Posts Tagged ‘investment’
In his latest letter, Kings of the Wild Frontier, crushes the optimism of all those, roughly 4 altogether in the entire world whose combined IQ barely breaks into triple digit territory, who believe that the debt ceiling “compromise” does anything at all for US spending patterns, weather it is for total marketable debt, or the $66 trillion in NPV of future liabilities. Gross, however, does show us the 5 ways (well, 4 plus default) that the “debt man walking”, aka Uncle Sam and his tens of trillions of future liabilities, plans to rob from you: dear taxpayer, in order to minimize the present value of these unmanageable future liabilities. To wit:
1. Balance the budget and/or grow out of it
2. Unexpected inflation
3. Currency depreciation
4. Financial repression via low/negative real interest rates
All of these guarantee that investor pocketbooks will be dramatically affected… Adversely. Let’s dig in…
Read more at ZeroHedge.com
Americans’ savings and retirement funds are being destroyed, and they are being systematically impoverished by depreciating or debased nominal dollars.
Nominal dollars are the everyday paper dollars that we think of and call money. These dollars change every day (depreciate). The value of these dollars goes down constantly as the money printers continue to debase our currency.
The point is that Americans don’t know the difference. They don’t know that their savings and their retirement are being destroyed, and they are being systematically impoverished by depreciating or debased nominal dollars. If this is not all important, I don’t know what is.
Nominal dollars, or depreciating currency, are destroying America. America is a giant Ponzi scheme, no different from Enron. As with Enron, we are locked into an economic death spiral. The U.S. national debt will never be paid off.
Read more by Bob Livingston at personalliberty.com