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How Rich Is Your Knowledge Capital?

The future will belong to those who know how to create value
Thursday, March 16, 2017, 9:36 AM

The best way to defend yourself against the risk of 'losing it all' is to have an important part of your wealth stored between your ears, where it can't be taken from you.

If bad fortune should intervene and you lose your financial wealth, or you need to move away from your current community and start all over again, you'll be able to build a future if you have valuable skills, knowledge and expertise to rely on.

This will be especially true if the future unfolds the way we expect, where declining energy yields and economic stagnation sentence us to doing less. In such a world, a much higher premium will be placed on those individuals who know how to create value. Who know how to get things done.  » Read more

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How Rich Is Your Knowledge Capital?

The future will belong to those who know how to create value
Friday, March 4, 2016, 1:36 PM

It ain't what you don't know that gets you into trouble. It's what you know for sure that just ain't so.
~ Mark Twain

The Crash Course does a good job of explaining why we're heading into an uncertain future. One that will be defined by disruption and volatility.

How that change will unfold exactly is impossible to forecast. As Yogi Berra rightly quipped: It's tough to make predictions, especially about the future!

The best way to defend yourself against the risk of 'losing it all' is to have an important part of your wealth stored between your ears, where it can't be taken from you. » Read more

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The Price of Everything & The Value of Nothing

Is all we know in a bubble-driven market
Tuesday, June 23, 2015, 4:50 PM

My view is that the stock market is simply pegging itself to the idea that the central banks have backed themselves into a corner and that there’s no other option but to keep the liquidity spigots open. I cannot fault that view, as it has been right for the past 6 years.

However, it cannot be true forever. And we all know that a day of reckoning is out there somewhere.  » Read more

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VIDEO: John Hussman On Market Mean-Reversion

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VIDEO: John Hussman On Market Mean-Reversion

Hussman's excellent charts explaining why today's markets are so overpriced

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Say Goodbye to the Purchasing Power of the Dollar

Mr. Bernanke goes to Crazytown
Sunday, March 24, 2013, 11:29 PM

On a long solo car trip this past weekend, I downloaded several podcasts to listen to as the miles passed. One was a classic: The Invention of Money, originally released by NPR's Planet Money team back in January of 2011. I highly recommend listening (or re-listening) to it in full.

The podcast is a great reminder of how any currency in a monetary system is a fabricated construct. A simpler way to explain this is to say it has value simply because we believe it does. » Read more

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The Price of Everything and the Value of Nothing

Why your bread is going to cost more
Friday, January 4, 2013, 10:17 PM

The title of this piece is The Price of Everything and the Value of Nothing.  The subtitle is Why Your Bread Is Going to Cost More.  I connect these two in reflecting on my recent podcast with David Collum, in which he stated that our money has no value and that this fact is distorting everything.

What he meant was, if you take your money to the bank to deposit it, the bank offers no interest on that money, implying that money has no value to them.  If they valued it or had a legitimate use for it, they would offer you something for its use.  Obviously, money doesn't have zero value to the banks; they can place it on deposit with the Fed for 0.25% yearly interest.  But by any historical measure, money has no value right now.

That's just what happens when any commodity – which money happens to be – becomes too abundant.  It drops in price.  What 0% rates on money tell us is that there's just an enormous amount of it sloshing around – and that, my dear friends, distorts everything else.

As I have said many times, when you misprice money itself, everything else becomes mispriced, too.  » Read more