Because conventional investing depends on free markets and a fast growing private economy, it is arguably obsolete.  Public - not private - spending consumes an ever greater share of the economy even as government interventions turn the investment world upside down, and these trends are likely to strengthen in 2013 and beyond. 

Linked readings include: 1) how government efforts to fix the economy are being paid for by reducing the standard of living of retirement investors; 2) the hidden government tax on savers and retirees that is 3X larger than corporate income taxes; and 3) the long-term investment implications of high government deficits and the rapid growth in public spending.  Read more.

The unemployment crisis gripping America is the worst since the Great Depression - but the official unemployment rate is under 10%. How could that be? The true unemployment picture is hidden by essentially splitting jobless Americans up and putting them inside the three different "boxes" shown above.

Two articles reveal: 1) how the government keeps 9 million jobless Americans out the unemployment statistics; 2) the depression that is being hidden through massive deficit spending. Read more.

Deadly Dow 36000

Would Dow 36,000 save your financial security in retirement - or destroy it?  We start with an eye opening look at the "secret history" of a 70% stock market loss during our last sustained bout of high unemployment, and then show how current long-term investors risk being "blind-sided" by this potent but little known danger. Read more.

Are you frustrated by very low interest rates which don't even come close to keeping up with inflation?  Do you find that supposed inflation-indexed cost of living adjustments are failing to keep up with your actual cost of living?

These problems are no accident, but are the result of a government strategy which economists refer to as Financial Repression.  This hidden $500 billion tax on savers hits retirement investors the hardest even as it destroys conventional financial planning. Read more.

Eurozone Crisis

What could happen if the Euro collapses?  Will there be a rapid redistribution of wealth in Europe that could be highly profitable for some and catastrophic for others?  How would this effect US investors and workers?

The linked readings examine a potential Euro collapse not from an "end of the world / doom and gloom" perspective, but rather with explorations of the specific implications for the rapid redistribution of wealth between segments of society in Europe and the US.  Read More.

Recent Articles

Ongoing articles and commentary about current financial developments are sent directly to subscribers (subscription is free, and is included with the free book).  A sampling of several recent articles can be found here.

What lowering the unemployment rate, paying for impossible Boomer retirement promises, and massive government deficits all have in common is that the real inflation rate is likely to rise in the years to come.  This analysis examines five interrelated short, medium and long term reasons why the government is likely to ramp up the inflation rate.

 

"QE3" (Quantitative Easing Three) and the indefinite creation of $40 billion per month in new money by the Federal Reserve is also analyzed using the five inflation motivations framework.  The result is a near perfect fit. Read More.

 

Hidden Gold Taxes

The #1 reason investors buy gold is to protect themselves against inflation, but governments have a "secret weapon" when it comes to gold. For unprepared gold investors, the higher the rate of inflation, and the more gold profits climb - the poorer the investors may end up, as a little understood tax consumes their real wealth.

 

The linked educational resources include: 1) a tutorial which uses step by step examples to explain the basics of these hidden taxes; and 2) three historical case studies showing how under current law the US government effectively confiscates profits as well as starting net worth from gold investors during times of high inflation. Read more.

 

With unfortunate regularity in recent years, the US government and Federal Reserve have relied on the ability to create trillions of dollars out of thin air in order to give secret bailouts to banks, finance massive deficits, and manipulate interest rates for the entire mortgage industry. 

 

Using simple and understandable steps, the series of readings in this unique primer show exactly how the money is created, how the Fed passes money to favored Wall Street banks without triggering instant inflation, how the process "hollows out" the banking industry while creating a facade of strength, and the extraordinary risks and costs for us all.  Read more.

 

Real Estate

Placing inflation-adjusted mortgage payments and current rental property cash flows in a 20 year context, and a long-term look at the inflation-adjusted pricing relationship between two popular contrarian assets.    Read more.

 

Six Deficit Layers

This reading starts with the annual US budget deficit and then adds five more layers of deficits on top of that base, using simple illustrations and a per household approach that makes the huge numbers both personal and understandable.

 

By the time you finish - you will see just how much worse the situation is than most people realize, and why it is that retirement investors and retirees will be the ones paying the extraordinary price for out of control deficits, rather than their grandchildren.  Read more.

 

 

This website contains the ideas and opinions of the author.  It is a conceptual exploration of financial and general economic principles.  As with any financial discussion of the future, there cannot be any absolute certainty.  What this website does not contain is specific investment, legal, tax or any other form of professional advice.  If specific advice is needed, it should be sought from an appropriate professional.  Any liability, responsibility or warranty for the results of the application of principles contained in the article, website, readings, videos, DVDs, books and related materials, either directly or indirectly, are expressly disclaimed by the author.

 

Copyright 2006-2012 Daniel R. Amerman, CFA