We’re all guinea pigs in a grand monetary experiment being performed by the world’s central banks. Quantitative easing, zero-percent interest rates, nominal GDP targeting, and other “Code Red” policies introduced by central bankers to pull the global economy back from the brink of collapse have remained in place long past their expiration date, setting the stage for potentially disasters ahead.
While the outcome remains unclear, the fallout from the grand experiment already is affecting our quality of life and our future prospects. While the wealthy continue to see their wealth soar to all new heights, real economic growth remains elusive and the standard of living is in decline for the majority of us. Savers now receive close to zero-percent interest on their savings, while the price of gasoline, rent and groceries climb steadily. With government bond yields now trading well below the level of inflation, those who rely on pension funds and bonds for their retirements are being forced to seek whatever jobs they can find to help make ends meet. At the same time uncertainty is now the rule in the financial markets–especially in the emerging markets–and, in a process authors John Mauldin and Jonathan Tepper liken to “picking up dimes in front of a steamroller,” investors are chasing after riskier and riskier investments in pursuit of some small return on their investments.
In Code Red John Mauldin and Jonathan Tepper perform an amazing feat: not only do they bring monetary policy down to Earth for the average saver and investor, they make subjects such as quantitative easing, financial repression, currency wars, bubble economies and inflation, and their impact on our everyday lives and financial futures, compelling reading.
Just as importantly, they arm you with time-tested strategies for surviving and thriving in these tumultuous times. You’ll discover how to spot and capitalize on market bubbles. And you’ll learn proven money management techniques for insulating yourself against inflation, reducing risk through diversification, profiting from precious metals, commodities and other real assets through managed futures funds, and more.
At this point it’s anybody’s guess if current monetary policies will succeed in creating sustained growth or if they will fail miserably leading the world into high levels of inflation. What is certain though is that those policies are producing all sorts of unintended consequences–most of them bad for the average saver and investor. Read Code Red and find out what the central bankers would rather you didn’t know and how to protect your savings from the coming crisis.