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,......
• Cheney Betting Against The Dollar Not exactly fresh news, but its been reported that Dick Cheney, our beloved vice-president is betting against the US Dollar. He has tens of millions of dollars in foreign government bond and currency funds and international and emerging market stocks. His excuse is that it's in a blind fund and......
• How To Invest In Foreign Currencies & Foreign Stocks Previously I had mentioned several ways to invest for a recession or a major downturn in the US economy. In that post, I stated that one of the ways to hedge against the declining dollar (apart from my favorite method of buying gold) was investing in foreign currencies. Several people......

• How to Eliminate Your High-Interest Consumer Debt. It’s easier than ever to borrow money to pay for all the things you want in life. You’ll be offered financing for your house, your car, a large television, new furniture, recreational vehicles and the like. Even for smaller items you can use a credit card to get yourself into......
• Weakon 117: Intro to Government Spending Founding principle #3 of Weakonomics is based around our government. We spend too much, money isn't spent in the right places, we don't tax efficiently, etc etc etc. Today's lesson is going to talk about how our government spends money. We might go off on a tangent or two, but......
• Spending Less Than You Earn. Sound Advice At Any Income The past week was a sad one as we saw the passing of several well known celebrities. The week started off with the passing of affable Johnny Carson sidekick and veteran of two wars, Ed McMahon. He was always able to light up the stage with his easy going demeanor,......

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