Last Updated: Jan 15th, 2010 - 17:26:48 Newsletters : Current Newsletters : 15 January 2010 Thought for the Day Happy New Year. As we follow through with our task of working out the secret of making New Zealand a rich country again we discover that all the information we need is on the internet - somewhere. One thing led to another and we discovered many things about economics. And then we discovered what the Austrian economists had been saying for the best part of 100 years. Modern economists have been confused and deluded by the application of mathematics to relationships which are assumed to be smooth and continuous. But in the REAL world, prices and supply and demand do not have smooth and continuous cause and effect relationships. So the use of calculus produces a model of an imagined world for the economist's computers and the REAL world travels on a different path - the REAL path. This led to the great discontinuity of the last two years where economists were predicting continuing smooth GDP growth and the REALITY was a disaster. This disaster is ongoing. The world has a REAL problem on its hands and the economists are still predicting smooth GDP growth. What is the point of predicting the events and future growth of an imagined world? Time for a world wide rethink. Meanwhile we will be the good detective and "follow the money". Jan 15, 2010, 17:10 Newsletters : Current Newsletters : 15 January 2010 Pimco Says BOJ May Sell Yen, Buy Debt to Spur Economy Trillions more US Dollars, trillions more Japanese Yen - ALL at the touch of a button. It must be magic! [ Visit Website ] Jan 14, 2010, 09:52 Newsletters : Current Newsletters : 15 January 2010 Chavez Devalues Venezuela's Currency President Hugo Chavez, the world's latest socialist king, demonstrates how more government interference creates more problems for an economy. The Venezuelan black economy demonstrates how an economy will just keep running as best it can despite the government's best efforts to destroy it. Remember way back when New Zealand had the same problems. Back in the 1970s when we had similar devaluations (though not so big) and Muldoon's 66% tax rate caused a thriving black market. No one is immune from government interference. Not even the Americans. Unfortunately the world is now launching forth into a sea of paper money and things are getting out of control. [ Visit Website ] Jan 14, 2010, 08:58 Newsletters : Current Newsletters : 15 January 2010 A Global Fiasco is Brewing in Japan Ambrose gets it. He is one of the few persons around the world who understands the dangers of fiat currency and how REAL Economics works and can interpret the signs. And he is a reporter! What has happened to all the economists? [ Visit Website ] Jan 13, 2010, 10:14 Newsletters : Current Newsletters : 15 January 2010 Jim Rickards Talks About The World Scene I have been following the money around the internet for around five years now and one thing that I have discovered is that the people who have the best understanding of economics and how the world is being run are the major investment managers and advisers. Jim Rickard is one such and this interview is very interesting. [ Visit Website ] Jan 12, 2010, 13:21 Newsletters : Current Newsletters : 15 January 2010 Simple Brainwashing Brainwashing is not difficult. You will be surprised. [ Visit Website ] Jan 12, 2010, 09:06 Newsletters : Current Newsletters : 15 January 2010 Chairman Bernanke's Monetary Apologia Some serious thinking from a serious newspaper. Slowly the thinking is turning to REAL Money! [ Visit Website ] Jan 11, 2010, 17:03 Newsletters : Current Newsletters : 15 January 2010 Apocalypse Now Well, actually the headline for this article is not apocalypse now but Apocalypse Now is a much shorter heading than Ambrose chose. More apt too, I thought! It is not possible to predict the future with any degree of accuracy because some unknowable individual event may become the trigger point for the next down-turn. We are dependent on the actions of leaders who don't understand economics (and neither do most of their advisers) and who will act to get elected next time. We can guess the type of action they will take but not the specific action. The US stock market is in the heights of an extended "dead cat bounce" and will crash at some point in the not too distant future. Ambrose doesn't factor this into his look at Europe. Just as well. It is depressing enough as it is. The world is awash in a sea of debt and paper money. The governments of the world are trying to overcome this problem by producing more debt and paper money. We are not doing too badly here in New Zealand as our government debt is not yet up to the levels of most OECD countries, (Thank you Michael). But we are working on that. Ambrose's heading is, "Global bear rally will deflate as Japan leads world in sovereign bond crisis". Food for thought! [ Visit Website ] Jan 7, 2010, 12:49 Newsletters : Current Newsletters : 15 January 2010 The Current State of REAL Money For those of you who have been following the story of fiat currency versus REAL money this is a good summary of the current situation. Something is amiss in the world of banking and it doesn't look good for a tranquil future. [ Visit Website ] Jan 7, 2010, 09:49 Newsletters : Current Newsletters : 15 January 2010 Eurozone Credit Contraction Accelerates Ambrose is worried that the money supply in Europe is declining and this will bring on the great deflation! In December 2006 our money supply (M3) was beetling along at 16.6% on an annual basis. Good old inflation was in vogue and our house prices (but not their value) increased by 5, 10 or even 15%. During the last two years as our recession deepened the money supply continued to increase but at a lower and lower rate. It has now turned negative and M3 decreased by 2% as at November just past. It is a bit hard to see the bright lights and prosperous new year that our economists predict. Perhaps it is time to tighten the belt and "Get REAL". [ Visit Website ] Jan 6, 2010, 11:14 Newsletters : Current Newsletters : 15 January 2010 Climate Change: The Global Warming Fraud The governments and the Climate Changers have control of the propaganda machine but the internet strikes back. First the story of the lying scientists in England and now a more balanced view of the world. Notice that one of the interviewees makes the point that the original greenies caused the banning of DDT which has never been shown to cause any harm to anything but insects and have thus caused the unnecessary deaths from malaria of 30,000,000 people, mostly children, in Africa. The greenies have never apologised for this egregious sin! [ Visit Website ] Jan 5, 2010, 10:13 Newsletters : Current Newsletters : 15 January 2010 Prepare for a Keynesian Hangover The Wall Street Journal is not prone to exaggeration. This year is looking fairly shaky for the Americans. This will affect us. [ Visit Website ] Jan 4, 2010, 11:55 Newsletters : Current Newsletters : 15 January 2010 The Biggest Financial Deception of the Decade In my search for the truth about economics I have followed the internet round and around and I find that REAL Investment advisers understand things really well. They appear to have studied the Austrian economists closely. So as they explain what to buy and sell they can be most enlightening about money and how it REALLY works. Jan 3, 2010, 09:33 Newsletters : Current Newsletters : 15 January 2010 An Afternoon with Ron Paul Ron Paul explained it all back in 1988! No kidding. [ Visit Website ] Dec 24, 2009, 12:07 Newsletters : Current Newsletters : 15 January 2010 Quote for the Week Bankers own the earth. Take it away from them, but leave them the power to create money and control credit, and with a flick of a pen they will create enough to buy it back. Sir Josiah Stamp, former President, Bank of England Dec 15, 2009, 17:07