Only three years after the world’s financial crisis in 2008, the global economy is slowing down again. At the start of the year, most forecasters expected global gross domestic product to expand in the range of 4.3 percent to 4.5 percent, it probably will only be around 3 percent.
Nominal dollars are the everyday paper dollars that we think of and call money. These dollars change every day (depreciate). The value of these dollars goes down constantly as the money printers continue to debase our currency.
The world economy is in a very fragile state, despite the fact that world gross domestic product is growing at a rate of about 4.3 percent this year. Most of the growth comes from emerging markets like China, Brazil and India. What differentiates these nations from the West is they typically have much lower levels of debt.
Do you still recommend Swiss annuities? Do we have to report them to the Internal Revenue Service beginning June 30, 2012? An IRS tax consultant I talked to said I do. The IRS tax consultant also said I owe an excise tax on the Swiss annuity. If this is correct, do you have any information on how to figure that or know someone who does?
A lot has been written about commodities and precious metals in the recent past. While some investors believe that we are in the middle of a super cycle for commodities and precious metals, others think that there is already too much speculation built into current prices; that we are in a speculative bubble that will have to burst eventually.
Over the past several months, we have seen rioting in some Arab and European countries. The riots were sparked by the high costs of food, government austerity measures and government oppression. We have some of the same dynamic going on in the United States. But through a system of bribery, the U.S. government has succeeded, at least temporarily, in preventing Americans from rioting in the streets.
The Federal Reserve has presided over the death of the dollar, which is now in its final spiral. When the Federal Reserve opened in 1914, an ounce of gold equaled $18.99. Today, it takes more than 1,500 fiat dollars to buy that same ounce. In 2008, the banking industry became a shambles thanks to the bursting of the housing bubble, which had been created by the Fed’s easy-money policies.
Do you still recommend having cash on hand in view of the coming collapse of the dollar? Will there be an interim period to use paper, or will there be an immediate collapse?
Do you recommend having copper coins on hand?
We have read about forced inoculations for H1N1 coming this fall. Is this true?
Can you tell me about secure retirement avenues as far as pulling money out and buying gold. Won’t there be heavy tax penalties? Will it be worth it to pull it out now and pay the taxes or leave it and hope that things don’t crash before they are of age? Should we be buying gold and silver now while waiting on the 401K?
The growing political chaos in Libya has caused oil prices to spike and has raised concerns about further inflation in the United States.