Macroeonomics 101- how it affects me

I will write about general Macro subjects because the behaviour of the financial system at a national level will affect the decisions we need to make for our own financial well being. Moreover in an increasingly connected world economy, a decision taken by say the ECB affects how debt markets behave in the US. The FED and other Central Banks around the world have to take into consideration other major countries actions to determine their national policies.

Things like interest rates, government spending, debt, taxes, deeply affect how financial assets behave.

Where we are today

I do not like at all the path we are on and I strongly believe we are due for some serious pain in financial markets, not exactly today, but by the mid 2020's at the latest.

See, we are in this predicament of incremental debt financing lower growth and unfortunately it is a recipe for trouble. This is the single most important reason why I started this Blog.

What is happening before our eyes is an impoverishment of the middle class via the loss of purchasing power. In simple terms, every $ we make buys us less and less each year. That is called #inflation.

Even if by outdated government measures inflation seems to be contained, we all know how much the cost of houses, rents, medical expenses, education, dining out have increased in the last 15 years. That is real inflation. We are all in effect poorer UNLESS we own assets that benefit from inflationary trends.

If you only remember one thing from this article, please make an effort to remember this last paragraph!

What does it mean for me

You have to save and invest in assets that will appreciate in nominal value, provide an inflation hedge and possibly generate passive income.

Most articles will cover a specific topic, others will be news related. The goal is for you to read them all so that you can develop an understanding of the current economic framework and learn how to develop a plan of action for your personal finances.