12 THE BiG DROP
Have you noticed that government officials, billionaires
and major CEOs rarely seem to suffer when the financial
system collapses, as it does from time to time?
It’s not a coincidence that it’s everyday investors and middle-
class savers who see their 401(k) accounts and stock portfolios
take a beating during collapses. This is because the elites have
inside information. They see the catastrophe coming and warn
each other to get out of the way in advance.
Not every billionaire is a full-time financial expert. Some
made their money in telecommunications, social media,
Hollywood or other endeavors. But they do share tips and inside
information at private conclaves in Davos, Sun Valley, Aspen,
Jackson Hole and other hangouts of the rich and famous.
They see trouble coming and scramble out of the broad
stock market and into hard assets, art, cash, land and other
safe havens. When the collapse comes, they emerge from their
financial bunkers to snap up valuable companies that small
investors have been panicked into selling at bargain-basement
prices. As soon as elite institutions like the BIS and IMF start
sounding the alarm, the smart money knows where to hide.
These elite warnings serve another purpose in addition to
giving fellow elites a heads-up. They insulate politicians and
officials from blame after the crash. When the collapse comes,
you can be sure the BIS, G-20, IMF and the rest will point to the
statements I just told you about and say, in effect, “See, we told
you it was coming. Don’t blame us if you didn’t take action.”
The warning has been sounded. The time for defensive
action is now. Fortunately, it’s not too late to take some of the
same defensive measures as the power elites.■ Welcome to the New Depression
The United States is living through an economic depression
that began in 2007. It’s part of a larger global depression, the