Is the United States Too Big to Fail?

October 12, 2011

Let me be up front with you right now, I’m no economist,
I don’t have a crystal ball (and it seems that no one else does either), but as an America Living at Lake Chapala, Mexico I think my US pension (even if it takes a significant hit in value) will be enough to live a comfortable life style.
I’m getting the distinct impression from my reading that the US is reaching a critical point and seems adrift without much leadership from either side of the political spectrum.
Now, before I go on, I want to tell you guys that I love comments, but will not approve any comments of a pure political nature.
Some forums love to have its members doing verbal combat on their blogs.
Even some of the experts say this is a good way to build traffic (the lifeblood of websites), but while this may be so this post is not about politics.
Let me just say, “There’s enough blame to go around.” We all hope someone fixes the economy, but what if they don’t?
Or, what if they only sort of fix it (most likely in my view). Many people seem to think that the US is too big to fail. 
If you recall your history, there’s never yet been a nation state that was too big to fail.
Rome, England, and France had empires once upon a time. Germany, Japan and, the USSR tried.

No, I’m not a historian either, but as much as I would like to think that the US is too big to fail I don’t believe it is.
I’m not alone, I’ve been reading the book “Aftershock: Protect Yourself and Profit in the Next Global Financial Meltdown” and I’d like to quote a paragraph I found disturbing on page 103 of that book.
Some people think that since the dollar and U.S. government bonds are so important to the world economy, the rest of the world won’t let the dollar fall or the government debt bubble burst. This is often used as a reason why China will want to maintain the dollar’s value – because it is so heavily invested in dollars. The reality is that China does not control the market. In fact, no one group comes anywhere close to controlling the market. Because of that, it is in everyone’s best interest to get out of dollars, even if it is not in the groups best interests. As we have said many times before, last one out is a rotten egg, and no one will want to be the rotten egg.”

Most American retirees  major asset is their home.
The situation in the United States is very likely reaching a critical point or will soon. The government seems paralyzed to prevent it.
I think they’re beginning to get desperate. It seems to me (I could be wrong) that US Citizens could see more restrictions on their ability to move their money out of the reach of the tax man.
I highly advise you to do your own research on the points I bring up.
I’ve had some inquiries about using IRA’s to buy property here. Not being an accountant type, I was of little help, but under some circumstances, I think it’s possible.
Please consult your own tax and account advisors.
Also please understand that I reluctantly even brought all this up, as I know I may be scaring some folks … and that’s not my intent. 
My sole intent is to share, as a friend, some disturbing information, in the hope that being potentially forewarned is potentially forearmed.
As a former police officer and former attorney at law, I’ve always done my best to anticipate potential danger BEFORE it’s too late.
As a police officer, my life depended upon being cautious in dangerous areas.
As an attorney, my clients trusted me to be sure that their assets received protection via wills, trusts, partnerships, and corporations.
My real estate clients here trust me to represent their best interests as a Buyer’s Exclusive Realtor and to do my best to protect them from over spending, from buying an inferior property, and for guiding them to competent Notarios, Home Inspectors, and other professionals.
How much time do we have before the dollar bubble bursts?
Currently you still have good options for protecting your assets and safeguarding your wealth, that's the good news.
What we may not have is a lot of time to wait. I personally think from my study that we have until early 2013.
Again, I have No crystal ball.  However, I’d rather be early than be late in holding some of my wealth outside of the USA.
In fact, I’ve already moved some of my wealth right here to Lake Chapala, Mexico so as the guys says, “I’m putting my money where my mouth is.”
You have to decide what’s right for you!
All for now,
Siempre tu amigo,


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