Foundation for Economic Growth - Newsletter

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Last Updated: Jul 3rd, 2017 - 15:54:31


Newsletters : 2010 Newsletters : 16 April 2010
Thought for the Day

When we have a look at the rest of the world, our economy doesn't seem so bad.

America is going out the back door with a debt load that is threatening to sink the government unless they can can print fast enough and that leads to hyperinflation. They are approaching the point of no return.

Greece of course is past the point of no return and somehow will default on its debt. This will cause much trouble for the EU and probably lead to the disintegration of Europe as an entity or the separation of the Club Med countries of Greece, Spain, Italy and Portugal from the rest so they can devalue their own separate currencies without bringing the rest of Europe down as well. But it is not certain that France and Germany and the rest could hold together after such a stressful time.

Britain is by all accounts a basket case and the Tories do not seem to be offering any particular solution that is more appealing to the electorate than what the Labourites are offering. Keep borrowing and printing paper money seems to be the order of the day.

China is going gang-busters and I understand that the property market in Shanghai has risen 50% in the last year alone. Would Alan Greenspan call this a bubble, I wonder? What happens when China goes bust?

Our big question is, "Can the New Zealand economy survive the stresses in the world economy as events unfold?" For how long can our government keep us all going at a cost of $240,000,000 per week? Can we inflate our way out of trouble? Or will this create the very problem we are trying to avoid?

Food for thought.




Apr 14, 2010, 18:17

Newsletters : 2010 Newsletters : 16 April 2010
Is The World's Second Biggest Economy On The Ropes?

And not to forget about Japan!

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Apr 16, 2010, 08:49

Newsletters : 2010 Newsletters : 16 April 2010
Professor Fekete And The Armageddon Signal

When the end comes, it will be a surprise even to those who expect it.

Visit Website ]
Apr 15, 2010, 14:53

Newsletters : 2010 Newsletters : 16 April 2010
Euphoria over Greek rescue fades as first cracks appear

Only real wealth created by real people doing real jobs counts. Printing money just postpones the day of reckoning. Borrowing printed money just increases the debt.

The Greeks will just have to live within their means.

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Apr 15, 2010, 08:14

Newsletters : 2010 Newsletters : 16 April 2010
Jim Rickards Interview

An interview with a serious investor who discloses just how the biggest con game in the history of the world is being played out right now.

This is fascinating stuff and as far as I can tell it is all true with implications that are more serious than anything I have come across before.

This brings to mind the old Boy Scouts' motto, "Be Prepared".

Visit Website ]
Apr 14, 2010, 17:58

Newsletters : 2010 Newsletters : 16 April 2010
Two U.S. Dollar Signposts and Gold Silver Stealth

Interesting to see how the Chinese see it!

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Apr 13, 2010, 12:54

Newsletters : 2010 Newsletters : 16 April 2010
Australia's Largest Newspaper Notes GATA's Complaint to CFTC

The action is getting closer. The Melbourne Herald Sun, the largest newspaper in Australia, has now reported the action at the March 25 hearing of the U.S. Commodity Futures Trading Commission.

Their headline reads, "More Bull than Bullion", This says it all, really.

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Apr 12, 2010, 11:51

Newsletters : 2010 Newsletters : 16 April 2010
George Gilder on Austrian Finance, Internet Technology and the Virtues of Supply-Side Economics

Serious thoughts but expressed simply: Which came first, the entrepreneur or the free market? Did one cause the other?

The answers are important. If we can't understand the basic things in economics how can we work with the more complex issues?

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Apr 11, 2010, 17:57

Newsletters : 2010 Newsletters : 16 April 2010
Debt Denial

Here it is in a nutshell.

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Apr 8, 2010, 18:56

Newsletters : 2010 Newsletters : 16 April 2010
Funny Figures

A year or two ago I examined our unemployment numbers and came to the conclusion that there were really about twice as many people unemployed as the figures stated.

This was because the definition of "unemployed" was so narrow that many people without jobs who would like to have a job just didn't quite fit into the definition. Check this out with the Statistics Department if you want the boring details.

Now we learn that America is recovering nicely and has produced 162,000 jobs in March. But this is simply a fraudulent claim.

Bill Bonner has this to say about these jobs:

"Right off the bat, we know that 48,000 of them came from hiring census workers. I won't completely put this down because these ARE new jobs. But they're hardly sustainable (the census is a temporary employer) or productive: paying someone to count other people adds literally NOTHING to the US's manufacturing or productivity base. If it did, we could simply start hiring people to count clouds or trees and have an incredible economy in no time.

So without census workers, we added 114,000 jobs in March.

Then there are the +81,000 via birth/death adjustments. This metric is so complicated that it's not even worth trying to explain. In simple terms, the BLS tries to adjust the jobs numbers to account for the birth/death cycle of businesses. But the reality is that it is an 'X' factor used to downplay job losses and boost job gains.

Without these adjustments, we added 33,000 jobs in March.

Then, of course, there are the weather adjustments. The winter of 2009-2010, was by all counts, a rough one. So the BLS made various adjustments to atone for the fact that for several chunks of 1Q10, people couldn't even get to work, let alone hire. Now that the winter is over, the BLS is adjusting numbers upwards to make up for former downward revisions. The total number of jobs "created" by adjusting for the nasty winter? 100,000.

Without these adjustments, we LOST 67,000 jobs in March."

*** *** ***

Government information is really propaganda. The American economic recovery is just a chimera produced with a couple of trillion dollars, a government team adjusting the share market and the money market and the banks adjusting the worth of gold and silver to keep up the paper money appearances. Combine with a generous dash of propaganda and here we are in Wonderland again.

If only it were that easy.


Apr 8, 2010, 17:10

Newsletters : 2010 Newsletters : 16 April 2010
Never Mind the Cheese, Somebody's Moved my Gold

REAL Investment advisers have been advising their clients to buy REAL Gold - not just paper certificates purporting to be a valid substitute for gold.

This is an interview about one person who went to collect his gold. This might help you understand what is going on in the world today. Of course, this person may just be misled or misinformed or just a publicity seeking nut. The problem is that when enough people believe that there is not enough gold in the bank to pay them they panic and queue up to get in first - the typical bank run. The DomPost had a photo of the run at Northern Rock again this morning. Are people starting to get anxious?

Trouble is, the Central banks cannot just send around a truck of gold to fill up the bank again. They very clearly do not have enough.

There will be a bank run on gold and paper money will not be acceptable. Will all the governments of the world make it illegal to hold gold?

The Government of the USA did in 1933!

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Apr 8, 2010, 09:58

Newsletters : 2010 Newsletters : 16 April 2010
Interview With John Williams of Shadowstats.com

John Williams has devoted a considerable effort to producing American statistics correctly. His analysis of the American economy more correctly reflects reality.

Not only do modern professional economists mostly follow false doctrines they also have the disadvantage of working with erroneous numbers.

This interview is most revealing and may encourage you to look at his web site.

We in New Zealand have a similar problem but no-one is attempting to solve it.

In this interview he points out the sudden and strange drop in the M3 money supply. Just as we have in New Zealand. You can check this out at our statistics page at our website which shows the M3 getting even more negative in February.

Our records show no similar drop since they started.

Listen carefully to this interview as we could be in BIG trouble.

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Apr 7, 2010, 19:03

Newsletters : 2010 Newsletters : 16 April 2010
Metals Market Manipulation Update: Are The Metals Markets Rigged? Do Fish Swim?!

The story of manipulation of the gold and silver markets is all over the web but the mainstream media are silent.

Who will be the first to break ranks?

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Apr 7, 2010, 11:08

Newsletters : 2010 Newsletters : 16 April 2010
Gold: Could The Last Person to Get Their Coat Please Turn The Lights Off?

The understanding of REAL Money is spreading and the dangers of the demise of paper currencies are beginning to be appreciated.

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Apr 2, 2010, 11:10

Newsletters : 2010 Newsletters : 16 April 2010
Quote for the Week

For the great majority of mankind are satisfied with appearances, as though they were realities, and are often more influenced by the things that seem than by those that are.

Niccolo Machiavelli, (1469-1527). Italian Statesman and Political Philosopher. Source: Discourses, 1513-1517


Mar 14, 2010, 18:14

Creating Wealth and Keeping it

The New book by Phil Scott, President of the Foundation for Economic Growth.

"This book is good, damn good and no statistics!" Lindsay Gordon, MA, MSC, PHD.

Every serious economics student should have a copy and read this ground-breaking foundation of clear economic thinking. Real Economics explains how human actions shape our world and why so much seems to be going wrong for Western economies. This book will bring enlightenment for the general reader who will see why a few very wealthy are becoming exceedingly rich and the middle classes are on the road to serfdom.

See more: www.realeconomics.co.nz