Here are some books and writings that I have found to be the most helpful in shaping my thinking this year.
For a longer-term geopolitical framework, I highly recommend Disunited Nations, by Peter Zeihan. It’s a very easy, somewhat fun, yet informative read on the shifting geopolitical tides we’re likely to see play out over the next 20 years or so. If you’re a long term investor, or just someone that likes to follow global events and geopolitical strategy between nations, you should find this book very informative.
Ever wonder why it seems like the Fed is continually intervening at increasing rates? One of the main reasons is because they’re fighting technology. Our current credit-driven, fiat financial system is based on an inflationary framework, meaning it essentially requires inflation in order to keep the Ponzi scheme going. The problem is that technology is highly deflationary and we are becoming an ever more technology based society (COVID accelerated this greatly). As we continue to innovate and technological advancement progresses, prices continue to fall for the products and services we are increasingly using, and this is happening on an exponential arc. This is good for consumers as it means your money buys your more (or costs less of your money) but the Fed views it as bad all in the name of hitting an arbitrary 2% inflation target. The Price of Tomorrow, by Jeff Booth breaks this down and lays out a very intriguing argument that we need to be embracing deflation, not trying to fight it, if we want to fix many of our economic ailments.
What is Money?
This question leads you down a very deep rabbit hole. In my last post, I mentioned that I added exposure to bitcoin in all of my client’s portfolios earlier this summer. It initially wasn’t my intent to expand on why but after that circus of a Presidential debate this week, I feel it’s important for people to better understand the root of our financial and economic issues that is dividing America so much these days. It’s not political and it won’t be solved with political solutions; it’s about the distortion of money. Fortunately, there are some absolutely fantastic pieces that have been written this year so I don’t have to recreate the wheel:
I highly recommend you start with a piece titled: Bitcoin is One for All, by Parker Lewis. It’s part of a series of pieces he’s been writing this year. Don’t worry, it’s not some technical guide on bitcoin. It’s mainly about the flaws of our financial system and the distortions it’s creating. I wholeheartedly agree with everything stated in this piece.
Next, I recommend you read Masters and Slaves of Money, by Robert Breedlove. It’s a bit long but absolutely worth every minute of your time.
And as a bonus, Honest Money, by Gary North is a bit simpler but a very good overview of what money is, what it should be, and why distorting its value has precarious implications.
Happy reading and welcome to the rabbit hole!
-Nick