7/10/2009 11:58:23 PM
Great book - but I still like capital gains
Your book sums up very well the way our financial system really works underneath the covers.
However, one point I would possibly disagree with you with is your emphasis on cash flow for becoming wealthy. It has been clearly shown that one could have invested $1000 in 1970, and emerged with $10,000,000 only 35 years later. To do this, one could have purchased gold in 1970, selling in 1980, followed by the Nikkei in 1980, selling in 1990, the NASDAQ in 1990, selling in 2000, and gold in 2000, selling in 2009.
The nature of the credit system of the Federal Reserve is that it grossly exaggerates the booms and busts of the investment cycle. Having full knowledge of what money really is, namely debt, and that this money can be created out of thin air by the Fed, enables a person to make huge capital gains.
Thanks for writing,
Tim Biegeleisen :)