Red Alert: Major Meltdown Imminent - Your Escape

The link below will take you to the current “Money and Markets” newsletter by Martin Weiss.  He is an investment advisor that I have been aware of for many years.  I think he is a good and wise investment advisor.  This newsletter was published yesterday February 23, 2009.  It is entitled “Red Alert: Major Meltdown Imminent - Your Escape.”  Every newsletter from anyone is also an advertisement for their newsletter.  Don’t let that bother you.  Over the years I have learned a lot from advertisements that contained a lot of good information.  You don’t need to subscribe to his newsletter.  I trust him because virtually all the information in this newsletter is free.  Even if he would normally charge for the information (like the Banking Survival Guide mentioned below) he is not asking for any money for this information now.  Dr. Weiss tells you what to do with your bank accounts and investments to preserve them for the future. His advice is free and his recommendations are extremely conservative and he won’t make a dime on any of it.

http://www.moneyandmarkets.com/red-alert-major-meltdown-imminent-your-escape-29835

Some of you may bravely think, this is just another “the sky is falling” prediction and you don’t read or worry about sky is falling predictions.  Normally I have had a similar kind of reaction to gloom and doom forecasters.  However, I now believe the sky is falling (at least our economic sky is falling) and now would not be a good time to think you are going to be immune to it.

There is a saying “Knowledge is Power.”  There is another statement in scripture, “If ye are prepared ye shall not fear.”  I think now would be a good time to combine those two statements.  I don’t think, with today’s economy, now is a good time to think that “ignorance is bliss.”  Today ignorance may harm you a great deal.  I think you should arm yourself with as much good Knowledge of the current economic situation as you can get so you can have as much power over your situation as possible.  Then I think you should take appropriate steps to be as prepared as possible so you will not fear.  The linked newsletter will help you do that if you are able to follow the recommendations.

There is a lot of good knowledge in the linked newsletter with some specific steps that you should take to protect your investments and bank accounts from the current and coming economic difficulties.  I recommend that you take the recommended steps.  They are not radical or weird investment schemes. 

Here is basically what he recommends for our current economic situation:

Dr Weiss recommends that you have all of your liquid money in FDIC insured bank accounts under the FDIC insurance limit in strong financial institutions.  Larger amounts of money and investments should be in short term Treasury securities (less than one year maturity).  You can invest in Treasury securities directly through the Treasury, but the easiest way is through money market mutual funds that are invested 100% in Short Term Treasury Securities backed by the full faith and credit of the U.S. government. Whether you buy Treasury securities directly or through mutual funds you realize the same full faith and credit backing of the government.  You can have easier access to your Treasury Security investments in a money market mutual fund than invested directly with the Treasury. There is a $250,000 limit on an FDIC insured bank account.  There is no limit to the amount you can put in Treasury securities including through money market mutual funds.  So, up to $250,000 should go in an FDIC insured bank account.  Anything over that amount should go in a short term Treasury security investment.  401K’s usually have Treasury Security money market mutual funds as part of the 401K.  He doesn’t recommend any stock market investments at the current time.  This kind of philosophy will protect you from any banking problems in the future.  This is Safe Haven investing.  Talk to your investment advisor, if you have one, about Dr Weiss’s recommendations.  If you ask my advice it is included in this paragraph.

There are many other links in this newsletter so you can study out the current situation as deeply as you want to from other sources.  There is even a link to Part II at the bottom.  I recommend that you read the entire newsletter including Part II.  Then you will be armed with as much power as you can muster for our current economic situation.

About a third of the way down the newsletter are five steps to take.  The third step has a link to a pdf file.  I recommend that you download the file at that link and read it and follow its recommendations.  Here is the link to the downloaded file if you would like to go there directly. The file is called “The Safe Money Banking Survival Guide.”

www.martinweiss.com/images/pdf/SMR0250_BankingSurvivalGuide.pdf

Here is the link again to the article by Martin Weiss.

http://www.moneyandmarkets.com/red-alert-major-meltdown-imminent-your-escape-29835

If you have not followed the counsel of spiritual leaders to obtain your emergency preparedness supplies, and a supply of food and other commodities, I strongly recommend that you follow that counsel now. You never know when we will need it.

Here is a link to counsel that I recommend everyone take for home storage.  This short document is entitled  - All is Safely Gathered In – Family Home Storage

www.providentliving.org/channel/0,11677,1706-1,00.html

Here is a link to counsel that I recommend everyone take for family financial management.  This short document is entitled – All is Safely Gathered In – Family Finances.

www.providentliving.org/channel/0,11677,1709-1,00.html

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