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October 27, 2014 at 04:12 PM
We are in a time of tremendous financial danger, but our government and Wall Street are declaring that we are in an economic recovery.
I deal with many prospects and clients who have been led to believe this. And they are initially resistant to the idea that they need to take action as soon as possible to protect themselves from the coming financial crisis.
I want to be clear: Any assertion that we are in an economic recovery is a misrepresentation.
For example, people frequently ask me, “If everything is so bad, then why is there an enormous amount of building happening in our area?” My hometown of Milwaukee, Wisconsin is about to get its first Nordstrom.
Whole Foods, Costco, Wal-Mart, hotels, airports, and more are all expanding. Why would they do that if the economy is turning downward?
The answer is simple: If you could borrow money at zero percent interest, then you would borrow as much as possible. That is what these companies are doing, because they have no risk!
They use other people’s money and if the venture fails, then there is no risk to their core business. It can even be argued that companies that do not avail themselves of this opportunity are poorly managed.
Of course, this is paid for by regular Americans who make almost no interest on their savings accounts and have not done so for over a decade. We must help these people while they still have something to preserve.
Another misrepresentation
People often think that the economy is improving because the annual deficit is going down. Over the past four years, the annual deficit was over $1 trillion annually.
