The Macro View

In part two of this multi-part series, we discuss the Compound Annual Growth Rate while debunking the recent Oxfam Report claiming Bill Gates will become the world's first Trillionaire due to concentration of wealth trends, we discuss Cap Rates, and Commonly Used Valuation Ratios for Stock Market aka Equity Investing.

Don't miss out - If you're interested in investing, you need to understand these basic valuation concepts so that you know if you're making a wise investment, or if your prospective investment is overvalued at the moment.

In the first part of this multi-part series, host of TheMacroView and Chartered Alternative Investment Analyst discuss the foundations of investment valuation.

Herein, he covers Present and Future Values, The Discount Rate, Discounted Cash Flow Analysis, Net Present Value, the Internal Rate of Return and the issues with the IRR, as well as the Modified IRR.

For anyone that is interested in financial markets, the stock market, real estate investing, entrepreneurship or any other activity that involves judging the soundness of a decision to payout money now, defer consumption, in the hopes of reaping future rewards, this is a Episode should NOT BE MISSED!

Beyond his childish antics and smugness, besides the fact that he just has one of those faces, like Ted Cruz, that is really hard to like, and besides the fact that I think he is very likely using the Libertarian Party as a platform for self-aggrandizement, the reason why I truly dislike Austin and think he is not and very likely never will be a good candidate for the libertarian party, is the fact that he is unable to explain the tenets and benefits of the free market without stumbling all over himself and shifting into non-sequitur quips about the other major parties.

The libertarian party needs a candidate, if they are ever to be successful, who can so clearly and concisely explain the benefits of the free market, the logic of economic liberty, that conservatives will be willing to back them despite a non-interventionist foreign policy, and that liberals that have been voting democrat, will say “you know what, that makes a lot of sense, I’ve never heard anyone explain the free market that way before, plus this Libertarian is truly committed to non-interventionism unlike the democratic party”.

In the final part of this 3 part series, we discuss how people knew that a certain commodity would be accepted for as a medium of exchange, Mises' regression theorem, recent money mischief conducting by governments around the world and why bitcoin is controversial in circles of economists coming from the Austrian tradition.

 

Government's around the world, including here at home, have still not learned from the mistakes of the past, they still think they can tool around with the currencies to breed prosperity.

Why is money accepted? How do people know they will be able to buy things, and generally certain quantities of things, with their money? 

Was Mises wrong, Was he right and is Bitcoin simply misunderstood? Could it be that he just didn't have the foresight to imagine the digital age upon us and the implications of such?

Last night we discussed the what money is, the problems it solves, and why it is naive to think that a wise and benevolent dictator could have possible come up with the idea of money...

Tonight we discuss how money actually came to be, the qualities that were required of a commodity in order for it to become a money, and why gold and silver have historically served as money.

Lastly, we debunk the Keynesian concept which states: "Gold has no intrinsic value", and introduce listeners to tomorrow night's discussion!

Don't miss part two of this three part series!

Money is an universally accepted medium of exchange.

What is Money? Why is there money? What problem does it solve? Did the government create money? 

Carl Menger gave answers to these questions and many more about where money came from and why it exists...

Tonight we explore these three key questions - tomorrow night and the following we discover much more...

Questions such as why gold and silver emerged as money, how it happened, the problems with fiat currency, crypto-currencies...

You do not want to miss the this series! Tune in to garner the knowledge you need to Spread the Logic of Liberty!

On the 5th and final part of this five part series on Understanding the Fundamentals of Financial Markets, we debunk the Deregulation Myth and use the Logic of Liberty to show how Government Interventions in Financial Markets Distort the Market and Hurt Everyone!

From The Fed, The FDIC, and the SBA to the Community Reinvestment Act, The Graham-Leach-Bliley Act and Sarbanes Oxley, to Dodd-Frank, the Bank Bailouts and Wall Street Corruption, Government has fully distorted financial markets!

Tonight, we not only show how, but discuss why it hurts people and has divided main street and wall street.

In the second to last episode of this 5 part series we discuss the role of losses, bankruptcy and the so called distressed asset market!

Listeners will gain a firm foundation to understand why each of these cooperative forces help increase economic efficiency, abundance and prosperity.

Often folks talk about the profit motive, or about corporate profits and their enormity without even mentioning losses or bankruptcy and the role taht it plays.

Losses, bankruptcy and the resulting distressed asset market are the mechanisms by which scarce resources are reallocated away from entrepreneurs that have proven themselves incapable of delivering through the use of such resources, on consumer demands, or the most urgent consumer demands.

New entrepreneurs replace them, often ones with better foresight and a more accurate finger on the pulse of consumers.

This process, though it can be painful for those involved, is irreplacable. It is by far the most efficient manner by which capital and resources find their most efficient uses.

In tonight's episode, part 3 of a 5 part series, we help listeners understand Complex Securities and Derivatives, their purpose, the markets they operate on, and how they played no part in the financial crisis.

Instruments such as Mortgage Backed Securities, Credit Default Swaps, Collateralized Debt Obligations often get a bad wrap, as if they are inherently evil or destructive.

The fact of the matter, like any financial instrument, is that these complex securities and derivative contracts are a ingenious innovation that help investors and financial institutions MITIGATE risk. 

Further, during the financial crisis of 2008, these instruments helped to MINIMIZE the damage done by the Federal Government's Capital Manipulations of the past 2 decades and the Monetary Manipulation of the Federal Reserve Bank.

Without such innovative products to help manage risk, the crisis could have been much worse.

Tonight we help listeners get a handle on the concept of convertible debt, preferred stock, futures, options, mortgage backed securities, credit default swaps and collateralized debt obligations!

Don't miss it!

On part two of this 5 part episode, we dive deep into the concepts of debt and equity securities, the concept of interest, and the role of the centralized securities exchange

On last night’s episode, using a Crusoe Economics Thought Experiment, we hashed out the purpose of savings, lending and banking.

We clearly showed the purpose of savings, how savings can increase productivity of labor, and how lending can transfer the benefit of savings to others who would like to increase the productivity of a society.

We also introduced the role of a bank.

Briefly, we’re going to go back to Robinson Crusoe’s Desert Island and discuss interest, and then to show the value of equity versus debt.