You are previewing Investing in the Age of Sovereign Defaults: How to Preserve your Wealth in the Coming Crisis.
O'Reilly logo
Investing in the Age of Sovereign Defaults: How to Preserve your Wealth in the Coming Crisis

Book Description

Acclaimed investment experts Peter Treadway and Michael Wong explain how to protect your investments—and even profit—from the coming sovereign default crises

A major sovereign default crisis is looming for the so-called developed economies of the world. The result will be a major redistribution of economic wealth and an overhaul of the international financial system on an epic scale. Investing in the Age of Sovereign Defaults: How to Preserve your Wealth in the Coming Crisis explains what lies ahead, and offers invaluable suggestions to help investors avoid massive losses.

  • Explains why the West is headed for a major default crisis and how investors can protect themselves

  • Contends that the value of gold will continue to rise and that sooner or later government debt, including that of the U.S. and Japan, will be shunned

  • Written by investment experts Peter Treadway and Michael Wong

The days of the economic status quo are coming to an end. Investing in the Age of Sovereign Defaults shows investors what's coming and what investors must do if they want to escape unscathed.

Table of Contents

  1. Cover
  2. Contents
  3. Title
  4. Copyright
  5. Dedication
  6. Acknowledgments
  7. Preface
  8. Chapter 1: Democracies’ Fatal Attraction of Populism
    1. Default, an Expanded Definition
    2. Debt Default in History—A Recurring Theme
    3. Nobody Likes a Lender
    4. Populism, Democracy, and the Road to Default
    5. The Demographics Are Awful
    6. The Special Roles of the United States
    7. Universal Suffrage—The Holy Grail or the Villain?
    8. Universal Suffrage—The American Story
    9. Rational Economic Man?
    10. Irrational Voters?
    11. Is a Meritocracy Good for Everyone?
    12. Do We Want a Meritocracy?
    13. Public-Sector Unions—We Vote for You, You Reward Us
    14. Debt and Macroeconomics
    15. Hyman Minsky: Another View of Debt and Macroeconomics
    16. Culture Counts
    17. One Note of Optimism
  9. Chapter 2: The Sorry Fiscal State of the Advanced Countries
    1. Sovereign Debt/GDP
    2. Outlook for the United States
    3. Dismal Demographics
    4. Race and Ethnicity—An American Complication
    5. Unfunded Entitlements and Dismal Accounting
    6. And Then There Are the American States
    7. The Ownership of US Government Securities
    8. If Something Cannot Go on Forever, Then It Will Stop
    9. Europe—The Default Process Has Already Begun
    10. The Euro—What Should Have Been
    11. The United Kingdom—Not a Euro Country
    12. Japan—The Enigma
  10. Chapter 3: A Diversion to India and China
    1. India—The Democratic Surprise
    2. China—Not a Democracy, Populism Less of a Problem
  11. Chapter 4: The International Monetary System—In Desperate Need of Repair
    1. Let’s Start with History and Economics
    2. The Gold Standard in Theory—The Price-Specie Flow Mechanism
    3. The Sad Evolution of the International Monetary System
    4. The International Monetary System Must Change—But to What?
  12. Chapter 5: The Road to Worthless Paper Money
    1. China—The Birthplace of (Worthless) Paper Money
    2. A Persian Diversion
    3. The American Story—“Honest Abe” Prints Some Money
    4. German Hyperinflation—Is This the Prototype?
    5. Modern Inflation
    6. Are We Really in Deflation?
    7. Measuring Inflation—Are the Numbers Really Higher?
  13. Chapter 6: An Overall Assessment of the Current Investing Scene
    1. The Bad News
    2. The Good News and Some Long-Term Trends (Which Are Mostly Good News)
    3. The Unknowns
    4. Supply-Side Reforms Must be Enacted
    5. Taxation—Americans versus Everybody Else
  14. Chapter 7: Investment Survival in the Age of Defaults
    1. Asset Classes for Investment Survival
    2. Fixed-Income Securities
    3. European Equities
    4. What about American TIPS?
    5. Gold—Don’t Get Carried Away
    6. Commodities/Resources—Not a Simple Story
    7. Selected Big-Cap Nonfinancial, Global Companies
    8. Large Global Banks—Avoid
    9. Equities from Selected Emerging Markets
  15. Appendix A: A Quantitative Approach to Sovereign Risk Assessment
  16. About the Author
  17. About the Contributor
  18. Index