There are 3 economies to pay attention to:
- Your Personal Economy. This is the one that really matters. The life you will share with your family and friends will be directly impacted by your finances.
- The People’s Economy. This is the wealth of communities of people. You could look at it in terms of the American public as a whole or separated into demographic or geographic categories.
- The Financial Institutions’ Economy. This is the wealth of the people who own banks and financial services companies.
Right now, the financial institutions’ economy is doing quite poorly as a result of foolish decisions. Financial services companies created and bought debt that was not repayable. They packaged investment products in a way so complex not even Warren Buffet could understand them. The Fed has decided to defer and worsen the consequences of their inflationary monetary policy… and now “the economy” is crumbling before our eyes… but which economy is it?
Although often not fulfilled, there is clear potential for your personal economy to be completely separate from the financial institutions’ economy. Your wealth can [Read more…]