2009年7月13日月曜日

Profit while Rome is burning

A lesson learned from history is always one well learned. Firstly there are a number of fundamental economic truths that need to be extolled then we can look at how these can be profited from.

1) Recognize the shifts of political and economic power and deploy your money to maximize or at worst protect yourself from the fallout. During the decline of the Roman Empire one of the economic tactics used was to reduce the amount of silver and gold in the coins. This was an attempt to pay for huge expenditures incurred in maintaining the empire and stymie social unrest, needless to say this was a little inflationary. Are there parallel in modern times? The modern equivalent to this would be the issuance of government bonds and Quantitative Easing or more commonly known as printing money in order to provide a stimulus effect. This should not be a problem during times when more is being produced to justify this monetary expansion.

TBC

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