How You Can Accurately Forecast The Financial Future

Since 2007 when we published "How To Protect Yourself From The Coming Financial Crisis," when the U.S. and global economies appeared to be booming, we have kept making scary but accurate predictions. As the economic reality from these predictions will have a powerful effect on you, I would like to offer you some of the tools I use so you can do this for yourself:

1) Take a critical look at what any government tells you. The government may make a huge splash on television, radio, print and online journalism but it doesn't make their words true. For example, since the 2008-09 financial meltdown, the U.S. government and the media have heavily promoted the "economic recovery." But there is no recovery, the economy is actually crumbling. Their hope was to reassure consumers so they would spend again. But consumers are scared and most are spending only on necessities.

2) Selectively read. The New York Times today published, "Goldman Loss Offers a Bad Omen for Wall Street," which tells us this top global financial power broker lost money last quarter for only the 2nd time since 1999. The reasons Goldman lost money and why other "too big to fail" financial institutions, despite paying huge executive bonuses and shareholder dividends are actually struggling will tell you a great deal about what is likely to come. http://dealbook.nytimes.com/2011/10/18/goldman-loss-offers-a-bad-omen-for-wall-street/?nl=todaysheadlines&emc=tha2

3) Think carefully. The Wall Street Journal Friday published, "Bleak News for Americans' Income," in which pay fell 7% in the last 10 years, after being adjusted for inflation, according to the U.S. Census Bureau. This is the worst result since the Bureau began keeping these records in 1967. If real U.S. household income is falling, what do you think will be the impact on the U.S. Economy? What do you think will be the impact on real estate values, jobs, salaries for new college graduates and on tax revenues that support all levels of government? http://online.wsj.com/article/SB10001424052970204774604576628981208827422.html

4) Analyze. The Wall Street Journal Friday published "Widening U.S. - China Trade Gap Fuels Currency Battle." In August the U.S. trade deficit with China set a new record. How did this happen? And will it keep happening? As U.S. corporations continue to shift production (and jobs) to China the answers become obvious. http://online.wsj.com/article/SB10001424052970203914304576628702220717090.html

5) Think beyond your own borders. European economies are supposedly going to bail one-another out but Portugal, Ireland, Italy, Greece and Spain, as well as Great Britain are insolvent. Is the magnitude of their problems so great, even rich countries like Germany can't save them? And if so, how will they bail themselves out? And what will be the impact of their collapse on your economy? To learn more please see "Ratings Firm Warns on French Debt," and "Spain Hit by Downgrade, Falling Home Prices" from The Wall Street Journal http://online.wsj.com/article/SB10001424052970204346104576638411453105984.html, http://online.wsj.com/article/SB10001424052970204346104576638473880156108.html and "UK inflation rate surges above 5%," The Financial Times http://www.ft.com/intl/cms/s/0/ba3755d6-f96a-11e0-bf8f-00144feab49a.html#axzz1bFRJicDE

If you will take these 5 simple steps, it will amaze you, your family and friends how often you accurately predict the financial events to come. And by doing that you can also take steps to protect yourself and to advise others how to protect themselves as well.

Dick
Note: If you can't afford these publications, please visit them online or visit your local library.