Economic Perspective
We have to look at the Federal Government fiscal and monetary policy to accumulate and protect our wealth. The Federal fiscal policy never changes. It is taxation, taxation, and more taxation. Most people have to work until June 1st to meet all of their federal and state tax obligations. United States citizens, unlike most sovereign nations, are taxed on worldwide income.
Many of you are in the United States who are in the process of filing your 2013 tax returns may discover that your standard of living is falling even as your income is going up because of taxation. The middle class is shrinking not expanding because of inflation and taxation policies.
The dollar you earn today does not maintain its purchasing power. It buys less goods and services because of the Federal monetary policy is to print more money to fund trillions of dollars of deficits and to prop up the economy to grow at 2% to 3% a year to collect increasing tax revenues.
This is a major mega trend that lasted more than a century. Take a look at what the St. Louis FED compiled when it comes to the purchasing power of the U.S. dollar over the past 100 years and everything in this article will become crystal clear.
The good news is the rich are getting richer because they follow a long term asset allocation investment plan very similar to the one we share at Forever Wealth. Investors who follow our investment strategies know how to far outpace the detrimental effects of the Federal Government Fiscal and Monetary Policies. People who procrastinate will see their standard of living get worse every year. Don't get left behind with the crowd who looks to the government for things to get better. Personal responsibility is a gift within every human being that needs to be put to constructive use for oneself and the benefit of all mankind.
