Recently I attended a conference in Acapulco called Anarchapulco 2018 run by Jeff Berwick. It was astounding to hear what speakers had to say about Governments around the world who all seem to be doing the same thing. Call it QE1, QE2, QE3, stimulus packages or whatever you like, to me its printing money to get out of bad economic management.
Where has this left us? Well, right now – for the next few seconds – it will be with a global debt of around $US55 Trillion. This debt will continue to rise until something catastrophic happens and we are left wondering why we never saw it coming.
As a society we are told to go to school, get good grades and get a job. Well for me, a job means just over broke. Why? Because the Government will take a good chunk of your income before you even see it. Think of it like working for 4-6 months a year to help the government pay off their ridiculous overspending.
As Kerry Packer so wisely said all those years ago, “I don’t know anybody that doesn’t minimise their tax, I’m not evading tax in any way shape or form. Of course I’m minimising my tax. If anybody in this country doesn’t minimise their tax they want their head read. As a government I can tell you you’re not spending it that well that we should be paying extra.”
As a society there is a need for structure and certainty; we need taxes to help support essential services, but Australia’s current debt level is also high – currently $AU6.1 Trillion – and rising. To see just how fast it is rising, click here.
Here in Australia the RBA analysis of the latest national accounts indicates that debt is 99.7% greater than the total earnings of all households, having risen significantly from 67% three years ago. Households are still adding to their debts as more first-home buyers enter the market, established homeowners upgrade their properties, and investors add properties to their portfolios.
Legendary investor Jim Rogers sat down with Business Insider CEO Henry Blodget in June 2017 and predicted a market crash in the next few years. One that he says will rival anything he has seen in his lifetime. Click here to view the interview.
The internet is full of experts and idiots but who do you follow and how do you navigate this overload of information?
I can’t tell you where the markets are going but I can tell you that being alert to what governments are doing and not doing and ensuring you have a balanced portfolio of investments will be essential as we head into an uncertain future.
It’s not all doom and gloom. There are opportunities out there and technology is allowing information to flow freely via the web and other communication tools. So stay alert and pay attention.