Kennon-Green & Co. Global Asset Management, Wealth Management, and Investment Advisory

Tiny Inflation Calculation Methodology Changes Are Going to Result in Billions of Dollars in Wealth Transfers

Tiny Inflation Calculation Methodology Changes Are Going to Result in Billions of Dollars in Wealth Transfers

Politicians, central bankers, and academics around the world are engaging in a conversation that could have massive real-world consequences for both middle class families and retirees; conversations that could result in substantially higher taxes, and/or substantially reduced benefits for entitlement programs such as Social Security, depending upon how the matter is resolved.  The average American is not paying attention to this at all.  It matters.  This is a technical debate that will transfer huge amounts of wealth from various stakeholders depending upon who prevails.

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Interest Rates and Asset Prices

You Cannot Understand the Rise of Wealth Inequality Without Acknowledging the Role of Interest Rates

In August of 2014, I wrote a post called Lies, Damn Lies, and Statistics.  I penned it because, at the time, I was seeing a lot of situations in the media in which data was being used to push a political agenda on either the far right or the far left. I’m now seeing this same sort of deception in discussions about wealth inequality.

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United States Treasury

The Federal Government Collects More Absolute Tax Revenue Than During Any Other Period in American History

In recent years, the United States Federal Government has found itself in the fortunate position of collecting more inflation-adjusted, real purchasing power tax revenue than it has during any other period of its 242 year history.  For the government’s 2019 fiscal year, tax receipts at the Federal level are expected to balloon to an almost unfathomable $3.422 trillion.

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Subjunctive Mood Verb

The Power of the Subjunctive Mood to Reveal Socioeconomic Status

As the top 20% and bottom 80% further divide, one of the things I’ve found interesting over the past few years is the difference in how both groups use something called the subjunctive mood in their speech and writing. The top 20% nearly always uses it correctly. I suspect it’s become a sort of subconscious signaling code without the people doing it even realizing what is happening.

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Tower Bridge in London

The United Kingdom Exits the European Union

I’ve avoided speaking about the Brexit situation because I ultimately believe that it is not my place to tell British citizens how their country should be run even though I am a stakeholder in their success. While there are what I could consider extraordinarily high probabilities that the decision to leave the European Union will lead to lower GDP, the fact remains that GDP isn’t everything. Money, and the economy, exists to serve a civilization.

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Portfolio of Stocks and Bonds

1,821,745 Households in the United States Have Investment Portfolios Worth $3,000,000 or More

You may already know the Census Bureau data shows there are 115,610,216 households in the United States and, that, as per the Federal Reserve data, roughly 1 out of every 5 of these households earns $100,000 or more per year; that 1 out of every 25 of them has a net worth of $1,000,000 or more. What about substantial wealth excluding houses, cars, furniture, jewelry … actual investment portfolios stuffed with cash, stocks, bonds, mutual funds, real estate investment trusts, master limited partnerships, tax-lien certificates, or any of the other numerous securities one can own to compound capital?

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QVC Moon Planet or Star Debate

Watch QVC Hosts Debate Whether the Moon is a Planet or Star (and a Lesson on Basic Economics)

If you need something to brighten up your day (or make you feel despondent depending on how you look at it), this is living proof that all you have to do to be successful in life is give people what they want at a price that is higher than the cost it takes you to deliver it to them, with sufficient margins for risk, capital tie-up, and opportunity cost.  You can literally fail 3rd grade science and, if you satisfy a want, make six, seven, or even eight figures a year.  The system we have now forgives a lot of shortcomings if you prove useful in other areas.

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Kennon-Green & Co. Global Asset Management, Wealth Management, and Investment Advisory