Date registered: Aug 2002
Vehicle: 2021 SL770
Location: Fountain Hills, AZ
Mentioned: 2 Post(s)
Quoted: 696 Post(s)
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I think investing is out, speculating is in. Here's why:
Money serves two purposes, a medium of exchange, and a store of wealth.
The powers that be manage the value of our currency from the "medium of exchange" standpoint, at the expense of the "store of wealth" POV.
In the best of times, or even normal times, the FED pursues a monetary policy that can only be described as exponential, and it is fundamentally unsustainable. The only way to succeed in the pursuit of exponential growth, is to create boom/bust market cycles, wherein the bubbles are the rule, not the exception, and "buy and hold investments" will fail everybody every 7 to 10 years as the pre-programmed self-destruct sets about the equalization process.
The "low, steady inflation" model the FED tells us helps grow the economy creates a conundrum for those who seek to protect the product of their labor from the machinations of a fickle, and deceitful government, or their overlords at the FED.
In an inflationary environment, we have two choices: spend our money now, before it loses its purchasing power (consumerism), or invest it (these investments must beat taxes, fees and inflation just to break even) in markets that are guaranteed to tank eventually, leaving the 'buy-and-holder' holding only the bag.
So the only way to preserve one's wealth is to participate in markets, not just invest. Long in the bull markets, short in the downturns.
Now: how many Americans, who just want to be responsible, and have a decent retirement without counting on the governments' empty promises, have the time, or knowledge to actively manage their funds through the cycles?
Less than 5% I'd say.
So that means these cycles are really just the scheduled pillaging of hard-working, responsible Americans who seek a better future for themselves and their heirs.
Would people be so willing to put their hard-earned money away for the future if they knew that each time the cycle ended, the result would be a one time balloon payment of all of their wealth to the government to "preserve the financial system" upon which we are told we all depend?
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