This week's edition of Flashback Friday is from episode 425 published last 13 October 2014.
On today\u2019s\xa0Creating Wealth Show, host Jason Hartman talks to financial maven and author, Bill Bonner, about his new book, Hormegeddon, how to create money out of thin air, the situation in Japan and whether you really can have too much of a good thing. Bill\u2019s company, Agora Financial, is a leading marketplace for advice and talking points about everything to do with investing so he\u2019s perfectly placed to assist those looking to increase their investment prowess.
Ahead of the interview, Jason addresses the Elon Musk announcement of semi-autonomous cars and their inevitably disruptive impact on everything \u2013 including real estate.
Key Takeaways:
\u2013 The title for Bill Bonner\u2019s latest book, Hormegeddon, comes from the term for specific biological experiments which went awry: hormesis.
\u2013 With many of these things they can start out as beneficial but the more you use them, the more issues arise.
\u2013 The notion of creating money is so difficult for even experts to understand \u2013 how can real money be created from absolutely nothing? From thin air?
\u2013 The trade of the decade assessment is not a prediction; it\u2019s all about analysing what\u2019s up and what\u2019s down.
\u2013 The situation that Japan is currently in is terrible, and it doesn\u2019t look to be improving in the immediate future.
\u2013 Indeed, there\u2019s every possibility that the US could follow suit and end up in a similar situation to Japan, especially with ever-increasing Chinese trade agreements using Chinese currency clauses.
\u2013 One potential option could be \u2018direct monetary funding\u2019 which is the act of giving money, rather than lending it, in an attempt to bring the economy back up by consumer spending.
\u2013 If you borrow money long-term for real estate purposes and it\u2019s on a low-rate basis, inflation can eventually come along and pay off your debt for you.
\u2013 Too much of a good thing is only too much. We view security as a good thing, but consider the money the Germans were spending on their own security during the war and that just can\u2019t be justifiable.
\u2013 Declining marginal utility is where you invest too much into one thing and it all backfires.
\u2013 Decades ago, the huge houses used to be owned by people who made things and had a real role in society and manufacturing; now they\u2019re just owned by hedge-fund guys.
\u2013 With all of the technological advances now occurring, this is an amazing time to be alive.
\u2013 Agora exists as a marketplace to collect together everyone\u2019s questions and answers about investing because no one knows who\u2019s going to have the right answer.
\u2013 For more information, head to\xa0www.AgoraFinancial.com or for an entertaining read, check out www.DailyReckoning.com
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Tweetables
We spent 200,000 developing our sentiments and our bodies as humans, but now we\u2019re so unequipped to deal with quantitative easing.
Empires get to impose their currency, but over time, they lose that ability \u2013 the dollar could seriously fall.
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