Why we want you to be rich

"The financial problems we all face are now bigger than the U.S. government alone can handle... However, the problems have not been solved and now are becoming global problems, beyond the borders of our country and beyond the control of our political leaders" -- Robert Kiyosaki

I have brought the newly released book "Why we want you to be rich" by Donald Trump and Robert Kiyosaki from the US at a discounted price of usd 16. The local book store in Singapore is selling the book for S$40.

One of the message that strike me after reading the book is that the US dollars is devaluating... not just dropping in value due to inflation. Due to a growing trade deficit in the US, $423 billion trade deficit forecast for 2006, more gold was leaving the country. Due to the lack of gold in the house, in the year 1971, US converted the dollars from real money (money back by gold) to currency ( money back by nothing). From then onward, US has the liberty to print fake money to uphold their ever increasing trade deficit provided that all other countries trading with the US accepted US dollars. What is the criteria that other countries accept the US dollars for trade? One is that US must continue to project as a superior nation, a world leader and policeman. Second is that it economy must continue to grow. With rising oil prices, will US economy suffer from a contraction and thus nation will stop accepting US dollars for trade. That will drive the US dollars in less value than ever.... With a falling us dollar, and if it falls drastically in a short period of time, what will the impact it has on US and the world economies? Massive....

Just take a look at the S&P index and see for yourself the rise of the index after year 1971..... This is the impact of printing US dollars have on the Stock market in the US. It will come a day when the bubble burst for this un-substainability of the US dollars and US market as a whole... the question is, when will that day arrive? Hopefully, not within my lifetime...


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