"No Increase in Standard of Living Since 1997"

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The Daily Reckoning | Friday, October 5, 2012 Consistency: the difference between “lucky” and “good”... A mild mannered approach to some very serious problems... Plus, the Casey Research Team provides us with an important and eye-opening video... ------------------------------------------------------- QE3 is a drop in the pond compared to this... QE3 may not be doing much to get America’s economy going, but THIS sure as heck could... Some market analysts believe it could ignite more economic growth than electricity or the Internet. And — beginning October 28 — it could make some Americans the kind of money most folks only dream of. Click here now to find out how.   Quote of the Day... “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.” — F.A. Hayek Eric Fry, reporting from Laguna Beach, California...   Dr. Lacy Hunt may speak softly, but he carries a big stick...and a couple of very scary charts, like the one immediately below... Dr. Hunt is an economist and the executive VP of Hoisington Investment Management Co. — a firm that has amassed an impressive track record investing in Treasury bonds. Hunt’s firm has demonstrated an uncanny knack for knowing when to invest in long- term Treasuries and when to move to the short end of the yield curve. Maybe Hoisington is just lucky. But when the firm’s “luck” stretches longer than a decade, it begins to look a lot like “good.” Treasury securities remain the bread and butter of the Hoisington investment diet. It is slightly ironic, therefore, that Dr. Hunt’s recent presentation at the Casey Research Fall Summit chomps down squarely on the hand that feeds the firm. While Hunt does not scorn Treasury securities, per se, he does scorn the ever-expanding size of the federal debt. Don’t let Mr. Hunt’s mild manner fool you, in the following six- minute video clip he presents a scathing indictment of the “benefits” of bigger government...and he frames this indictment in the context of the entire post-Eisenhower era. If you’re too busy to watch all six minutes, just watch the first three. Somewhere around minute 2:25, Dr. Hunt deals the deathblow: “Unfortunately, this impartial arbiter (i.e., the Misery Index) that was designed to illustrate the beneficial effects of governmental intervention demonstrates that we have never re-attained the economic performance of the 1950s.” Enjoy!   What to Expect in 2013... Between 2004-2007, Bill Bonner and Addison Wiggin did their best to alert their loyal readers to the dangers of the housing bubble well before the mainstream said anything about it. Well, today, they see something even worse looming just over the horizon. It’s not often our Reckoner-in-Chief agrees to appear on-screen, but this was just too important. Click here (or the image below) to see what they’re talking about now... The Daily Reckoning Presents “No Increase in Standard of Living Since 1997” From The Casey Research Team   There’s a belief among certain economists — and the wider population — that if the government takes a more active role in the economy, the social outcome can be improved. Dr. Lacy Hunt, executive VP of Hoisington Investment Management Company (HIMCO), says it’s a false belief...and he has proof to back it up. An unprecedented buildup of debt, he shows, can only lead to one outcome: a drop in Americans’ standard of living. Many investors are so shell-shocked by the ongoing government meddling, cronyism and financial scandals that they have turned to “investments” with negative real interest rates. You can do much better than that — even in times of crisis. Listen to Lacy Hunt and 27 other renowned experts to find out where the opportunities lie in today’s politicized economy. Click for more details. ------------------------------------------------------- Here at The Daily Reckoning, we value your questions and comments. If you would like to send us a few thoughts of your own, please address them to your managing editor at joel@dailyreckoning.com   The One Retirement Plan Obama Can’t Touch If you’ve already retired, or want to retire soon, I urge you to watch this video presentation before we have to pull it down. This “Secret $200 Retirement Blueprint” shows you step-by-step how to grow a monster-sized nest egg with a little time and a tiny grubstake. Click here to watch this video presentation now. Downside: After the Returns Stop Diminishing, Part II Downside: After the Returns Stop Diminishing Too Much of a Good Thing, Part III How Will Markets React to a Possible ECB Rate Cut? A Risk-Negative Feeling Casts Its Net Over The Markets Optimism For Spanish Banks The Daily Reckoning: Now in its 11th year, The Daily Reckoning is the flagship e-letter of Baltimore-based financial research firm and publishing group Agora Financial, a subsidiary of Agora Inc. The Daily Reckoning provides over half a million subscribers with literary economic perspective, global market analysis, and contrarian investment ideas. Published daily in six countries and three languages, each issue delivers a feature-length article by a senior member of our team and a guest essay from one of many leading thinkers and nationally acclaimed columnists. 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