Issue #2 Proceed With Caution


This week's newsletter is too important to let you not read it.


In the chart above, the great investor and billionaire Hedge fund manager Ray Dalio has laid out 18 stages in the rise and decline of economic powers. Although I try not to place all my faith in anyone heuristic, I would say that Ray’s outline is sound. Ray made his entire career on simplifying the complexity of the economy, through easy-to-understand models. If you have not watched his video on, “The Economic Machine” I strongly suggest you watch it.

As you study the graph above, you can easily see how it mirrors what is happening in the US and Global economy today. Something is off! And at the crux of almost everything that is wrong in our society today, is excessive money printing.

Unpegged fiat currencies, manipulated by governments, have failed at every stage in history. The problem is 99% of the population doesn’t study history. In fact, about every 80-100 years we tend to make the same stupid mistakes that we made previously. Why? Because the entire generation has come and gone, and the same utopian ideology permeates our society until the next cataclysmic event.

I’ll be the first to say that history doesn’t necessarily repeat itself exactly like the last time, but we must admit that it always Rhymes. This is why we are at an extremely critical time in our society and economy today. History is rhyming, just like it has in the past. Excessive amounts of money in the system are bad for lower socioeconomic groups, great for asset holders, and terrible for environmental and social governance - The rich are getting richer and the poor are getting poorer.

Here are 4 important books that you should invest your time reading if you want to have a better understanding our how this all ends. READ THE REST!