Economic success stories are positive reminders that long-term investing in a diverse and well run group of funds that have a history of solid management teams and goals paint a picture of increased value when funds earned are reinvested. What does this mean? In simple terms one word fits that picture–GROWTH. Every distribution is added to your account and the growth in shares increase returns in the form of ever-expanding share value.
There has been a cry wolf for some years now that raises the FEAR in the American public that the high debt is going to destroy the American economy. It has led to many of the wealthy to invest in gold and silver. Sure they gleefully rub their hands with the expectancy of millions of investors selling a portion of financial paper holdings in favor of buying these commodities. That means that those holding them will increase wealth enormously.
What value does coins or bars represent in terms of value other than just that projected by demand and sales? There is no value other than that shown in storage of these commodities which is just as risky because of theft or careless safeguards and thus be compromised. Most importantly is the recognition that there are no dividends paid to increase your holding as happens in mutual funds for example.
In the international arena, several power blocs have emerged as the Treasury has printed bushels of money that threaten the very survival of the American economy long-term. The news media does not bring this up as anything but a joke of sorts, dismissing the danger and historical record of countries who fell into that trap as we now find ourselves embracing. And more money is printed to keep the inflation temporarily near zero. Americans continue to care little more than dancing around musical chairs, gambling that there will be winners no matter what happens.
Power blocs over the past decade have risen because these countries are choosing to unify their trust in currency other than the American Dollar. They recognize the rash behavior and downright stupidity of the American government from years of spending beyond our means. Thus, Brazil, China, India, Russia and South Africa have expanded their industrial urbanization and growing middle classes, following the pattern of Japan, Hong Kong, Singapore, South Korea and Taiwan–collectively known as the Asian Tigers.
All is not lost for us. Thankfully sectors of our economy show positive signs provided our congressional leaders and mostly the President wake to smell the roses instead of the pig fertilizer that is ever-expanding the spread and smell.
It is reported that our nation has riches beyond our dreams of prosperity in energy. Our natural resources are waiting to be developed. For example, the trucking industry is turning out more and more engines that run on natural gas; most vehicles are being redesigned to run more efficiently; with an expanding population, housing units are needed. Unfortunately, government at all levels continue to be wasteful by both overuse as well as tardy in actions better left to private investment and industrial knowhow. Millions of Americans are willing to lend a helping hand but do expect the freedoms seen with a vibrant capitalist system needed in shared responsibility and respect with government entities. Right now there is a power grab by government for dominate control which continues to dampen prospects of happiness for all Americans and for a more abundant world. Thankfully our farms continue to be a breadbasket in world food production.
The dirty little secret that the media misinforms the public is the real unemployment figures that read like a roller coaster, not the six or seven points in government reports, but range two to five times that depending upon regions across the country. A time is coming when lies, deceit and falsehoods will awaken this sleeping giant. Our leaders seem to play a chess game having little or no understanding of the rules and principles upon which quality play is assured.