We are at the WMI m3 Private Wealth Group in Jamaica this week. This is our 3rd m3, which are our International events, and we have also had 10 m2 Wealth Conferences, which are held domestically. 

This event is at the Ritz Carlton in Montego Bay, and as I write this I am sitting on our balcony overlooking the turquoise Caribbean waters...just breathtaking.

I began publishing the VRA in 2002, and in 2005 we formed Wealth Masters. Both companies exist for one reason; to empower people with the highest level of true knowledge and wealth accumulation strategies in existence. It is what my Co-Founder and partner Karl Bessey and I work on pretty much 24/7, and I cannot imagine doing anything else.  

The Chinese are famous for the quote "may you live in interesting times", and it is safe to say that these are certainly qualify as interesting times. More like upside down times. The world is awash in record levels of debt at all levels...government, corporate, and individual...yet the prescription is MORE debt. Clearly a recipe for catastrophe. It's like a train wreck in slow motion. Everyone can see it coming and it's impossible to take your eyes off of it.

And, more than ever before, it's becoming a world of the haves and have nots. The ultra wealthy and elite have the playbook in advance...their own crystal ball...and are busy preparing for the oncoming carnage. But what they are preparing for more than anything else is the resulting opportunity that presents itself during economic calamity. Because just as I'm certain that the water here will be turquoise again tomorrow morning, I am certain that the global economic crisis that began in 2008 is only in about the 2nd inning. Unfortunately...at least for 99% of the planet...the last 7 innings are going to be awful. 

Money backed by nothing cannot last. Corrupt government and financial markets cannot last. We know how the last chapter will read, the only question now is one of timing.

Market Update

While most stock markets are still down 10% in just the last month, last weeks rally raised the hopes of the bulls that maybe the worst is behind us. After all, 2nd quarter earnings are expected to be strong (at least for the largest companies) and historically this news has been positive for stock prices. The problem as I see it is that this rally is taking place on VERY light volume, and its also concentrated in only the biggest blue chips. Most stocks continue to tread water or continue in their decline. And while I would not be surprised to see earnings reports take the market a bit higher, if earnings fail to impress then the next big move will be sharply lower. Remember, the markets anticipate 6 months out. And in 6 months time, these are the news stories that I expect to see:

- Unemployment breaks 10% in the US by a considerable margin, with no reversal in site. Census workers are now unemployed (again), and with states laying off hundreds of thousands of workers in order to try and balance their budgets, the battle is being lost.

- Foreclosures reach record levels as the "shadow inventory" of 4 million homes finally hits the market, combined with fresh foreclosures of 3-5 million homes, brings the total for 2010/11 to nearly 10 million.   

- Europe declines into a severe double dip recession, which brings several well-known economists to begin forecasting a Global Depression for the first time.

These, and many more reasons, are why I believe the last half of 2010 will look very much like the last half of 2008...specifically the late 3rd and 4th quarters. If I am anywhere close to being correct, is there any scenario where you can imagine global stock prices rising? If nothing else, this is a great time to raise cash. In addition, the unintended consequences of untold trillions in freshly printed money worldwide, not to mention the 15 trillion+ in government loan guarantees and artificially low interest rates will bring on the next shock to the system...higher interest rates at the worst possible time. When lending begins to shut down completely worldwide (as is happening now throughout Europe) the competitive demand for fresh debt funding at all levels will lead us into global hyperinflation. This is the runaway freight train that few are talking about, at least publicly, but that everyone is scared to death of. 

Signing off from Jamaica....looking forward to seeing many of you this week!

Kip       

Could the Federal Reserve, European Central Bank (ECB) and other central banks around the world prevent the coming collapse until 2011 or even 2012? While anything is possible, I assign odds of this at just 20%...this situation is just that grave. On top of this, the money is simply not there for “global financial system bail-out part 2”. The world is awash in tens of trillions in dramatically overpriced toxic debt and the smart money around the world smells blood. We have now entered a vicious negative news cycle which will look like 2008, but this time instead of simply having to deal with the subprime crisis and insolvent commercial and investment banks, the 2010 version of this financial Armageddon will bear down on the sovereign debts of every bankrupt entitlement country on the planet. Unfortunately, this includes every major country on the planet. And yes, this includes the US, Japan, China, every country in the euro zone, Eastern Europe and the UK. 

On Friday, while the US stock market was dropping over 300 points following a absolutely horrible unemployment report, our good ole granddad Warren Buffet was testi-lying before Congress, having been served a subpoena to appear. You would think that the Oracle of Omaha would have seen the financial tsunami headed our way back in 2007, but as he told our incredulous looking lawmakers, “I just missed it….I screwed up”. I guess losing $50 billion (45% of all assets under management at Berkshire Hathaway) in 9 months qualifies as at least a pretty decent screw-up. He went on to say that “I don’t think anyone really saw this coming”, which makes you wonder if he is entering the early stages of senility or simply learning the game of liars poker from his good buddies at Goldman Sachs (where Buffet has invested huge money) and Moody’s. Speaking of Moody’s, the ratings agency that Buffet owns, they also seemed to be a bit late figuring out that the largest housing bubble in the history of mankind was upon us. I began warning about the subprime crisis and coming debt meltdown in 2005, yet somehow one of the worlds premier ratings agency couldn’t get their arms wrapped around the problem until 2 months before the Lehman Brothers collapse in September of 2008, when they officially began downgrading the debt of subprime mortgages. They only missed the onset of the crisis by a full year….NICE call! Even today, Moody’s has Triple A ratings on the government debt of just about every bankrupt European country. I’m pretty certain that the 500 or so “world-class” economists that are on the payroll at Moody’s have sold their souls…which puts them in good company with Buffet and the criminal enterprise that is Goldman Sachs.   

The playbook for the rest of 2010 looks to be set. The debt and fiat currency collapse that began in 2008 will now transcend to massive global defaults of sovereign country debt. In the media you will hear of “coordinated monetary support” between all major countries, but these will be a mere smokescreen to reality. The dominos have begun to fall and the surprise of the collapse will be shocking, at least to most. 

Gold and silver are well on their way to being viewed as the only true currencies on the planet, so continue to buy coins and bars. Unfortunately, mining stocks are just that….stocks…and for the time being their shares will be hit as well. In the future these will be the very best of investments, but for now they will most likely go down in price with the overall stock market. The US is responsible for unleashing the exact toxic debt instruments, not to mention the corrupt to its core concept of central banks, that caused this financial disaster in the first place. Karma will get the last laugh here.

I know that much of what I have written here, and over the last couple of years, has been negative. I am an optimist at heart, and you should believe me when I tell you that it’s not easy for me to take these positions. But I am also a realist, and I believe deep down that we truly need to hit the reset button when it comes to government, corporate and human corruption. The free market system will eventually win out…it always does…which is why financial bubbles never last in the long run. 

Those that hold gold and silver….those that hold growth stocks with bright futures….those that make smart financial decisions…and those that learn to think on their own, will be the new wealthy in the years to come.  

 Kip                         

In the United States, trillions in taxpayer funded bailouts have done little to get the economy on its feet again, and in hindsight will be shown to have done nothing more than contribute greatly to our more than $100 trillion in total debt. Debt that cannot, and will never be repaid.

This is it. We are officially crossing the line that we have warned about since the inception of WMI in 2005. To most, events in the world economy will now begin to unfold in seemingly uncontrollable fashion. Clueless governments still don’t understand that it was their ruinous actions that created a credit infested, fiat currency based, bankrupt world. They didn’t learn this lesson from their mistakes of the 1930’s and now it’s too late to prevent a similar lost decade this time. Trust me, they will continue to prescribe the same remedy that caused the problem in the first place, specifically more government bailouts and more printed money. The consequences are clear; we will soon see hyperinflation, economic crisis, and in many parts of the world, social unrest…similar to what we are seeing in Greece and Thailand today.

Never in history has the world been in a situation when virtually all industrialized countries are bankrupt at the same time. And many feel that because there is really no precedent for what will happen in the next few years, that our future can only look bleak, and possibly even frightening.

Were I still stuck in my old Wall Street mindset, I might share in this dark and pessimistic view. Sure, I am concerned about what is headed our way, and I am extremely concerned for those that remain unprepared. However, there is a big flip side to this coin. You see, it is times just like these where massive wealth is created. For many this concept may be difficult to comprehend, but economic upheaval brings with it a new beginning, and through this new beginning, untold opportunities to build generational wealth. Many of you have heard me state the fact that “more wealth was created coming out of the Great Depression than existed before it began”. But how can this be? Doesn’t money just disappear when the stock market…and the real estate market…and the currency markets… collapse?

And this is where the most important point I can make comes into play. Energy and money share an absolutely similar trait. Like energy, money never disappears. And, just as energy “transfers” throughout the universe, money “changes hands” as it moves from the ill-informed to the well-informed.

And this is the purpose of my update to you today. The economic uncertainty unfolding will cause many to be scared and unsure of what their future holds. And while some of you reading this may go through periods where you share those same concerns, the most important thing you can do is to maintain a laser like focus on the opportunities that exist all around you. You see, entrepreneurs and independent thinkers will be the biggest winners of all in the years to come.  And, when combined with your WMI education and your connection to our community of like-minded visionaries, you will find that everything you need… you actually already possess.

Your friend,

Kip



I probably have your attention now....because this is exactly what just happening. Whether you live in the US, Canada, Norway, Australia, or another country that contributes to the IMF (International Monetary Fund) you just contributed to the $144 billion bailout of Greece. This deal should be called "Fleece" because markets around the world woke up to the fact that not only will $144 billion not be enough, but that the European Union (EU) just used all of the borrowing capacity that they had on a single country with just 11 million people.

Here is the only fact that you need to know, when it comes to the problem that Greece faces today. After the bailout was announced over the weekend, interest rates on 2 year Greek debt dropped from 14% to under 10%. This was a somewhat encouraging sign that the bailout might just work to restore the confidence of the many lenders that will be needed to continue to fund this tiny, but economically important and insolvent country. So, where are the rates on that same 2 year debt just 24 hours later? BACK TO 14% PLUS!

Thats right folks. 2 year debt is still at a 14% interest rate AFTER a $144 billion bailout!

And here's why. It did not take long for people to figure out that this incredibly huge sum of money would only paper over the problem in Greece for 12 months. Thats it....12 months. The EU was hoping that the bailout would work a miracle, but instead, they once again have to deal with pawn-shop like interest rates...and on short term government debt no less!      

This is why I have been saying that Greece is the canary in the coal mine. And it will soon become 2010's version of the Bear Stearns implosion, as well as the subprime crisis that started the worst global economic collapse since the 1930's. And, this is ultimately why bailouts never work. Sure, lots of supposedly smart people think that the worst is behind us. Soon, we will see what their answer will be to the implosion of the Euro, and along with it, the next stage of the Greatest Depression. 

I implore everyone reading this to remain as debt free as possible, and to sell all long term government, corporate and municipal debt that you own (as investments). Also, make sure and limit your exposure to real estate if it is heavily burdened down by debt. In addition, keep less than 10% of your assets in the "equity"  markets (in investments such as mutual funds and 401k's, etc). Instead, move those dollars to the "cash" or "short term money market options" in these types of investments. It is highly likely that we have reached the end of the bear market rally that began in March 2009, and that before its all over we will see the Dow Jones below 5000.  

And finally, make sure that you own precious metals....gold and silver. In 2003, when gold was under $300/ounce,  I wrote "when gold and silver really begin to explode in price, it will be because they are viewed as currencies instead of commodities". And while its anyones guess exactly when that might happen, the situation in Greece, and throughout the largest countries in Europe, tells me that 2010 is the most likely year. Gold might look expensive at $1160/ounce...but it's actually over $1000/ounce below it's inflation adjusted highs.       

Kip     

Attendees braved the snowy, frigid Norwegian air to hear the WMI story at the historic and classically European Edderkoppen theatre. Among this group were over 150 existing WMI Members and Consultants, along with scores of interested entrepreneurs, each eager to learn about WMI’s host of financial, health and personal empowerment solutions.

Conducted by WMI’s CEO and Co-Founder, Kip Herriage, the event served as a full-on business demonstration of Wealth Masters’ diverse product suite. The day included a screening of WMI’s powerful documentary, “The Conspiracy Against Your Money”. Event Coordinator, and Norway’s very first WMI Consultant, Per Gunnar Hoem offers perspective; “Kip got right down to business and started off the day with a bang! The crowd was electric and the momentum never seemed to die. They knew right from the beginning how these products could benefit them and their families.”

Throughout the day-long event attendees were introduced to WMI’s inventory of world class solutions designed to educate and empower users through wealth, health, and wisdom, while also offering our unmatched entrepreneurial opportunity. Over the next two days, participants were invited back for personal sessions with Kip, Per Gunnar and his incredible team of Scandinavian leaders. “When Karl and I founded Wealth Masters we knew we wanted to deliver a truly International impact. Since that time the worldwide response has been massive and we are resolute in our commitment to supporting it by any means necessary,” said Kip.

WMI Opens Our First European Office

To service the growing Scandinavian Member base WMI also announced the launch of a dedicated office in Norway scheduled to open in March. The office will be staffed and managed by WMI Consultants and recognized financial experts throughout Norway. Wealth Masters will now continue its 2010 World Tour with appearances in Australia this week and Canada in early March.

As the global economic outlook becomes increasingly uncertain, individuals across the globe continue to turn to Wealth Masters International for guidance. The Company looks forward to seeing you at one of our International events in 2010 and beyond!

details here: http://wmiblog.com/

Kip

First….a very Happy New Year to everyone!

It’s incredible realizing that we are wrapping up the company’s 5^th year. We’ve gone from having just 10 Members in our first month to over 20,000 (in over 30 countries) as we begin 2010. Back in 2005, Karl and I had no idea exactly how fast we would grow, but deep down we knew that as long as we remained committed to building WMI with integrity that we had the potential to attract the worlds best marketers, which in turn would allow us the opportunity to serve Members from all walks of life with our holistic approach to world class education in Wealth, Health and Wisdom. The fact that we are now an industry leader proves that we are on the right track.

For those of you with kids, you know how fast time flies. It seems like just yesterday that Cindy and I were holding our two boys as newborns. Now, Tyler and Sam are 17 and 13, and I find myself wondering where all of those years went. Finding this industry (in 1999) has given me the opportunity…and the time…to create memories and experiences that I otherwise would have never had. I know I speak for most of you reading this as well. Now, as we head into a new decade, our thoughts turn to goal setting and our plans to make 2010 the best year ever.

As you’ve heard and read about, WMI has some ground breaking developments in store for each of you, from both a Member and Consultant point of view. Thanks to Carbon Copy Pro, thousands of entrepreneurs have had the ability to learn internet marketing from the absolute best in the business. We all have Jay and Aaron (along with the entire Pro leadership team) to thank for this, and their plans for 2010 will only increase your ability to earn record incomes going forward.   

With our knowledge of what’s coming down the pipe, I predict that 2010 will be the most important year of your business career. I am often reminded of a favorite quote from Napoleon Hill, and from our point of view, it’s more appropriate now than ever; “Every person who wins in any undertaking must be willing to cut all sources of retreat. Only by doing so can one be sure of maintaining that state of mind known as a burning desire to win, essential to success.”  

“Cut all sources of retreat…with a burning desire to win”…what a powerful thought process! And, it’s a mindset shared by every top leader in WMI. Karl and I adopted this mindset over a decade ago, and in early 2009 it was the primary motivation behind our decision to launch a “traditional” marketing approach with Wealth Masters. We didn’t enter into this decision lightly. It was well researched, well thought out, and trust me on this…very well funded. And, talk about a win-win. CCPro’s unmatched online marketing expertise plus our new offline marketing approach. What we are about to unveil is centered around WMI’s new product line, featuring the 1% Solution and The Conspiracy Against Your Money documentary, along with our built from the ground floor up marketing division. We’ve had the air attack covered for years with CCPro… and now we will have the ground attack covered as well.

Make no mistake about it….this will be the first time that this level of marketing expertise has been combined in one company in the direct sales arena, and it’s the reason that you’ve heard all of the industry buzz about Wealth Masters as we head into 2010.

We truly look forward to an amazing New Year together. This has the potential to be the most important year of your life, so make sure you are involved at the ground floor as we launch everything that is the “New WMI” on January 30^th, here in Houston, TX.

The reality...the sad reality... is that most people go about setting goals in a way thats guaranteed that they will never achieve them. The majority focus on their past; what they either didn't do, or what they did wrong. Then they go about trying to correct those "mistakes" in the new year. Big mistake.

You see, it's by focusing on the negatives in your life that you almost insure that you will repeat those same mistakes....time and time again. Instead, what if you were to focus on what you actually want out of life? Think about it this way; Your emotions...and your thoughts...act as a magnet to your reality.

Whatever you think about....you will most certainly bring about.  

Join us in Houston. Together we will make 2010 your best year ever.

http://www.youtube.com/watch?v=x2ly_cGS_3k

Hope to see you soon.

Kip 

Having said that, it is incredibly important to have a clear view of the macro environment...how is the overall economy (both in the US and globally) doing and how is it expected to do in the months to come? So...lets start there. It is vital that you understand this subject and where we are headed over the next 1-3-5...and maybe even 8- 10 years.  

Long term, I am very concerned about the health of both the US and global economies. Sure, China has held up incredibly well, but outside of this still communist country and maybe Brazil and Australia, there aren't many bright spots to be found around the world. And, once you dig a little deeper into China you will discover that if it were not for their massive government stimulus programs (which were more than twice as large as the US taxpayer funded bailouts), China would be in a serious recession as well. Of course, commodity rich countries, like Brazil, Canada, Australia, etc., have done well and for obvious reasons; the stuff they are able to extract from the ground has given them lots of valuable exports and reciprocal income. The truth is, if it were not for China and their decision to provide a foundation for the weakest global economy since the 1930's, we would likely be witnessing a global depression right now.         

As we enter 2010 the question remains; what happens when the "funny money" runs out? After all, at some point governments around the world will be unable to continue printing and passing out money to replace the spending that consumers are responsible for. And we know that consumers are still spending very little money...thats what happens when they don't have jobs. In the US, over 70% of our economy is driven by consumerism...the stuff that we buy. Globally, these percentages vary from as low as 40% to our high levels domestically.

Here's my prediction for 2010 on this most important of questions; As it becomes more and more clear that the US economy is incapable of bouncing back on its own, look for additional stimulus programs to be announced. And this exact scenario will play out around the globe. So, don't be surprised to see these idiotic decisions by the powers that be to move stock markets higher in the short term. In fact, this is one of the reasons that our markets continue to rise today, in anticipation of just this sort of action. These moves are already being made in Japan, which just announced a one trillion (yen) stimulus program tonight. And who knows, these massive bailout programs may propel stock markets higher for months to come. Following the 1929 crash, the government launched one bailout after another until many were convinced that the worst was behind us, only to see the stock market drop nearly 90% in the years to come. In Japan they have repeated just about every page from our 1930's playbook only to see their stock market drop from 38,000 to 8,000...80% + over a 10 year period. This has pushed their debt to levels that make it clear it can never be repaid. And once Japan begins to default, which will begin to happen once interest rates begin to rise, a domino effect will unfold globally with such speed and force that it will be breathtaking in its magnitude.

And this is the key....rising interest rates. Folks, they are on their way and they cannot be stopped. Hyperinflation is a word that few know or understand, but in the years to come it will become a household name...and it will bring a level of fear and panic that make the last couple of years look tame in comparison.

This is why I continue to discuss, educate about and recommend the Armageddon Trade to VRA subscribers. This is why we own gold and silver, gold and silver mining stocks, and its why we are short 30 year Treasury bonds. This trade will be one of the most lucrative of the next 5 years and one that I strongly believe should be a core holding for every portfolio.

This is the central plot line for the $50 trillion wealth transfer. The greatest transfer of wealth in history has begun....make sure you are prepared.

With crisis comes opportunity. In this case, a once in a multi-century opportunity. 

Kip