I made this quick video to show you how investment returns you are probably getting fall far, far short when you take into account the fact that there will be inflation and that returns are pathetic in most investments today.
Hint: Click on the “full screen” icon on the lower right corner to view this in FULL SCREEN mode!
The reason returns are so pathetic is that the Federal Reserve has driven interest rates to zero, or near zero. And therefore, safe and secure investments pay about zero interest.
Well, inflation ain’t a pretty picture. You say, “But Gell-Dog, the inflation rate is supposed to be 2 or 3%.”
Yeah, right.
The proof that money is being created out of thin air is the expansion of base money. Base money about doubled between 2008 and today:
Base Money Skyrocketed -- who says inflation is low?
Awhile back, Naomi asked me for a book that would show her what is going on with the economy today. I recommended one of my favorite books on the economy, Henry Hazlitt’s Economics in One Lesson.
Hazlitt wrote about inflation something you must keep in mind:
What we commonly find, in going through the histories of substantial or prolonged inflations in various countries, is that, in the early stages, prices rise by less than the increase in the quantity of money;
that in the middle stages they may rise in rough proportion to the increase in the quantity of money (after making due allowance for changes that may also occur in the supply of goods);
but that, when an inflation has been prolonged beyond a certain point, or has shown signs of acceleration, prices rise by more than the increase in the quantity of money.
It is quite likely we are in the early stages of a vast inflation. Savers and investors are penalized now by getting returns that are below the rate of inflation.
The solution is not to leave your retirement savings with Wall Street. To become more active in your own wealth management.
Rich people do not invest willy nilly in the stock market. Rich people may have some substantial real estate such as apartment buildings, and they often own a business or a share of a large business. But rich people do not generally invest the way middle class people are asked to invest, in a portfolio of stocks and bonds.
I want you to think about how you can get a return of 20% or higher on your money with low risk, and the need for you to do so. Thank you and please leave a comment or question.
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Thanks GelDog, and you know the “rich” have so many other options that 99% of the World has never heard of, I was lucky to get to know some of those ” enablers” and if I ever win the lottery in ANYTHING, I have the knowledge/acquaintances to use ” the rich wealth instruments” to acquire even more wealth, to give to the poor…
watch all of the currencies change here, very soon, we will have finally gotten rid of FIAT MONEY… ok, in hibernation… watch… largest redistribution of wealth going on “”"NOW”"”…
so many 3 letter agencies going under 2 months ago, now have funds, and they arent from QE3?, Euro-HAS $.
watch this slight of hand, here, we dont have it, oh,oh, what is hiding in this hand… thanks GBush, Cheney, Greenspan, EO13303…
this is for all of those who EVER FOUGHT, SOME ARE GETTING THERE DUE JUSTICE…