Posted by
Doug Wolkon on September 10, 2008 at 7:48 pm
You must invest retirement savings in the businesses and real estate in your own State. The U.S. economy has changed. It has become more local and will continue to do so to fight off imported inflation. The dollar has inflated. It has dropped about 50% in value from its peak across all major trade currencies. As a result, we are experiencing a much higher cost to transport and import goods and services.
However, the reality is that it is the perfect investment opportunity to start working the local land again. Prices for local farmland is relatively low as it relates to higher prices from more demand and lower supply. Continued »
Posted by
Doug Wolkon on August 11, 2008 at 3:15 am
So how much paper money is out there anyway. Does it matter that every time The Wizard of Oz (The Fed/government) decides to bailout a financial institution like Bear Stearns, Lehman, Fannie or Freddie, they have to print more and more money. What is behind this printing of money and how do they do it? Continued »
Posted by
Doug Wolkon on July 11, 2008 at 2:14 am
The real reason that oil consumption has slowed down is once again – the housing market. Think about how much less oil is needed to move all those materials (wood, steel, concrete, appliances, etc.) as well as construction laborers for all those houses and condos we were building. All that consumption from our housing construction has come to a stop, and with it the end of a major consumer of oil. The next oil demand decrease is on its way from both China and India. Continued »
Posted by
Doug Wolkon on May 11, 2008 at 3:17 am
The larger the supply of a particular paper currency the more inefficient such trading capital inevitably becomes (i.e. trade regulations, bureaucracy, taxes, big goverment, armed forces, etc.). On the flip side, pure or liquid barter is the most efficient way of trade as the cost of “money” remains current with the actual trade, and debt levels remain linked to real assets (Schumpeter and Walrus describe such debt to asset links in their vision of Economic Equilibrium). As the Euro makes its way into Eastern European countries, those countries local economies will inevitably inflate and get more inefficeint; as rents and wages will increase proportionately as a function of the Euro’s relatively inflated value. Continued »
Posted by
Doug Wolkon on February 10, 2008 at 12:11 am
With the deterioration of credit markets around the world, a unique “cash crop only” such as marijuana becomes more valuable or precious. With marijuana’s supply and demand more closely linked as a result of pure competition, the inefficient financial services cost (i.e. inflation) associated with other consumables are thankfully (for potsmokers) avoided. Continued »
Posted by
Doug Wolkon on January 24, 2008 at 1:17 am
I agree that the Fed is walking right into the markets hands. The Fed rate cut does not have a prayer. Greenspan took all the inflation fighting juice out of the economy in the 90’s while igniting the momentum of debt. In any case, we are all in trouble. Continued »
Posted by
Doug Wolkon on December 20, 2007 at 8:36 pm
With Sallie Mae in trouble, does that mean that less student loans at low interest rates may be available in the future? After all, they are the largest student lenders with $127 billion of debt outstanding (according to Wiki). Or can we expect the Wizard of Oz to step in and fix the lending rate since the loans are “federally guaranteed”. Continued »
