Rage Against Financial Mystics
Posted December 18, 2020
“Good luck can be enticed by accepting opportunity,” George S. Cleason writes in, The Richest Man in Babylon.
It’s one of the most popular books on personal finance -- over two million copies sold -- for a reason. It emphasizes the timeless at the expense of the timely.
And it’s the distilled wisdom of the world’s first financial mystic -- and trillionaire.
1. Pay yourself first (Save at least 10% of your paycheck)
2. Don't trust a bricklayer to buy jewels (Don't get caught up in FOMO. Follow your own path, yes, but seek out those with knowledge.)
3. Don't put all of your eggs in a single basket (Diversify!)
4. Control your expenses. (Even the richest man has a time constraint on his life. Do what you enjoy, but don't overdo it)
5. Increase your ability to earn and learn (Self-explanatory)
Unfortunately, via no shortage of monetary malfeasance, Solomon’s wisdom has been cast into the caves.
Today, our ivory towers follow a different type of financial mysticism.
Mystical Monetary Theory
Modern Monetary Theory, or MMT, is not necessarily new. It’s just a bad old idea gilded in glittery packaging.
Versions of this theory have been around at least since the French Revolution, when fiat “assignats” spread poverty and deprivation across France.
“Stripped of all its elaborate academic window-dressing,” Mark Hendrickson writes in The Epoch Times, “MMT boils down to this: Government spending boosts prosperity; governments need not worry about running fiscal deficits, but should simply have the monetary authorities print however much money the government wants to spend. Presto! Magic money produces magical growth, and unlimited government spending produces unprecedented wealth. According to its proponents, MMT is the key to fiscal and economic nirvana.”
In short, MMT advocates believe creating money out of nothing magically invokes the creation of food, energy, wealth, and raises the standard of living for the bottom portions of society.
It is, at root, a bastard stepchild of John Maynard Keynes, who believed he’d uncovered the “miracle” of “turning a stone into bread.” Indeed, through artificially boosting demand, modern financial mystics could turn zero loaves of bread into millions of them -- an act that, they presumed, should turn even Jesus green with envy.
Hendrickson lays out just one of the dangers of this shadow money magic, what he calls “stealth socialism”:
“MMT would enable the government to take whatever it wants from the private sector—not by explicit confiscation, but simply by giving the government unlimited purchasing power with which to outbid private interests. It would be a rigged game: Government’s preferences for how economic resources should be deployed would always prevail because of the government's superior financial power.”
Rage Against the Modern Mystic
Of course, one of Solomon’s biggest “secrets” was holding his wealth in real money -- precious metals like gold and silver.
And, by the looks of it, the unwashed masses are beginning to rage against the modern financial mystics.
Google searches for “Gold IRA” have hit record highs.
Now, it’s no secret we’re fans of holding physical midas (and moon) metal.
But if you REALLY want to protect your purchasing power…
You may want to allocate a portion of your 401k, your retirement savings, to real, physical gold while the gettin’s good.
Yes, the IRS allows investors to buy, sell, and hold certain precious metals in an IRA. And not only do you get the very same tax advantages as a regular old stocks and bonds IRA…
Gold benefits even more from those special terms. (See below for details.)
Best part? Hard Assets Alliance’s newly improved platform makes opening a precious metals IRA easier than ever.
All you have to do is…
- Apply online in minutes
- Rollover part of an existing 401k
- Buy physical gold coins and bars
Don’t have a 401k? No problem.
You can easily fund your new Hard Assets Alliance IRA with a contribution, or transfer funds from another IRA account, like one from Vanguard or Fidelity.
[Full disclosure: Years ago, we saw HAA’s promise as a fierce contender in the precious metals markets and bought a stake in their platform. So, it’s safe for you to assume we benefit from HAA when you do. (Moreover, with costs so low, it’s a rising tide that lifts all boats).]
In short, King Solomon “the wise” believed the gods of luck could be enticed through right action.
Note: This is NOT tax advice. Content in this email regarding taxes is for informational purposes only. Hard Assets Alliance cannot answer individual tax questions; we recommend that you contact a tax professional.
Managing editor, Laissez Faire Today