Learn and Earn Money Online
Learn and Earn Money Online
The Greatest Economic Meltdown in History may be about to reveal itself and this might well be your opportunity to learn and earn money online. If you thought the recent global economic recession was bad. Wait till you hear what I’m about to tell you. What you are about to learn may give you the motivation to want to earn money online.
“Almost every major financial crisis begins because of bad government policies because governments don’t create economic value. They only steal, hurt, and destroy it”.
Governments of the world are not looking out for us, as is becoming more and more evident with each unfolding, successive economic crisis. Soon the Greatest economic meltdown in history will reveal itself.
Why Do I Think this is Going to happen?
Anyone who has studied economic history or looked at the data on every past Asset Bubble will see the same distinct pattern that is found in every major economic crash in history.
For example, look at the Dutch “Tulip Mania” Bubble of the 1630′s… A rapid rise then a sudden fall.
The South Sea Bubble of 1718-1722… A massive rise then a sudden fall.
The Stock Market Crash of 1929… A four-year boom followed by a crash that continued for two years.
The 1990’s, Tech Bubble (also called the dot com bubble)… A rapid rise, then a sudden crash.
And the 2007 Real Estate Bubble…A massive five-year boom, then an equally large crash.
You will notice that every one of these has a very similar and distinct pattern. There’s a massive rise that makes people rich (or feel rich if they don’t cash out) and just when they think it will never end. It suddenly becomes unsustainable and quickly turns into a historic market crash.
But here’s the thing, asset bubbles don’t have soft landings, they burst, no matter what a government tries to do, as China and the rest of the world will discover soon enough!
Historically It’s All the Same
Here’s the typical Market cycles graph that ALL Markets follow. Again you see the same trend that has occurred in all the other markets we have shown here. This one gives you the four phases of the market that th markets cycle through.
The Real Reason we are having an Economic Crisis
It’s not only just the mismanagement of the various governments around the world that has lead to these situations. But the next (fast approaching) economic crisis will occur because of something that was far more understandable and ‘manageable‘.
In 2008, the world’s largest and richest generation in history, ‘the Baby Boomers‘, began withdrawing from the economy, reversing the major spending and borrowing trend that had been going on for the previous four decades.
The biggest spenders in the economy are now scaling down their lifestyles and curbing their spending habits, readying themselves for retirement.
Soon more and more of them will cash out of the stock market, sell their large homes and other non-essential assets and generally spend less money and that’s going to have a major impact on the global economy.
Japan has already done just that, beginning as early as 1996, many people starting retiring from the workforce, which is why their economy, (that until 2010, was the world’s second largest), has slowed down and no matter what its governments does, it can’t restart its economy, due primarily to Japan’s aging demographics. It’s that simple.
The consequences of this ageing population spending less money is what has stalled (and will continue to pull down) the Japanese economy.
China, which now has claimed the number two spot, is also about to face a similar demographic problem, following decades of a ‘one child policy‘ that artificially distorted its demographic spread. The impact of which will soon take effect as the retiring and ageing population rapidly increases and the number entering the work force declines.
And it’s this emerging trend, the demographics of ‘an aging population‘ that is going to have a massive impact on global markets and the entire economy around the world, in the coming years.
“The reason I say that Governments can’t be trusted is because it’s not like they didn’t know about this major unfolding demographic mega-trend.
Yet, they continue to spend money like there is no tomorrow and misinform the population as to the root cause of the world’s’ economic problems”.
Why Do Governments Do This?
They keep lowering interest rates to encourage you to spend money, to buy new houses, new cars, and new electronic gadgets in order to stimulate the economy.
They want you to spend money and are even making getting credit easier because they want you to think that things will be more expensive later.
However with fewer people buying, things are going to get a whole lot cheaper.
Yet, as this global demographic trend continues to accelerate, consumer spending overall will continue to reduce and businesses will be adversely affected as markets for many goods and service will continue to slow.
Some may even stop altogether, as the largest generation of consumers, the ‘baby boomers‘ radically change their spending habits and put less money into the economy.
So What Does this Mean for the Economy?
The stock markets, such as the Dow and S&P will go up and up UNTIL they begin to slide and when they do, they will continue to slide, perhaps by as much as 60% – 80% or more perhaps as early as 2018 – 2019, as people move their money out of stocks into bonds and CD’s.
This is the reason why interest rates are so low, to discourage people from pulling out of the stock market and into holding cash. But the baby boomers will want money for their retirement. The stock market will go down nether-the-less and won’t recover until around 2020 – 2025 when the next generation of spenders comes on stream.
The Markets Will Crash
The Stock market crash has already begun in China (2015) and it still has a lot further to fall. We are only just seeing the beginning because that Government is trying very hard to prevent the inevitable from occurring. Unfortunately, a major stock market crash in China will have a significant impact on the rest of the world.
Property Prices will fall, maybe even as much as 40% (some areas much more, some less) because this time, millions will begin to default in even larger numbers than before, because this time it will happen globally, not just in the U.S
China will lead this next global property market crash, which will occur soon after its stock market implodes, which is already showing signs of doing just that.
Specifically, the Commercial Property Market around the world will be hardest hit as their debt wave has already begun as more than around $1.7 trillion worth of commercial loans and mortgages will come due over the next three years or so.
That’s Not All…
Banks will crash again. But bigger and harder than they did in 2008 because this time it will almost impossible for customers to pay back the huge debts and the government may try to bail out the biggest banks but this time they won’t be able to.
Gold one of the most popular and trusted long term investments is about to turn into one of the most likely to fall the most.
While many will argue that gold is going to soar to $2,000, $5,000 and even $8,000 because of the coming economic meltdown.
But you don’t have to be an economist to see that gold’s 600% run-up since 2000 is a classic bubble pattern identical to all the other bubbles that have occurred in the past.
Here’s the thing about bubbles they almost always retreat to the levels lower than when they started. It’s not worth holding Gold much longer when there is as much as a 70% to 80% drop on the horizon.
Let’s talk about the US Dollar
Currency is a means of trading services and goods among people and countries and the thing to remember is that currencies trade relative to each other. If one currency falls, another must rise.
If you print massive amounts of money to artificially stimulate the economy, as the United States did between 2008 and 2016, it devalues the currency, causes inflation, and destroys the people’s’ wealth which is what typically happens as a result of the government’s never-ending inflationary policies.
However, during the recent period that the U.S was inflating its money supply, almost every other nation, also printed massive amounts of money, which devalued their currencies and when nations are printing money at the same time, currencies appreciate or depreciate relative to each country’s money printing, trade imbalances, debt, and economic progress.
Why the Dollar Remains Strong
So even though the Fed spent six years conducting the largest money printing program in history, printing over $3 trillion and pumping it into the economy, the value of the dollar has not gone down as a result of this monetary inflation.
Because the Euro-zone, which has a population roughly the same size, has also printed, more than $3 trillion and recently announced it will create a further $1 trillion for bond-buying this year.
As all currencies are valued relative to each other and in a time when most of the world is also printing money, the dollar is maintaining its value as the world’s reserve currency and also why earning US dollars could be a good thing in the coming rough times ahead.
The dollar has actually appreciated in value versus the euro and is up 27%, whereas gold and silver have fallen 33% and 50% respectively.
The Great Inflation Myth
Inflation happens when there’s too much money chasing too few goods. Most people believe inflation is bad for the economy and are worried that is what is coming. But it’s NOT, despite all the money printing that been going on.
Why is That?
Because all this money printing hasn’t been causing inflation, Instead it’s been preventing deflation. No politician wants the next Great Depression to happen on their watch. So they print money to push the coming financial collapse further down the road, until the problem becomes so large that it just falls apart and impacts everyone.
What’s the Real Problem?
America’s public debt total, including the printing of some $3 trillion is around $20.3 trillion taking into account the unfunded social security and pensions and other liabilities and although this has the power to trigger massive inflation, it won’t, because there’s a much more dangerous problem buried in the U.S. economy
This private debt is held by U.S. banks, by corporations and private citizens and is made up from;
- $14.1 trillion in banking and financial services debt…
- $13.6 trillion in corporate debt…
- $12.5 trillion in consumer debt, such as mortgages, car loans, credit cards…
- All this combined debt leads to a figure that exceeds $40 trillion.
But it’s not the massive private debt that’s the problem. It’s when it starts to get paid back and when millions of individuals, banks and businesses begin to pay down their debt it will take trillions of dollars out of circulation because all ‘money‘ is not actually cash, its debt and numeric entries on a computer screen. When it gets paid back, it disappears and as there are no longer interest payments, there is no cash being circulated.
Blame the Baby Boomers
From a demographic perspective, these retiring baby boomers, instead of borrowing and spending more, they will start to spend less. They will start to pay off past debt. Instead of boosting corporate sales and profits, they will be subtracting from it. Instead of driving up asset prices, they will now push them down.
We already know that a lot of people in America do not have the resources required to pay back this debt load.
So much of this debt will have to be written off and this enormous deleveraging of private debt will counter any inflationary pressures from the decades of over-supply of money. In fact, it will cause the exact opposite. It will cause deflation! Which is why the Government has been printing so much money in a hope to avoid the effects of deflation.
With deflation, there’s too little money chasing increasingly more goods. As there is less money flowing around the economy, due to the emerging and increasing demographic trend of an ageing population. Which means that people have less money to spend, so demand for goods and services go down and when that happens, so do prices.
The last time there was substantial deflation was during the Great Depression that occurred during 1930‘s and the economy didn’t really recover until World War II.
So, there are interesting times ahead and it happening faster than you think.
You have two choices, you can…
Do nothing and just pretend the coming stock market crash, gold’s devaluation, real estate collapse, and deflation will have zero effect on your retirement plans.
You can take control of your finances by generating an additional source of income so when the real estate bubble bursts, the stock market crashes, the price of Gold goes down and the economy gets chaotic, you’ll have an alternative income stream that you can create through your own efforts, knowledge, and skills, that you actually already possess. Best of all there is a step by step process to follow that will ensure your success.
You can learn to create your own income from building an online business. You can get educated and not have to go through the learning bumps, via trial and effort alone. There are people making substantial incomes online, and there are also people making nothing. The one that are succeeding are doing so because they know what they are doing. Have the right tools and have the right education to build a sustainable online business around something they are passionate about.
This is not the time to be complacent and gamble with your financial security. You owe it to yourself, and your family, to be prepared for what’s ahead and to see your way through the new economic era on the horizon; you’ll need a new financial plan to prepare for the great economic winter ahead. When the Greatest Economic Meltdown in History reveals itself.
And what better and safer way than creating an alternative international income stream that will pay you in US dollars.
No matter how little that might be, having an independent business generating ‘Dollars‘, is going to be a very valuable asset indeed. As is knowing how to implement this knowledge to help others to also create an online income.
Learn and Earn Money online
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