Capitalism Has Entered a New Era...

[Camilo]

...and Historic Returns Are Gone Forever

http://www.newsmax.com/Finance/StreetTalk/capitalism-era-historic-returns/2016/07/18/id/739193/

We live in interesting times. We continue to see repercussions from Brexit. The other major players — in Europe, China, and Japan — seem to be in a downward spiral. Not to mention, the bubble-like issues we see in Canada and other parts of the world.

The world is quickly getting far more complex… something that central banks’ (and everybody else’s!) models can’t capture. We are tiptoeing into a period of enormous uncertainty.

Bill Gross addresses these topics in two of his recent letters (I featured them in my free weekly newsletter, Outside the Box). His first deals with the expectations that most investors have about future returns over the long term — as opposed to what reality suggests. Of course, your mileage may vary. It depends on how you choose to create your portfolio. The average investor, however, is at best looking at about a compound 4-5% over the next 10 to 15 years.

And that’s if everything works and we see the top end of the expected returns. Given current bond yields and stock valuations, that outcome may be unlikely.

Bill’s take is not significantly different from what I’ve been writing, but he makes a number of very good points and has data sets that are really worth paying attention to.

Plus, Gross is just a fun writer.

His second letter starts with the simple game of Monopoly that we are all familiar with.

Bill then begins to develop an analogy to the real economy.

Nowadays, central banks keep increasing the amount of money you get every time you pass Go. If that happens in Monopoly, your investing strategy changes significantly— the price of assets goes up because the supply of money increases at an ever faster rate. Which means that the velocity of money rises until at some point you have a problem. Quoting:

[H]owever with yields at near zero and negative on $10 trillion of global government credit, the contribution of velocity to GDP growth is coming to an end and may even be creating negative growth as I’ve argued for the last several years. Our credit-based financial system is sputtering, and risk assets are reflecting that reality even if most players (including central banks) have little clue as to how the game is played.

Bill is shouting a warning about the viability of the current economic system.

He didn’t quote Yeats, but I will: “The center cannot hold.”

By John Maulding

John Mauldin is the chairman of Mauldin Economics, which publishes a growing number of investing resources, including both free and paid publications aimed at helping investors do better in today's challenging economy. Mauldin uncovers the truth behind, and beyond, the financial headlines.

[Leon55]

This is why Bitcoin is such an important innovation. Everyone here on this forum should buy and hold Bitcoin for when the **** hits the fan.

[norman]

Can you buy real estate, legally, with bitcoin ?

When the proverbial event happens, the only thing I'd really trust is having the ability to hitch the whole process onto the back of a tractor and let it spray out, up and down my food production field.

[Leon55]

Can you buy real estate, legally, with bitcoin ?

When the proverbial event happens, the only thing I'd really trust is having the ability to hitch the whole process onto the back of a tractor and let it spray out, up and down my food production field.

You can buy real estate with Bitcoin with some realtors. Also, companies don't necessarily need to accept Bitcoin as a currency. When using a payment provider like Bitpay, a company will be paid in the local currency and the user can still use Bitcoin to make payments.

And I agree that being self-sufficient is a good idea, but that's not feasible for everyone.

[DouglasDanger]

How do you buy or pay with bit coin when there is no electricity/ internet access to bit coin?

[xion]

We are not going back into cave man ages.
Without electricity everyone loses, even the elite.
No electricity no production no trade no life.
Electricity and internet are so woven into human lives that with out them is like going back to sticks and stones.
No body wants that so that's not gonna happen.

[norman]

If a group of powerful people relocate themselves to an underground location in Antarctica, that's one possible group who just might want that, for the rest of us.

[Morbid]

This is why Bitcoin is such an important innovation. Everyone here on this forum should buy and hold Bitcoin for when the **** hits the fan.

Leon, i respect your opinion, but you are not making a very positive impression on others when you suggest readers to invest their hard earned money into something they are uninformed about. instead, try to provide information and perhaps hint towards researching the subject. careful when telling readers what they 'should' do. with love.

[Leon55]

This is why Bitcoin is such an important innovation. Everyone here on this forum should buy and hold Bitcoin for when the **** hits the fan.

Leon, i respect your opinion, but you are not making a very positive impression on others when you suggest readers to invest their hard earned money into something they are uninformed about. instead, try to provide information and perhaps hint towards researching the subject. careful when telling readers what they 'should' do. with love.

I think we're all adults here. I'm pretty sure no one will suddenly invest all their life savings because a guy named Leon placed a short remark about bitcoin on a forum.

And I already started a topic on Bitcoin:

http://projectavalon.net/forum4/showthread.php?91983-Do-you-hold-Bitcoin

[Carmody]

I like to think that the event is already happening, it's just that the 'grand' signs are not visible. Like reading a sentence: "the second world war ran from 1939 until 1945".

The psychological aspect is that we read the sentence in 1.5 seconds.

Yet that was 6 years of minute by minute convoluted sequences of events.

A war against humanity, in general, which is what we are dealing with..a cold war, a manifold evolved and developed proxy war.... a hydra headed hybrid war...

That is what we are dealing with..and there are incredibly high odds that there will NEVER be a formal declaration of anything at all, until the game is well advanced ----well and deeply into the meat of the matter.

After all, the hybrid war cannot take place if the public is aware of what is going on.

so, via simple logical deduction.... the last people to ever know, both planned that way and forced into being that way -at all costs... for advantage to the war players-..... the last people to know they are in such a hybrid war, will be the giant cow vehicle and mechanism of such, called 'the public'.

For.. the public, as vehicle mechanism and meat in the sandwich.. is the main ingredient in the hybrid war, the part being ground down, both the method, vehicle and the madness itself.... that is being ground into oblivion.

[norman]

Has even Disaster Capitalism run it's course ?

[ozmirage]

BITCOIN is more evidence that modern civilization is so money mad, that it cannot perceive reality - the production and trade of real goods and services - and only focuses on the abstraction (money). The unanswered question : “What will money mad people accept as a new money token?” By observation of Bitcoin, it appears that gullible people have no problem with accepting new money, as long as it appears to facilitate trade. This does not bode well for the future. (Usurers will use whatever medium is selected, so they don't care.)

FWIW - Most people presume capitalism to include banking, stock corporations, and interest. However, those are all based on government privileges (usury, limited liability, artificial persons) and are subject to an excise tax.
True capitalism merely means the private ownership of the means of production and that which is produced. In short, absolute ownership of private property- an endowed right, not subject to taxation.

Since 1933, few, if any Americans absolutely own private property, ergo, there has been no true capitalism for 83 years. All that remains is qualified ownership subject to taxation and restriction.

[Leon55]

BITCOIN is more evidence that modern civilization is so money mad, that it cannot perceive reality - the production and trade of real goods and services - and only focuses on the abstraction (money). The unanswered question : “What will money mad people accept as a new money token?” By observation of Bitcoin, it appears that gullible people have no problem with accepting new money, as long as it appears to facilitate trade. This does not bode well for the future. (Usurers will use whatever medium is selected, so they don't care.)


I'm very sorry, But saying that Bitcoin users are gullible only shows that you're not well informed on the subject.

I have to admit that when I first heard about Bitcoin I dismissed it. Later on I learned that Bitcoin is an actual truly revolutionary innovation.

Bitcoin is not money, money is just one of the apps that the bitcoin protocol provides. Bitcoin should really be called Trust Network. There has never been a more immutable database on the Planet Earth. Bitcoin has redefined the word immutable.

This innovation can help regular people in corrupt countries. One example is the use of the bitcoin database in combination with land registry. In some countries officials steal land by going into the countries land registry and change the owner. Normal people are being stolen from and Bitcoin can prevent this! If you register your land on the bitcoin blockchain, there's no way anyone can go into the blockchain database and steal your land. So yes, Bitocin is actually a worthwhile technology.

Then we have the money transfer industry where companies like Western Union charge exorbitant fees so that the poorest people can send money to their families. With bitcoin, these kind of practices will disappear and billions of dollars will actually reach the poorest people in the world instead of ending up in the pockets of Western Union.

And then speak to people from Argentina and Venezuela and ask them how awesome their government currencies are with their sky high inflation. Something Bitcoin does not suffer from.

Bitcoin has the potential to solve a lot of problems for a lot of people in this world.

[Justplain]

A maxim i heard as a child was that owning a home was the best investment that most people make in their lives. This folk wisdom has proven quite true in my life. While other assets, such as cars and boats, generally decline in value while in use, a house usually does not. Whether one can afford a home is another question, because in most cases it requires frugal financial management and a very long term effort to be successful. The great thing is that one can use the asset and it is still likely it will increase in value, provided it is in a location that others would like to inhabit.

Houses, and real estate in general, are great assets to own. When Russia defaulted on its debt in the 1990's, the government stopped paying employees and pensioners. I believe this went on, more or less for over a year. Now, in Russia, because the previous governments had destroyed the agricultural infrastructure, there were thousands of half abandoned villages dotting the countryside. Regular working folks in the cities could afford to buy a 'dacha' for less than a month's wages. During this default period, people went to their dachas and grew food and kept living. The government evetually started paying wages and pensions again, and life returned to a semblance of normalcy.

So, if you want some insulation from a real or perceived societal meltdown, owning habitable and agriculturally usable real estate is a valid option. Whether you can acquire the property using a national currency or thru bitcoin or barter, matters not. The land can save you, and connect you with this beautiful world of ours.

[Ines]

We are not going back into cave man ages.
Without electricity everyone loses, even the elite.
No electricity no production no trade no life.
Electricity and internet are so woven into human lives that with out them is like going back to sticks and stones.
No body wants that so that's not gonna happen.

No body ? after knowing all the efforts the Rotschild Khazarian Mafia had gone through in order to achive their depopulation Agenda, (poison food, genocide, sickness, wars, etc.) .? maybe this would solve their problem.

BTW... Bitcoin would not work without Elctricity and Internet. Nothing would work. The Elite are already prepared to go down to Earth Bases all over the world, well equiped wit all they need to survive a cataclism up in the surface, as well as in Antartica. They sure are prepared.

[take]

We are not going back into cave man ages.
Without electricity everyone loses, even the elite.
No electricity no production no trade no life.
Electricity and internet are so woven into human lives that with out them is like going back to sticks and stones.
No body wants that so that's not gonna happen.

No body ? after knowing all the efforts the Rotschild Khazarian Mafia had gone through in order to achive their depopulation Agenda, (poison food, genocide, sickness, wars, etc.) .? maybe this would solve their problem.

BTW... Bitcoin would not work without Elctricity and Internet. Nothing would work. The Elite are already prepared to go down to Earth Bases all over the world, well equiped wit all they need to survive a cataclism up in the surface, as well as in Antartica. They sure are prepared.

[citation needed]