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.

• Gold Cracks $1000/Oz: Investing For A Recession Based on continuing weakness in the dollar, gold briefly breeched the $1000 level yesterday along with oil hitting an all time high of $111 per barrel. I had a really strong suspicion that we'd see $1000 gold by mid-March. Despite what Bernanke and Paulson said last summer, the housing......
• 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......
• Protecting Yourself Against Inflation While the debate between inflation and deflation keeps on going, I'm firmly in the camp of inflation. And so is Warren Buffett, as are many other investment advisors. So how do you protect yourself and your investments from the effects of inflation? Investment newsletter editor, Keith Fitz-Gerald, recently had a......

• We Don't Need No Stinking Bailout Plan   Photo courtesy of Michael Casey After news began trickling out of Washington that we may be due another stimulus check, Pete from Bible Money Matters put together a great post asking why not just create your own stimulus check?  With news of the government (taxpayer) supported bailout plan dominating......
• My Thoughts On The $100 Billion Dollar Fiscal Stimulus Package. I think it's a load of crap - I won't hold anything back here. G.W.'s (and now the Democrats as well) brilliant plan to give out around $100 billion dollars to "stimulate the economy" will do nothing of the sort. There are of course the people that will view it......
• 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......

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