When Lehman Brothers went bankrupt and AIG was taken over by the US government in the fall of 2008, the world almost came to an end - stock markets went into free fall as trillions of dollars of wealth were wiped out. While the initial crisis is long gone, the unconventional measures have stayed with us. We live in an environment of financial repression; with Central Bankers using alternative policies such as quantitative easing, zero interest rate policies, money printing and currency wars that they believe to be necessary in order to jump start the economy. John Mauldin and Jonathan Tepper label these strategies, Code Red policies.
In their new book, Code Red: How to Protect Your Savings From the Coming Crisis (WILEY; October 2013; Hardcover and e-book; ISBN: 978-1-118-78372-6; $29.95), Mauldin and Tepper perform an amazing feat: not only do they bring monetary policy down to earth for the average saver and investor, they make subjects such as financial repression, currency wars, bubble economies and inflation, and their impact on everyday investors’ lives and financial futures, compelling reading.
Written by the authors of the New York Times bestseller, Endgame: The End of the Debt Supercycle and How It Changes Everything now available in paperback, this book exposes the central banks in the US, UK, EU and Japan and how they've rigged the game against the average saver and investor. More importantly, Code Red explains how to protect hard-earned cash from the bankers' disastrous monetary policies and how to come out a winner in the irresponsible game of chicken they're playing with the global financial system.
“Today is a time of financial repression, in which central banks keep interest rates below inflation and average savers and investors are forced to face high risks and low rewards; where there are clear winners and losers as prudent savers are called upon to bail out reckless borrowers; where the rich keep getting richer while pensioners, many in their seventh and eighth decades, are competing with teens for increasingly scarce minimum wage jobs just to help make ends meet,” says Mauldin. “Investors in the developed world are guinea pigs in an unprecedented monetary experiment. Central banks have massively increased the size of their balance sheets, potentially storing up extremely large problems for the future. Current policies are simply setting the stage for a bigger crisis. Code Red aspires to help investors insulate themselves from these dangers and against inflation.”
The coming upheaval will affect everyone - no one will be spared the consequences: from savers who are planning for retirement to professional traders looking for opportunities to profit in financial markets. Inflation will eat away at savings, government bonds will be destroyed as a supposedly safe asset class, and assets that benefit from inflation and money printing will do well.
Code Red provides a roadmap and a playbook for retails savers professional traders alike. Mauldin and Tepper arm readers with time-tested strategies for surviving and thriving in these tumultuous times. Readers will discover how to spot and capitalize on market bubbles and learn proven money management techniques for reducing risk through diversification, profiting from precious metals, commodities, and other real assets through managed futures funds, and more.
“At this point it's anybody's guess if current monetary policies will succeed in creating sustained growth or if they will fail miserably leading the world into high levels of inflation,” adds Tepper. “What is certain though is that those policies are producing all sorts of unintended consequences—most of them bad for the average saver and investor. Read Code Red and find out what the central bankers would rather you didn't know and how to protect your savings from the coming crisis.”
"Code Red brilliantly exposes the myth that the unconventional policies that global central banks have pursued since the financial crisis ended will ultimately be successful in generating the holy grail of escape velocity they so desperately seek. With history on their side, Mauldin and Tepper provide layers of evidence proving that the Code Red monetary policies will more than likely end up creating a cycle of inflation that few are braced for. The economic and financial sands are shifting under our feet as a result of the unprecedented global monetary experiment aimed at bailing out debtors at the expense of savers. The good news is that Mauldin and Tepper don't merely identify the symptom; they also have come up with solutions for retail investors, portfolio managers, and professional traders as to how to prepare for this transition, from the prior years of deflation to the current reflation to what comes next, which is inflation." - David Rosenberg, Chief Economist and Strategist, Gluskin Sheff + Associates Inc.
"Central bank policies impact many aspects of our economic life. Mauldin and Tepper pull back the curtain and explain in clear and simple language what central bankers are actually doing and why." - Mohamed A. El-Erian, CEO, PIMCO
About the authors
JOHN MAULDIN is Chairman of Mauldin Economics (www.MauldinEconomics.com), an economic and investment strategy research firm, and President of Millennium Wave Investments, a U.S. registered investment advisor and FINRA registered broker-dealer. John is a renowned financial expert, a New York Times bestselling author, a pioneering online commentator, and the publisher of Thoughts from the Frontline, one of the first publications to provide investors with free, unbiased information and guidance and one of the most widely read investment newsletters in the world. Each week a million readers turn to John Mauldin to gain a better understanding of Wall Street, global markets, and the drivers of the world economy. John is a regular contributor to several financial publications and is a frequent guest on CNBC, Bloomberg TV, and Yahoo's Daily Ticker. He is a keynote speaker at conferences around the world. John is the father of seven children (five adopted) and lives in a high rise in Dallas, Texas.
JONATHAN TEPPER is the Chief Editor of Variant Perception (www.variantperception.com), a macroeconomic research group that caters to hedge funds, banks, and family offices. He is the coauthor, with John Mauldin, of Endgame: The End of the Debt Supercycle, a book on the sovereign debt crisis. Jonathan has worked as an equity analyst at SAC Capital and as a Vice President in proprietary trading at Bank of America. In addition, he is a founder of Demotix, a citizen-journalism website and photo agency which he sold in 2012 to Corbis, a Bill Gates-owned company. In 2012, Jonathan was a finalist for the Wolfson Economics Prize, an open challenge for economists to find the most efficient and least disruptive way to break up the euro. Jonathan is an American Rhodes Scholar. He lives in London but travels frequently to the U.S., Europe, and Asia to speak at conferences. He earned a BA with highest honors in economics and history from the University of North Carolina at Chapel Hill, and an MLitt in modern history from Oxford University.
For additional information, please visit http://www.thecoderedbook.com/.
If you are interested in an interview with Mauldin or Tepper, or if you would like any additional information, please contact Melissa Torra, Publicist – WILEY – firstname.lastname@example.org/201-748-6834.