More than 60 million of America’s approximately 300 million citizens are COMPLETELY dependent upon the U.S. federal government for income and, these days, the U.S. government is completely dependent upon printing more and more money to pay for what it spends. This makes the value of the U.S. dollar worth less and less.
China, Japan and Britain loan America most of the money America needs to pay its bills by buying up America’s Treasury bills for the guaranteed interest income these “T-bills” pay on these loans. However, these countries and others are becoming less and less convinced that America can continue this guarantee.
The Chinese are even going a step further to help insure the money they invest is safe by secretly trying to corner the market on gold and silver to try and replace the U.S. dollar with their own dollar, called the “yuan” (pronounced wahn), as the world’s most stable money supply backed up by gold and silver.
The U.S. dollar has only been the world’s most stable money supply during our lifetime. All paper money systems in history have come and gone, just like civilizations, and when the U.S. dollar finally loses its “golden” standing in the world it will do so quickly, too quick for most investors in the stock market to protect themselves from huge sudden losses.
So, if the U.S. government cannot control their spending in a very big way what productive things of value will likely do well when the U.S. dollar is finally collapses and is replaced as the world’s most stable money supply? The answer is businesses, farms, real estate, gold and silver. These things of value always deliver some kind of income and value during periods of higher and higher prices for products and services as money becomes worth less and less.
The U.S. stock market sells stock in “successful” businesses that oftentimes profit, remain stable and go up in value while other companies go down in value during times when prices keep going higher and higher for products and services. Unlike other businesses, these “successful” companies also pay you dividend income year after year to keep your money invested in them.
These type businesses to invest in are those companies that are easier to manage and do not require as much new money to manage and grow their companies. Some of these most “successful” companies are Coca Cola, Hershey’s, Gillette, Wrigley, Walmart, Johnson & Johnson and Microsoft to name just a few.
The problem is you rarely get the opportunity to buy stock in these “successful” companies at a reasonable price so it is up to you to figure out the right time to buy stock and the right price to buy stock in these type companies.