Rich Today, Poor Tomorrow

It is my position that the United States is in extreme financial peril.

In addition to my Men's Rights activities, I am quite interested in the financial markets, and will post articles I think are relevant to truthseekers from time to time.

Our free spending ways have created a situation where our economy is overdue for a severe downturn. Due to a combination of short-sightedness, greed, and calculating self-interest, the financial markets are riding a bubble that will soon burst, which will ruin many people who think that the good times will last forever.

The Money Masters, via institutions such as the Federal Reserve, have created a tremendous house of cards, the structure of which is incomprehensible to the average American.

Today's piece is written by Mr. Robert Kiyosaki.

Enjoy.

Rich Today, Poor Tomorrow

by Robert Kiyosaki

As promised in my last article, this week I'll explain why deflation will severely punish the upper middle class. These are the people who think they're rich because their houses and stocks have gone up in value -- that is, because of inflation.

What Goes Up...

People concerned about inflation today tend to buy big houses and nice cars. They believe that the purchasing power of the dollar is going down. But what happens if cash becomes king?

This cash squeeze is already affecting many people who thought they were rich. My wife, Kim, has a friend who's a successful architect. Her husband was a manager of a good sized advertising agency. They have three children, the oldest in high school, and earn about $350,000 a year in combined income.

Because they were flush with cash, this couple purchased two high-end vacation homes, one in the mountains and one at the beach. They live most of the year in a McMansion in Phoenix.

Things were going along fine until the husband lost his biggest client. Then he lost his job, and in less than three months their savings was depleted. They then tried to sell their vacation homes, but the values had dropped below the mortgage amount. Today, they continue to pay the mortgages on their houses and hope the price of real estate will go back up. They sold one of their BMWs at a loss.

In 2005, they were net-worth millionaires. In 2007, they're facing bankruptcy...

Be sure to check out the rest of the article.

Kumo out.