What the Eye can't see!

Kia Ora,

As I am going through the Rich Dad Coaching program it is bringing up issues that I think are holding me back, despite all this knowledge. Much of it has to do with the way we think & what is imprinted on our sub conscious from an early age & how hard that can be to change.

The more you educate yourself in the real financial world, the more you see, but not with your eyes.

For example at present the PIIGS (Portugal, Ireland, Italy, Greece & Spain) are in trouble. In particular Greece & plans are beiong hatched to bail them out. As this is happening there has being a move towards buying the 'safe' haven investments of the US dollar & US bonds. But the longer term bonds are struggling to sell, so the US buys them by printing more money.

This causes the US dollar to actually loose value even though it might not appear to for now.

Now with European policy on money until now likely to cause a deflationary depression, more money will move to the US transferring wealth. This has actually happened in Greece over the last few weeks as an estimated US$10 billion has being transferred out of the country by wealthy investors & I get the impression the same is happening in Dubai.

So as this all flows to the US or UK who have 'saved' their economies by printing money the time is right for something else to kick in.

At some stage all that printed money will result, going on history, in inflation & maybe even hyper inflation.

In the meantime the Chinese, who people thought were creating a bubble of their own, are now in the situation where they maybe about to sell their US bonds & US dollar reserves to punish the US for supplying weapons to Taiwan. Or that is what they want you to think, but it is more likely that as US demand for Chinese goods wanes, the Chinese by ridding themselves of the US dollar & bonds will cause the Yuan to become stronger, therefore allowing their people to buy goods they produce (which they can't for now) & therefore keep the factories producing & therefore creating inflation. For the Chinese are students of a long history & their people are more of a threat than the US.

Inflation in the US will in the end make all that money that is rushing there at moment worthless.

What I can see is this is all manipulation lead by the privately owned central banks to transfer more wealth to those behind those banks & by having people rush their currency to the 'safe' havens are transferring more wealth to them.

Then it all looses value. In the meantime the other safe haven of gold & silver price drops as the US dollar strengthens for a while, & so people get out of it saying it won't go any higher, whilst those that have the education are now waiting to buy.