Code Red: How to Protect Your Savings From the Coming Crisis
John Mauldin, Jonathan Tepper
Format: PDF / Kindle (mobi) / ePub
Wall Street Journal Bestseller
Valuable insights on monetary policies, their impact on your financial future, and how to protect against them
Written by the New York Times bestselling author team of John Mauldin and Jonathan Tepper, Code Red spills the beans on the central banks in the U.S., U.K., E.U., and Japan and how they've rigged the game against the average saver and investor. More importantly, it shows you how to protect your hard-earned cash from the bankers' disastrous monetary policies and how to come out a winner in the irresponsible game of chicken they're playing with the global financial system.
From quantitative easing to zero interest rate policies, ZIRP to the impending currency wars, runaway inflation to GDP targeting, authors Mauldin and Tepper achieve the impossible by not only explaining global monetary policy and its consequences in plain English, but also making it compelling reading.
- Outlines time-tested strategies for surviving and thriving in these tumultuous times
- Addresses how issues such as quantitative easing, financial repression, currency wars, bubble economies, and inflation impact our everyday lives as well as our financial future
- Written by a team of bestselling authors and experts in this dynamic field
How did we get here and where are we headed? What can you do to insulate yourself against, and profit from, economic upheaval and secure your financial future? Find out in Code Red.
percent of their people without jobs, while in Portugal the figure is 17.5 percent and in Ireland almost 15 percent. Youth unemployment tops 50 percent in some countries, and young people are leaving for other countries to find work. The most important factor for long-term future growth is a vital, educated force of young workers, and many countries are losing their “seed corn.” Policy makers seem indifferent to such catastrophic numbers. Given their attitude, it is hard to see what further
banks and policymakers are acting like barbers. They haircut your investments. Negative real interest rates, inflation, currency devaluation, capital controls, and outright default are the barber’s scissors.” Governments love financial repression for obvious political reasons. When they try to reduce the debt by raising taxes, people are up in arms. Income and sales taxes are visible and explicit. But a financial repression tax that is driven up by inflation is indirect and opaque. However, if
advance on Moscow. —Sir Winston Churchill In November 2008, as stock markets crashed around the world, the Queen of England visited the London School of Economics to open the New Academic Building. While she was there, she listened in on academic lectures. The Queen, who studiously avoids controversy and almost never lets people know what she’s thinking, finally asked a simple question about the financial crisis, “How come nobody could foresee it?” No one could answer her. If you suspected
from 6.5 percent in late 2000 to 1.0 percent by mid-2003. Greenspan and Bernanke were afraid of deflation, even though leading economic indicators suggestive of growth or inflation completely contradicted their view. Even as the economy started to boom and accelerate, the Fed kept interest rates low. It was so far behind the curve that by the time it started hiking very slowly, the U.S. housing bubble was inflating. Unfortunately, we all know how that ended. The Return of the 1970s We have
cultish followers of Harold Camping, and no amount of evidence will convince proponents of either side that they are wrong. As almost always, the truth lies somewhere in the middle. Large increases in the money supply can and do lead to high inflation. And the deflationists are right that sometimes you do need Code Red policies. But everything has a time and a place. In this chapter, we’ll show you what is really happening in the economy and why we have not had either much inflation or much