Everything about economics is a theory because it can’t be put in a test tube with the results coming out the same every time.

OK, now I’ll scare you. Or maybe I won’t until you get to the end of this article.

We are on the back side of the Kondratieff Wave. Bad stuff. It means all the good stuff we have been doing for the past for years that got overdone now has to be unwound. Kondratieff Waves run from 40 to 60 years. There is great controversy among economists about this, but who cares. Let’s look at the facts.

These “SUPER CYCLES”, that is what they are called go up slowly over a period of 30+ years, flatten out for a few years with a short break down and then another short run up and then head down for 10 to 20 years.

That last 10 to 20 years is economic collapse. The world governments (all of the old industrialized countries) have spent themselves into oblivion. It has been done by very slowly increasing credit and increasing risk. It seems everybody owes everybody (except China).

The escalation of debt in both the private and public sectors has actually weakened the debtor, not made him stronger. The perverse solution to this problem by the geniuses in Washington, London, Paris and Munich is to issue more debt.

Even Joe Sixpack knows if he has maxed out his credit card the solution to getting out of debt is not to max out another credit card.

The whole world is now on the back side of the Kondratieff Wave and they have no workable solution for solving the problem. The world economy and ours in particular is headed down for at least the next decade.

Am I scaring you? I hope so as you must take care of yourself. The government is becoming more broke every day.

Once these KWs start history shows there is no stopping them. What goes up must come down. Now our learned economists tell us the Recession is over. They don’t seem to be able to look around the corner to see the Depression looming.

It took 30 or 40 years of bad money management to get here and it is going to take 20 or 30 years of internal rebalancing to get back to “normal”. It is not going to be pleasant. The huge cycle of credit grew to unsustainable proportions and now the dam has burst. Creating more debt as they are doing in Washington will not solve the problem.

There is no safe investment today. Forget stocks. Even the best ones will collapse. Bonds interest rates will be great, but don’t buy them now.

The only wealth protector is either gold or silver. Coins are best as they are immediately negotiable.

Anyone can learn more about the Kondratieff super cycle wave on the Internet. The more you know the better you can protect yourself.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know. Copyright 2009 Williamsburg Investment Co. All rights reserved.