Code Red

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 Investment Officer of Prevatt Capital. He is the founder of Variant Perception. Formerly, he was an analyst at SAC Capital and a Vice President on the proprietary trading desk at Bank of America. Jonathan is the author of Endgame, Code Red, and The Myth of Capitalism: Monopolies and the Death of Competition. He is a Rhodes Scholar and graduated with highest honors in history and honors in economics from the University of North Carolina at Chapel Hill and has an MLitt in modern history from the University of Oxford.

• Acknowledgments ixIntroduction: Code Red 1Part I 11Chapter One: The Great Experiment 13Chapter Two: Twentieth-Century Currency Wars: The Barbarous Relic and Bretton Woods 33Chapter Three: The Japanese Tsunami: Starting a Currency War 57Chapter Four: A World of Financial Repression 91Chapter Five: Arsonists Running the Fire Brigade 117Chapter Six: Economists Are Clueless 133Chapter Seven: Escape Velocity 171Chapter Eight: What Will Happen When It All Goes Wrong 201Chapter Nine: Easy Money Will Lead to Bubbles and How to Profit from Them 221Part II: Managing Your Money 251Chapter Ten: Protection through Diversification 253Chapter Eleven: How to Protect Yourself against Inflation 271Chapter Twelve: A Look at Commodities, Gold, and Other Real Assets 301Conclusion 319Afterword 325Notes 341About the Authors 343Index 345

“If you read only one book on finance this year, make it Code Red: How to Protect Your Savings from the Coming Crisis, by John Mauldin and Jonathan Tepper, authors of the bestseller Endgame, which delved into the 2008 collapse.”—Forbes magazine