Leverage: How Cheap Money Will Destroy the World

by Karl Denninger, Charles Hugh Smith (Foreword)

How the wealthy and powerful abuse finance to skim immense profits Debasement of the dollar as a result of ill-use of leverage is destroying the global economy, and in Leverage, well known market commentator Karl Denninger follows the path of money throughout history to prove that currencies are debased when moneyed and powerful interests pull the levers of government and policy to enrich themselves at the expense of the masses. The result is ugly: the value of everything--including gold--falls, and even personal safety is at risk in a world where there is limited money even for essentials like food and fuel. History is littered with the collapse of monetary and economic systems from Rome to Germany to Zimbabwe.


Presents an inside look at how moneyed and powerful interests debase the dollar through the willful and intentional failure to honestly represent short and long-term mathematical truths that underlie all economic systems Shows how, if imbalances are not corrected, financial crises will reoccur again and again Authored by Karl Denninger, who has been running the popular website The Market Ticker since 2007

Genres: Finance, Economics

224 pages, Hardcover

First published October 3, 2011

Reviews

[Mark · Rating 4 out of 5]

A clear presentation of ideas developed in Denninger's Market Ticker blog, without the polemic rage he's known for. He explains the fundamental flaws of credit and documents the corruption that repeatedly thwarts any repair to the debt-based economic system.

[Corey Lindt · Rating 4 out of 5]

Great insight to the macro economics of where the USA has been, is now, and where it is heading. Before you walk into a voting booth to vote people into positions of power with the countries finances you should read this book.

[Cesar · Rating 4 out of 5]

Introductory book to understand financial world we live.

[Jonas Stephan Johnson · Rating 5 out of 5]

Good day all is well please this is i faith a great book through how we destroy our world through money thanks so much god bless proper have it good.

[Jon Neumann · Rating 5 out of 5]

It'll be interesting to see if any of Karl's recommendations to fix this mess are enacted. 10 years after publication date, it's just been more kicking the can down the road. I'm not optimistic.

[Patrick · Rating 5 out of 5]

Karl is a straight-shooter who breaks down the financial situation in this country and the world brilliantly. If you're looking for a book blaming the government for everything; or for a book proving capitalism failed because of greed, failed regulations, etc... - then this is not the book for you. This book is fact/math based. He has a clean way of breaking down the complicated systems with simple unarguable math - which always adds up. Leverage pulls no punches as it unveils the truths of all sides of all equations. From Freddie to Sallie to Goldman to the consumer.

The best part of this book though is the actual real solutions; as bad as the first half of the book makes things seem (which appears to be true), Karl then dives deep into how we correctly move forward. Sacrifices have to be made, but it can be done - or face worse complications. His approach for fixing our energy situation is well worth the read. On top of making sense of the money trouble we have, Denninger is the first person I've read that understands the micro and macro of Health Care; and how to fix it. Tort reform, Universal Health Care, technological advances, etc... all barely even scratch the surface of the out-of-control prices we're seeing and will continue to encounter. I never realized the obvious issues with using insurance for common things. Our generation is really trying to hide costs on difficult decisions so that we can instead buy an iPhone. It is really sad to see how much we borrowed in order to grow. It all makes perfect sense - how else is everyone going down financially? Do you really think the banks and the rich are taking all the money? Then how come they had to be bailed out? When all the Leverage comes roaring back, yes, they are trying to get their hands on the majority of it - leaving us with nada. Greed is part of it, but you'll never stop greed; Karl shows just how simple it is to contain it though. Forget all those bank regulations - one sentence will do. Denninger narrows it down to basically two words. Read it, understand it, try to find where it is not spot on.

I try to limit the books I give 5 stars - even so of my all time favorite reads I may give a 4 - this book easily gets a 5.

[Jakob · Rating 5 out of 5]

A must read for any that would like a radically different perspective on today economic structure, which is obviously not questioned enough by the mainstream media. (Probably because most people don't really care).
When it sometimes seems like something very important in the economic structure is completely messed up. It might actually be because, something is really messed up in the way it is being managed today.
I'm no expert on the subject, but I'ed like to see some, if not say all, of Denningers ideas implemented as his reasoning seems way more logical and rational than the bullshit excuses the public are feed by the bulk of politicians and banks which for too long has had to much freedom and power to twist the systems in order seek their own short term interests and gain. While obviously compromising the long time stability and prosperity of the nations.

[Christopher Ferrell · Rating 5 out of 5]

This is an outstanding, well written book that reveals the roots of our economic crisis. The root is excess debt. Denninger explains how the government's answer to excess debt, which is to add even more debt, is unsustainable and therefore guaranteed to end. That end will be disastrous unless the current course of action is not changed drastically.

Read this book and prepare for the future of your family

[Tim · Rating 4 out of 5]

Denninger outlines the fiscal problems that haunt and will continue to haunt the United States. He doesn't just list all the problems though. He includes several chapters on how the United States could improve economically, including a chapter on solving energy for the foreseeable future.

I would encourage as many people as I can to read this book; especially those in political leadership positions.