Category: Money & Inflation

The Kitchen Sink

April, 2020 By late January, the die was cast: the virus had a name, it had reached our shores, travel screenings and restrictions were in place, and while not yet declared a pandemic, the World Health Organization declared COVID-19 a “Public Health Emergency of International Concern.” Yet complacency reigned within financial markets. The stock market […]

SOMA for the Masses

Soma is a government-provided drug which helps people escape the real world by artificially enhancing their joy, arousal, and overall sense of well-being.

Commemoration of a Canard

In the spirit of commemoration, we cannot allow the 42nd anniversary of Nixon’s speech go without comment.

The War on Cash Explained

The phrase “the war on cash” refers to the deliberate efforts by governments and central banks to reduce and/or eliminate the frequency and size of cash transactions within the economy.

End the Fed: an Interview with Dr. Ron Paul

Most mainstream financial pundits view the Federal Reserve as a bastion of economic wisdom and a stalwart protector against inflation, recessions, and economic turmoil. Dr. Paul disagrees. 

Combating Inflation with Corn

Farmland is an inflation hedge. Allocating part of one’s investment portfolio to farmland (particularly farmland in nations that will experience relatively high inflation) will not only protect investors but will allow them to profit – perhaps immensely.

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.