We're on Titanic. The iceberg has been visible for over fifty years. Governments have done little to avoid collision. Do you have a lifeboat for your children?

The World Economy Is An Illusion

Governments manipulate economy to achieve short-term political stability. For instance, most Government statistics have a strong bias in favor of leaving populace with a favorable view of present economy. While special interest groups and many politicians may disproportionately benefit from ongoing economic manipulation, goal is to keep electorate content. In general, Government manipulation has succeeded since 1930s. However, short term illusion has deferred long term problems. It hasn't solved them.

Fiscal conservatives argue that U.S. Government debt financing of over $5.7 trillion isn't in public interest because it creates currency inflation. Over time, inflation destroys populace's faith in currency and economy fails. What these fiscal conservatives fail to realize is that trillions in debt financing creates jobs today in both Government's growing bureaucracy and in private sector that supplies whatever goods and services government seeks. It creates a rosy now for a dark future.

At end of WWII, Bank of America introduced first VISA credit card. The credit card industry has evolved into a multi-trillion dollar consumer-lending program. If you combine credit card debt and mortgages in U.S, consumer debt is greater than Government debt. You can borrow your way to temporary happiness. You can't borrow your way to solvency.

Built upon this unstable Public/Private multi-trillion dollar debt structure is multi-quadrillion dollar Derivative's Market. It puts at risk more than thirty-six times value of all currencies in world. Banks and Hedge Funds are betting that governments can maintain their economies against growing debt. It's a bad bet.

In The Great Contraction by Milton Friedman and Anna Schwartz, they argue that Great Depression was result of monetary forces. Applying this thesis results are Depression started when one Austrian bank failed. Within months, ten thousand banks failed. Unemployment was rampant for years. Extremists rose to power. WWII resulted. The Depression ended when debit spending for WWII created sufficient jobs. The success of debit spending paved policy path for governments after 1945.

Today, Public/Private debt structure is far worse. Derivatives put world banking system at extreme risk. National economies are integrated. The first time a major government stumbles, Mother of All Depressions will result. It will be global.

The Environmental Danger

Environmental issues are long term economic issues. From Paleolithic to present, technological advancement usually means increased population and reduced biodiversity. As any observant caver or aquarium owner realizes, simpler ecosystem, more likely it is to fail.

The Industrial Revolution gave mankind ability to destroy global ecosystem. Most scientific research supports fact that we are doing a very efficient job in increasing world's population while reducing ability to sustain that population over time. The results will be a multi-century Depression of unbelievable hardship.

Benefit - The money paid to policyholder when a claim is made.

Bid Price - The selling price or cash-in value of your unit holdings.

Bonus - Relates to a with-profits policy. The amount of money added to benefit payable under policy. The amount is dependent upon profits made by insurance company. Added bonuses cannot be taken away.

Convertible Term Assurance - A term insurance policy which gives you option to convert your current policy to a whole-life or endowment insurance policy, without having to take further medical examinations.

Critical Illness Insurance - A policy that pays out a lump sum on diagnosis of life threatening illnesses indicated in terms of plan.

Decreasing Term - A form of term life insurance where death benefit decreases each year as per your policy. Premiums remain level. This type of certificate is frequently sold as mortgage insurance. There is no surrender value for this policy.

Endowment Insurance - An insurance policy that pays a stated amount at end of a specified period or upon death of insured if it occurs within that period.

Family Income Benefit - Term assurance which pays money to life assured’s dependants for a set period, rather than paying a lump sum.

Guaranteed Bond - A bond in which principal and interest are guaranteed by an entity other than issuer. Guaranteed Bonds can be income or growth.

Increasing Term - The cover and amount you pay into policy are increased by a specific percentage each year calculated on original sum insured. Designed as a way to increase your life cover as your earnings increase.

Investment Bond - Combines investment with some life cover. The payments you make into an insurance policy or investment bond, usually a lump sum, are invested in insurance company's with-profits or unit-linked funds (Life Funds). Different types of bonds include guaranteed bond and unit-linked single premium bond. Not to be confused with a company or government bond, an investment that offers a fixed rate of interest and an area where your chosen Life Funds may be invested.

Life Fund - This usually refers to Unit linked Investment Funds. These are funds run by Life Assurance or Pension Companies. Such funds are used for individuals holding life assurance policies to invest in. The assets held within fund are divided into a number of units. When an investor contributes to a Life Fund, units are allocated to investors in proportion to their investment.

Maturity - An agreed date when an endowment policy ends and proceeds, including any bonuses, are payable.

Mutual - A life insurance company that is owned by its with-profits policyholders.

Offer Price - The price at which fund units are bought.

Premium - The amount of money paid into an insurance policy.

Proprietary - A life insurance company that issues its profits to its shareholders.