Inflation either way, whether we default or simply raise the ceiling and print more money. The dollar will continue to crash and silver will continue to rise along with other commodities. Rich Dad preaches cash flow and a great way to take advantage of taxes, inflation, your retirement, and debt(good)is by investing for cash flow with real estate.
From the Wall Street Journal: “President Barack Obama pressed congressional leaders Monday to forge a $4 trillion, 10-year deal. But after another contentious meeting at the White House, the odds that Democrats and Republicans can bridge their differences over taxes and social programs to reach such a sweeping plan ahead of an Aug. 2 debt-limit deadline appeared to diminish.”
In 6 months, the only thing that has changed is the calendar. Now with backs against the wall, and the Republicans still want huge spending cuts and no tax hikes, while the democrats still want to increase spending and also increase taxes. Neither side wants to give in, as Robert Kiyosaki puts it: “The result is a high-stakes game of economic chicken.”
If the two sides do not reach a deal, the US will default on its debt. If the US defaults on it’s debt, more than likely the credit rating to the US will be downgraded further.
So what does this mean for you?! Well…At this point it does not look good either way for the middle class. Like I said, it’s inflation either way.
If the US defaults, confidence in the Dollar would crash. Since all currencies are pegged to the Dollar, it would be catastrophic. Add to that the fact that the world’s economies would scurry to exchange their dollars, which would flood the market with dollars and turbo jet downward the value of the dollar. Which would of course, turbo jet UPWARD the cost of living for us here in the US.
If the US comes to a deal that does not include huge spending cuts, their only options would be to print more money, raise taxes, or a combination of BOTH. This also means… The middle class will lose more of what they have worked hard for and inflation will rise.
Either way, the cost of living in the US goes up.
Work hard and invest wisely. In the midst of all of this madness there is a huge oppertunity to attain cash flowing assets at super low prices.
By Joshua Gayman