America’s Financial Apocalypse: How to Profit from the Next Great Depression
by admin / July 12th, 2010
Product Description
By the early 90s, a raging bull market was delivering spectacular returns, causing some to believe that a market collapse and subsequent depression would soon appear. As a result of these fears, some exited the capital markets altogether. Thereafter, the Internet took off causing the market bubble to swell, many high-tech stocks with seemingly limitless valuations. Over the course of its 13-year stretch, the market appreciated by over 600 percent, with average an… More >>
America’s Financial Apocalypse: How to Profit from the Next Great Depression
July 13th, 2010 at 1:45 am
This book manages to cover all major problems faced by the United States in the next 20-30 years – trade deficit, healthcare crisis, education crisis, etc. – and it does so in a fairly comprehensive way, with large numbers of facts and graphs.
The reason why I can’t give it more than 3 stars for this achievement is that the number of mistakes it contains (from misspellings to factual errors) is absolutely incredible. It seems that no one (other than the author) so much as read the book before it went to the printing press.
First of all, there are spelling errors. English is not my native language, yet I’ve been able to notice one spelling error every 20-30 pages. “Notices in-lue of gold” (p.2). “Right to bare arms” (p.25). “America will loose its technology edge” (p.61), and so on. There are factual errors as well. According to the author, Statue of Liberty was erected on Ellis Island (p.27), Berlin Wall fell “a few years” after 1991 (p.10), and Albert Einstein immigrated into the United States in 1940. He thinks that women who give birth after entering the United States illegally are guaranteed citizenship because their newborns become U.S. citizens (p.32) – but he either does not know or fails to mention that they have to wait for their child to turn 18 before they even have a shot at legalization. He frequently claims (or implies) that Chinese goods are cheaper because Chinese government and Chinese companies do not provide healthcare or retirement benefits to their workers (p.41), when in fact they do. All these problems make me wary of any other claims he makes in his book.
There are many interesting graphs and charts in the book, but at least some of them were “cooked up” by the author from third-party data, so they are not always reliable. One rather puzzling chart is located on p. 113. It is a pie-chart labelled “Factors Driving Rising Costs in Healthcare (2001-2002, in $ billions)”. However, pieces of the pie are labelled with percentage values and clearly add up to 100% (e.g. “Increased Consumer Demand, 15%”). Author comments, “Someone explain to me the economics of increased consumer demand leading to a 15% increase in healthcare costs in one year”. It’s clear that he has no idea what’s really shown on the chart.
The book is heavy on portrayal of various weaknesses in modern U.S. economy, but rather light on attempts to predict the future. There is almost no discussion about the impact of American crisis on the rest of the world. Author predicts major revaluation of the dollar, but does not provide any macroeconomic analysis of consequences of this revaluation. He seems to think that collapse will not occur at least until 2012, but he’s not very clear why he thinks it won’t be triggered by deflation of the real estate bubble.
Overall this is an interesting and comprehensive book that’s worth reading for anyone who thinks that U.S. economy is doing well, but it’s not scientific or reliable enough to be of real value for an investor.
I recommend “Dollar Crisis” as a complementary treatment of the U.S trade deficit / credit bubble problem.
Rating: 3 / 5
July 13th, 2010 at 3:19 am
A few days ago, after having heard Bernanke’s speech about America’s imminent financial crisis related to Medicare, Medicaid, and Social Security, as well as the hint that America might allow illegal immigrants to become citizens as one way to help pay for these financial liabilities, I could not help but think of this book, which had already alerted me to these issues. What people who have not read this book do not realize is that Bernanke’s speech was no news.
As a matter of fact, the author states that the forecasts by the Congressional Budget Office are way too conservative and could be as low as 50% understated. What Bernanke failed to mention also was that the interest on the national debt is also adding to the gov expenditures and will soar over the next two decades. If Bush’s privitization plan goes throuh and his tax cuts are made pernanent, the percentage of GDP spent on all of the above could approach 50% in a few decades.
The present value of the liabilities for Medicare, Medicaid and SS are $51-$72 TRILLION.
This is just one of hundreds of issues detailed in the spectacular book. If you really like to get into a book for its data and analysis, you’ll love this book. If you like a simple generic read this book is not for you. But if you want much better knowledge and understanding about the real issues America faces than the media and politicians, this book is all you need.
The best thing about the book is that he explains things from a basic level and then leads you into a detailed analysis. I have already read the book three times and each time I learned more. This is a book I plan to keep for a very long time.
Rating: 5 / 5
July 13th, 2010 at 5:54 am
I read this book after previously digesting much information regarding America’s (and the world’s) financial and energy situation. He does have many facts and figures. However I noticed that on at least 2 graphs he refers to in his writings, he interprets them differently in the text than the caption of the graph does. Also there are a few spelling errors throughout the book. It does make me wonder about the overall quality of his information.
As to the energy situation, the author seems to think that by 2020, we will be able to replace the oil and oil products that are lost due to oil depletion–totally ignoring the problems of scalability, EROEI and the fact we will not have $$ available to develop alternate energy sources!
He recognizes Peak Oil, but fails to analyze that subject in any depth. For example, he takes the USGS and IEA figures for oil reserves in the mid-east as gospel, failing to note the doubling of these same reserves in the 1980′s without any significant new discoveries being made! Our country will not be back on it’s feet 10-15 years after worldwide oil production peaks as he seems to imply it will.
He also makes note that there is no worry with regards to Natural Gas in America, when in fact it has been confirmed North American natural gas production has peaked in the early 2000′s! And natural gas depletion can be very steep! Since natural gas is less fungible than oil this creates an IMMINENT problem for America which he seems to dismiss.
He does seem right on about the coming generational crisis. I am a bit concerned as early in the book he seems to take aim at Latino and Asian immigrants. He chides them for failing to integrate to society and being somewhat of a drag on society. Yes, some ethnic groups do keep somewhat to themselves, but he fails to note that Asians have the highest income level of any ethnic (including white) group in America! Hardly a drag on society!
These criticisms aside, overall it does point out the problems America will be facing in the next decades. I have found most books of this type ignore one or more of the major problems we face. You can get a lot of good information here.
Rating: 5 / 5
July 13th, 2010 at 6:56 am
Although over 500 pages, I was glued to this book because of its full coverage and detail of the topics. The real estate bubble chapter alone is better than other books I have read devoted solely to this topic. The same can be said of the debt, Social Security, Pension, and Debt chapters. And although the author does not devote a chapter on the global oil situation, he talks about it extensively in many chapters and covers it in more detail with better insight than any other book I have read exclusively devoted to this topic.
The 3 chapters on investments are brilliant and stem from the analysis and data presented in the previous 15 chapters. I am a very experienced and successful investor and the information within this book has opened my eyes and I plan to send a copy to my local Congressmen as well as my financial advisor. In fact, getting this book is like getting 6 books rolled up into one. The author obviously spent a very long time doing his research and analysis and it shows. This book puts all others related to America’s economy and future to shame. And unfortunately, I am afraid the conclusions he has made will come to fruition, but now I will be ready.
Thank you for opening my eyes to the realities of America.
Rating: 5 / 5
July 13th, 2010 at 7:58 am
SYNOPSIS: The illusion of over two decades of economic greatness in America was created in large part by Greenspan’s bubble economy. But the author paints a different picture of America and makes chilling predictions for its future. Only those who can see through the smoke signals created by Washington will be able to avert and/or profit from America’s next depression. And this book definitely allows one to see through the smoke screen.
CONTENTS
The author begins by briefly summarizing America’s history, noting key events. Only later are some of these events revisited (monetary policy, wealth disparity, oil, pre-depression conditions) when appropriate to emphasize their significance within modern day America. Next, he discusses the economic effects of free trade. Finally, he reviews America’s declining edge in education and innovation, ending Part 1 of the book with an overview of America’s future.
Part 2 discusses the major problems today–with chapters on U.S. debt, healthcare, Social Security, pension plans, and the real estate bubble. Part 3 opens with a tutorial of how the government manipulates economic data such as the GDP and inflation. He then extends earlier discussions on the credit bubble, the economic consequences of the baby boomers, fraud and control by corporate America, and the effects of peak oil. He concludes with 3 chapters devoted to short and long-term forecasts in the stock market and provides a very sound investment strategy to profit both before and during America’s Next Great Depression.
OPINION & REVIEW
This is by far the most informative investment book I have read this year and the very best on this topic. The author is clearly an expert on investments and economics. The book is as well-organized as a college text book but reads much better, is easier to understand, and you will learn more. If you like to see actual data to back up statements you will love this book, as it has been extremely well researched. The author’s command of the subject matter is impressive in both depth and coverage…exactly what I needed to be convinced of a coming depression.
I especially enjoyed the chapters on the real estate bubble, health care, retirement, and the one showing how the government manipulates economic numbers. The investment advice is very valuable and rational and is fully supported by the previous 16 chapters.
When you read this book, it will be nearly impossible to disagree with the author’s conclusions and investment advice because of the enormous amount of supporting evidence. It will cause you to rethink dozens of issues and introduce many others you probably weren’t aware of.
And if you are like me, the book will motivate (or scare) you to demand politicians address these issues instead of ignoring them. The main reason they don’t deal with difficult issues is because (as the author points out) they don’t want to risk losing a reelection. Corruption serves as a motivation for other politicians. As long as voters are not fully aware of the problems challenging America’s empire, they will continue to avoid engineering effective solutions. If all voters read America’s Financial Apocalypse, they would force politicians to confront these difficult issues. That would be the only way to avoid a depression.
To the author: Thank You for this essential, eye-opening book!
Rating: 5 / 5