Episode 005: Hector Avellaneda on Buying Gold to Protect Your Wealth from a Dollar Crisis

Hector Avellaneda is from Houston, Texas and has a passion for entrepreneurship, economics, finance and gold. This, however, only materialized after Hector came face to face with a untold truth and one of the harshest lessons that only a life experience can teach you, as long as you are willing to dig deep in search for answers.

Hector, the son of Mexican immigrants to the US, grew up in poverty and was statistically destined to a life of poverty in adulthood. However, Hector wanted to defy this probability and worked extremely hard in school. In typical fashion, Hector accumulated college debt and was ironically facing a poorer life than his own parents despite a larger mean income.

Hector questioned the college debt system and deeply explored how US citizens have grown accustomed to taking on such debt. Further research led him to realise that middle-class America could see their wealth wiped out due to an impending dollar crisis. Subsequently, Hector wrote an economics and finance-related book to share his findings and to suggest what you can do to protect your wealth.

Economics and Finance Themes:

In this interview, Hector mentions and discusses: poverty, wealth, college debt, economic crisis, the Great Depression, loans, credit card debt, poverty trap, psychological effects of poverty, deficit, free markets, incentives, purchasing power, inflation, taxes, quantitative easing, money supply, the Minsky Moment, financial literacy, properties of money, fiat currency, the US Federal Reserve, stock markets, crypto-currencies, the Gold Standard.

Hector’s Influencers:

His dad and a college counsellor. Find out more in his book ‘De-CLASS-ified’ (see below for a link to Amazon and get an e-copy on Amazon for a bargain $2.99).

In this episode, you will learn:

• how Hector had all the hallmarks of continuing to live a life of poverty in America.

• about Hector being bullied in school because of the charitable clothes he wore .

• how Hectors’ father and mother’s sense of hard-work and money management became naturally ingrained in him.

• how Hector defied and beat the statistical odds of remaining poor for life due to a strong work ethic and a desire to succeed.

• how hard work in school can open up many opportunities in life including an internship with NASA.

• the importance of being mentored.

• how easy credit for college education made Hector ‘s financial position worse off than his parents.

• what triggered Hector into discovering the truth about the American economy and the college debt system.

• the risks in the US economy.

• why the US could be faced with a massive default on student loans and what is triggering this today.

• how it became acceptable to borrow to pay for college.

• why Hector’s $50,000 student debt became a blessing in disguise.

• how Hector’s research into the US college debt crisis resulted in him writing an economics and finance book without having a background in these disciplines.

• why the middle class in America is about to collapse financially.

• why the US government will seize money from an American workers’ wages.

• what type of college degree is not in demand in US anymore.

• what you should do today when making a college or subject choice.

• what it takes to have financial and economic freedom.

• about the 7 properties of money.

• what countries are doing today with their dollar reserves.

• about who actually owns the Federal Reserve Bank of America. Hint: It’s not the US government!

• what you can do to protect your wealth from being transferred to others.

• who are buying up gold and for what reason.

On Living in Poverty:

• ‘I was pretty poor. I lived in a small wooden type of house with a sheet metal roof’ – Hector Avellaneda

• ‘Growing up I saw my parents argue and fight about money and not having enough money to take a family trip or a vacation or just be able to enjoy a day out on the town and so my parents were always very stressed out, always kind of arguing and fighting’ -Hector Avellaneda

• ‘I was made fun off in school because a lot of clothes that I wore was donated from the local church or local program, a local donation program’ – Hector Avellaneda

• ‘I always told myself that I was going to do whatever it took to make sure that I was successful in life and to make sure that I got out of that poverty that I had seen as a child’ – Hector Avellaneda

Advice:

• “Today we need computer scientists, we need computer programmers, we need engineers – those are the degrees that are in demand  and I myself sit on the board directors of a non-profit organization here in Houston that actually encourages kids to go to college and major in things like engineering, major in things like computer science because I think those are the degrees that we need in today’s economy” – Hector Avellaneda.

• ‘To have financial and economic freedom, I had to become an entrepreneur’ – Hector Avellaneda

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• “For anyone who is going to college or who is thinking about going to college today, I would say ‘do some real research and figure out what pay expectations you will have upon graduation’ and, with that said, make sure that, if you are going to go to college, major in a degree that will be able to sustain your way of life that you want to live and if you don’t want to major in something like engineering or computer science because that’s just not what you are passionate for then don’t take on any student debt” – Hector Avellaneda.

• Those holding onto paper assets are at risk of losing it all to those holding real tangible assets like gold and silver, land and claims on oil fields.

Personal Habits:

• A hard worker, head-strong, determined, passionate and a desire to find out the truth through research, self-education, reading and learning.

• Hector had a desire to find out what went wrong in his life as he was mis-sold the American idea of taking on college debt . With a limited exposure to finance and economics in college, $50,000 of college debt and unemployed due to the Great Recession of 2008, Hector read widely to learn and understand about the truth behind the US economy, the trillions of dollars of debt and the risks of a mass student loan default and a dollar crisis. 

Takeaway:

The free markets have been distorted due to all the incentives that have been created in the US economy.

Before making a college decision, do a course that will allow you to earn an income to pay off your debt, otherwise do not take on debt.

Increase your understanding of financial literacy. Read books on money.

Schools and Universities need to teach more economics, finance and financial literacy subjects to all students.

Self-education is very important – read books and get access to the necessary information online.

Recommended Books:

• The Death of Money by James Rickards
• De-CLASS-ified: The Fall of the Middle Class and Rise of the Internet Entrepreneur by Hector Avellaneda

Favorite Internet Resource:

• iCloud

Where to Find Hector Avellaneda:

• Gold and Silver Buyer Club
• New Class Rising
• Podcast on iTunes

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