Mass Media Deception Regarding the U.S. Recession

As it becomes obvious to the general American public that their country is heading into a recession, "financial pundits" have emerged with "tips" that can help us shoulder the difficult economic times. However, as I state often in my book, much of the financial advice which is given by these so called experts will only make things worse, not better.

This video from Yahoo is perfect testament to what I'm talking about. Watch the video below as Ph.D Kathleen Connell gives Americans "tips" on how they can do well during the recession. As I watched the video, it became very obvious to me that this woman is part of the financial establishment. Below I will dissect the things she says in the video, giving my analysis based on the things I've read, studied, and written.

One of the things that interested me about this video is that while Connell states that Americans should follow a budget, she advises us not to throw away our credit cards. This statement is a bit paradoxical to someone who was paying attention. The country is in a recession precisely because we are dependent on a credit based system, and use credit cards to purchase many things we don't need. They make it clear in the video that the typical American owes between $9,000 and $15,000 in credit card debt.

By telling people never to throw away their credit cards, Connell is essentially telling us that we should continue to be a part of a credit based system, implying that our credit could be damaged if we don't have or use credit cards. However, what she doesn't tell you is that if you "save money" you have no reason to use credit cards in the first place. Additionally, not having a credit card will remove the temptation to use it.

She then goes on to state that Americans should focus their attention by putting their money in a 401K. This is a joke. Robert Kiyosaki and many other financial experts agree that 401Ks are weak financial instruments due to the management fees that are associated with them. A huge part of your nest egg will be lost to these fees over time if you put money in them. Another part of this video that made me laugh is when Connell talks about using "cash only."

If you paid close attention to the video, the brunette who introduced Connell to the show specifically mentioned "the falling dollar." Despite this, Connell then says that we should all "begin using cash only." I'm not a Ph.D, but what she said didn't make a lick of sense. If the dollar is falling in value, and the cost of energy, health care, and education is rising, what good will it do the average American to switch to "cash only?"

Another fallacy to this video is that Kathleen also advises us to "invest in the stock market." Since the U.S. stock market is largely based on the dollar, which is losing value, anyone who invests in the stock market would be investing into something that is losing value. In addition to this, the stock market has been suffering lately, and Jim Cramer recently exposed how hedge fund managers on Wall Street could essentially control the price of a stock.

Kathleen Connell doesn't mention buying gold, and she doesn't mention buying silver. She also doesn't mention the importance of saving money. Instead, she advises us to invest in the stock market, keep our credit cards nearby, and invest in a 401K. She also tells us the obvious, "to pay off our high interest credit cards." Most Americans know this, but how can you pay off a high interest credit cards when you just lost your job, or when you're having a hard time finding one?

This is the typical type of garbage financial advice that I expose in my book. First they mix in a little bit of truth, like the part about the dollar falling and the need to follow a budget, but then they mix in trash about "not throwing away credit cards" and investing in a "401K." With poor financial advice like this being featured on the headline news, is there any wonder that so many Americans are in debt?

Ultimately, Doctor Connell didn't get down to the root of the problem, but of course, the "financial pundits" never do. The fact of the matter is that gold and silver is the thing all Americans should be investing in now, because as the dollar continues to fall, this is what will protect your money from being eaten up by government thievery(I mean inflation). Congressman Ron Paul has made this clear throughout the many Republican debates held in the last year.

If you want to put yourself on the path of becoming financially independent, stop listening to so called "financial experts" like Kathleen Connell. At the very best, they will mix deception with truth, and truth with deception.