22 Aug 2008

Don’t Pay Down Your Credit Card Balances

All Posts No Comments

In a recent LRC article, I made the case for not paying down your credit card debt. Rather, if you expect the dollar to fall (and prices to rise) fairly rapidly over the next few years, then you should let your card balances roll over, and use the freed up dollars to buy assets such as physical gold or bonds denominated in other currencies.

I recently got a 12-month, 0% APR balance transfer offer, with a 3% transfer fee. So I transferred my (regrettably sizable) credit card balances on to this new card, and will use any savings in the coming months to (a) make payments on my tab with the IRS, (b) build up my reserves of very liquid funds, and (c) buy actual gold coins that I can bury in my backyard.*

*Figuratively speaking. Please don’t Google me and come to my house with a shovel.

22 Aug 2008

Inaugural Post

All Posts No Comments

This site will be a work in progress, probably through September [2008]. I hope to offer near-daily commentary on financial news. I am an economist with a PhD from NYU, but I have been heavily influenced by the “Austrian” school of economics. I am a consultant–meaning I will take anyone’s money–but my main gig right now is being Economist for the Institute for Energy Research.

I will elaborate on my forecasts and recommendations in future posts, but if you want to get up to speed on my current economic outlook you should read my articles “A Falling Dollar, After All” (August 2007) and “The Worst Recession in 25 Years?” (October 2007). If those intrigue you, then you should plunge into my formal T-Note forecast (pdf) for a bank, delivered back in early July 2007 (before the credit crisis really hit).

In the weeks ahead, I’ll explain why I am so pessimistic about the U.S. economy for at least the next five years, but I’ll also suggest options for you to protect your personal wealth during this storm.

Hello world!

All Posts 1 Comment

Welcome to WordPress. This is your first post. Edit or delete it, then start blogging!