{"id":176,"date":"2012-08-21T22:18:30","date_gmt":"2012-08-21T22:18:30","guid":{"rendered":"http:\/\/www.apisbull.com\/blog\/?p=176"},"modified":"2012-08-21T22:18:30","modified_gmt":"2012-08-21T22:18:30","slug":"which-would-you-choose-to-survive-an-economic-collapse","status":"publish","type":"post","link":"http:\/\/www.apisbull.com\/blog\/?p=176","title":{"rendered":"Which Would You Choose To Survive An Economic Collapse?"},"content":{"rendered":"
Say you have a large chunk of credit card debt, but you believe economic crisis is just\"\"\u00a0around the corner. \u00a0Would you then:<\/span><\/div>\n

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1) Pay off the debt? Or…<\/span><\/div>\n
2) Start buying gold and silver hand over fist?<\/span><\/div>\n

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After all, we are confident that the \u201cold ways\u201d of investing no longer apply in 2012 and beyond.\u00a0<\/span><\/div>\n

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We are confident the US government will be forced to choose from either inflation or deflation to get out of this mess – causing a global economic disaster either way.<\/span><\/div>\n

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And yet we\u2019re also confident our new \u201cInfinite Banking Concept\u201d investment strategies of the ultra-rich will help us survive and thrive during the economic calamity.<\/span><\/div>\n
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But when we get a question like this, it pushes us to the limit…<\/span><\/div>\n

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EVG member, Elizabeth S, asks:<\/span><\/strong><\/div>\n

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Because of life-happenings, as well as stupid financial mistakes, we have around $20,000 in credit card debt.\u00a0<\/span><\/em><\/div>\n

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Given the present financial disaster hanging over our heads, does ANYONE know if it would be better to save money like crazy or get these credit cards paid off?\u00a0<\/span><\/em><\/div>\n

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Elizabeth S.<\/span><\/em><\/div>\n

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Thanks for the question, Elizabeth. I know many are in the same spot, and it\u2019s a tough one.<\/span><\/div>\n

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Unfortunately, there is no single answer. \u00a0All we can do is give you some facts and help you best understand your situation… a situation made worse by the threat of an economy that could fall apart at any time.<\/span><\/div>\n

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And of course there are no certified financial advisors on our team, so we can only tell you what we would do. After that you need to discuss it with a financial advisor.<\/span><\/div>\n

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Taking all that into account, here\u2019s what you need to know to make your decision.<\/span><\/div>\n

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Right now…<\/span><\/div>\n

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…The Greatest Battle Affecting You Is…<\/strong><\/div>\n
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…deflation vs. inflation.<\/span><\/div>\n

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The housing bubble and 2008 financial crisis were major deflationary events. \u00a0And since governments hate deflation, they\u2019ve been stuffing hundreds of billions of new currency into the system – hoping it\u2019ll re-inflate things.<\/span><\/div>\n
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The trouble is, it\u2019s not working. The deflationary event is too large this time.<\/span><\/div>\n

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So either the government admits defeat and massive deflation takes over…<\/span><\/div>\n

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OR, the Fed will print so much money trying to stop it, we\u2019ll see massive inflation instead – or even hyperinflation.<\/span><\/div>\n

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It\u2019s the government\u2019s choice which disaster ravages our economy, and all we can do in the meantime is prepare for either scenario.<\/span><\/div>\n

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So what do these two scenarios mean for someone holding credit card debt?<\/span><\/div>\n<\/div>\n

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I Hate To Say This…<\/strong><\/div>\n
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…but massive inflation can be good for people with significant credit card debt, at least in the short term. \u00a0As more money enters the system, it drives prices up – including wages and salaries. \u00a0<\/span><\/div>\n

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The only thing that doesn\u2019t go up with inflation is your debt. \u00a0So while you\u2019re bringing home more money, your debt stays the same making it easier to pay.<\/span><\/div>\n

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Deflation is just the opposite, of course. \u00a0With deflation, prices generally fall and cash is harder to get.<\/span><\/div>\n

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This can make debt an extremely heavy burden to hold.<\/span><\/div>\n

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So to be equally prepared for both inflation and deflation, we\u2019d still buy gold and silver, but paying off credit card debt should be a high priority as well, with one exception:<\/span><\/div>\n<\/div>\n

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The Economic Crisis is just 3 Months Away<\/strong><\/div>\n<\/div>\n

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Because if the economic crisis were 3 months away from rearing its ugly head,\u00a0<\/span><\/div>\n
then you\u2019d want to forget about credit card debt and load up on gold and silver.<\/span><\/div>\n

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At this point, there would be little time left to pay down much of the debt. And there\u2019d be a greater urgency to stock up on assets to help get through the crisis.<\/span><\/div>\n

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For that, gold and silver are your best bets in a hurry. \u00a0They are a great hedge against both inflation and deflation because people rush to them during economic crisis.<\/span><\/div>\n

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Even in the deflationary period of the Great Depression, gold stocks soared in value (the actual price of gold was set by the government, so we can\u2019t use it as a measure).<\/span><\/div>\n

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And monetary metals are better than just saving cash. \u00a0Because if the government tries to avoid the economic crash by printing money – an extremely plausible scenario – then inflation will hit and your cash will be devalued.\u00a0<\/span><\/div>\n

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Gold and silver, on the other hand, rise in value during inflation.<\/span><\/div>\n

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BUT…<\/span><\/strong>\u00a0we don\u2019t know yet that the economic crisis is going to hit in 3 months. \u00a0It wouldn\u2019t surprise us if it took 3 years. \u00a0But we are going to keep our eye on current events.<\/span><\/div>\n
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If it does take 3 years for the economic crisis to show up, here are…<\/span><\/div>\n<\/div>\n

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2 Ways To Fast Track\u00a0<\/strong>Paying Down Credit Card Debt<\/strong><\/div>\n<\/div>\n<\/div>\n

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The first way to pay down your debt faster is to make more money!\u00a0<\/span><\/div>\n

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We don\u2019t accept excuses about \u201cnot having enough money\u201d to both pay down credit card debt and buy gold and silver. \u00a0That\u2019s a scarcity mentality, and the truth is you can always come up with more.<\/span><\/div>\n
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The second way to pay down debt faster is to actively seek a lower interest rate. \u00a0This makes a huge difference.<\/span><\/div>\n

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Let\u2019s compare a high 25% APR to a low 11% APR.<\/span><\/div>\n

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After 3 years of paying the average minimum payment on $20k of credit card debt, your balance would be the same at both interest rates: $13,928.35.\u00a0<\/span><\/div>\n

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The difference is, at a 25% APR you will have paid $12232.79 in interest compared to $6,540 at 11%. \u00a0That\u2019s $5,692 you could have used to get better prepared for the crisis.<\/span><\/div>\n<\/div>\n

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Get Started Now<\/strong><\/div>\n
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At this point, we don\u2019t know when the crisis will hit. \u00a0We also don\u2019t know whether the government will choose to plague us with inflation or deflation – but we could find out shortly.<\/span><\/div>\n

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The best thing you can do now is find out more about the economic crisis heading our way, and the \u201cinfinite banking concept\u201d investment strategies of the ultra-rich we\u2019re using to survive and thrive during the storm.<\/span><\/div>\n<\/div>\n
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