Sustainable Wealth
BUILDING
Basic Rules of Wealth Building
First Rule
Spend less than you earn
Second Rule
Never break the first rule
The government may bail out your neighbor, but not you. Inflation bails out those with debt. If you are the U.S. government with a lot of debt, if you are a consumer with a high mortgage and credit card debt, you welcome inflation. But if you are trying to save for retirement, if you are trying to preserve the purchasing power of your savings, inflation is your enemy.
One element left of capitalism in this post-bailout society is that everyone acts in their self-interest. For the government, inflation appears as the easiest fix for the challenges we face.
Fight Inflation
Live Free or Die: Capitalism at Risk
The Federal Reserve (Fed) has gone beyond playing with fire, and may have indeed set the house on fire. It’s one thing to push interest rates to near zero to stimulate the economy.
By engaging in credit allocation to specific sectors of the economy, the U.S. is stepping into a territory traditionally left to governments with a socialist or communist brand.
