Aftershock: Protect Yourself and Profit In The Next Global Financial Meltdown, Second Edition

How Long Do I Have to Follow These Three Rules?

We know that as the collapsing multibubble economy falls, the last bubble to burst will be the government debt bubble. As we explained in Chapters 3 and 4, the exact timing of when the dollar and government debt bubbles will pop is hard to nail down. It could occur as early as 2013 but much more likely in 2015 or 2016. Rising inflation and rising interest rates will be key to kicking things off. When inflation and interest rates are high enough to significantly impact investor psychology, particularly foreign investor sentiment, there will be a significant decrease in the amount of foreign capital flowing into the United States. Instead of borrowing massive amounts of foreign money, we will have to print massive amounts of money, further pushing up inflation and interest rates, and further devastating U.S. asset values. Therefore, you have to follow our Three Rules until after the dollar and government debt bubbles fully pop, or you will very likely lose a lot of money.