Is the world going broke!

Just saw this 4 corners episode the other day.

Goodness, I hope they are wrong.

Are we (in Australia) insulated from this looming crisis.

http://www.abc.net.au/iview/#/view/625008

Hans Schmid
Start Your Own Mortgage Business
www.brokersite.com.au

No we're not.

Our system is inflated with easy access to money, stimulas, negative savings patterns and reliance on never ending growth (capitalism). Without never ending growth out economy dies. Never ending growth is impossible.

I'm not being negative, I just know that if I'm eating an icecream, it doesn't matter how small my licks are - at some point it will be gone.

No one knows if our big crash will be next year, in 5 years, in 20 years or even 100 years.

Bit like wondering if you will ever die...

Hopefully not too soon...

Yes interesting,

We are borrowing 100 million every single day of the week, welcome to "labour"

Mortgage reset loans are kicking in now.

Commercial vacancies are rising.

Developers can't get finance, and the banks are tightening up more because they are not getting funds from overseas.

Obama is spending more money, now on roads, rail and airports ... to get people jobs so that they then "spend" into the economy.

Listen to what "Katter" the independent is saying about North Queensland, it is going back wards.

Gold Coast real estate is shocking, Mirage gone into receivership, Palm Meadows golf course closed, and lots more.

In the last week I spoke with 60 real estate agents, people are really hurting out there. A development I looked at in Terrigal of 230 apartments has 30% for-sale and have dropped in price by 30% in the last 5 years (ah real estate doubles every 7 years lets see ... who said property in Australia never drops ????

Hunters Hill peninsular in Sydney a friend of mine had a valuation of a new waterfront he built 6 years ago for 7.5 million, just sold it for 4.5 million and lost money, don't laugh this could be you one day. Oh the reason he had to sell is that his "business" has dropped by 50% over the last 2 years, he sells products into the building industry.

There are many more facts I can throw in here ... some of you are thinking I am being negative ... NO ... this is valuable INFORMation that can make you millions of dollars ... Is Robert Kiyosaki correct or a w..ker ... he says that in the next 5 years the middle class could be wiped out IF we dont get better financial education.

Timing and Luck = Success

I am not making predictions I am researching all the FACTS to make better decisions for my future and the people around me.

The role of a government is to make you "feel good" so you spend money into the "economy" the problem comes when "people" stop spending and begin saving, that is why Obama is "creating" jobs so people will spend again, bizzar isn't it??

Yes there are lots of deals out there and the only two problems that you need to solve is 1, how to fund them and 2, who will buy them from you for massive profits.

"Cash Flow" and "Passive Income"

Hey great to be in real estate at this time in history.

Good luck to all,

Philip Sigglekow
LREA author

Yes, it was a scary episode. My dad rang his financial planner to discus options for retirement in the days after the episode aired. The FP said, "Did you see Four Corners, too?" He had been inundated with people worried about their super.

Banker, I agree. At some stage in the future, the debt has to be repaid, and stimulus measures can not go on for ever. The US is in a terrible state, the result of the 8 disasterous years of George W Bush, and the terrible start to the Obama presidency.

We are not insulated, but start of in a much better state then the US, UK anbd Western Europe, due to the resources booms of the past decade. But that won't last forever either.

Philip, I'm a little bit sceptical of Robert Kiyosaki. He saysthe middle class could be wiped out due to lack of financial eduication. Well how do people get educated? Buy his books! Seems a litle self-serving to me.

My personal opinion is the government of the day, regardless of their 'colours', takes too much credit when things are going well, and gets too much blame when things are going poorly. So they feel the need, as Philip says, to pump money into the economy during troubled times. But it can't go on forever.

hey hans what was the name of the four corners program. your link doesnt take me there and i can not find it anywhere else.

It's called 'Overdose'.

I'd also like to point out it is filmed like a low budget horror film. Complete with scary music, spooky camera angles and a bit of a conspiracy theory. Wish they had made it a little more factual and informative - cartoon injections and floating dollar signs made me feel like I was watching another Westpac educational movie about bananas...

There is a message in there but take it with a grain of salt. This dock belongs on the library shelf in the children section along with Robert kiyosaki books...

I am not saying that the information doesn't have some merit but before you panic go onto iview and look at the review by Media Watch  of this story on 6 September 2010.

Hi Dan42,
It doesn't seem to be on ABC's ivew anymore, but it is on Youtube.
Just type in Four Corners Overdose!!

Kind regards,
Shell

yes, now on youtube

3 parts... here is part 1

http://www.youtube.com/watch?v=m6FNYvC4uyM

Hans Schmid
Start Your Own Mortgage Business
www.brokersite.com.au

here is the media watch review

http://www.abc.net.au/mediawatch/transcripts/s3004109.htm

Hans Schmid
Start Your Own Mortgage Business
www.brokersite.com.au

Man america is completly messed up, corrupt and greedy.. Its just a shame that they managed to corrupt the rest of the world. America reminds me of the great roman empire. It was thanks to corruption and greed that it crumbled from within but this time it looks like it might be the whole world.   I just want to know what happens to our assets and money if the system ever collapses. I guess if u own ur home then they can never take it away but what about cash. Maybe thats why gold is so popular these days because investors see it as the only real currency if the systme ever does collapse.

Okay so we know there is likely to be some trouble ahead, we are told the waters are going to get deep but we dont know how deep. My question is... How do we use this knowledge to our advantage? and as the previous poster sentiments what happens when a country goes broke? I know this talk is all a bit extreme and I dont believe the sky will fall in overnight . I would think there will be future plans and strategies that will soften the blow albeit possibly send us futher underwater. So if we know the water is coming where is the life raft and what does it look like?

Things will work out. Don't get caught up in hysteria. Time will sort thongs out just protect your own backyard. And if the world collapses. Well we should all be on the same sinking boat anyway.

There's quite an interesting book Debt & Delusion which was updated a few years ago  http://www.debtanddelusion.com/

Certainly might be something to factor in to your risk management

Whats interesting is that these are the same guys that predicted the credit crisis and bank folds. Now there predicitng a much worse crisis where countries fold.

All empires from the roman empire to the engligh empire all fell because of economic troubles. The question is not if the US will fall, but when?

Property Toolbox | Online Property Courses | Property Investing Courses | First Home Buyer Courses
www.propertytoolbox.com.au

^^ If we will fall, I would predict that we won't be a lone. A lot of our allies will go down with us.

Global Real Estate Guide

what i really want to know is how i can protect my wealth. more than likely cash will become worthless as currencies collapse with economies, Properties might lose their value to the point where they are as cheap as chips and gold/silver is only worth its weight on the stock market but in reality i cant go down to a shop and buy a loaf of bread with a gold bar so what would there be that would protect my wealth or the very least put a roof over my head, food on the table and keep me warm in winter?  guess if i owned my own home would be a start  but with no work how will i maintain it and pay bills etc etc.

eloi - do some reading on the last great depression. Bills will become the last of your worries. People will learn to HTFU.

During the last Depression there was over 30% unemployment at one stage in Australia and many people got used to eating roos or rabbits full of buckshot every 3rd or 4th day.

But it isn't all doom and gloom. So long as the government can keep a lid on rioting, with actual resources being given to the populace (food, clothing etc) then people (generally) start to help each other out and share more often.

My biggest worry with a depression now isn't how to deal with an adjusted lifestyle but has the general populace become too soft and self entitled to deal with it? If the house of cards collapses now, the mental fallout in developed nations will be extreme.

hey unnmester

yeah i agree. i think most people in developed countries will suffer the most because we are so used to a good and easy life. well lets hope it doesnt collapse completly.

Thanks for the very interesting reading everyone, on this and the other threads that are on a similar topic.

Time to follow the money. If the money is going out of shares or property and into metals etc, follow the money (to some extent, not blindly) to hedge your bets.

I think the people in the cities will have the hardest time adjusting if we all need to start eating Soylent Green.(Yeah not funny I know) Where do you grow vegetables without sun or yard? Time to hoard land as you can always grow food or animals. Then when the good times roll again (they did after the 30's) then you can build houses on it. Buy silver/gold because it will always be in demand, we are still using to trade how many centuries after the collapse of the Romans. 

I think Australia as a country will pull together as that is who we are, if the worst happened we would be bartering away, people would find some skill they were good at to trade and we would look after each other as that is the kind of nation that we are. We don't let people sleep in cardboard boxes if we can stop it. We don't let people starve if we can stop it.

I went to a very interesting talk this weekend with a newly bald man. It didn't change my thinking but it cemented a lot of my views.

Time to ride out the storm and try and make money out of selling umbrellas....or boats.

D

Work Smart, Not Hard.