Thanks for the comments over last wee while but as I am situated in New Zealand under new law here I can no longer comment on finance or such subjects without the appropriate qualification which I have no interest in getting.
thanks again & keep looking for that information.
Friday, August 20, 2010
Sunday, June 6, 2010
How soon will the world's financial system collapse?
Kia Ora,
Despite the news continually saying there is a recovery, the financial crisis continues & the more they manipulate it the worse the final outcome, based on history, will be.
There are opportunities jumping out everywhere right at present. If you have huge dreams then right now if you can get yourself set up it is the time when you can achieve them.
Yet the powers that be are implimenting more laws, taking more control & preventing people talking about what actions to take or what is coming.
This will be the last blog I put out on this subject as it is my opinion & latest NZ law to come in next week disallows you to give advice (in other words an opinion) on financial matters unless you have their appropriate qualifications.
This is just following the route taken by others, in the guise of making things better as people ask for it, they impliment a system that manipulates to the way those controlling the financial world want.
For example as some commentators have said the tax system in the US was introduced as a way to tax the Rich, but in effect it set up the system to tax the masses, with get out clauses for the rich as they keep an economy moving.
This happened again some say in 1986 when they put in place new tax laws hitting those that owned investment property. The only people it really hit were those who did not invest in cash flow positive property or in the main self employed such as Dr's & lawyers. This when looking at it is similar to the new investment property tax laws just been enacted in NZ.
Hard times in the economies also mean those in authority start to hit those actions that in the past they turned a blind eye too.
For example here in NZ in the last few days, due to the out come of a court case it is quite clear now that the tax department (IRD) are now targeting small businesses & individuals that they think have tried to not pay the maximum tax.
It was something IRD made quite clear to me when I first started moved from sole trader to a limited liability company. I must pay myself a wage. Yet most small businesses will tell you they never have a wage.
The same with the companies act. Under that act you must act in the best interest of the company, not the shareholders or employees, yet that only is acted upon when the economic climate turns for the worse.
All this is part of the transfer of wealth & power
But like in the financial education each person has to take the action themselves to find out what the real truth is.
You are hearing more & more on the street people saying they know that things are not getting better despite the talk of recoveries.
Each of us has to prepare in their own way & ensure they are set up to whether the worst of what is to come.
How do we know? Again by looking at history.
Despite the news continually saying there is a recovery, the financial crisis continues & the more they manipulate it the worse the final outcome, based on history, will be.
There are opportunities jumping out everywhere right at present. If you have huge dreams then right now if you can get yourself set up it is the time when you can achieve them.
Yet the powers that be are implimenting more laws, taking more control & preventing people talking about what actions to take or what is coming.
This will be the last blog I put out on this subject as it is my opinion & latest NZ law to come in next week disallows you to give advice (in other words an opinion) on financial matters unless you have their appropriate qualifications.
This is just following the route taken by others, in the guise of making things better as people ask for it, they impliment a system that manipulates to the way those controlling the financial world want.
For example as some commentators have said the tax system in the US was introduced as a way to tax the Rich, but in effect it set up the system to tax the masses, with get out clauses for the rich as they keep an economy moving.
This happened again some say in 1986 when they put in place new tax laws hitting those that owned investment property. The only people it really hit were those who did not invest in cash flow positive property or in the main self employed such as Dr's & lawyers. This when looking at it is similar to the new investment property tax laws just been enacted in NZ.
Hard times in the economies also mean those in authority start to hit those actions that in the past they turned a blind eye too.
For example here in NZ in the last few days, due to the out come of a court case it is quite clear now that the tax department (IRD) are now targeting small businesses & individuals that they think have tried to not pay the maximum tax.
It was something IRD made quite clear to me when I first started moved from sole trader to a limited liability company. I must pay myself a wage. Yet most small businesses will tell you they never have a wage.
The same with the companies act. Under that act you must act in the best interest of the company, not the shareholders or employees, yet that only is acted upon when the economic climate turns for the worse.
All this is part of the transfer of wealth & power
But like in the financial education each person has to take the action themselves to find out what the real truth is.
You are hearing more & more on the street people saying they know that things are not getting better despite the talk of recoveries.
Each of us has to prepare in their own way & ensure they are set up to whether the worst of what is to come.
How do we know? Again by looking at history.
Saturday, May 29, 2010
How do we know what is coming?
Kia Ora,
Well how do we know what is coming? We study history! It can be ancient history as that shows the cycles the world moves in as men make the same mistakes over & over again.
It can be more immediate history that shows what is likely to happen if certain actions are taken or situations arise.
Most of what has been happening is just a repeat of history that has been recorded since the time of the Romans in regards to the world of finance.
Each time changes by man means the time before is not exactly like the last but just like gravity the rules of money going by history never really change.
But what you can do is see what is happening locally & if something has happened similar recently. Now one of the letters I follow is a free one based out of Australia called Daily Reckoning & at times it appears to contradict itself as different people contribute. Therefore more financial education is required on your behalf to come to a conclusion as to what is likely to happen.
Recently there has been quite a bit of comment on how the Australian banks are dangerously exposed to offshore exposure through loans.
The point they were making was that if suddenly interests rates jump that they have to pay for loans (& they expect them too) then those Australian banks are going to have to look elsewhere for funds.
One area they would expect is the Australian government to 'print' money to do as the US has done & bail the banks out effectively transferring the private debt to the Government.
Now if that happens & Australia decides it wants to look at other options then there is the likelyhood of it following the US in quietly enacting policies where retirement funds can withhold the funds of those with money in them.
So effectively stealing the money supposedly put aside for retirement, but legally.
Some might see this as conspiracy material, but if you look you can find that it is going on right now.
Just like the recent quiet change in the ability to exhange Gold & Silver ETF's for the real thing, because if that ability still remained people would find that the amount been traded doesn't exist.
Well how do we know what is coming? We study history! It can be ancient history as that shows the cycles the world moves in as men make the same mistakes over & over again.
It can be more immediate history that shows what is likely to happen if certain actions are taken or situations arise.
Most of what has been happening is just a repeat of history that has been recorded since the time of the Romans in regards to the world of finance.
Each time changes by man means the time before is not exactly like the last but just like gravity the rules of money going by history never really change.
But what you can do is see what is happening locally & if something has happened similar recently. Now one of the letters I follow is a free one based out of Australia called Daily Reckoning & at times it appears to contradict itself as different people contribute. Therefore more financial education is required on your behalf to come to a conclusion as to what is likely to happen.
Recently there has been quite a bit of comment on how the Australian banks are dangerously exposed to offshore exposure through loans.
The point they were making was that if suddenly interests rates jump that they have to pay for loans (& they expect them too) then those Australian banks are going to have to look elsewhere for funds.
One area they would expect is the Australian government to 'print' money to do as the US has done & bail the banks out effectively transferring the private debt to the Government.
Now if that happens & Australia decides it wants to look at other options then there is the likelyhood of it following the US in quietly enacting policies where retirement funds can withhold the funds of those with money in them.
So effectively stealing the money supposedly put aside for retirement, but legally.
Some might see this as conspiracy material, but if you look you can find that it is going on right now.
Just like the recent quiet change in the ability to exhange Gold & Silver ETF's for the real thing, because if that ability still remained people would find that the amount been traded doesn't exist.
Friday, May 14, 2010
Is the End Nigh?
Kia Ora,
It has been an interesting few weeks. In the main I follow three newsletters or commentators & a couple of other sources of up to date information as the financial crisis continues to unfold.
Surprisingly for the very first time all three newsletters & commentators were on the exact same wavelength.
In the past they have talked about this crisis coming to a conclusion in 2015, one commentator on a newsletter said by May 2011 as that will be the same period from the start of the Greek crisis that it took from bear Sterns to the fall of financial markets.
More recently I have been informed that stockbrokers are talking to taxi drivers of December 2010 being the crunch.
Then the three emails came in almost together. The end is in sight.
The end of what? the end in this round of the cycle that we seem to want to put ourselves through as human beings.
The Sovereign debt crisis which is what this has now become, is not over. It is just beginning & with it the break down of social order.
To make it worse the Eurozone to bail out its members has now taken the same action as those in the UK & US have taken.
The Germans are not happy as they still have memories, not of the deflationary depressoin which much of the world suffered last time, but of their earlier hyperinflation depression.
It is reported that much of the gold now being bought on the markets is now heading to Germany as they rush to protect themsleves. There is even a quote stemming from 1923 of how one person withdrew their whole 100,000 marks & it bought them one tram ticket for a ride around the city.
Hyperinflation in Germany: Perceptions of a Process
Inflation & in particular hyperinflation is the tax that governments impose by printing (or in todays attempt to hide the truth, quantitve easing) that sneaks up on people.
People who lived through the times talk of how dangerous it was & how the crime was out of control. Think it is getting bad now. Just wait.
When will it happen? No one can really tell as those have made it possible are trying what they think is right to save the situation & are actually making it worse in the long run. History just shows though that when it happens, it happens fast & they bigger the debt, the faster it happens.
The first recorded correction took 300 years. The German hyperinflation correction took four years. Gold is now going up no matter what, though a the end there is talk that it will drop initially, then head north.
It has been an interesting few weeks. In the main I follow three newsletters or commentators & a couple of other sources of up to date information as the financial crisis continues to unfold.
Surprisingly for the very first time all three newsletters & commentators were on the exact same wavelength.
In the past they have talked about this crisis coming to a conclusion in 2015, one commentator on a newsletter said by May 2011 as that will be the same period from the start of the Greek crisis that it took from bear Sterns to the fall of financial markets.
More recently I have been informed that stockbrokers are talking to taxi drivers of December 2010 being the crunch.
Then the three emails came in almost together. The end is in sight.
The end of what? the end in this round of the cycle that we seem to want to put ourselves through as human beings.
The Sovereign debt crisis which is what this has now become, is not over. It is just beginning & with it the break down of social order.
To make it worse the Eurozone to bail out its members has now taken the same action as those in the UK & US have taken.
The Germans are not happy as they still have memories, not of the deflationary depressoin which much of the world suffered last time, but of their earlier hyperinflation depression.
It is reported that much of the gold now being bought on the markets is now heading to Germany as they rush to protect themsleves. There is even a quote stemming from 1923 of how one person withdrew their whole 100,000 marks & it bought them one tram ticket for a ride around the city.
Hyperinflation in Germany: Perceptions of a Process
Inflation & in particular hyperinflation is the tax that governments impose by printing (or in todays attempt to hide the truth, quantitve easing) that sneaks up on people.
People who lived through the times talk of how dangerous it was & how the crime was out of control. Think it is getting bad now. Just wait.
When will it happen? No one can really tell as those have made it possible are trying what they think is right to save the situation & are actually making it worse in the long run. History just shows though that when it happens, it happens fast & they bigger the debt, the faster it happens.
The first recorded correction took 300 years. The German hyperinflation correction took four years. Gold is now going up no matter what, though a the end there is talk that it will drop initially, then head north.
Thursday, May 6, 2010
The Beginning of the End?
Kia Ora,
Well the beginning of the end raised its head earlier today. With Markets already down due to the Sovereign Debt Crisis in Greece, Wall street suddenly took a huge leap downwards. Gold took a large leap upwards after being trending up of late.
They are now claiming that there was a wrong entry possilby by a person. They may even 'find' that person, but it will just be an attempt to hide how fragile the worlds economies are.
Whilst gold leapt up the manipulation of silver continued & it hardly moved at all.
In fact the whole game appears to be about manipulation of figures at present.
Here in NZ, the government announced the new unemployment figures & there had being a big drop, when adjusted. That when adjusted comes up a lot when figures are released these days & they gather them in a not really honest way that allows governments to manipulate to give what picture they want.
Yet just going to the mall yesterday, you noticed a lot more people looking strained with the obvious stress of no income.
On social media more & more close friends are looking for work & there is nothing out there. So where do all the 'new' jobs come from? Manipulation to hide the issues that are starting to arise.
Crime & in particular violent crime is rising extremely fast, there are more extremist views being pushed & there are opportunities everywhere for those able to take advantage of them.
But is this all so unexpected?
In a word. No.
The book to the left was written a few years ago, but when you read it, it tells how 'Rich Dad' could see this coming in 1974 & probably before that due to looking into financial history.
Winston Churchill's quote "The further back you look, the further forward you see" or words to that effect, keep coming to mind as each action to combat the financial crisis is a re enactment of what has being tried previously.
With Big trouble looming in the Eurozone, of late there has being another transfer of wealth to the US dollar & when things go really wrong it starts transferring from the dollar to gold or silver.
NZ had this famous band called Split Enz & one of their best selling songs was 'History Never Repeats" with the words directly after the title being "I tell myself before I go to sleep",
That seems to be the sentiment of those that run the worlds economies, but those behind them know it is a different story. They know, no matter what man does history does repeat, so make it work for you.
They have ensured that they have in place the people to ensure history does repeat & therefore create the environment for, what has being described as, the greatest wealth transfer in the history of man.
But it is not just the transfer of wealth, but also power as it obeys the golden rule.
He who has the gold makes the rules.
Greece has only a relatively small debt which due to being part of the Eurozone they can't take measures by themselves such as print money to manage their debt.
For now that is the little nudge in the Sovereign debt crisis that is needed to cause more concerns in Europe.
But it is the excessive printing of currency that has being occuring in the UK & US that is the real threat.
Today you just got a glimpse of the future because as the DOW dropped gold went up.
Then there are concerns about China & that its bubble might be about to burst. This could result in dropping of commodity prices including gold & silver, but where as some of the others might recover as much, gold & silver based on history will disconnect & go up at some stage.
What ever way it goes, people need to be ready & you got a glimpse today of the future.
Well the beginning of the end raised its head earlier today. With Markets already down due to the Sovereign Debt Crisis in Greece, Wall street suddenly took a huge leap downwards. Gold took a large leap upwards after being trending up of late.
They are now claiming that there was a wrong entry possilby by a person. They may even 'find' that person, but it will just be an attempt to hide how fragile the worlds economies are.
Whilst gold leapt up the manipulation of silver continued & it hardly moved at all.
In fact the whole game appears to be about manipulation of figures at present.
Here in NZ, the government announced the new unemployment figures & there had being a big drop, when adjusted. That when adjusted comes up a lot when figures are released these days & they gather them in a not really honest way that allows governments to manipulate to give what picture they want.
Yet just going to the mall yesterday, you noticed a lot more people looking strained with the obvious stress of no income.
On social media more & more close friends are looking for work & there is nothing out there. So where do all the 'new' jobs come from? Manipulation to hide the issues that are starting to arise.
Crime & in particular violent crime is rising extremely fast, there are more extremist views being pushed & there are opportunities everywhere for those able to take advantage of them.
But is this all so unexpected?
In a word. No.
The book to the left was written a few years ago, but when you read it, it tells how 'Rich Dad' could see this coming in 1974 & probably before that due to looking into financial history.
Winston Churchill's quote "The further back you look, the further forward you see" or words to that effect, keep coming to mind as each action to combat the financial crisis is a re enactment of what has being tried previously.
With Big trouble looming in the Eurozone, of late there has being another transfer of wealth to the US dollar & when things go really wrong it starts transferring from the dollar to gold or silver.
NZ had this famous band called Split Enz & one of their best selling songs was 'History Never Repeats" with the words directly after the title being "I tell myself before I go to sleep",
That seems to be the sentiment of those that run the worlds economies, but those behind them know it is a different story. They know, no matter what man does history does repeat, so make it work for you.
They have ensured that they have in place the people to ensure history does repeat & therefore create the environment for, what has being described as, the greatest wealth transfer in the history of man.
But it is not just the transfer of wealth, but also power as it obeys the golden rule.
He who has the gold makes the rules.
Greece has only a relatively small debt which due to being part of the Eurozone they can't take measures by themselves such as print money to manage their debt.
For now that is the little nudge in the Sovereign debt crisis that is needed to cause more concerns in Europe.
But it is the excessive printing of currency that has being occuring in the UK & US that is the real threat.
Today you just got a glimpse of the future because as the DOW dropped gold went up.
Then there are concerns about China & that its bubble might be about to burst. This could result in dropping of commodity prices including gold & silver, but where as some of the others might recover as much, gold & silver based on history will disconnect & go up at some stage.
What ever way it goes, people need to be ready & you got a glimpse today of the future.
Sunday, April 18, 2010
Tipping point passed. Point of no return now reached.
Kia Ora,
It is interesting times right now. Information from various sources have being basically backing each other up probably without knowing it.
Recently in the US there has being a call to cancel the fractional reserve altogether. For those that are unaware for every dollar you put in an account a bank can create a larger number of dollars, but it must keep a reserve to cover emergencies.
So for every dollar you put in which the bank may pay you 3% interest, it can then loan anything from 10 to at times 40 dollars for your one dollar at say 10% interest.
But they have generally being required to hold something like 10% of money held just in case it is called upon. It is called fractional reserve banking & that means for the economies to survive they must keep creating money out of thin air to keep the supply expanding.
Well it has now being suggested that that is holding the economy back so they shouldn't be holding any in reserve. This will allow banks & central banks to print (or quanittive ease) at will, making the end problem worse.
In the US the Federal Reserve has failed in its original announced mission when it was established in 1913 to maintain the value of the US dollar. The US dollar is now worth 3 cents in value to what the dollar was worth in 1913. That affects all other countries as all currencies are tied to the US dollar because of Bretton Woods in 1944.
Currently in the US many people are upset with the US government over the healthcare program. Combined with the bail outs in partiuclar the on going ones of Freddie Mac & Fannie Mae the US government is taking control of areas that were before the domains of private companies.
Here in NZ the Government has taken more control over local bodies firstly in the set up of the new 'Super' city of Auckland & more directly the disestablishment of Ecan, an elected council, as well as several health boards.
History shows that when things are getting tough or about too, then the governments start to exercise more control & people enjoy less freedom.
So as to the title of this blog. What is the tipping point?
Actually it was worked out some time ago through a group that follow Austrian economics.
The Tipping point of an economy is reached when a) Debt exceeds 73% of GDP & b) when Debt exceeds 230% of external exports.
Now as problems broke out with Greece there were figures saying Greece was close, but they were manipulated & in fact Greece & the whole of Europe, Britain & the US (not to mention here in NZ) were much higher according to the Daily Reckoning at the time.
For example this was the figures for the US just two days ago that came via a Robert Kiyosaki source.
a) Debt in the US now exceeds 96% of GDP
b) Debt in the US now exceeds 748% of External Exports.
This is a quote from Alan Greespan, the previous Chairman of the Federal Reserve, as quoted in the USA today.
"Regulators (the federal reserve etc) almost certainly will be unable to prevent future crises, so the focus should be on structuring the financial industry, so that it can better absorb unexpected blows".
A point made in the article by Robert Kiyosaki is that in 1914 the German people had no idea that anything was wrong, until the hyperinflation hit in 1923. That is why the German people are so upset with their government now for helping bail out Greece. they do remember that lesson.
This time is no different & in fact the title of the book opposite is what the economists would have you believe that "this time it is different" we have it under control.
In NZ that would call for a Tui's advert with the NZ laconic saying "yeah right".
The US has printed more money in the last year than in the whole previous 200 years of its existance.
To control inflation as the economies get close to collapse, governments will impose wage & price freezes as New Zealnders will well remember Sir Robert Muldoon doing in the early 80's as world inflation started to spiral out of control. Of course once he took them off then things like house prices just went through the roof.
Something that came up amongst all this was that all four US Presidents that have being assasinated were trying to or had implimented a return to the dollar based against gold or silver.
When he was shot President Reagan was also trying. He had implimented a report into taking the US dollar back on the gold standard only to find he couldn't, because all the US gold is actually under Caveat to the IMF. So effectively although the US is often touted as the country with the most gold, it in effect is like Britain & has none.
Britain has none because Gordon Brown sold it all when gold was at its lowest price.
An even more interesting case is the Credit Rivers case in 1968 where a Judge Mahoney ruled in the US that upheld the Jusitces ruling that fiat currency was not real therefore a bank could not foreclose (mortagee option) on a property. It was also ruled that their appeal was not legal as they used fiat currncy to file it &that was illegal. He died in a fishing 'accident' shortly afterwards.
His judgement was never followed up on.
More recently a whistle blower on the manipulation of the precious metal markets was involved in a hit & run accident & all reports about what he exposed have not being followed up in the US by mainstream media.
Examples of what he found where in the london market there were 100 paper gold trades to every oz of gold. So if people try to take delivery of the gold & find it is not there then it would result in a huge spike in the price of gold.
Also recently in the US the ability to exchange ETF's & other paper trades for actual gold & silver has being removed. It is quite possible, in fact likely probable, that most holding those paper trades have no idea.
Now a lot of that sounds like cloak & dagger, with conspiracy thrown in & the stuff of movies.
It is not.
In the 80's as a soldier I spent sometime on a vacation talking to a former US special forces operator who had being offered hit jobs in the US & Europe. My mate & I found him very crediable & once we were away from him found we were being followed across Europe by different people.
I was offered one myself when in the US. & I have a mate who has carried out 'black ops' as they are called for the US government.
People need to educate themselves to see what is coming. Thereby prepare themselves for that by using the secrets of the Rich. Robert Kiyosaki has a book out called 'Conspiracy of the Rich' which for some reason I can not find on here today. Read it.
It is interesting times right now. Information from various sources have being basically backing each other up probably without knowing it.
Recently in the US there has being a call to cancel the fractional reserve altogether. For those that are unaware for every dollar you put in an account a bank can create a larger number of dollars, but it must keep a reserve to cover emergencies.
So for every dollar you put in which the bank may pay you 3% interest, it can then loan anything from 10 to at times 40 dollars for your one dollar at say 10% interest.
But they have generally being required to hold something like 10% of money held just in case it is called upon. It is called fractional reserve banking & that means for the economies to survive they must keep creating money out of thin air to keep the supply expanding.
Well it has now being suggested that that is holding the economy back so they shouldn't be holding any in reserve. This will allow banks & central banks to print (or quanittive ease) at will, making the end problem worse.
In the US the Federal Reserve has failed in its original announced mission when it was established in 1913 to maintain the value of the US dollar. The US dollar is now worth 3 cents in value to what the dollar was worth in 1913. That affects all other countries as all currencies are tied to the US dollar because of Bretton Woods in 1944.
Currently in the US many people are upset with the US government over the healthcare program. Combined with the bail outs in partiuclar the on going ones of Freddie Mac & Fannie Mae the US government is taking control of areas that were before the domains of private companies.
Here in NZ the Government has taken more control over local bodies firstly in the set up of the new 'Super' city of Auckland & more directly the disestablishment of Ecan, an elected council, as well as several health boards.
History shows that when things are getting tough or about too, then the governments start to exercise more control & people enjoy less freedom.
So as to the title of this blog. What is the tipping point?
Actually it was worked out some time ago through a group that follow Austrian economics.
The Tipping point of an economy is reached when a) Debt exceeds 73% of GDP & b) when Debt exceeds 230% of external exports.
Now as problems broke out with Greece there were figures saying Greece was close, but they were manipulated & in fact Greece & the whole of Europe, Britain & the US (not to mention here in NZ) were much higher according to the Daily Reckoning at the time.
For example this was the figures for the US just two days ago that came via a Robert Kiyosaki source.
a) Debt in the US now exceeds 96% of GDP
b) Debt in the US now exceeds 748% of External Exports.
This is a quote from Alan Greespan, the previous Chairman of the Federal Reserve, as quoted in the USA today.
"Regulators (the federal reserve etc) almost certainly will be unable to prevent future crises, so the focus should be on structuring the financial industry, so that it can better absorb unexpected blows".
A point made in the article by Robert Kiyosaki is that in 1914 the German people had no idea that anything was wrong, until the hyperinflation hit in 1923. That is why the German people are so upset with their government now for helping bail out Greece. they do remember that lesson.
This time is no different & in fact the title of the book opposite is what the economists would have you believe that "this time it is different" we have it under control.
In NZ that would call for a Tui's advert with the NZ laconic saying "yeah right".
The US has printed more money in the last year than in the whole previous 200 years of its existance.
To control inflation as the economies get close to collapse, governments will impose wage & price freezes as New Zealnders will well remember Sir Robert Muldoon doing in the early 80's as world inflation started to spiral out of control. Of course once he took them off then things like house prices just went through the roof.
Something that came up amongst all this was that all four US Presidents that have being assasinated were trying to or had implimented a return to the dollar based against gold or silver.
When he was shot President Reagan was also trying. He had implimented a report into taking the US dollar back on the gold standard only to find he couldn't, because all the US gold is actually under Caveat to the IMF. So effectively although the US is often touted as the country with the most gold, it in effect is like Britain & has none.
Britain has none because Gordon Brown sold it all when gold was at its lowest price.
An even more interesting case is the Credit Rivers case in 1968 where a Judge Mahoney ruled in the US that upheld the Jusitces ruling that fiat currency was not real therefore a bank could not foreclose (mortagee option) on a property. It was also ruled that their appeal was not legal as they used fiat currncy to file it &that was illegal. He died in a fishing 'accident' shortly afterwards.
His judgement was never followed up on.
More recently a whistle blower on the manipulation of the precious metal markets was involved in a hit & run accident & all reports about what he exposed have not being followed up in the US by mainstream media.
Examples of what he found where in the london market there were 100 paper gold trades to every oz of gold. So if people try to take delivery of the gold & find it is not there then it would result in a huge spike in the price of gold.
Also recently in the US the ability to exchange ETF's & other paper trades for actual gold & silver has being removed. It is quite possible, in fact likely probable, that most holding those paper trades have no idea.
Now a lot of that sounds like cloak & dagger, with conspiracy thrown in & the stuff of movies.
It is not.
In the 80's as a soldier I spent sometime on a vacation talking to a former US special forces operator who had being offered hit jobs in the US & Europe. My mate & I found him very crediable & once we were away from him found we were being followed across Europe by different people.
I was offered one myself when in the US. & I have a mate who has carried out 'black ops' as they are called for the US government.
People need to educate themselves to see what is coming. Thereby prepare themselves for that by using the secrets of the Rich. Robert Kiyosaki has a book out called 'Conspiracy of the Rich' which for some reason I can not find on here today. Read it.
Friday, April 9, 2010
The band played as the Titanic sunk.
Kia ora,
Well with all the information coming through it would seem to be that the ship is starting its slide to the bottom.
One group of analysts worked out that if the US government sold all its assets & all those of its citizens it would still owe US$50 Trillion.
Then they moved onto the manipulation of the unemployment figures which for the first time in ages showed the creation of 162 thousand jobs.
Well until they dug into them then it ended up 67 thousand jobs lost.
Included in the 162K were the 48K jobs created for the census, so not full time jobs & not jobs that create wealth. Some of the others were paper creations using formulas to work out how to cover births,deaths & weather fluctuations.
The main point they made is that Governments don't create wealth. They might look like they are doing something, but in fact by creating jobs that do not create wealth they are making the situation worse.
There was also the very interesting quote from Albert Edwards of Societe Generale on the European Debt crisis.
"My own view on this is that obviosly we should of never have got into this wholly avoidable mess in the first place."
He then adds "But having got here, there is really no way out that does not trigger a major market moving upheaval".
So basically he is saying we are stuffed as far as economic future is coming over the next few years. He is just talking about Europe, but the UK & US are in much greater mess. Unlike the Europeans they have being printing currency overtly & covertly to try to get them out of the mess, but in the long run will make it worse & the people helping them are the ones who will benefit the most.
Well with all the information coming through it would seem to be that the ship is starting its slide to the bottom.
One group of analysts worked out that if the US government sold all its assets & all those of its citizens it would still owe US$50 Trillion.
Then they moved onto the manipulation of the unemployment figures which for the first time in ages showed the creation of 162 thousand jobs.
Well until they dug into them then it ended up 67 thousand jobs lost.
Included in the 162K were the 48K jobs created for the census, so not full time jobs & not jobs that create wealth. Some of the others were paper creations using formulas to work out how to cover births,deaths & weather fluctuations.
The main point they made is that Governments don't create wealth. They might look like they are doing something, but in fact by creating jobs that do not create wealth they are making the situation worse.
There was also the very interesting quote from Albert Edwards of Societe Generale on the European Debt crisis.
"My own view on this is that obviosly we should of never have got into this wholly avoidable mess in the first place."
He then adds "But having got here, there is really no way out that does not trigger a major market moving upheaval".
So basically he is saying we are stuffed as far as economic future is coming over the next few years. He is just talking about Europe, but the UK & US are in much greater mess. Unlike the Europeans they have being printing currency overtly & covertly to try to get them out of the mess, but in the long run will make it worse & the people helping them are the ones who will benefit the most.
Tuesday, March 30, 2010
Be Very aware.
Kia Ora,
Be very aware of what your governments are up too.
Not just governments but groups there supposedly to protect you. In the US the SEC which sets the rules for such things as investors has made it legal for institutions to freeze investors funds & are targeting pension funds to pay for loans to the big banks that were bailed out, to buy the smaller banks that are going under.
In 2008 25 banks went under in the US, 141 in 2009 & so far this year 41. Recovery? Yeah right.
It has also being realised that in the US that social security this year will cost more than the amount of money taken in by the US government. That was a line that they had forecast they would not reach until 2016.
Governments around the world are trying to think of ways to pay for the interest payments they have to pay their central banks for borrowing the money, the banks print for them.
That is the reason you pay tax to pay for the interest on the borrowed money.
That is why you have some governments taking austerity measures to try & cut back on expenditure & others with just borrowing more & more to give an impression of things are normal.
In the US there has just being an extra US$400 billion given to Freddie Mac, Fannie Mae & Ginnie Mae to keep the housing market at least looking not as bad as it is.
All the banks bailed out are paying back as required, but these are getting rid of of their bad mortgages which are then bought with the money given to them by the above agencies.
In the meantime the big bubble in derivatives looks more rocky with its quadrillions in investment & they try to begin new markets.
What new markets? ETS (Emission Trading schemes for a start) to supposedly make the world greener, but only a way of creating money out of nothing. There were reports that Al Gore & cohorts are the ones most profiting from these schemes.
Be very aware of what your governments are up too.
Not just governments but groups there supposedly to protect you. In the US the SEC which sets the rules for such things as investors has made it legal for institutions to freeze investors funds & are targeting pension funds to pay for loans to the big banks that were bailed out, to buy the smaller banks that are going under.
In 2008 25 banks went under in the US, 141 in 2009 & so far this year 41. Recovery? Yeah right.
It has also being realised that in the US that social security this year will cost more than the amount of money taken in by the US government. That was a line that they had forecast they would not reach until 2016.
Governments around the world are trying to think of ways to pay for the interest payments they have to pay their central banks for borrowing the money, the banks print for them.
That is the reason you pay tax to pay for the interest on the borrowed money.
That is why you have some governments taking austerity measures to try & cut back on expenditure & others with just borrowing more & more to give an impression of things are normal.
In the US there has just being an extra US$400 billion given to Freddie Mac, Fannie Mae & Ginnie Mae to keep the housing market at least looking not as bad as it is.
All the banks bailed out are paying back as required, but these are getting rid of of their bad mortgages which are then bought with the money given to them by the above agencies.
In the meantime the big bubble in derivatives looks more rocky with its quadrillions in investment & they try to begin new markets.
What new markets? ETS (Emission Trading schemes for a start) to supposedly make the world greener, but only a way of creating money out of nothing. There were reports that Al Gore & cohorts are the ones most profiting from these schemes.
Monday, March 29, 2010
Things are right now. Yeah right.
Kia Ora,
Greece is being bailed out so it is all alright or is it?
First issue that arises is, what about the others in the Euro zone who are in the same situation? What about the UK & US who are in an even worse state.
Here are some points that have come in over the last week or so.
In Illinois they are repossing police cars. Now that is embarrassing. They are also refusing inmates as there is claims people are not being paid to to look after them.
California (the worlds 8th biggest economy) is looking at releasing prisoners to save costs. That is before Obama's health care programme add's US$2-3 billion to the bill they already can't pay.
No wonder there is soem very short fuses in the US. Now some are arguing that government's can never do it as good as the private sector.
That depends. Here in NZ we used to have a world class, cheap health system that was free & run by the government or as one radio DJ put it, a cardigan wearing little man who made sure the planning was done.
What happened was then one government decided to make it user pays, but the back lash was so great that when they reverted the damage was done & now we have a overworked health system, that can't keep up & is getting more & more expensive.
So they can, but only if someone keeps it efficient & someone else doesn't try to fix what isn't broken.
But back to the US & the Obama Health care plan. One of its claims had being that it would save the country US$138 Billion. It now appears from the same unit who released those figures that it will cost an extra US$566 Billion.
That is a discrepancy of a lazy US$ 700 Billion. Sounds like they have being getting lessons from NZ IRD (Equivalent to IRS).
The other issue is 14 States in the US sued the Ferderal government at virtually the moment it passed its vote.
In other news Portagul was downgraded by a rating agency (the same guys(as in rating agencies. why do we listen to them?) who said ENRON was AAA just prior to it crashing) & the US warned it was close to being downgraded.
Of course in reality the US is now about a C rating but if they even drop it, it will cause major issues around the world. So expect the US to be AAA until the day after it all goes down the out house.
China is reportedly selling its commitment to US Bonds or debt & it seems is using much of it to buy assets such as resources & commodities as well as agriculture.
This has lead one commentator Eric Fay to just have a look when governments have ever defaulted on debt they owe.
By using google he put in words Government & default & got 160 million results, so he then changed it to Government default on debt to which he got only 10 million results.
So he looked at the results to do a bit of digging into when & why governments have defaulted, devalued or reneged on payments.
He quotes several results like the French government after the First World War, the US devaluing their dollar at anothe point & didn't mention how when bonds were growing in value during the 'Great Depression' & the US government defaulted on them then banned US citizens from owning gold in breach of their own constitution.
That is why people who see the economy about to get worse are saying buy gold or silver as even when the government bans you from owning it people still hold it & it is the only thing people trust.
He also pointed out that it took 15 months from the first hints at a financial crisis before it really hit in US.
His prediction is that as things tend to follow patterns that 15 months after the first sovereign debt crisis issue in Greece was mentioned, the real sovreign debt crisis will hit so by May 2011. It maybe earlier because the first hint at sovreign debt crisis was Dubai, not Greece.
Some are predicting it will hit a lot earlier.
The Interest payments owed by the US are now allegedly greater than the taxes taken. Sounds like there is about to be a tax rise.
Greece is being bailed out so it is all alright or is it?
First issue that arises is, what about the others in the Euro zone who are in the same situation? What about the UK & US who are in an even worse state.
Here are some points that have come in over the last week or so.
In Illinois they are repossing police cars. Now that is embarrassing. They are also refusing inmates as there is claims people are not being paid to to look after them.
California (the worlds 8th biggest economy) is looking at releasing prisoners to save costs. That is before Obama's health care programme add's US$2-3 billion to the bill they already can't pay.
No wonder there is soem very short fuses in the US. Now some are arguing that government's can never do it as good as the private sector.
That depends. Here in NZ we used to have a world class, cheap health system that was free & run by the government or as one radio DJ put it, a cardigan wearing little man who made sure the planning was done.
What happened was then one government decided to make it user pays, but the back lash was so great that when they reverted the damage was done & now we have a overworked health system, that can't keep up & is getting more & more expensive.
So they can, but only if someone keeps it efficient & someone else doesn't try to fix what isn't broken.
But back to the US & the Obama Health care plan. One of its claims had being that it would save the country US$138 Billion. It now appears from the same unit who released those figures that it will cost an extra US$566 Billion.
That is a discrepancy of a lazy US$ 700 Billion. Sounds like they have being getting lessons from NZ IRD (Equivalent to IRS).
The other issue is 14 States in the US sued the Ferderal government at virtually the moment it passed its vote.
In other news Portagul was downgraded by a rating agency (the same guys(as in rating agencies. why do we listen to them?) who said ENRON was AAA just prior to it crashing) & the US warned it was close to being downgraded.
Of course in reality the US is now about a C rating but if they even drop it, it will cause major issues around the world. So expect the US to be AAA until the day after it all goes down the out house.
China is reportedly selling its commitment to US Bonds or debt & it seems is using much of it to buy assets such as resources & commodities as well as agriculture.
This has lead one commentator Eric Fay to just have a look when governments have ever defaulted on debt they owe.
By using google he put in words Government & default & got 160 million results, so he then changed it to Government default on debt to which he got only 10 million results.
So he looked at the results to do a bit of digging into when & why governments have defaulted, devalued or reneged on payments.
He quotes several results like the French government after the First World War, the US devaluing their dollar at anothe point & didn't mention how when bonds were growing in value during the 'Great Depression' & the US government defaulted on them then banned US citizens from owning gold in breach of their own constitution.
That is why people who see the economy about to get worse are saying buy gold or silver as even when the government bans you from owning it people still hold it & it is the only thing people trust.
He also pointed out that it took 15 months from the first hints at a financial crisis before it really hit in US.
His prediction is that as things tend to follow patterns that 15 months after the first sovereign debt crisis issue in Greece was mentioned, the real sovreign debt crisis will hit so by May 2011. It maybe earlier because the first hint at sovreign debt crisis was Dubai, not Greece.
Some are predicting it will hit a lot earlier.
The Interest payments owed by the US are now allegedly greater than the taxes taken. Sounds like there is about to be a tax rise.
Wednesday, March 24, 2010
Weapons of Mass Destruction.
Kia Ora,
Warren Buffett once called derivatives used in trading "Weapons of Mass Destruction".
It is now becoming more apparent why.
The US is now officially allowed to have US$14 trillion dollars of debt, but off book it already has US$120 Trillion.
What is a trillion? Well someone put it like this to count a million dollars at one dollar a second would take 12 days, a billion 32 years & a trillion 32,000 years.
So I would hate to think what a quadrillion would take. But the derivatives market is now trading in a shadowy banking world to the tune of quadrillions & things are not looking good.
A well informed source tells me that recently ETF's (Electronically Traded funds) that have until now allowed to be redeemed in what commodity you were trading in have recently be quietly changed to say they can not now be redeemed for gold or silver.
That sort of thing usually happens when someone is expecting things to change.
One of those reasons is likley the exposeure that is sure to come from the court case to expose the fact that there never has being the gold or silver available to cover those ETF's.
The same with the claim that the US holds the most gold in the world. it does but it doesn't. The IMF holds a caveat or lien over that gold for debt owed.
Apparently this was only discovered when Gold hit its highs in 1980 & Ronald Reagan looked to go back on the Gold standard. Encouraged by his wife Nancy because of rumours they were hearing he instigated a report to be done on the state of the US Gold reserves.
There weren't any so to speak as it really now belongs to the IMF.
Meanwhile in the land of smoke & mirrors does anyone know why they pay tax?
Essentially it is to pay off the interest to the central banks on the money governments have borrowed to run the government.
Most developed countries are now in the region where the interest payments are now greater than their GDP (what the country makes in a year from exports & the like).
Much of it until now has being in the private sector or personal debt (which is still extremely high in Aussie & NZ, but the local banks have loaned heavily offshore so they are about to be hit with rises in interest rates from offshore), but has being replaced a lot by the government bail outs, so public or government debt. Therefore more money has had to be borrowed (printed) & therefore the interest bill is rising.
That is going to result in tax rises everywhere & then you have the US increasing its healthcare bill. Good reasons but it will raise the countries debt.
So what does all this mean? Just look at Greece. demonstrations, riots & now bombings aimed at immigrants as they might be seen to be taking locals jobs.
In the US the vote over health care has become very emotional. The secret service reports even before that the amount of anti government turned anti Obama plots has risen dramatically.
It will only get worse as the depression we are now in gets worse.
Warren Buffett once called derivatives used in trading "Weapons of Mass Destruction".
It is now becoming more apparent why.
The US is now officially allowed to have US$14 trillion dollars of debt, but off book it already has US$120 Trillion.
What is a trillion? Well someone put it like this to count a million dollars at one dollar a second would take 12 days, a billion 32 years & a trillion 32,000 years.
So I would hate to think what a quadrillion would take. But the derivatives market is now trading in a shadowy banking world to the tune of quadrillions & things are not looking good.
A well informed source tells me that recently ETF's (Electronically Traded funds) that have until now allowed to be redeemed in what commodity you were trading in have recently be quietly changed to say they can not now be redeemed for gold or silver.
That sort of thing usually happens when someone is expecting things to change.
One of those reasons is likley the exposeure that is sure to come from the court case to expose the fact that there never has being the gold or silver available to cover those ETF's.
The same with the claim that the US holds the most gold in the world. it does but it doesn't. The IMF holds a caveat or lien over that gold for debt owed.
Apparently this was only discovered when Gold hit its highs in 1980 & Ronald Reagan looked to go back on the Gold standard. Encouraged by his wife Nancy because of rumours they were hearing he instigated a report to be done on the state of the US Gold reserves.
There weren't any so to speak as it really now belongs to the IMF.
Meanwhile in the land of smoke & mirrors does anyone know why they pay tax?
Essentially it is to pay off the interest to the central banks on the money governments have borrowed to run the government.
Most developed countries are now in the region where the interest payments are now greater than their GDP (what the country makes in a year from exports & the like).
Much of it until now has being in the private sector or personal debt (which is still extremely high in Aussie & NZ, but the local banks have loaned heavily offshore so they are about to be hit with rises in interest rates from offshore), but has being replaced a lot by the government bail outs, so public or government debt. Therefore more money has had to be borrowed (printed) & therefore the interest bill is rising.
That is going to result in tax rises everywhere & then you have the US increasing its healthcare bill. Good reasons but it will raise the countries debt.
So what does all this mean? Just look at Greece. demonstrations, riots & now bombings aimed at immigrants as they might be seen to be taking locals jobs.
In the US the vote over health care has become very emotional. The secret service reports even before that the amount of anti government turned anti Obama plots has risen dramatically.
It will only get worse as the depression we are now in gets worse.
Tuesday, March 16, 2010
The games of smoke & mirrors continues.
Kia Ora,
Well the games of smoke & mirrors continues.
On the surface it looks like the Euro is on the edge with Greece jsut being the leading contender to crumble. Meanwhile more money moves to the UK & US, but in reality they are in worse shape than anyone in Europe & Iceland has now said it will refuse to pay back loans to British & Dutch banks.
China has said it will not take part in the auction of gold by the IMF which people took to mean that things might be getting better. Did this contribute to the pull back of gold or is it part of a strategy?
Well seems China has being keeping a strategy of its own. Over the past year it has mined the most gold but it has also bought the most gold. Its own & more. Over 400 tonnes.
It has also being buying resources around the world including gold mines.
The big question at the moment is what is going to happen when the US officially ends its policy of Quantitive Easing (or printing money by hitting the computer button). Most likely at first is deflation, so assets will fall in value.
But for how long? With the amount of money that has being printed it is likely to then turn to inflation & high inflation. In other words cash may buy more for a short period, but when inflation kicks in then that cash will buy less & less.
Of course the likely reaction in the US at least, by those who are in charge of the economy is to print more money which in the long run is likely to result not just in high inflation, but hyperinflation.
At present as the news in Europe & Britain gets worse, investors are turning to the old faithful of precious metals in particular gold, which is expected to do well in any likely scenario.
Well the games of smoke & mirrors continues.
On the surface it looks like the Euro is on the edge with Greece jsut being the leading contender to crumble. Meanwhile more money moves to the UK & US, but in reality they are in worse shape than anyone in Europe & Iceland has now said it will refuse to pay back loans to British & Dutch banks.
China has said it will not take part in the auction of gold by the IMF which people took to mean that things might be getting better. Did this contribute to the pull back of gold or is it part of a strategy?
Well seems China has being keeping a strategy of its own. Over the past year it has mined the most gold but it has also bought the most gold. Its own & more. Over 400 tonnes.
It has also being buying resources around the world including gold mines.
The big question at the moment is what is going to happen when the US officially ends its policy of Quantitive Easing (or printing money by hitting the computer button). Most likely at first is deflation, so assets will fall in value.
But for how long? With the amount of money that has being printed it is likely to then turn to inflation & high inflation. In other words cash may buy more for a short period, but when inflation kicks in then that cash will buy less & less.
Of course the likely reaction in the US at least, by those who are in charge of the economy is to print more money which in the long run is likely to result not just in high inflation, but hyperinflation.
At present as the news in Europe & Britain gets worse, investors are turning to the old faithful of precious metals in particular gold, which is expected to do well in any likely scenario.
Monday, March 8, 2010
Soverign Debt crisis
Kia Ora,
Well thought I would resurrect this blog as so much is going on.
First we had the debt crisis, now we have the sovereign debt crisis.
As the world talks about recovery (is it really) other forces have being at work.
Iceland's banking system crashed & now the people are voting to not pay off the British & Dutch banks who got them there.
Then came Dubai saying it would delay payments on debt owing.
Now we have the PIIGS(Portugal, Ireland, Italy, Greece & Spain) in trouble. Most focus has being on Greece. The problem here is as part of the Euro they can't print their own money to get them out of trouble. In the last week or so the Greek People have being protesting with chants of "burn the banks".
But is Greece or any of the other European countries in that much trouble. If it wasn't for the inability to print their own money we wouldn't even be mentioning them.
In even worse state than them are the UK & US who are heading the direction of Japan. At some stage Japan is expected to enter into hyper inflation they have printed so much money over twenty years trying to stimulate their economy.
The UK & US have being following suit in particular the last few years. Question being asked are they going to stagnate for 20 years like Japan or go into a deflationary depression before turning & becoming a hyperinlfaitonary depression. Either way it is not good if you are not prepared.
Now people are talking about the end of the China boom. But on theother side people are talking of China selling those US bonds they own (recently they sold $34 billion in one day). China has being buying these to keep their own Yuan down against the US Dollar so they could export.
But now the US is not buying as many exports anymore, China is now looking to dump the US bonds to lift the Yuan so their own people can now purchase their own produced goods.
As they sell those bonds it weakens the US Dollar & in fact China are no longer the biggest holders of US bonds. Japan is, but even they are looking to sell. This requires the US Federal reserve to print more money to purchase more bonds there fore weakening the US dollar even more.
At some stage no one will buy US Bonds (apart from patriotic Americans) & that is likely to signal the end of the US dollar as it stands. Before that though we are likley to see the demise of the Euro, maybe the British Pound & it could all happen very quickly.
Well thought I would resurrect this blog as so much is going on.
First we had the debt crisis, now we have the sovereign debt crisis.
As the world talks about recovery (is it really) other forces have being at work.
Iceland's banking system crashed & now the people are voting to not pay off the British & Dutch banks who got them there.
Then came Dubai saying it would delay payments on debt owing.
Now we have the PIIGS(Portugal, Ireland, Italy, Greece & Spain) in trouble. Most focus has being on Greece. The problem here is as part of the Euro they can't print their own money to get them out of trouble. In the last week or so the Greek People have being protesting with chants of "burn the banks".
But is Greece or any of the other European countries in that much trouble. If it wasn't for the inability to print their own money we wouldn't even be mentioning them.
In even worse state than them are the UK & US who are heading the direction of Japan. At some stage Japan is expected to enter into hyper inflation they have printed so much money over twenty years trying to stimulate their economy.
The UK & US have being following suit in particular the last few years. Question being asked are they going to stagnate for 20 years like Japan or go into a deflationary depression before turning & becoming a hyperinlfaitonary depression. Either way it is not good if you are not prepared.
Now people are talking about the end of the China boom. But on theother side people are talking of China selling those US bonds they own (recently they sold $34 billion in one day). China has being buying these to keep their own Yuan down against the US Dollar so they could export.
But now the US is not buying as many exports anymore, China is now looking to dump the US bonds to lift the Yuan so their own people can now purchase their own produced goods.
As they sell those bonds it weakens the US Dollar & in fact China are no longer the biggest holders of US bonds. Japan is, but even they are looking to sell. This requires the US Federal reserve to print more money to purchase more bonds there fore weakening the US dollar even more.
At some stage no one will buy US Bonds (apart from patriotic Americans) & that is likely to signal the end of the US dollar as it stands. Before that though we are likley to see the demise of the Euro, maybe the British Pound & it could all happen very quickly.
Wednesday, February 3, 2010
Gold Bubble about to Burst?
Kia Ora,
Well again the information coming from commentators is conflicting. Most I watch are in agreement that the markets are at the top of the dead cat bounce.
The US is tightening its spending, but still printing money, Japan is doing the same & China is starting to try & curb inflation as well as have a fall in sales due to everyone spending less.
So what is going to happen? The general commentator is saying the recovery is underway with the little correction. But the statistics don't back that up. What there was, was stimulus inspired, but now the truth is starting to be seen.
Whilst the commentators I am watching have being saying for a while everything was about to drop including gold. So that happened but is it the drop they were talking about or is that to come. It doesn't bode well for the year as January was down & that generally predicts the trend for the year.
One commentator is being quoted saying the Gold bubble is about to bust. True as the economies are tending to deflation, bonds & cash will benefit, but so much money has being pumped in to try & stimulate economies (Japan has being doing it for 20 years) & still is, but everything is starting still deflate, that at some point economies will turn & almost certainly hyperinflate.
Either way with things not so great, history shows that gold will win again. So it might drop for a while, but then it is likely to re value. Even better is silver at the moment.
The precious metals are predidcted to be only at the start of their bubble not the end & no matter what happens you will always get something in return for them.
It appears though that certain groups are manipulating again making people feel safe to start investing in areas
other than safe havens. Therefore they are transferring wealth & control to those who are doing the manipulating.
Control by having the politicians give more control to central banks in the guise of stopping this happening again, yet they are the ones responsible for it about to be so bad.
Well again the information coming from commentators is conflicting. Most I watch are in agreement that the markets are at the top of the dead cat bounce.
The US is tightening its spending, but still printing money, Japan is doing the same & China is starting to try & curb inflation as well as have a fall in sales due to everyone spending less.
So what is going to happen? The general commentator is saying the recovery is underway with the little correction. But the statistics don't back that up. What there was, was stimulus inspired, but now the truth is starting to be seen.
Whilst the commentators I am watching have being saying for a while everything was about to drop including gold. So that happened but is it the drop they were talking about or is that to come. It doesn't bode well for the year as January was down & that generally predicts the trend for the year.
One commentator is being quoted saying the Gold bubble is about to bust. True as the economies are tending to deflation, bonds & cash will benefit, but so much money has being pumped in to try & stimulate economies (Japan has being doing it for 20 years) & still is, but everything is starting still deflate, that at some point economies will turn & almost certainly hyperinflate.
Either way with things not so great, history shows that gold will win again. So it might drop for a while, but then it is likely to re value. Even better is silver at the moment.
The precious metals are predidcted to be only at the start of their bubble not the end & no matter what happens you will always get something in return for them.
It appears though that certain groups are manipulating again making people feel safe to start investing in areas
other than safe havens. Therefore they are transferring wealth & control to those who are doing the manipulating.
Control by having the politicians give more control to central banks in the guise of stopping this happening again, yet they are the ones responsible for it about to be so bad.
Monday, February 1, 2010
Is this a little correction or deflation?
Kia Ora,
It has being an interesting couple of days. First there is the heads of Britain's economy the Chancellor of the Exchequer & the Head of the Bank of England giving markedly different views on the US reforms. That includes the Head of the Bank of England being quoted as saying the opposite to what he said.
Then US housing sales are down as the stimulus runs out & 'Helicopter Ben' was reconfirmed as head of the Federal Reserve.
Now anyone with a conspiracy theory will be loving that. Just as virtually everything in the world is dropping (apart from Aussie house prices for now) they put back in the person who has vowed to throw money out of helicopters to stop deflation.
Now most are saying it is just a correction in the market & those happen.
But there are others who base their predictions more on history who are seeing this as possibly the beginning of the second part of the deflationary part of the depression. Then in steps Helicopter Ben to print (or quantitive ease) as much money as required to stop the slide.
But once it is in the system how do they stop it from becoming Hyperinflationary?
No one in history has being able to before. Each time man has tried to control this monster he created it has got the better of him. It seems to be a natural force like gravity.
I wonder who will win this time?
It has being an interesting couple of days. First there is the heads of Britain's economy the Chancellor of the Exchequer & the Head of the Bank of England giving markedly different views on the US reforms. That includes the Head of the Bank of England being quoted as saying the opposite to what he said.
Then US housing sales are down as the stimulus runs out & 'Helicopter Ben' was reconfirmed as head of the Federal Reserve.
Now anyone with a conspiracy theory will be loving that. Just as virtually everything in the world is dropping (apart from Aussie house prices for now) they put back in the person who has vowed to throw money out of helicopters to stop deflation.
Now most are saying it is just a correction in the market & those happen.
But there are others who base their predictions more on history who are seeing this as possibly the beginning of the second part of the deflationary part of the depression. Then in steps Helicopter Ben to print (or quantitive ease) as much money as required to stop the slide.
But once it is in the system how do they stop it from becoming Hyperinflationary?
No one in history has being able to before. Each time man has tried to control this monster he created it has got the better of him. It seems to be a natural force like gravity.
I wonder who will win this time?
Wednesday, January 27, 2010
House Sales & prices.
Kia Ora,
Well an interesting few days. The markets are down. US dollar was up & although gold fell on at least one day it stayed in line with the US dollar.
The lastest from the US is that house prices are falling & so are sales. In Australia they are sky rocketing up & in NZ prices are rising but sales are falling.
What does this mean? Well the US sales had risen due to the stimulus but now the steam has run out. They are trying to get things going again by leaving interest rates low. Couple it with rising job losses, it has being pointed out that in the US there has not being an actual rise in number of jobs since 2000, it means there are millions just holding onto their homes who will loose them for sure if interest rates go up forcing the mortgage rates to rise.
There has being reported cases of US judges reverting to what happened in the 30's where people had defaulted on their property payments, but being allowed to stay.
There has also being a big jump in credit default swaps as the potential for sovereign debt crisises increase.
What are credit default swaps? Insurance. They are what AIG insured the banks for all those dodgy subprime loans & why it got such a big Bail out because had it falied the whole banking system would of failed & now the same insurance is being offerd to countries who have montary issues. In particular those of the EU who have no real control over their finances. Or in other words unlike the US & Britain they can't print money to pay their people stimulus.
Although the stimulus doesn't help as just in the end creates more of the same.
The stimulus could actually do what Japans did. Stagnate their economy for 20 years, but there are signs it could turn, initially some predict going deflationary as US is threatening to do again now the stimulus has run out of steam, then due to the amount of money the Japanese governments have printed over that 20 years to stimulate the economy go into hyperinflation.
Of course the US is trying to stop that, by easing off the stimulus, but without the banks lending there are no new jobs & therefore less spending, so the economy will go into deflation.
With 'Helicopter Ben' about to be reconfirmed as the head of the Federal Reserve you could almost bet on him then throwing more money at the problem. After all he is a professor who has studied the last depression & he knows how to stop it.
But then is he there because the power behind the power want hyperinflation to transfer the wealth to them?
Well an interesting few days. The markets are down. US dollar was up & although gold fell on at least one day it stayed in line with the US dollar.
The lastest from the US is that house prices are falling & so are sales. In Australia they are sky rocketing up & in NZ prices are rising but sales are falling.
What does this mean? Well the US sales had risen due to the stimulus but now the steam has run out. They are trying to get things going again by leaving interest rates low. Couple it with rising job losses, it has being pointed out that in the US there has not being an actual rise in number of jobs since 2000, it means there are millions just holding onto their homes who will loose them for sure if interest rates go up forcing the mortgage rates to rise.
There has being reported cases of US judges reverting to what happened in the 30's where people had defaulted on their property payments, but being allowed to stay.
There has also being a big jump in credit default swaps as the potential for sovereign debt crisises increase.
What are credit default swaps? Insurance. They are what AIG insured the banks for all those dodgy subprime loans & why it got such a big Bail out because had it falied the whole banking system would of failed & now the same insurance is being offerd to countries who have montary issues. In particular those of the EU who have no real control over their finances. Or in other words unlike the US & Britain they can't print money to pay their people stimulus.
Although the stimulus doesn't help as just in the end creates more of the same.
The stimulus could actually do what Japans did. Stagnate their economy for 20 years, but there are signs it could turn, initially some predict going deflationary as US is threatening to do again now the stimulus has run out of steam, then due to the amount of money the Japanese governments have printed over that 20 years to stimulate the economy go into hyperinflation.
Of course the US is trying to stop that, by easing off the stimulus, but without the banks lending there are no new jobs & therefore less spending, so the economy will go into deflation.
With 'Helicopter Ben' about to be reconfirmed as the head of the Federal Reserve you could almost bet on him then throwing more money at the problem. After all he is a professor who has studied the last depression & he knows how to stop it.
But then is he there because the power behind the power want hyperinflation to transfer the wealth to them?
Monday, January 25, 2010
Bears & Bulls
Kia Ora,
Well after yesterday then the News really got interesting on the volatility of the markets.
There is a saying in the stock markets that when the Bull comes up the stairs, the Bear goes out the window. In other words a positive market or Bull market climbs up in a slower steady fashion, but when a bear market hits it drops fast.
The last two months are a very good example of this.
The 'Bull' market of the supposed Green shoots recovery has built up over the last two months & then it has beign wiped out by the 'Bears' over the last three days.
It will be interesting to see where things go from here.
Gold & Silver are down, but will they stay there?
When many Asian countries governments have allegedly being telling their people to buy Gold & Silver for some time now.
History shows that what ever happens from here on in, it is the real money of Gold & Silver that will be the winners in the long run.
Already the British Chanchallor of the Exchequer(known as the Minister of Fianance elsewhere) is basically questioning the US plans for the banks. Following on from the Head of the Bank of Englands similar comments previously.
Then we have Greece & some of the other newer members of the EU starting to have issues over payments of subsidies to farmers as their own governments have run out of money to bail them out.
The idea of one currency is great, but when local conditions demand a response, it is hard to deliver when you don't have control over your montary policy.
This was actually one of the reasons NZ gave recently for, not at this stage, joining with Australia in an ANZAC currency. It also begs the question as too who will be in charge should the much talked about Amero (a combination of US, Canada & Mexico's currencies) after the collapse of the present monetary system.
You begin to get the idea there might be something in all these combined currencies post the sort out of the present mess. But will people allow it or use it if they see the Euro issues?
Well after yesterday then the News really got interesting on the volatility of the markets.
There is a saying in the stock markets that when the Bull comes up the stairs, the Bear goes out the window. In other words a positive market or Bull market climbs up in a slower steady fashion, but when a bear market hits it drops fast.
The last two months are a very good example of this.
The 'Bull' market of the supposed Green shoots recovery has built up over the last two months & then it has beign wiped out by the 'Bears' over the last three days.
It will be interesting to see where things go from here.
Gold & Silver are down, but will they stay there?
When many Asian countries governments have allegedly being telling their people to buy Gold & Silver for some time now.
History shows that what ever happens from here on in, it is the real money of Gold & Silver that will be the winners in the long run.
Already the British Chanchallor of the Exchequer(known as the Minister of Fianance elsewhere) is basically questioning the US plans for the banks. Following on from the Head of the Bank of Englands similar comments previously.
Then we have Greece & some of the other newer members of the EU starting to have issues over payments of subsidies to farmers as their own governments have run out of money to bail them out.
The idea of one currency is great, but when local conditions demand a response, it is hard to deliver when you don't have control over your montary policy.
This was actually one of the reasons NZ gave recently for, not at this stage, joining with Australia in an ANZAC currency. It also begs the question as too who will be in charge should the much talked about Amero (a combination of US, Canada & Mexico's currencies) after the collapse of the present monetary system.
You begin to get the idea there might be something in all these combined currencies post the sort out of the present mess. But will people allow it or use it if they see the Euro issues?
Interesting times
Kia Ora,
The Markets are all down. Many of the sovereign debt issues are just below the surface. A nudge could send the whole thing crashing.
What nudge? Well it could be that soverign debt. Iceland has already collapsed & now won't pay outstanding debt. Greece can't get a loan from the EU, Italy, Portugal, Ireland & Spain are on the Brink of collapse or re arrange the names & it is beter know as the PIIGS.
Britain is not far off & the USA is actually selling junk bonds but rated as AAA, by the same people who said ENRON was safe.
Then just to to make it interesting China is taking action to slow inflation. That really caused people to get jittery.
Now there is talk about Peak Oil again.
What is Peak Oil & why is it important?
In Theory it means that the oil that is available has peaked & from now on there will be less & therefore the price will rise.
In Practice there is still enough oil around like the huge oil shale reserves in Canada though it is going to be harder to extract or a lot more costly to extract, causing the price at the pump to rise & alot of other items to rise resulting in inflation.
Already central banks are starting to raise interest rates to try & keep inflation down. This is despite actual inflation is well over 10% in many places, but the CPI's have being manipulated to hide the real numbers.
Then there is the fact that in many places there is also deflation as the stimulus packages slow to a stop. This will result in more bail outs & then more inflation.
Why the contradictions? Because each country is in a different part of the cycle.
Here in NZ it is customary for anything that happens in the US to take 12 to 18 months to have the flow on effect.
Again the smoke & mirrors are in progress trying to hide what is happening in the world.
The Markets are all down. Many of the sovereign debt issues are just below the surface. A nudge could send the whole thing crashing.
What nudge? Well it could be that soverign debt. Iceland has already collapsed & now won't pay outstanding debt. Greece can't get a loan from the EU, Italy, Portugal, Ireland & Spain are on the Brink of collapse or re arrange the names & it is beter know as the PIIGS.
Britain is not far off & the USA is actually selling junk bonds but rated as AAA, by the same people who said ENRON was safe.
Then just to to make it interesting China is taking action to slow inflation. That really caused people to get jittery.
Now there is talk about Peak Oil again.
What is Peak Oil & why is it important?
In Theory it means that the oil that is available has peaked & from now on there will be less & therefore the price will rise.
In Practice there is still enough oil around like the huge oil shale reserves in Canada though it is going to be harder to extract or a lot more costly to extract, causing the price at the pump to rise & alot of other items to rise resulting in inflation.
Already central banks are starting to raise interest rates to try & keep inflation down. This is despite actual inflation is well over 10% in many places, but the CPI's have being manipulated to hide the real numbers.
Then there is the fact that in many places there is also deflation as the stimulus packages slow to a stop. This will result in more bail outs & then more inflation.
Why the contradictions? Because each country is in a different part of the cycle.
Here in NZ it is customary for anything that happens in the US to take 12 to 18 months to have the flow on effect.
Again the smoke & mirrors are in progress trying to hide what is happening in the world.
Friday, January 22, 2010
Smoke & Mirrors
Kia ora,
Well even more smoke & mirrors being errected over the last two days.
President Obama is going to war with Wall Street. Gets him back on side with the voters, but the banks who caused all the problems are already looking at ways out. & for each 'punishment' in the fine print on page 1052 (well somewhere hidden away so people will get bored before they get there) will be the bit given back to make up for the public lashing.
Is the US President the most powerful man in the world?
No!
That would have to be on the surface anyway the head of the Federal Reserve for now 'Helicopter Ben'.
But even he is just a puppet for those who actually control the Federal Reserve. One thing you can be sure of it is not the US Gvoernment.
Again some are being told to pay back their bail outs. But then they get their money from those who are not going to have to pay it back & in fact have had the biggest bailouts & will continue to be bailed out. So as I said smoke & mirrors.
Virtually everything has dropped the last few days, but if you have done your homework then it is time to buy some investments & drop the others.
It is becoming more & more apparent that the so called green shoots of recovery were nothing more than a stimulus inspired rise & as the stimulus efforts run out it, the recovery is stalling. It is now that 'Helicopter Ben' may have to live up to his name, that or let everything crash until the depression runs it course.
Well even more smoke & mirrors being errected over the last two days.
President Obama is going to war with Wall Street. Gets him back on side with the voters, but the banks who caused all the problems are already looking at ways out. & for each 'punishment' in the fine print on page 1052 (well somewhere hidden away so people will get bored before they get there) will be the bit given back to make up for the public lashing.
Is the US President the most powerful man in the world?
No!
That would have to be on the surface anyway the head of the Federal Reserve for now 'Helicopter Ben'.
But even he is just a puppet for those who actually control the Federal Reserve. One thing you can be sure of it is not the US Gvoernment.
Again some are being told to pay back their bail outs. But then they get their money from those who are not going to have to pay it back & in fact have had the biggest bailouts & will continue to be bailed out. So as I said smoke & mirrors.
Virtually everything has dropped the last few days, but if you have done your homework then it is time to buy some investments & drop the others.
It is becoming more & more apparent that the so called green shoots of recovery were nothing more than a stimulus inspired rise & as the stimulus efforts run out it, the recovery is stalling. It is now that 'Helicopter Ben' may have to live up to his name, that or let everything crash until the depression runs it course.
Wednesday, January 20, 2010
So is there a Financial Recovery?
Kia Ora,
So is there actually a financial Recovery going on?
Of course everyday you hear the 'experts' say yes there are signs, but we have to be careful.
How ever if you have being working on your financial education then It appears to be more smoke & mirrors. 2012 is looking more like the time of big change than ever.
Several economic cycles are coming together, the time that history shows a fiat currency hits zero is due in 2011 for the US at least. Since all other currencies are tied to the US currencies are tied to the US, then at some stage they too will go to zero some time soon after.
Then the cycle will probably start again as it has for thousands of years & man tries to think he can outsmart what appears to be a natural law.
First we will start with any currency tied to something like Gold again. then as time goes on there will be a war or similiar & to pay for it, someone will take currencies off the gold standard & then we have to start creating debt bubbles to grow the economy.
At the moment there are so many smoke & mirrors being put up in particular by the US to hide what is going on.
They say they are not printing money, but quantitive easing. Amounts to the same thing.
Now it looks like banks are going to have to pay back bail outs, but biggest bail outs are not going to have to be paid back (those of Freddie Mac & Fannie Mae) which was just added to be $200 billion a few weeks ago when every body was on holiday. Much of that bail out money will be paying the banks who will use it to pay off their bailouts & then they will proceed to carryon as if nothing has changed.
Then there are the ETF's which right now is in the US courts to prove that they actually for all intense purposes are trading on what the US would call a Ponzi scehme.
If you trade in the ETF's you are supposed to be trading a cheaper way to own things such as gold & silver. Thing is take silver for example, they are said to be trading more than twice the amount fo silver available in the whole world.
Looks like we will have a 1998 again where Warren Buffett collected on his futures trade, but asked for payment in the actual silver. They had to close the markets to find the actual metal to pay him & overnight the trade on the phsyical metal jumped to nearly twice the price.
So is there actually a financial Recovery going on?
Of course everyday you hear the 'experts' say yes there are signs, but we have to be careful.
How ever if you have being working on your financial education then It appears to be more smoke & mirrors. 2012 is looking more like the time of big change than ever.
Several economic cycles are coming together, the time that history shows a fiat currency hits zero is due in 2011 for the US at least. Since all other currencies are tied to the US currencies are tied to the US, then at some stage they too will go to zero some time soon after.
Then the cycle will probably start again as it has for thousands of years & man tries to think he can outsmart what appears to be a natural law.
First we will start with any currency tied to something like Gold again. then as time goes on there will be a war or similiar & to pay for it, someone will take currencies off the gold standard & then we have to start creating debt bubbles to grow the economy.
At the moment there are so many smoke & mirrors being put up in particular by the US to hide what is going on.
They say they are not printing money, but quantitive easing. Amounts to the same thing.
Now it looks like banks are going to have to pay back bail outs, but biggest bail outs are not going to have to be paid back (those of Freddie Mac & Fannie Mae) which was just added to be $200 billion a few weeks ago when every body was on holiday. Much of that bail out money will be paying the banks who will use it to pay off their bailouts & then they will proceed to carryon as if nothing has changed.
Then there are the ETF's which right now is in the US courts to prove that they actually for all intense purposes are trading on what the US would call a Ponzi scehme.
If you trade in the ETF's you are supposed to be trading a cheaper way to own things such as gold & silver. Thing is take silver for example, they are said to be trading more than twice the amount fo silver available in the whole world.
Looks like we will have a 1998 again where Warren Buffett collected on his futures trade, but asked for payment in the actual silver. They had to close the markets to find the actual metal to pay him & overnight the trade on the phsyical metal jumped to nearly twice the price.
Subscribe to:
Comments (Atom)
