing social programs while Europe is cutting them. I believe the world is heading for a depression, the New Depression. It will not be the same as the old depression, the Great Depression.

One of the differences will be how you and I respond to the problems ahead. Most people save, save, save because cash is king in a depression. For me, it is more prudent to go into more and more good debt because, after 1971, the dollar was no longer backed by gold and became debt. As the world economy slides towards a depression, prices will come down and the opportunity to use more and more debt to acquire assets will increase.

The tragedy is that while it's smart for most people to save, they'll be the ultimate losers as the dollar, or the euro, or yen, or peso becomes less and less valuable, and as taxes and inflation rob people of their wealth. Rather than saving money, my portfolio will increasingly center around gold, silver and positive cash flow—assets.

A very important question is: what are you doing? This is the greatest wealth transfer in the history of the world. This is a great time for those with the appropriate financial education and a horrible time for those following the old rules of money.

Looking at the headlines from Europe, it's obvious the rich plan on staying rich and asking the poor and middle class to pay the price for their mistakes. The crisis is only beginning for many people who once thought the crisis was over.

Remember, money stopped being money in 1971 and became debt. And the last depression lasted from 1929 to 1954, a period of 25 years. While I doubt the two depressions will be the same, one thing is for certain, many who were rich or middle class in 2005 will be poor or broke in the next ten years.

Please stay alert and keep increasing your financial education. I don't want you to be one of the victims of this crisis—a crisis that is just beginning. Instead make this the opportunity of your lifetime.