Foolish Money Reacts While Smart Money Plans

Hello Don;

Have governments redirected and confiscated private funds in the past? You don’t have to be much of a historian to know the answer is yes.

Will public outrage prevent similar investment ultimatums in the U.S? Opinions vary as to the answer of that question.

As I have already said, smart money anticipates through contingencies plans rather than reactions to real-time events. Any reactionary investment strategy based on a given public response, which would include proper recognition, organization and follow-through, better be inconsequential to success of the overall investment plan.

Jim is right, protect yourself. While the foolish money tries to react in real-time, smart money plans based on probabilities.

Best Regards,

Eric

Eric,

I’ve been reading Jim Sinclair for several years now and often wondered who CIGA Eric was until I finally stumbled onto your site. Now I read it daily, fully appreciating why Jim Sinclair quotes you so often. Your thoughts and quoted news leads are keenly prescient and offer a much needed focus on reality.

Your recent report of the Hungarian ‘pension fund ultimatum’ was a shock for me in particular, whose retirement savings are mostly in IRA accounts. Is it conceivable that the government would mandate their conversion to US bonds? I’ve heard this suggested in the past, but always thought that the public uproar would not let it happen. Now, I am not so sure. These are unusual and desperate times.

Jim Sinclair has often said to ‘protect your self’, but without many specifics. More radical blogs even mention cashing out your IRA’s, and essentially hiding the money in hard assets. I’m old enough now so that I would not have to pay a penalty, only the considerable taxes. I am, of course hesitant to take such a radical step. Inside the IRA’s I can protect the account from an ongoing debasement of the USD, but is the account itself in real jeopardy from government mandates and is bold action needed?

If I may beg of you your most valuable opinion on this, I, and I’m sure others, would be very grateful to hear it.

Best Regards,

CIGA Don