America’s Bubble Economy is the first book to focus on several simultaneous financial bubbles that are interacting to temporarily boost—and ultimately threaten—the United States and world economies. Filled with expert analysis and straight talk, this book will show you how to turn the coming economic transformation into a once-in-a-lifetime wealth-building opportunity.
ACKNOWLEDGMENTS vii INTRODUCTION xi Part One America’s Bubble Economy Chapter 1: Executive Summary 3 Chapter 2: Bubble Blind 37 Chapter 3: Bubblequake 67 Chapter 4: What!? You Mean We’re Not King of the World!? 105 Part Two Profit When It Pops with Alternative Investments Chapter 5: Cashing in on Chaos 133 Chapter 6: Gold for People Who Hate Gold by Eric Janszen 181 Chapter 7: Survive and Thrive 199 Part Three The Really Big “Big Picture” Chapter 8: The View from 30,000 Feet 217 INDEX 255
WORRIED ABOUT THE HOUSING BUBBLE? You should be, but don't let it monopolize your agita. There are four other bubbles also deserving of attention, according to America's Bubble Economy: a stock-market bubble, a foreigner-supported-dollar bubble, a consumer-debt bubble and a U.S.-debt bubble. When the five collide in a "bubblequake," the book's authors predict, the air will rush out of the pumped-up U.S. economy, deflating the average American's assets and standard of living. But not to panic. America's Bubble Economy has a subtitle: Profit When It Pops. Eric Janszen, one of its four authors, suggests keeping 10%-15% of your assets in gold, which he sees rising "to a peak price of $2,500 to $3,000'' an ounce. Janszen et al. also recommend eurobonds and euro-denominated exchange-traded funds, because most of Europe isn't as indebted as the U.S. and its main currency should outperform the dollar. A former venture capitalist and founder of the financial Website iTulip, Janszen says the U.S. is repeating errors of the Nixon era, including massive government deficits, under-funded entitlements and an unpopular war the government can't fund with higher taxes or special bonds. Throw in today's growing global demand for commodities, and "... all roads still lead to inflation, whether due to energy costs, unfunded deficits or dollar-currency risks," he says. Janszen, who was rightly skeptical of the Internet craze early-on, tells Barron's that the current stock-market bubble is "a reflection of monetary inflation" rather than future earnings. A more normal trendline, he says, would put the Dow at about half its present level, or 6,000. Now, that's something to worry about. —Susan Witty (Barron's, November 13, 2006) Chosen by Kiplinger’s as one of the 30 Best Business Books of 2007 Paul Farrell, Senior Columnist at Dow Jones MarketWatch said on February 12, 2008, "In short, America's Bubble Economy's prediction, though ignored, was accurate."
DAVID WIEDEMER, PhD, is a groundbreaking evolutionary economist who created the rigorous economic analysis on which this book is based. He received a PhD in economics from the University of Wisconsin-Madison. Dr. Wiedemer has held senior management positions with several Washington, DC–area high technology companies and holds thirteen domestic and international patents on information technology. ROBERT A. WIEDEMER, brings to the team the real-world business knowledge and investment understanding that comes from founding a NASDAQ-listed information services company. He is currently President of a business valuation firm that is the primary business valuation advisor for the U.S. Small Business Administration's Small Business Investment Company division (the largest fund of venture capital funds in the world). CINDY SPITZER is an award-winning writer who has contributed to the Washington Post, Los Angeles Times, Chicago Tribune, Newsweek, and many other publications and books, including the original Chicken Soup for the Soul. ERIC JANSZEN is one of the nation's leading financial bubble experts, having written extensively on the Internet bubble and developed the popular Web site, iTulip.com, which has been praised by the New York Times, BusinessWeek, National Public Radio, and CNBC. He has also been CEO of two venture-backed companies and managing director of Osborn Capital from 1998 to 2001. On his iTulip Web site, he called the top of the dot com bubble in March 2000 and recommended moving from cash to gold in 2001 when gold bottomed.
Real Estate is overpriced and starting to fall, the Dollar is on the decline, Consumer Debt is at an all-time high, the Trade Deficit is massive, and National Debt is now more than $8 trillion—with the federal government borrowing an astro-nomical $7 billion a week. No matter what the experts say, the U.S. economy is headed for trouble, and it's now up to each of us to understand what is coming and how to protect ourselves. Irreverent and instantly engaging, America's Bubble Economy: Profit When It Pops is the first book to focus, not just on one economic problem, but several simultaneous financial bubbles that are interacting to temporarily boost— and will ultimately threaten—the United States and world economies. While other books address individual issues in isolation, America's Bubble Economy connects the dots to show how all the bubbles interact. With expert analysis and straight talk, this book explains how each bubble supports the others in the boom, and will ultimately collide and drag each other down when they pop. More importantly, America's Bubble Economy offers priceless, truly original insights about how to protect your home, savings, investment portfolio, and other financial assets when these bubbles pop. And best of all, it shows ordinary people—not just the fabulously wealthy—how to turn the coming economic change into a once-in-a-lifetime wealth-building opportunity. In addition, America's Bubble Economy is unique in placing the current situation in the historical perspective of how the bubbles developed over the past twenty-five years. The book also goes beyond the recent past to look at how the bubbles are part of the long-term evolution of the economy and society.
Have You Noticed The Economic Bubbles Yet? Real estate is overpriced and beginning to fall The Dollar is on the decline Consumer Debt is at an all-time high Our International Trade Deficit is massive Our National Debt is now more than $8 trillion total and growing at an astronomical $7 billion per week While most people ignore the warning signs, those who move quickly and correctly can position themselves now to cover assets and profit from what will be the biggest economic challenge—and wealth-building opportunity—of our times. "A sobering financial wakeup call for all Americans." —C. Thomas McMillen, Rhodes Scholar and former three-term U.S. congressman "Whether you think it goes too far or hits a bull's eye, America's Bubble Economy presents a riveting argument for what may be coming and how to make the most of it." —Philip J. Gross, former CFO, America Online "Sound advice in these times, America's Bubble Economy delivers what we need to hear. Its prognosis may be harsh, but these insights are astute, logical, and compelling." —Dr. Rodney Stevenson, Professor of Economics, University of Wisconsin-Madison, past president of the Association for Evolutionary Economics "Finally, a way to profit from the government's reckless spending habits!" —Jim Goldinger, Managing Director, TD Capital Ventures "More roadmap than crystal ball, this book doesn't simply advise a reader what's coming; it tells a reader exactly how to plan and respond. That it manages to predict an awfully troubling near future while still managing to be readable and even funny in spots is no mean feat." —Ken Kurson, co-author with Rudy Giuliani of the No. 1 bestseller Leadership, and financial columnist at Esquire
"More roadmap than crystal ball, this book doesn’t simply advise a reader what’s coming, it tells a reader exactly how to plan and respond. That it manages to predict an awfully troubling near future while still managing to be readable and even funny in spots, is no mean feat." —Ken Kurson, co-author with Rudy Giuliani of the No. 1 Bestseller Leadership and financial columnist at Esquire "A sobering financial wakeup call for all Americans." —C. Thomas McMillen, Rhodes Scholar and former three term U.S. congressman "Whether you think it goes too far or hits a bull’s eye, America’s Bubble Economy presents a riveting argument for what may be coming and how to make the most of it." —Philip J. Gross, former CFO, America Online "Sound advice in these times, America’s Bubble Economy delivers what we need to hear. Its prognosis may be harsh, but these insights are astute, logical and compelling." —Dr. Rodney Stevenson, Professor of Business, University of Wisconsin-Madison, past president of the Association for Evolutionary Economics "Finally, a way to profit from the government’s reckless spending habits!" —Jim Goldinger, Managing Director, TD Capital Ventures