How China’s Digital Currency Could Challenge the Almighty Dollar
.How China’s Digital Currency Could Challenge the Almighty Dollar
Charlie Campbell Wed, August 11, 2021
Every morning, Mei Yi waves goodbye to his wife and 3-year-old son and sets off for his finance job in central Beijing, riding into town by public bike share. Like most urban Chinese, the 37-year-old has long abandoned cash and instead pays for his commute—and a lunchtime bite from a convenience store in his office building—with a flash of a QR code on his smartphone screen.
In recent weeks, however, Mei has jettisoned the Alipay mobile-payment app run by Ant Group, an affiliate of e-commerce behemoth Alibaba, for a digital wallet of renminbi (RMB), as China’s currency is called. The wallet is issued as a pilot project by the People’s Bank of China (PBOC), the country’s central bank. “It’s quite convenient to use, but there are no outstanding features to replace mainstream payment systems such as Alipay,” shrugs Mei. “For individuals, at least, any advantages aren’t that obvious.”
Perhaps not. But that tweak in Mei’s daily routine portends a seismic shift in how every person around the world will soon be handling money.
How China’s Digital Currency Could Challenge the Almighty Dollar
Charlie Campbell Wed, August 11, 2021
Every morning, Mei Yi waves goodbye to his wife and 3-year-old son and sets off for his finance job in central Beijing, riding into town by public bike share. Like most urban Chinese, the 37-year-old has long abandoned cash and instead pays for his commute—and a lunchtime bite from a convenience store in his office building—with a flash of a QR code on his smartphone screen.
In recent weeks, however, Mei has jettisoned the Alipay mobile-payment app run by Ant Group, an affiliate of e-commerce behemoth Alibaba, for a digital wallet of renminbi (RMB), as China’s currency is called. The wallet is issued as a pilot project by the People’s Bank of China (PBOC), the country’s central bank. “It’s quite convenient to use, but there are no outstanding features to replace mainstream payment systems such as Alipay,” shrugs Mei. “For individuals, at least, any advantages aren’t that obvious.”
Perhaps not. But that tweak in Mei’s daily routine portends a seismic shift in how every person around the world will soon be handling money.
Mei’s digital wallet may lack the snazzy features of the popular payment apps, but in the end such apps are intermediaries, linked to users’ bank accounts. The content of his new wallet is actual legal tender, directly issued to him without the need of any middleman, traditional bank account or paper money to back it up. (To be clear, a digital currency is not the same as a cryptocurrency. While the likes of bitcoin, ripple and ether are largely unregulated—at times vulnerable to hackers, and subject to wild volatility—a digital currency is issued by a government.)
Physical money isn’t going to completely vanish. Although just $5 trillion of the $431 trillion of wealth in the world today is in the form of cash in pockets, safes and bank vaults, no central bank is seriously advocating the complete abolition of bills and coins. What makes digital currencies truly revolutionary are the tremendous new functionalities they offer. It’s the financial equivalent of the leap from postal service to email, or lending library to Internet.
Digital currencies will help governments fight malfeasance, smooth the transfer of assets across borders, and enable central banks to deal directly with citizens—especially helpful in times of crisis. The widespread adoption of such currencies stands to slash the operating expenses of the global financial industry. These amount to over $350 a year each for every human being on earth. Cross-border transaction fees today account for up to 8% of Hong Kong’s GDP, for example—a huge chunk that could be eliminated in a flash.
The SWIFT (Society for Worldwide Interbank Financial Telecommunication) system, which currently governs cross-border transactions between banks, may become obsolete. Depending on regulations, governments could also have direct visibility of financial transactions instead of having to ask banks to provide data. And the world’s 1.7 billion unbanked, including around 14 million U.S. adults, can be helped into the financial system. It’s the biggest change in money since the end of the gold standard.
“You’re going to see a massive transformation of the international monetary system,” says Michael Sung, founding co-director of the Fudan Fanhai Fintech Research Center at Fudan University in Shanghai. Given that the U.S. dollar’s role as the world’s currency may be greatly diminished, Sung also sees “a lot of big geo-political and trade effects too.”
To continue reading, please go to the original article here:
https://www.yahoo.com/news/china-digital-currency-could-challenge-214953406.html
Planning To Retire? Here’s A List Of At Least 14 Things To Account For First
.Planning To Retire? Here’s A List Of At Least 14 Things To Account For First
Alessandra Malito Tue, August 10, 2021
Retirement requires an enormous amount of planning, affecting not only how much money to put aside for old age but how to spend and maintain it.
Retirement Tip of the Week: When planning for retirement, especially if you plan to retire soon, make a list of expenses you expect to have — as well as any other variables that will affect your financial picture. Compare it to your income.
Planning To Retire? Here’s A List Of At Least 14 Things To Account For First
Alessandra Malito Tue, August 10, 2021
Retirement requires an enormous amount of planning, affecting not only how much money to put aside for old age but how to spend and maintain it.
Retirement Tip of the Week: When planning for retirement, especially if you plan to retire soon, make a list of expenses you expect to have — as well as any other variables that will affect your financial picture. Compare it to your income.
Anything can happen in retirement, especially since for many of us this chapter of life could span decades. Near-retirees know they need to spend money on the basics — housing, utilities, groceries, medicine — but preparation far exceeds those figures. The small details are what can make or break a comfortable old age.
Budgeting isn’t for everyone — some people don’t like to be restricted to a certain amount of money for expenditures like clothes shopping, subscription services or takeout dinners. Others may be too focused on the dollar figure, and not enjoy the lives they built. Still, having a rough estimate of what expenses to expect in retirement, and knowing if it aligns with income in retirement, is critical.
Those who do not like to budget should jot down some expectations for this chapter instead.
Here’s a list of important factors to account for when budgeting for retirement to get started, inspired by planning tools created by financial planning company NewRetirement. (The tools, which include calculating retirement income, withdrawals and Social Security strategies, are available in partnership with MarketWatch on MarketWatch’s website.)
Have a question about your own retirement concerns? Check out MarketWatch’s column “Help Me Retire”
MarketWatch also has its own tool to help narrow down where to retire, which features inputs for taxes, lifestyle choices and climate conditions.
First, it’s important to know what money you’ll have to spend. Here’s an abbreviated list to help collect that information.
To continue reading, please go to the original article here:
9 Easy Ways to Be Fiscally Responsible
.9 Easy Ways to Be Fiscally Responsible
Jacqueline Sanchez June 30, 2021
For some, it's surprising the amount of consumer and student loan debt a person has. This financial situation is a future you likely won't want for your children. So, "How do I prepare my children for the future and be fiscally responsible?"
This simple question of "How?" can unlock the way you think about money. It often isn't enough to graduate college and work a stable career.
9 Easy Ways to Be Fiscally Responsible
Jacqueline Sanchez June 30, 2021
For some, it's surprising the amount of consumer and student loan debt a person has. This financial situation is a future you likely won't want for your children. So, "How do I prepare my children for the future and be fiscally responsible?"
This simple question of "How?" can unlock the way you think about money. It often isn't enough to graduate college and work a stable career.
What Does It Mean to Be Fiscally Responsible?
Fiscal responsibility describes a person who has self-control and accountability for their spending.
Government institutions' fiscal responsibility is about how wisely those who hold an office spend tax-payer dollars and manage money in the federal reserve bank. Defining fiscally responsible for personal finances is about how wisely an individual spends their earned income.
Why Is It Important to Be Fiscally Responsible?
Even with a decent-paying job, it often isn't wise to spend money unconsciously. You might be left waiting for your next paycheck to cover unplanned expenses. This can put your family's finances at risk.
If you don't make changes, debt may never go away. That is why it's so essential to becoming fiscally responsible. You need to control your money and not let your money be in control of you.
How Do You Become Fiscally Responsible?
There isn't a magic number that indicates that you're fiscally responsible. Instead, the kind of behavior you have when it comes to spending can be a deciding factor.
Below are nine easy ways to become fiscally responsible. You can perform each method in any order. Most of them you can do simultaneously.
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/9-easy-ways-fiscally-responsible-040100046.html
7 Mistakes People Make When Choosing a Financial Advisor
.7 Mistakes People Make When Choosing a Financial Advisor
August 11, 2021
Choosing a financial advisor is a major life decision that can determine your financial trajectory for years to come. A 2020 Northwestern Mutual study found that 71% of U.S. adults admit their financial planning needs improvement. However, only 29% of Americans work with a financial advisor.1
The value of working with a financial advisor varies by person and advisors are legally prohibited from promising returns, but research suggests people who work with a financial advisor feel more at ease about their finances and could end up with about 15% more money to spend in retirement.6
7 Mistakes People Make When Choosing a Financial Advisor
August 11, 2021
Choosing a financial advisor is a major life decision that can determine your financial trajectory for years to come. A 2020 Northwestern Mutual study found that 71% of U.S. adults admit their financial planning needs improvement. However, only 29% of Americans work with a financial advisor.1
The value of working with a financial advisor varies by person and advisors are legally prohibited from promising returns, but research suggests people who work with a financial advisor feel more at ease about their finances and could end up with about 15% more money to spend in retirement.6
A recent Vanguard study found that, on average, a $500K investment would grow to over $3.4 million under the care of an advisor over 25 years, whereas the expected value from self-management would be $1.69 million, or 50% less. In other words, an advisor-managed portfolio would average 8% annualized growth over a 25-year period, compared to 5% from a self-managed portfolio.7
Being aware of these seven common blunders when choosing an advisor can help you find peace of mind, and avoid years of stress.
1. Hiring an Advisor Who Is Not a Fiduciary
By definition, a fiduciary is an individual who is ethically bound to act in another person’s best interest. This obligation eliminates conflict of interest concerns and makes an advisor’s advice more trustworthy.
All of the financial advisors on SmartAsset’s matching platform are registered fiduciaries. If your advisor is not a fiduciary and constantly pushes investment products on you, use this no-cost tool to find an advisor who has your best interest in mind.
2. Hiring the First Advisor You Meet
While it’s tempting to hire the advisor closest to home or the first advisor in the yellow pages, this decision requires more time. Take the time to interview at least a few advisors before picking the best match for you.
3. Choosing an Advisor with the Wrong Specialty
To continue reading, please go to the original article here:
6 Reasons Why It’s So Hard To Get Out of Debt
.6 Reasons Why It’s So Hard To Get Out of Debt
Cynthia Measom June 30, 2021
Getting out of debt isn't easy. It requires a lifestyle shift. Sometimes, you have to make a small change in the way you handle your finances -- and sometimes a big one.
If your New Year's resolution for 2021 was focused on getting out of debt, you may not have made much headway. This past year has been financially devastating for many families; and despite some assistance from the federal government, the Democrat-Republican congressional divide has slowed up stimulus for individuals and businesses alike.
6 Reasons Why It’s So Hard To Get Out of Debt
Cynthia Measom June 30, 2021
Getting out of debt isn't easy. It requires a lifestyle shift. Sometimes, you have to make a small change in the way you handle your finances -- and sometimes a big one.
If your New Year's resolution for 2021 was focused on getting out of debt, you may not have made much headway. This past year has been financially devastating for many families; and despite some assistance from the federal government, the Democrat-Republican congressional divide has slowed up stimulus for individuals and businesses alike.
To get some additional insight on why you haven't gotten out of debt by now, take a look at these reasons why it's so difficult. Plus, learn what you can do to start conquering your debt once and for all.
1. You Don't Have a Budget
Not having a budget is a sure way to keep yourself in debt. It's important to assign each dollar you earn to a specific category, including debt, and then account for every dollar you spend.
Many different budget plans exist, including the 50/30/20 rule. When using this budget, you put 50% of your income toward your necessities, such as rent, car payments, insurance, utilities and food. Next, 30% goes toward things you want, such as eating out, streaming services and new shoes. The remaining 20% goes into savings and paying off debt.
If you're determined to pay off your debt as soon as possible, you may want to play with the percentages a bit. For instance, consider putting 30% or 40% toward your savings and debt and leaving only 10% for things you want but don't need.
2. You Only Make Minimum Payments
While creditors only require that cardholders make the minimum payment each month by the due date, doing so can keep you in debt for years.
By only paying the minimum each month, you could draw your payments out over a decade and end up paying more in interest charges than what you originally charged.
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/6-reasons-why-hard-debt-220050527.html
13 Tips That'll Truly Make All The Difference When Buying A Home
.Homeowners Shared 13 Tips That'll Truly Make All The Difference When Buying A Home
"Bottom line: If you’re happy in your rented apartment, STAY in your rented apartment."
by Jasmin Suknanan
We recently published a post on reasons why people say they regretted buying their home. And let us tell you, people had *a lot* to say.
But we also noticed people sharing some useful home-buying tips that can actually prevent new homeowners from having some of those regrets. So we rounded up some of those tips below! Here are the best ones:
1. "Equity, equity, equity. Do your research, and know what is important to you. Get a good real estate agent who really wants what’s best for you, not just the quick sale for commissions."
"Don’t buy more than you can afford, even if the bank allows it." —callumsmommy
Homeowners Shared 13 Tips That'll Truly Make All The Difference When Buying A Home
"Bottom line: If you’re happy in your rented apartment, STAY in your rented apartment."
by Jasmin Suknanan
We recently published a post on reasons why people say they regretted buying their home. And let us tell you, people had *a lot* to say.
But we also noticed people sharing some useful home-buying tips that can actually prevent new homeowners from having some of those regrets. So we rounded up some of those tips below! Here are the best ones:
1. "Equity, equity, equity. Do your research, and know what is important to you. Get a good real estate agent who really wants what’s best for you, not just the quick sale for commissions."
"Don’t buy more than you can afford, even if the bank allows it." —callumsmommy
2. "It is important to know the lifespan of key home features! Roofs, appliances, furnaces, water heaters, septic, and irrigation systems all have expected lifespans that can be shortened by a lot of factors. And they cost a lot to repair or replace."
"Often, you can get great rebates on upgrades from utility companies or government rebates if you go with eco-friendly options that cost more initially. I just put in a hybrid water heater that, with rebates, cost a couple hundred more than a standard model, but it cut my electric bill in half. Thankfully, I knew that it was an upcoming expense, so I had the money set aside and kept my eye out for deals on the model I wanted. Anytime you have to fix something out of desperation, you are in danger of getting gauged." —mamasquatch4
3. "If you can't do a professional inspection, or you have any doubts, walk away."
"If your agent is pressuring you, get a different one. When it comes to older homes, assume you'll need to do work on them." —sdk
4. "I recognize that this is a very privileged perspective, but what I've learned in my short time as a homeowner (a little under two years now) is if you can afford it, keep up with all the little things that need maintenance or upkeep."
"Don't put it off, or it will get worse and more expensive, and the things will pile up. There are a lot of costs that go into being a homeowner aside from just the purchase of the house and your mortgage." —katieh46
5. "I have owned and lived in the same house for almost 19 years. I have found that there is always going to be something that needs to be fixed. YouTube is actually SUPER helpful with videos. Homeownership can feel challenging, but you are enhancing and protecting YOUR asset." —iknowthatiknownothing
To continue reading, please go to the original article here:
https://www.buzzfeed.com/jasminsuknanan/home-buying-tips-that-make-a-difference
Think Like a Billionaire With These 19 Traits From Mark Cuban and the Super Rich
.Think Like a Billionaire With These 19 Traits From Mark Cuban and the Super Rich
Discover the qualities that made the world's biggest success stories who they are today.
By Morgan Quinn June 2, 2017
To become a huge success, you might decide to blaze your own trail. But hacking through the jungle of life can leave you bruised and battered by the time you finally reach your destination.
Walking in the footsteps of those who succeeded before you makes for an easier journey all around. The world's most successful people — with some of the largest net-worth totals, as calculated by Forbes — credit some key traits for getting them to where they are today. Absorb their lessons, and maybe you'll become a billionaire.
Think Like a Billionaire With These 19 Traits From Mark Cuban and the Super Rich
Discover the qualities that made the world's biggest success stories who they are today.
By Morgan Quinn June 2, 2017
To become a huge success, you might decide to blaze your own trail. But hacking through the jungle of life can leave you bruised and battered by the time you finally reach your destination.
Walking in the footsteps of those who succeeded before you makes for an easier journey all around. The world's most successful people — with some of the largest net-worth totals, as calculated by Forbes — credit some key traits for getting them to where they are today. Absorb their lessons, and maybe you'll become a billionaire.
1. Oprah Winfrey: Gratitude
The former queen of daytime television doesn't let her $2.9 billion net worth go to her head. Despite her abundant success, Winfrey remains grateful. In fact, Winfrey has kept a gratitude journal for many years.
"I know for sure that appreciating whatever shows up for you in life changes your personal vibration," she wrote in the November 2012 issue of O, The Oprah Magazine. "You radiate and generate more goodness for yourself when you're aware of all you have and not focusing on your have-nots."
2. Warren Buffett: Patience
Warren Buffett — the second-richest man in America behind Bill Gates — built his $73.6 billion net worth by simply taking his time. Not a fan of trendy stocks or knee-jerk reactions to market fluctuations, Buffett has a "set it and forget it" investing philosophy that requires patience and a determination to avoid falling for investing myths.
On the "Dan Patrick Show," Buffett said trying to get rich quick is one of the biggest money mistakes people can make. "It's pretty easy to get well-to-do slowly," he said. "But it's not easy to get rich quick."
3. Bill Gates: Humility
The richest man in the world is among the most charitable — and humble. Bill Gates and his wife, Melinda, have devoted their money and time to improving the lives of the world's poorest people. But despite his generous donations, Gates recognizes that others are making contributions that he says are more meaningful.
"I'm not giving up food, or vacation, or a trip to the movies" to give charitably, Gates said in a video interview for Reddit. "I essentially sacrifice nothing that I want, and there are people who are out in the field and they're giving more ... they're the biggest philanthropists."
4. Larry Ellison: Inquisitiveness
Larry Ellison, the billionaire founder of Oracle Corp., says his inquisitive nature is responsible for his success.
To continue reading, please go to the original article here:
https://www.gobankingrates.com/net-worth/business-people/habits-of-highly-successful-billionaires/
20 Billionaire American Dynasties and How They Made Their Money
.20 Billionaire American Dynasties and How They Made Their Money
From the Hunts to the Waltons, these families know business.
By Joel Anderson April 15, 2021
A billion dollars can cast a long shadow — and not just if you get it all in $1 bills and see how high you can pile it. The legacy of a billion-dollar fortune can often stretch across generations and historical eras. Once you accumulate a large fortune, it only gets that much easier to expand it by relying on compound interest and smart investing to keep building returns and growing your money year after year. After all, even a modest 5% annual return translates to $50 million in income a year when the starting point is $1 billion.
The end result of that is that the wealthiest families in America tend to stay that way and only get wealthier. Even as the initial patriarch who kick-started the dynasty fades from memory, their legacy of an enormous accumulation of wealth can continue to grow generation after generation.
20 Billionaire American Dynasties and How They Made Their Money
From the Hunts to the Waltons, these families know business.
By Joel Anderson April 15, 2021
A billion dollars can cast a long shadow — and not just if you get it all in $1 bills and see how high you can pile it. The legacy of a billion-dollar fortune can often stretch across generations and historical eras. Once you accumulate a large fortune, it only gets that much easier to expand it by relying on compound interest and smart investing to keep building returns and growing your money year after year. After all, even a modest 5% annual return translates to $50 million in income a year when the starting point is $1 billion.
The end result of that is that the wealthiest families in America tend to stay that way and only get wealthier. Even as the initial patriarch who kick-started the dynasty fades from memory, their legacy of an enormous accumulation of wealth can continue to grow generation after generation.
The Rockefeller Family Approximate Net Worth: $8.4 billion Source of Wealth: Oil
The legendary John D. Rockefeller wasn't just the richest man of his day, he might be among the highest individual net worths of all time. At his peak, Rockefeller's assets accounted for 1.5% of the nation's total economic output — the equivalent today of a $340 billion fortune that would lap Jeff Bezos twice with room to spare.
The Rockefeller fortune was born out of Standard Oil, the company he founded in 1870. Rockefeller ruthlessly either acquired or drove out all of the competition in the oil refinery business so that he could control a near-complete monopoly. Today, the fortune he initially built is spread out across 174 different heirs and supports a lot of important philanthropic work.
The Johnson Family Approximate Net Worth: $10.7 billion Source of Wealth: Investing
The Johnson family is now in its third generation of helping average Americans invest their money after Abigail Johnson took the reins of Fidelity from her father Ned in late 2014 after he had been in charge from 1977 on. The company, though, was founded by Edward C. Johnson II back in 1946.
Fidelity is the second-largest mutual fund company in the world behind Vanguard, and the Johnsons own some 49% of it. Abigail is one of four family members sharing their namesake fortune.
The Sackler Family Approximate Net Worth: $10.8 billion Source of Wealth: Pharmaceuticals
The Sackler family has been in the news lately, just for all the wrong reasons. The family's enormous wealth started with the founding of Purdue Pharma in 1952. However, it really kicked into high gear in the 1990s with the development of OxyContin in 1995. The pain medication proved so popular that it was selling $1.6 billion a year by 2003.
It's clear now that the popularity of OxyContin was only partially due to its medical uses, and the Sackler family is now the target of a torrent of bad press as the opioid epidemic continues to grow worse. Purdue Pharma paid out a $600 million settlement in 2007 after pleading guilty to the accusation that it had marketed OxyContin as being safer and less addictive than it actually was, and the company has been buried in lawsuits ever since.
To continue reading, please go to the original article here:
Inflation and Other Future Risks My Daughter Will Face
.Inflation and Other Future Risks My Daughter Will Face
Notes From The Field By Simon Black July 19, 2021 Cancun, Mexico
Robert Woodruff, President and CEO of Coca Cola, was in a terrible jam in 1953. Coke was already one of the most popular and successful products in the world. Everyone loved it.
Coca Cola had become such a staple in American life, in fact, that, in 1943, the US War Department requisitioned 6 million bottles of Coke per month to be delivered to American soldiers fighting overseas.
But World War II had taken a toll on the US economy, and inflation was rampant. By the early 1950s, Coca Cola’s production costs had soared… and the company could no longer justify selling a bottle of Coke for 5 cents.
Inflation and Other Future Risks My Daughter Will Face
Notes From The Field By Simon Black July 19, 2021 Cancun, Mexico
Robert Woodruff, President and CEO of Coca Cola, was in a terrible jam in 1953. Coke was already one of the most popular and successful products in the world. Everyone loved it.
Coca Cola had become such a staple in American life, in fact, that, in 1943, the US War Department requisitioned 6 million bottles of Coke per month to be delivered to American soldiers fighting overseas.
But World War II had taken a toll on the US economy, and inflation was rampant. By the early 1950s, Coca Cola’s production costs had soared… and the company could no longer justify selling a bottle of Coke for 5 cents.
Woodruff had always loved their 5 cent price. Part of the allure was that the company owned roughly half a million vending machines across the country. So US consumers could easily pay for a bottle of Coke with a single coin– a nickel.
Woodruff wanted to keep the simplicity of a single coin transaction. And since the next highest coin in the US is a dime– 10 cents– it would have meant doubling the price of Coke.
But Woodruff was terrified that consumers would balk at a 100% price increase.
So he sent an urgent letter to his old friend and hunting buddy, Dwight Eisenhower, who had just been elected US President.
In the letter, Woodruff asked if the Treasury Department would mint a 7.5 cent coin that consumers could use to buy Coca Cola.
Eisenhower’s Treasury Secretary rejected the idea. But Coca Cola still eventually raised its price.
Today you can easily spend $1.50 to $2.00 for a Coca Cola in a vending machine, a 30x to 40x increase over the past seven decades.
That’s an astonishing price increase. But it’s not just Coke.
Going back to the early 1940s– roughly eighty years ago– the median price of a new home in the United States was less than $3,000. Today the median home price is roughly $350,000… more than 100x higher.
If that rate continues, then by the time my daughter is 80 years old (she’s currently just a few weeks old), the median home price in the Land of the Free will be more than $30 million.
To us, today, it’s unfathomable that an average, middle class suburban home could cost $30 million. Or that a bottle of Coca Cola will cost $75.
Similarly, it was probably unimaginable to a typical US consumer back in the early 1940s that home prices would be hundreds of thousands, or even millions of dollars today.
But that’s the nature of inflation: it chips away at the value of money, slowly. But over longer periods of time, those small changes compound into incomprehensible price increases.
Now, the Federal Reserve in the United States has told people for years that they’ll set their policies to maintain an average 2% annual rate of inflation.
But 2% is a fantasy. According to the Federal Reserve’s own data, they’ve averaged 3.5% annual inflation since the end of World War II.
And that extra 1.5% makes an enormous difference over time.
If inflation averages 2% throughout my daughter’s life, prices will be roughly 6x higher by the time she’s in her 80s.
But if inflation averages 3.5% throughout her life, prices will be more than 20x higher. Just imagine paying $50 for eggs or bread… or $1 million for a Ford F-150.
Inflation, of course, only scratches the surface of the extraordinary trends that she’ll see unfold in her life.
I was born at a time when the United States was the wealthiest country in the history of the world– strong, prosperous, and free. And that had an enormous impact on my life.
My daughter, on the other hand, was born at a time when so-called ‘leaders’ find every way possible to destroy prosperity and make people less free.
For example, politicians across the US are raising taxes and creating absurd new regulations to obstruct business development.
The central bank is conjuring trillions of dollar out of thin air and stoking historically high inflation, while the Treasury Department racks up a national debt that’s so large it’s almost comical.
Yet the Treasury Secretary’s top priority now is diversity and inclusion… instead of maintaining a strong economy or a stable currency.
State and local governments are just itching to take people’s freedoms away again as the media continues spreading fear about new COVID variants.
And, while students in China focus on learning science, technology, mathematics, and engineering, US schools from kindergarten through university are radicalizing young people to become woke fanatics.
It pains me to imagine, 20 years from now as my daughter comes of age, how ill-equipped this younger generation will be to compete with China.
I expect my daughter to also witness Social Security running out of money by the time she’s a young adult. She may also quite possibly see the US default on its prodigious national debt…
And my fingers are crossed that she’ll never see a shooting war between the US and China– the culmination of the ‘Thucydides trap’ where a rising power and declining power go to war.
All the while, as things decline in the West, she’ll probably see politicians continuing to blame the same old boogeymen for all the problems.
As US economic conditions deteriorate, future US President AOC will keep insisting that capitalism and systemic racism are at the core of the problems… and the solution is to double down on their bankrupt progressive spending programs.
It reminds of how Venezuela’s government always blames its economic problems on the United States; they never look within and realize that they have caused their own destruction.
All that said, I’m wildly optimistic about my daughter’s future.
I’m an avid student of history, and I know that this is nothing new. Superpowers rise and fall. Dominant currencies rise and fall.
But throughout it all, talented, independent-minded people always find opportunities to rise. And my primary role as her father is to make sure that she’s in that category.
On another note… We think gold could DOUBLE and silver could increase by up to 5 TIMES in the next few years.
That's why we published a new, 50-page long Ultimate Guide on Gold & Silver that you can download here.
To your freedom and Prosperity, Simon Black, Founder, SovereignMan.com
Why Warren Buffett May Be Wrong About America’s Future
.Why Warren Buffett May Be Wrong About America’s Future
Notes From The Field By Simon Black
July 21, 2021 Cancun, Mexico
Nearly every year in his annual Berkshire Hathaway shareholder letters, Warren Buffett spends a few pages talking about the dynamism of the American economy. His message is clear: the United States has faced adversity before. It will again. But America always prevails and you should never bet against it. That theme has certainly held true during Buffett’s life. He was born in 1930 and came of age at a time when the US had become the world’s undisputed dominant superpower.
Buffett’s entire business career, in fact, took place at a time when America was on the rise. But even Buffett would have to acknowledge that times have changed.
Why Warren Buffett May Be Wrong About America’s Future
Notes From The Field By Simon Black
July 21, 2021 Cancun, Mexico
Nearly every year in his annual Berkshire Hathaway shareholder letters, Warren Buffett spends a few pages talking about the dynamism of the American economy. His message is clear: the United States has faced adversity before. It will again. But America always prevails and you should never bet against it. That theme has certainly held true during Buffett’s life. He was born in 1930 and came of age at a time when the US had become the world’s undisputed dominant superpower.
Buffett’s entire business career, in fact, took place at a time when America was on the rise. But even Buffett would have to acknowledge that times have changed.
Today the government is obsessed with passing regulations that create obstacles to growth and new business formation. They’d rather pay people to stay home and NOT work rather than encourage production and innovation.
They rack up enormous quantities of debt without a single thought to the long-term consequences. They engineer inflation. They stifle competition.
And they constantly ridicule anyone who took a chance, worked hard, and became successful. Not only do they want to raise your taxes, they want to shame you because of your hard work and success.
Buffett knows this now from personal experience. Last month, in an effort to make wealthy people look bad, Buffett’s private personal tax returns were illegally leaked on the Internet for everyone to see.
He never had to deal with that sort of rage before in his life.
Moreover, when Buffett was a young man, he never had to contend with fanatical mob of woke Marxists. And he never knew a time when the biggest companies in America bent the knee in subservience to them.
And while there have always been small groups of Communist sympathizers and socialists in America, Buffett made his fortune at a time when the vast majority of people understood the awesome, prosperity-generating powers of a capitalist system.
But today, socialism is totally mainstream, with New York Magazine last month proclaiming that “Socialism isn’t a dirty word anymore.” And according to a recent Axios poll, most Gen Z (ages 18-24) have a negative view of capitalism.
Bottom line, the America of today is not the same America where Buffett made his fortune.
This isn’t to say that there aren’t extraordinary opportunities to create wealth and become successful. Of course there are-- opportunities abound everywhere, both within the US, and around the world.
But it would be foolish to ignore these trends, or the fact that the country may be past its economic and political peak.
To paraphrase former Treasury Secretary Larry Summers, how much longer can the worlds biggest debtor continue being the world’s biggest superpower?
How much longer can a country which debases its currency, embraces socialism, silences intellectual dissent, brainwashes its youth, and encourages unproductive behavior, continue being the world’s most dynamic economy?
These are not controversial statements. They’re relevant, important questions that any independent-minded person might consider.
This is the topic of today’s podcast, which you can watch here (on YouTube) or here (on SovereignMan.tv), or listen to here.
To your freedom, and Prosperity
https://www.sovereignman.com/podcast/why-warren-buffett-may-be-wrong-about-americas-future-33110/
Signature Simon Black,Founder, SovereignMan.com
National Financial Awareness Day – August 14, 2021
.National Financial Awareness Day – August 14, 2021
How much would you like to bet that most people don’t know August 14 is National Financial Awareness Day?
It’s more important than you think. And plus, what’s more fun than financial independence? First off, think about that great feeling you get when you don’t have the looming specter of debt hanging over you. Also, sound financial decisions can really make a difference down the road.
Remember, retirement is a time to take all those vacations you couldn’t when you were working the daily grind. Because money is important to our overall peace of mind, Financial Awareness Day is a great time to review where you are now and where you’re going financially. Don’t let bad financial decisions ruin the best years of your life!
National Financial Awareness Day – August 14, 2021
How much would you like to bet that most people don’t know August 14 is National Financial Awareness Day?
It’s more important than you think. And plus, what’s more fun than financial independence? First off, think about that great feeling you get when you don’t have the looming specter of debt hanging over you. Also, sound financial decisions can really make a difference down the road.
Remember, retirement is a time to take all those vacations you couldn’t when you were working the daily grind. Because money is important to our overall peace of mind, Financial Awareness Day is a great time to review where you are now and where you’re going financially. Don’t let bad financial decisions ruin the best years of your life!
When Is National Financial Awareness Day 2021?
Start saving, investing, and building up that nest egg on National Financial Awareness Day on August 14.
History Of National Financial Awareness Day
Do you lavishly spend money like they did in “The Great Gatsby”? Are you saving for retirement but uncertain where every penny is going? Do you live from paycheck to paycheck? Whatever your financial situation may be, it is time to look at the big picture and commit to becoming more aware of your spending. Most of us like to wait until our birthday or the new year to plan our finances but today is a great time to start. August 14 is National Financial Awareness Day and a good reminder to take investing and saving seriously to build financial stability and prepare for the future.
The origins of the holiday are unknown but the aim of it is to develop and instill good financial practices that will solidify a person’s current financial status and serve them through retirement. Investing will make money do the work for us, which will result in less time spent working and leave more time for us to enjoy our lives.
David Ravetch, a senior accounting lecturer at the University of California, Los Angeles, says, “We live in a world of financial illiteracy.” What he means is that most of us do not possess the knowledge and skills that are necessary to make informed and effective financial decisions with our existing financial resources.
It seems overwhelming, but everyone has the capacity to learn sound financial principles and save up. Just making small changes to our daily habits can reap great financial benefits. Finances can be quite straightforward once we distinguish our wants from our needs and take inventory of our spending. Joining an investment or money management club or consulting a financial advisor is encouraged, and books and blogs on personal finance are promoted.
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