LIVING OFF DIVIDENDS & PASSIVE INCOME

I just finished reading John Mauldin’s weekly newsletter. He has a very interesting graph that I’m reproducing below.

This year there’s an expected $5.3 Trillion dollars in new sovereign debt issuance!  He asks a great question – where is this money going to come from? Most of this money is going to bank bailouts and increased government spending.  The resulting decrease in imports and increase in government spending will of course make our GDP look rosier than it actually is. So there’s a good chance we’ll hear news reports of the economy improving even though there’s absolutely no improvement whatsoever!

So even though I’m concerned that the US is printing money hand over fist, it seems everyone is just doing the same thing. Unfortunately, we’re “winning”.   I still think we’ll see hyperinflation during this cycle and even though the USD may not weaken against foreign currencies, it should depreciate against real assets like gold and silver, and towards the tail-end of the cycle maybe real estate too.  I strongly doubt we’ll see any sort of quick recovery any time soon.  And if you want to read an entertaining article on why you should short the US, proceed on to Ahlgren Multiverse.

• Which Dividend Stocks Are Worth Looking At? The market has been defying gravity this summer, with the S&P500 up 49% since March. But most of the appreciation has been in what I consider lower quality stocks. Many homebuilders with doubtful prospects have doubled from their recent lows, while stocks that are somewhat recession proof like McDonalds, Walmart,......
• And The Winner Is Inflation! As I mentioned in a previous post about Exxon being the new whipping boy, I'm trying to find out whether the US economy is more likely to head into an inflationary period or slip into recession.Based on several sources, I feel we will see inflation. According to Financial Sense,the U.S.......
• Buffett Finally Admits the Dollar is Doomed! Finally Warren Buffett said what I've been harping on about for two years. In his NYT op-ed piece titled "The Greenback Effect" he admited that the government is setting us up for massive inflation and destruction of the US Dollar. This fiscal year, though, the deficit will rise to about......

• Tennis Preview: Rogers Cup In a preview of the Rogers Cup, we find that Federer and Nadal are returning! Judging by the name on this particular tournament, you may think that the winner for this particular game has already been determined. When you consider the results in the past two slams, you may be......
• Gold At $5,000 Per Ounce? What if the US government were to revert back to the gold standard? At what price of gold would we peg the dollar? In 1971, the US government had 280 million ounces of gold [source]. Assuming that the sale of gold by the US mint is inconsequential, and that......
• Love and Marriage - Impress Yourselves, Not Your Friends. I met my wife 4 years ago this month through some mutual friends. She says it was fate, but I believe it was some sort of a freak accident. Whatever anyone believes, we met while standing next to a creepy clown blowing up balloons for some 5 year olds. But......

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