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Investment Principles: Investing in a 'Dependence Day' Era
Pinnacle Digest writes: The Independence Day many Americans once related to now makes little sense as 'Dependence Day' seems more appropriate. The reality that big government in America continues to quietly take away freedom from its people has arrived. Weak job numbers and lack lustre news from the global economy were the only birthday gifts for America this year. America and many nations in the west are approaching the end of the road and this fact needs to shape investment principles and how all investors allocate their resources in the years ahead.
Browne explains that for many of us the reality is simple: government has become too big, too costly and too aggressive. The recovery has been tepid at best and is fading now. Continued money printing and record low interest rates have sent our economy into a state of malaise. Citizens and investors are bored, depressed and waiting for something to happen.
It all comes back to over regulation in this writer's mind. It hardly matters whether one looks at the Eurozone or the U.S., massive regulation in the marketplace has smothered businesses and stifled employment. If an economic calamity is to come, many things owned will shrink in value, while those items needed, such as food, heath services, and energy will rise in price. As a global currency crisis becomes more probable by each passing month the writer declares lower taxes and smaller government are the answer.
"If this does not happen soon, the world risks a savage depression."
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Community Talk
Re: Investment Principles: Investing in a 'Depende ...
Here is the one sentence that really junped off the page for me in this insightful essay; "Europeans have agreed to issue more debt and have consented to greater EU sovereignty" in other words, with the acknowledged problem being "too much debt" the alleged solution is ADDING MORE DEBT, thats assinine! The appendage also illustrates that with more debt comes a "greater loss of freedom" the two are intertwined and inseparable.
Yes government HAS grown too big, and while globalization has had some successes, the world was a much simpler and friendlier place when problems and trade were more localized. We should by now have learned the lesson that "central planning" does not work, that bigger is not always better, particularly when it comes to banking. much sounder loans were made when community banks where the manager KNEW the families and made loan decisions on more detailed and character based knowledge than todays, "throw more credit at people as long as they continue to pay on time" credit score system.
thinker70