The Great Credit Contraction – Trace Mayer

The more I read and learn about how to protect my Nest Egg and avoid large losses, the more I see how the financial professionals try to make us focus on the micro (investments) and not the macro (fiscal, monetary and credit systems) money movements.

We are constantly bombarded with financial programs telling us which stocks to buy and what funds are the best performers.

But in the scheme of things this information is useless as investment advice when you are a flea (investor) on the backside of an elephant (the money and credit system). In fact toThe Great Credit Contraction take that analogy further think of yourself as a flea sitting on a pile of elephant dung that is just about to drop to the ground. You get the picture.

It is all cosy and warm and looks fine up there and you think you are in heaven but you’re going to hit the ground with a thud 🙁

Another way of looking at this is we need a “unified theory of everything financial”. You see when our governments create billions of dollars out of thin air and then spend that money we can never know the full consequences of it over the long term. But they don’t care about that.

You do care about the long term. You have been indoctrinated into believing you have to invest for the long term even though governments think only of the next election and play with the fiscal and monetary systems (no the FED is NOT independent as far as I am concerned)  in order to get voted back into power. They use the tax exempt carrot to get you to invest for the long term. In short you are being manipulated for their benefit.

The financial industry tells you to invest for the long term because they can only make their huge bonuses by having all your money at risk all the time in diversified investments that have a habit of going negative in sync just when you are about to retire. Failing that you can almost bank on a serious financial hit to your nest egg every 5, 7 or 10 years depending on which financial institution you talk to. In fact they tell you you can expect this to happen. But they tell you not to worry because you will miss out more by not being fully invested all the time and riding the investment roller-coaster.

You see much of the financial world is “gaming the system” using your money. They get paid bonuses to do just that. It should not just be about returns, especially if your up 10%,15%, 20% a year over three years and then you lose 50% of your capital plus your gains in just six months, every 5th, 7th or 10th year. And even worse if you lose it the year you retire. It should be about capital protection, avoiding large losses and consistent income for baby boomers. If that comes at the expense of high (risk) returns so be it.

Money moves like a wave out into the community. You, the poor dumb consumer (baby boomer) are the last in the chain. Right now there is a massive amount of printed money sitting in the banks. As you know the banks get first pick at the money and they are not lending it yet. When they do prices are sure to rise as that money flows through the economy, if all the theory about inflating the money base results in price inflation, is correct.

In my search for what I believe is the source of all our financial problems, the boom and bust cycles and why our nest eggs are destroyed every 5-10 years I have come across an eBook called, “The Great Credit Contraction” by Trace Mayer. I have watched him on video and read several articles on his web site, The Great Credit Contraction“. So far he makes a lot of sense to me. So much so that I have purchased his eBook and have added it to my Blog page permanently. You can find it down on the bottom right hand side. Or click on the image of the eBook above.

The eBook is a great primer for Baby Boomers to learn how the money and credit system works and what you can do to try to protect your nest egg and avoid large losses.

Trace Mayer tells us we need to;

  • Understand monetary science and basic economic law
  • Distinguish between money and fiat currency
  • know how to protect your money with bailment instead of fractional reserve banking
  • know the effect of Mr Bernanke’s “quantitative easing” on your retirement nest egg

You can read articles by Trace Mayer on each of these topics on his website before purchasing the eBook if you like.

You can also sign up for a mini course on “Monetary Science and Basic Economic Law”.

I’m part way through reading the eBook now and will write a post on it when I have finished it. So far it seems to represents a distillation of all my research and my thinking and I believe it can become the basis of learning how to avoid or at least minimise the damage done by governments and financial institutions to my nest egg.

I highly recommend you invest in this eBook. I should disclose I am an affiliate for this book and if you click on the image of the ebook on my Blog I will get paid a commission. If you believe my blog offers value then I would appreciate you buying the ebook from my blog. If not you can go directly to the website and buy from there.

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