It's the week after Thanksgiving, as I sit at my desk and write this blog. After reading through The Wall Street Journal (as I do religiously every morning) the news reel is running with an article that says Dubai (think sand, sun and giant man-made islands in the shape of a palm tree) is asking for relief of its real estate debts. As I write, world stock markets are down, fearing a default is eminent, and that this default in particular would be unlike any seen since Argentina went down the drain.  I also noticed in an accompanying article, there is a report that notes “the fears of the market are overblown” by whispers like those in Dubai, as world governments continue to pump liquidity into the system.  So, they say, the reality is we should all just “relax.”

Let's look into what this means for you and I, but we won’t start by relaxing, instead, let’s focus on relating to what the word "liquidity" has to do with the economy - so that we are all on the same page.  Liquidity is our government’s  fancy word for the printing of paper money, out of nothing more than thin air (you can read more about it in my blog about the Federal Reserve).  I know that it seems like there ought to be more to this magical solution the government (and media) keep referring to, that it just has to be more than printing-off money and circulating it en masse, but  there really isn't.  World governments, with ours being among the most aggressive, are just printing paper and pushing into the economy. It is being circulated through banks as well as the buying of our own treasury bonds and the US hoping that this, and this alone, will cause a halt to the deflation of the GDP – which is now taking place on a global level.

This so-called “answer”  to our market meltdown may appear to be working and the decline will most likely be slowed – for a brief moment.  This means that by printing up this make-believe money (that's all it really is, as there is nothing standing behind it), it won't be long before reality catches up and the fall-out will be more awful to behold than what we face right now, especially in markets like real estate.

I know I can get to sound repetitive when I keep saying it, but - it is all about the money! At best,  the printing of money in an attempt to re-inflate the world and national economy  will lead to new “micro- bubbles” that will ultimately crash or implode all at the same time. At worst, the markets are too far gone to even pull this old trick and as Societe Generale of France denoted last week, we are on the brink of Global Financial Meltdown – as if you weren’t aware already. Invest in gold and silver – I can’t say it enough!  Most importantly, don't buy into the stock or bond markets and for now avoid buying real estate no matter how cheap it looks to you.  I hate to say it, but worst is likely still to come and it is going to be all about timing.  If you can build up your reserve in precious metals and be patient, you can be the big winner in all of this.  Stay informed, stay calm, but most of all - stay tuned,  and I will give you the advice you need.