2016 Economic Crash

1. The Coming
Crash
Prepared By: Kamea Aloha Sr. Lafontaine
Presents
&
Aug.28,2016

2. Several noted economists and
distinguished investors are warning of
a stock market crash.
recently raised a red flag on a national
broadcast when he declared, “The public is
walking into a trap again as they did in 2007.”
- Carl Icahn
And the prophetic economist warns, “U.S. stocks are
now about 80% overvalued.”
- Andrew Smithers
“the markets are flashing stress alerts akin to the
2008 crisis. They told their clients to “Sell
Everything” because “in a crowded hall, the exit
doors are small.”
-Bank of Scotland

3. there is one distinct warning that should send
chills down your spine … that of James Dale
Davidson. Davidson is the famed economist who
correctly predicted the collapse of 1999 and 2007.
“There are three key economic indicators
screaming SELL. They don’t imply that a 50%
collapse is looming – it’s already at our
doorstep.”
- James Dale Davidson

4. A Castle Built on the Sand
The Inevitable Stock Market Wipeout
Looming home equity slaughter
46 Trillion dollar Wealth Transfer
The Dwindling Velocity of Money
The Silent Wealth Confiscation
“The foolish man built his house
upon the sand”

5. Crack #1
The Inevitable Stock Market Wipeout
During the next 6 months you will see the
stock market plummet by 50%
The stocks have been going up! But where is the money invested
coming from?
DEBT!
Is not going up because companies
are worth more, more money is being
borrowed to increase the value of
these businesses. That’s like you taking a
loan to buy your house and then saying
your house is worth more!!!

6. Crack #1
The Inevitable Stock Market Wipeout
During the next 6 months you will see the
stock market plummet by 50%
Less people are jumping into the market so participation is going down and
the market is going up?
Companies are borrowing money,
pumping up the value of their companies
Instead of investing in the future,
companies have been “financial
engineering” by buying their own
stocks to try and make their
stock price go up!!!!

7. Crack #2
Looming home equity slaughter
Home ownership rates are back to the 60’s
levels? Prices are skyrocketing?
Interest rates lowest in history!
private equity groups bought a ton of
real estate during the 2008 crash and
have artificially pumped up the home
values, and priced out the younger
generation. People got greedy. The
future generations can’t afford these
homes unless they get into debt after
graduating school with student loan
debt. DEBT DEBT DEBT!
Home Values will correct by 40%

8. Crack #3
46 Trillion dollar Wealth Transfer
46 Trillion dollar Wealth Transfer
The Baby boomers are reaching retirement
age in record numbers!
They are the more influential
generation because they have all the
REAL money and assets paid off!
They control 77% of the net worth of
AMERICA!
There is a “transfer” of wealth
happening with the Baby Boomers
and their kids. As that happens,
something very scary also happens.
The entitlements of this generation
also kicks in (rightfully so) such as
“social security” and “Pension Plans”

9. 50 Million baby boomers will exit the
economy next 14 years. That’s 10,000 per day
or one person retiring every 8 seconds.
Money leaving the economy
to be paid out to the retired baby boomers. They won’t
be contributing to the economy anymore
They aren’t “spending” their money as freely. They are conserving
what they have to last through retirement. Spending goes down.
They aren’t “investing” in high risk investments like new
businesses. They want guaranteed income from GIC’s, Bonds, etc.

10. Who is left to pay for the social security, government
pensions, increased government tax needs, their
expensive houses, their health care needs (which goes
up as we get old), expanding the economy…..etc. etc.
YOU

11. Crack #4
The Dwindling Velocity of Money
Unemployment will triple
The amount of times money circulates
in the economy has plummeted!
People are in a squeeze and can’t spend
as much as they used to.
There is a global slowdown of spending!!
Go to the malls and look at stores
shutting down, look at your own
spending habits and think about how
you have cut back. The velocity or
speed that money circulates around the
economy depends on you spending
your money on stuff. Once people stop,
the velocity goes WAY down.

12. Crack #5
The Silent Wealth Confiscation
The Value of your money
HMMM…the US Dollar is up?
But the purchasing power of the dollar has
gone down as it can’t buy as much “stuff” as it
used to.
Even other countries are selling their
US dollars and reducing their holdings
A highly valued currency may seem like
a great thing, but when you compare it
to other currencies, it’s just the currency
that is least “worst” of the bunch. The
value of what you can buy with it is the
important question to ask. Ever wonder
how far your dollar can stretch in this
economy? How much can you buy now
vs 10 years ago?

13. So what can you do to prepare?
Get out and stay out of debt!
Prepare your food storage because food prices
are going to get more expensive and you don’t want
to be overspending during those hard times!
Be productive and learn relevant skills that will
be useful now and in the future
hold cash. do what big companies and the wealthy are doing - keep your
money in a safe place and wait for the right moment to strike and buy
assets at bargain prices.
read books and fill your mind with good information. keep learning every
day to stay current, informed, and aware so you can make good choices.
eat healthy and go to the gym!

14. Recommendation # 1
Get out, and stay out of debt.
“when you run in debt, you give to another
power over your liberty”
- benjamin franklin
Ideas
- Create a budget, and stick to it
- sacrifice expensive trips, wants, fun stuff, basically enjoy free things
- live in a small place with less expenses
- don’t get loans for liabilities. pay cash or don’t buy it.
- refinance your debt
-pay it off quickly
- share discount opportunities with each other
- buy a business at a discount that cashflows
- utilize loan subsidies to lower your debt for a new business
- get a second job and work harder
Debt is a curse

15. Recommendation # 2
Prepare your food storage
“we want you to be ready with a personal storehouse filled
with at least a year’s supply. You don’t argue why it cannot
be done; you just plan to organize and get it done”
- Spencer W. Kimball
Ideas
- Purchase food storage online or from family
- add a little each week
- learn on youtube how to can/store food
- purchase an all in one package that gets you started quickly
- buy a water tank and fill it
- talk to family members who do it and copy them
- don’t waste food
- learn how to cook using your food storage
- eat healthier and less
Prepare for the worst

16. Recommendation # 3
Be productive and learn relevant skills
“The old economy was about acquiring a new skill for life ;
the new economy is about life-long learning”
- John Doer
Ideas
- Take free online courses
- research thriving & emerging industries and what skills they need
- learn a trade in an emerging field
- don’t get romantic about your current skills. Learn to adapt to change.
- do well in school, study hard, but also learn on the side in case your degree loses its value
- be prepared for automation and innovation to take over your job
- learn to be indispensable
- learn a variety of skills. Do internships. Try new things all the time.
learn the skill adapting to change

17. Recommendation # 4
hold cash or keep it liquid
“stay liquid”
- Garth Turner, Turner Investments
Ideas
- sell assets that will decline in value (eg. homes, highly valued stocks/businesses, art
- Keep cash reserves or make sure you can exit your “investments” quickly
- make sure you know the difference between assets, and liabilities
- don’t commit to long term contracts that bind your money and you can’t take it out
- know where your money is
- don’t count the value of your asset until it’s sold. What is sells for is the real value
- sell stuff you don’t need
- own stuff that holds it’s value well
- let go of stuff that won’t
- the first mover advantage can get into opportunities quickly before others who move slowly
cash is king

18. Recommendation # 5
read. stay informed.
“The man who does not read good books has
no advantage over the man who can’t read them”
- mark twain
Ideas
- subscribe to publications written by individuals who offer a unique perspective
- pay for your information. sometimes free isn’t the best.
- read the papers, news, and take everything with a grain of salt.
- piece all the information together and form your own opinion
- in the end, think for yourself
- listen to everyone, even people who you disagree with.
- believe 1/2 of what you hear
- do your research to confirm what people tell you
- follow successful people. success leaves clues.
- ask good questions to get better answers
- have a daily ritual of learning new information and staying informed
- don’t obsess over all the information, simply choose wisely who you listen to
knowledge is power

19. Recommendation # 6
eat healthy. go to the gym.
“It is health that is real wealth. Not
pieces of gold and silver”
- Ghandi
Ideas
- Join a gym
- go for a run
- eat healthy
- visit your doctors regularly
- try alternative health options
- understand your health risks and try and plan to overcome them
- hang out with healthy people
- support each others health goals
- be able to lift and carry your young children
- teach your kids to be healthy and strong
- don’t be lazy
- find daily inspiration to stay active and healthy
health is wealth