Jul 6 2009 4:40PM

Ruffonomics is not for academic economists to study. It doesn’t tell government what to do. It addresses the critical life-style needs of middle-class Americans and tells you what you should do with your life and your money to counter the negative force of Obamanomics.
It is also the exact opposite of Obamanomics. It is a counter attack on the conventional Wall Street “wisdom.”

It is also the exact opposite of Obamanomics. It is a counter attack on the conventional wisdom. It consists of several principles:

1) It is family oriented. This is not designed to help rich people get richer, although that could be a side benefit for well-to-do readers who apply Ruffonomics. I do not expect it to be accepted by big-time stock-market investors who are totally money motivated; although some may join our cause. Most investors will be big losers to Obamanomics. My advice has always been for Middle-class American families and I have given the same advice to my own family, and I have a big one. It’s easy for me to write for families because I spend a lot of time thinking about and serving my own family. With 14 children (five adopted as teenagers) and 76 grandchildren, family orientation comes naturally to me, and my wife Kay won’t let me forget it.

2) Ruffonomics is based in the Constitution, Capitalism, Free Enterprise and old-fashioned morality. On the wall in my office is a copy of the complete constitution. I believe in it, and I think the men who created it were inspired by God. The judges who interpret it now tend to substitute their own political and social judgments for these principles. They are the referees of America, and the constitution provides the rules of the game, and these referees should strictly interpret the rules.
I also believe in capitalism. Capitalism is a way to capitalize income by turning a private business into a public company whose value is generally determined by some multiple of profits. It’s the way to create real wealth.
Free enterprise means you can start whatever business you want, and succeed or fail. It is violently opposed to Obamanomics, which fraudulently promises you can succeed with no chance of failure, because the government is the Big Kahuna who will save you. Obamanomics generally appeals to the college-based intellectuals, and the less educated, non-productive bottom layer of American society. Its appeal is based on the false promise that your status in life is not your fault, because you are the victim of some bad guys, like us.

3) Ruffonomics is basically optimistic and forward looking. One of my favorite Broadway musicals, Till Clouds Roll By, has a song I love, “Look for the silver lining, when ‘ere a cloud appears in the blue.” I am basically optimistic, although I seem to have to spend a lot of my time viewing with alarm. That is because I am leaving the old financial world that is being ripped out from under us. There are always opportunities to prosper if you look for them, but not just in old institutions. If you share the Ruffonomics philosophy, you will always be looking for opportunities, and you will find they are generally out of mainstream.

4) Old-fashioned morals are basic. The traditional family with mom, dad and kids will be the strength of America. They are currently under attack by the Sexual Anarchists, as described in Section IV.
History is dynamic and ever-changing. Fortunes are always made by those who detect these dramatic changes and bet on them early in the game while sticking to basic moral principles.

5) Ruffonomics says you should get out of debt. Debt is bondage, and too much of your money is committed to interest payments to people who loaned you the money so you can buy another car, a bigger house, a home theater, or a vacation in an exotic place or a cruise. If you have no debt, you can decide what to do with your money rather than automatically, every month, sending off part of it as interest to lenders who gave you the money to buy something that lost much of its value the minute you bought it. When you do that, the money that usually goes to lenders can be used at your discretion.

6) Ruffonomics tells you to ignore Wall Street at a time like this. Remember, a maverick is a cow or steer that has left the herd – perhaps one out of a thousand. He/she may feel alone, but the rest of the herd will be turned into hamburger. The maverick at least has a chance. The maverick is not a herd follower. Ruffonomics followers will not follow the herd.

7) Ruffonomics suggests you should invest in inflation. Several investments always respond to inflation. At the right time, when the money supply is exploding, you should weight your portfolio in favor of inflation. Some things respond directly to it, like gold and silver, some simply respond to the business opportunities in the inflationary environment. My life is a constant search for these opportunities to share with you so you can select from them.

8) Ruffonomics is not accepted by those who believe in conventional wisdom, or is a fan of Barack Obama. Ruffonomics tells you most opportunities are found in non-traditional areas. You can make a lot more money in a trend that is about to become generally accepted than in one that is already established. I look for those trends.

*****

Howard J. Ruff, the legendary author and financial advisor, has re-edited and re-issued his 1978 mega best seller, How to Prosper During the Coming Bad Years, still the biggest-selling financial book in history, with 2.6 million copies in print. He is founder and editor of The Ruff Times financial newsletter. This article is from a recent issue of The Ruff Times. The newsletter is much more comprehensive and deals with a broad spectrum of middle-class financial issues and includes an Investment Menu from which you can build your portfolio. (You can learn about it here). The Ruff Times has served more than 600,000 subscribers – more than any financial-advisory newsletter in the world. His updated and revised book, How to Prosper During the Coming Bad Years in the 21st Century. You can get it free when you subscribe to The Ruff Times (www.rufftimes.com), or if you buy the book at your favorite bookstore, you can deduct $10 from the subscription price.