“By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens.”
Whether we’re rich or poor, thrifty or overextended, inflation is as inevitable as death or taxes. But how high IS inflation? Is the Consumer Price Index a reliable guide? And what is the impact of underestimating inflation?
“The thought-provoking film is a timely reminder of the lessons from a financial crisis which are too quickly forgotten.”
~ Patrick Durkin, Sydney Morning Herald
Hollywood Tells the Story of the Lie That Crashed the Economy
Hollywood’s big screen version of The Big Short, based on Michael Lewis’s best-selling book on the financial crash, was released to DVD in March of 2016, following a successful run in theaters. Now six years after the 2010 release of the book, which detailed the story of a handful of stock market contrarians who saw that something was rotten on Wall Street, the message remains relevant as well as entertaining.
“Some debts are fun when you are acquiring them, but none are fun when you set about retiring them.”
-Ogden Nash, American poet
According to a May 13 article in Investopedia entitled “Stop Keeping Up With The Joneses – They’re Broke”, over 43% OF Americans spend more than they make. One financial journalist estimated that there are more than two million Americans carrying a credit card balance of more than $20,000. Most people making minimum payments (without taking on more debt) won’t pay off their cards for 24 years.
There are some common reasons for this:
“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would a revolution before tomorrow morning.”
– Henry Ford
We’ve all heard the expression, “It’s like money in the bank!” What could be safer or more reliable than one of our long-standing financial institutions?