Bitcoin or Gold?

This article was originally published by The Human Events Group on July 3, 2014 We have proposed a system for electronic transactions without relying on trust. – Satoshi Nakamoto, 20091 With this fairly mundane comment, the person or persons known as Satoshi Nakamoto (the jury is still be out) introduced bitcoin to the world. Since […]

Deflating the Deflation Myth

The fear of deflation serves as the theoretical justification of every inflationary action taken by the Federal Reserve and central banks around the world.

The Bernanke Legacy

With Ben Bernanke’s exit as Chairman of the Federal Reserve, every political physician will opine on his legacy.

When Euphoria Turns to Phoria

Are the financial markets in a current state of euphoria with a commensurate risk of a market downturn? Various metrics strongly indicate as such.

There is No Tradeoff Between Inflation and Unemployment

Anyone reading the regular Federal Open Market Committee press releases can easily envision Chairman Yellen and the Federal Reserve team at the economic controls, carefully adjusting the economy’s price level and employment numbers.

Why the Wealth Effect Doesn’t Work

Across all financial media, between both political parties, and among most mainstream economists, the “wealth effect” is noted, promoted, and touted.

Winter is Coming

Fans of HBO’s hit series, Game of Thrones, know well the motto of House Stark: “Winter is Coming.”

WindRock Roundtable: What Does the Rest of 2021 Hold for Investors?

Most financial publications have an annual roundtable of Wall Street economists or mainstream financial commentators, all of whom share very similar viewpoints. WindRock’s annual roundtable features independent investment minds. WindRock: Let’s start with the 2021 impact of three major 2020 developments: the election, social unrest, and the Covid-imposed lockdowns. First, we have a new Biden […]

Our Economic Views

We are economic thought leaders following the free-market oriented Austrian economics, whereas most advisors follow Keynsian Economics and tout the merits of money printing and government intervention. Global central banks have printed tens of trillions of dollars out of thin air as global debts exploded. Yet most advisory firms act like this is just another “normal” investment environment and allocate capital the way they’ve always done so. In our opinion, this is not a normal environment and requires an acute understanding that the pillars of the world are now built on a mirage of bubbles with serious consequences for growing and protecting wealth.

In an attempt to offset continued economic weakness, governments are reacting with spending, debt issuance, and intervention in the economy on a scale without precedent in modern history. Although these policies may buy time, they cannot solve the underlying issues. Ultimately, governments will repay debt with their last remaining option – printing more money. As money floods the system, this will drive inflation higher despite continued weakness in the economy.

Under these circumstances, the current conventional model of a static bond and stock mix will fail. It will fail investors in realizing reasonable returns. It will fail investors in preserving their purchasing power after inflation. And it will fail investors in protecting their capital and securing their retirement.

The conventional experts do not foresee such risks. But these same experts missed the prior 2000 tech bubble and 2008 housing and stock bubble.  Today they are missing the bubble in government debt and the ramifications of unbridled money creation. WindRock understands these issues and positions clients to not only minimize their risk associated with these dangers, but to profit from them.