Why Almost Nothing Is Cheap
Stocks, bonds, and urban property—conventional investments—aren’t cheap in today’s investment world.
Because of the trillions of currency units that governments all over the world have created since the start of the crisis in 2007, financial assets are grossly overpriced. Meanwhile, real wages are slipping rapidly among those who are working, and—regardless of what official figures say—a large portion of the population is unemployed or underemployed. The next chapter in this sad drama will include a rapid rise in consumer prices.
We are in a financial no-man’s land. That said, what you should do with your time and money presents some tough alternatives. “Saving” is compromised because of depreciating currency and artificially low interest rates. “Investing” is problematical because of a deteriorating economy, unpredictable and increasing regulation, and rising taxes. “Speculation” is the best answer, of course, and I cover what that means elsewhere. But it may not suit everyone as a methodology.
There are, however, several other alternatives to dealing with the question, “What should I do with my time and money now?” They include active business, entrepreneurialism, innovation, “hoarding,” and agriculture. There’s obviously some degree of overlap with these things, but they are essentially different in nature.
Warren Buffet’s success notwithstanding, relatively few large fortunes have been made by investing. Most are made by creating, building, and running a business. But the same things that make investing hard today are going to make active business even harder. Sure, there will be plenty of people out there to hire—but in today’s litigious and regulated environment, an employee is a large potential liability as much as a current asset.
Business itself is seen as a convenient milk cow by bankrupt governments—and it’s much easier to tap small businesses than taxpayers at large. Big business (which I’ll arbitrarily define as companies with at least several thousand employees) actually encourages regulation and taxes because their main competition is from small businesses: namely, you. Big business is much more able to absorb the cost of new regulation and can hire lobbyists to influence its direction. Businesses that are “too big to fail” can count on government help.
You certainly don’t want to be an employee, but runni
Article from LewRockwell