Financial System

Make no mistake, the financial system is unravelling. Much of it is out of your control, but there is hope.

The drawn out Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry uncovered many issues within our financial system in Australia. Ongoing issues regarding conflicts of interest, predatory behaviour and exploitative practices of professionals within our financial system have demonstrated the intricacies of the system itself.

Meanwhile, record low interest rates have pushed many Australian retirees reliant on interest for income to seek out higher-returning, riskier investments. This has helped to drive up asset prices, but has also built more risk into the financial system.

Here at Money Morning, we can help to show you how to take back control of your own wealth and investments from the financial system.

Understanding the inner-workings of our financial system could help you build your wealth, and protect yourself in the event of an economic downturn internationally or at home.

We don’t claim to have all the answers here at Money Morning, but we will always try to let you know which factors are likely to affect your wealth the most. And provide you with informed suggestions as to which investments could best shelter and grow your wealth in these turbulent times.

Read more

The First Shots in a 1930s Style Currency War

The real risk right now is an all-out 1930s-style currency war. And once a good old-fashioned currency war gets underway in earnest, the winners – if you can call them that – will be those who have the wherewithal to withstand the deepest drop.

The ‘Stuff’ of Commodities

The real beneficiary of the collapsing time value of money is ‘stuff’. Commodities are the financial equivalent to ‘stuff’. However, commodities are a difficult area for private investors.

Why Japanese Debt is a Disaster Waiting to Happen

US money manager Kyle Bass says Japan’s central government spends 50% of its revenue on servicing debt. If interest rates rose by 2% then all of Japan’s tax revenue would be spent on servicing debt, leaving it with no money for anything else.

The Yen Carry Trade is Back, But With a Difference

Japanese Prime Minister Shinzo Abe and his government's success in jawboning the yen lower against the U.S. dollar have revived an old hedge fund favorite - the yen carry trade. Here's what makes the latest iteration of the yen carry trade so dangerous.

How to Protect Yourself from the Bond Bubble Bust

Why would anyone put more money into bonds? The returns are minuscule. Prices are so high and yields so low that even in the best-case scenarios, you'll still barely make a bean. And with the worst of the crisis behind us, bonds now look very vulnerable to any rise in inflation.
Money Morning Australia