This is no longer just a credit crisis. This is now a full-blown financial crisis with the second largest banking failure in US history occurring over the weekend. There is a good deal of concern from regulators and market watchers alike about a cascade of banking failures. Yet, listening to many stories on television and other media outlets, consumer are being told not to worry. Keep spending; your money is safe. Is it though?

I would say to inquiring minds that the actual dollars are safe. They can be created from nothing at almost no cost. Thanks to the advent of electronic banking, they can be created by a few keystrokes on a computer terminal. What isn’t safe though is the value of those Dollars. In fact, the value of your Dollars was under attack well before the first adjustable rate mortgage was even written. Remember that every bailout and bank rescue just necessitates the creation of more Dollars; without corresponding economic growth. This is a recipe for inflation. The sins of 2006 are just now being felt by consumers. What about when we get to 2007 and 2008? If you intend to protect your wealth, you’d better stay tuned, read the commentaries on our site that discussed preservation of wealth and ACT. Some of these strategies were published two years ago and you can see the results of the strategies so far. It is not too late.