Debt Deleveraging – is Debt Deflation Coming?

Households and businesses have been reducing debt for a couple of years. But the debt has simply morphed into government debt. But in Europe and the U.S. we’re getting close to debt reduction time, or what’s being referred to as the “fiscal cliff”.
Soon we will be deliberating the possibility of experiencing debt deflation. Austerity is

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Unemployment Correlated With Happiness – Steven Kaplan: Implications for Education and Personal Growth

What are the financial predictors of happiness? We could look at metrics related to debt, spending, hours worked, percent of income saved, travel industry sales…so many to pick from.
Steven Kaplan, a professor of entrepreneurship and finance at the University of Chicago Booth School of Business, believes unemployment rates are better than income inequality in predicting

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Diversify Across Time, Taxes and Vehicles – Holistic Diversification

Investment diversification is an important concept for any investor. The markets these past few years have brought the lesson home that we need to reduce risk by investing across asset classes.
Christine Benz tells us that we should look at other dimensions of diversification, besides asset allocation.
Diversify Across Time
Dollar-cost averaging – or diversifying your purchases by

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We Produce Breadlines and Deficits

Statistics can paint a picture that reflects our current values and our future prosperity.
1. 15% of us are in a breadline.
Altogether, there are now almost 46 million people in the United States on food stamps, roughly 15 percent of the population. That’s an increase of 74 percent since 2007, just before the financial crisis and

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Our Federal Debt and the Pursuit of Wealth and Happiness

The national discussion on how to get our debt problem under control and reduce our spending raises many various arguments. A recent example offered that our pluralistic society is causing the givers to resent giving to the takers. Now, Arthur Brooks, president of the American Enterprise Institute, shares that only by allowing people to struggle to improve

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Dollar will Drop so Don’t Invest in Dollar Assets – Marc Faber

Marc Faber believes bonds are currently a bad investment.
“I disagree with the bond bulls that are basing their case on a deflationary environment. In such an outcome tax revenues would collapse and stocks would fall heavily.” Should stocks fall the Fed would initiate more quantitative easing.
Faber says people shouldn’t be buying bonds with yields trading

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As we invest, will the stock market let us retire?

We invest in the stock market so that we can retire some day. What we expect from the stock market is a return on our investment – a return that includes an “equity premium.” The equity premium appears to be getting smaller.
There are several reasons for this.
Better information, and the tools to analyze the information, has become

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Tax Cuts for the Rich Increases The Taxes They Pay – The Wealthy Are Different

Why don’t we change the tax system and have a flat tax or a consumption tax?
Caroline Baum, Bloomberg News columnist, helps us to understand the government’s reluctance to simplify the tax structure.
Caroline Baum:
Why, after all this time and an extensive body of data, are we still questioning whether reductions in marginal and capital-gains tax rates

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Multiculturalism and the Unwillingness of the Rich to Pay More Than Their Fair Share

 Rich Karlgaard (Forbes publisher) eloquently shares his view on why we can’t have multiculturalism as we have it today and also have the rich willing to pay more than their fair share.
Rich Karlgaard:
Since the 1960s, American and European lefties have wanted two things that are inherently in conflict in a free society. One is greater

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Taxes: Money Flows in Time and Space to Where It’s Treated Best

Money will go, in time and space, where it’s treated well. Money will find its way to locations that offer good property rights laws and low taxes.   As laws change and those changes are telegraphed, money and wealth will move in anticipation of those changes.
Arthur Laffer, of the Laffer Curve, is the chairman of Laffer Associates and co-author

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