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


Newsletters : 2010 Newsletters : 17 December 2010
Thought for the Day

The Reserve Bank of NZ has adjusted the M3 year on year figures for October to show the expected decrease of 1.1% which shows that the economy is still progressing back to a more natural and sustainable state. If we stop goosing the system with cheap printed money we may not experience the euphoria of the boom but then we do not have the nasty bust after-wards either.

Meanwhile America continues with Quantitative Easing. This will not work and risks damaging other countries since they are looking to the US dollar as the Reserve Currency for the world. China is working with the other BRICs to trade directly using the Yuan as a means of avoiding this problem.

Meanwhile Europe still has itself on the horns of a dilemma. If Germany comes to the rescue with more money and guarantees then it will almost certainly go down the tubes with the rest of them. If Germany does not come to the rescue then Europe will split apart as the only solution for Greece and Ireland (and others to come) is to use their own currency and then devalue and default.

On the bright side we must remember that all the wealth and the assets built up over the past decades will still exist it is just that it will have new owners. Unfortunately it is the middle class and poor who have the most to lose. Especially the ones who have debt.

Meanwhile out here in the Antipodes the weather is at last getting warmer and we can look forward to a Merry Xmas and a Happy New Year.

Don't worry, be happy!


Dec 17, 2010, 09:55

Newsletters : 2010 Newsletters : 17 December 2010
All About Gold with John Hathaway, Peter Munk, & James Grant

The main-stream press and TV are starting to understand what is going on in our world of high finance. Charlie Rose discussions are usually good value and this one is worth listening to.

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Dec 16, 2010, 14:53

Newsletters : 2010 Newsletters : 17 December 2010
The Eurozone is in Bad Need of an Undertaker

"There will be no Eurobond, no increases in the EU’s €440bn (£368bn) rescue fund, and no mass purchases of Spanish and Italian bonds by the ECB. Nothing. The system is politically and constitutionally paralysed. Spain and Portugal will be left nakedly exposed before their funding crunch in January."

So says Ambrose Evans-Pritchard. This does not auger well for a Happy New Year.

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Dec 15, 2010, 19:24

Newsletters : 2010 Newsletters : 17 December 2010
Rep. Ron Paul, Republican Loner, Comes in From The Cold

Ron Paul, an over-night success - after 75 years!

I have tried to explain Austrian Economics on our website under the heading REAL Economics.

I hope it helps.


Dec 15, 2010, 13:00

Newsletters : 2010 Newsletters : 17 December 2010
Audit the Fed in 2011

Is it possible that Ron Paul can rescue the American money system from the Federal Reserve's clutches?

Visit Website ]
Dec 14, 2010, 12:23

Newsletters : 2010 Newsletters : 17 December 2010
Hyperinflation is Coming to the USA

We have frequently referred to John Williams of Shadowstats.com for information about the American economy.

Here is some information from his website:

"Walter J. "John" Williams was born in 1949. He received an A.B. in Economics, cum laude, from Dartmouth College in 1971, and was awarded a M.B.A. from Dartmouth's Amos Tuck School of Business Administration in 1972, where he was named an Edward Tuck Scholar. During his career as a consulting economist, John has worked with individuals as well as Fortune 500 companies.

Formally known as Walter J. Williams, my friends call me John. For nearly 30 years, I have been a private consulting economist and, out of necessity, had to become a specialist in government economic reporting.

One of my early clients was a large manufacturer of commercial airplanes, who had developed an econometric model for predicting revenue passenger miles. The level of revenue passenger miles was their primary sales forecasting tool, and the model was heavily dependent on the GNP (now GDP) as reported by the Department of Commerce. Suddenly, their model stopped working, and they asked me if I could fix it. I realized the GNP numbers were faulty, corrected them for my client (official reporting was similarly revised a couple of years later) and the model worked again, at least for a while, until GNP methodological changes eventually made the underlying data worthless.

That began a lengthy process of exploring the history and nature of economic reporting and in interviewing key people involved in the process from the early days of government reporting through the present. For a number of years I conducted surveys among business economists as to the quality of government statistics (the vast majority thought it was pretty bad), and my results led to front page stories in the New York Times and Investors Business Daily, considerable coverage in the broadcast media and a joint meeting with representatives of all the government's statistical agencies. Despite minor changes to the system, government reporting has deteriorated sharply in the last decade or so.

An old friend -- the late-Doug Gillespie -- asked me some years back to write a series of articles on the quality of government statistics. The response to those writings (the Primer Series available on this page) was so strong that we started Shadow Government Statistics in 2004. The newsletter is published as part of my economic consulting services. -- John Williams"

Government statistics have a problem when they adjust and distort to help show things in a positive light. Eventually the politicians forget the aim of their propaganda and start to believe the figures themselves.

If John Williams' figures are correct then the US government is way off beam. If the Federal Reserve hasn't passed the point of no return then it is fast approaching it.

Our leaders would do well to think about the implications to our economy when the world's reserve currency moves into hyperinflation.

Make like the Boy Scouts and "Be Prepared".

Visit Website ]
Dec 13, 2010, 19:56

Newsletters : 2010 Newsletters : 17 December 2010
Dead Cat Bounce

The dead cat has bounced and is coming down again. . . soon.

My prediction is that not one person in a hundred will believe this video.

But all the facts have been pointing in the same direction for years now and the scenario is playing out as predicted. It is just the finer details and the actual timing that has yet to be discovered.

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Dec 13, 2010, 18:14

Newsletters : 2010 Newsletters : 17 December 2010
Peter Boettke on the Rise of Austrian Economics

"One of the most charming (and tremendously important) concepts espoused by modern Austrian economists such as Murray Rothbard is that economics ought NOT to be only the purview of a refined academic class but ought to be actionable and implemented. In fact, two of Austrian economics most powerful points are 1) economics is not predictive except most generally and therefore using economics to make specific predictions is mostly a waste of time and 2) one does NOT need to be an economist to make common-sense judgments about the way society works – and to act on them."

Maybe this is why I call Austrian economics REAL Economics. If you are interested in what a noted academic has to say about this then you will find this article most interesting.

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Dec 13, 2010, 12:02

Newsletters : 2010 Newsletters : 17 December 2010
"The central banks don't consider it manipulation, they consider it part of their job"

Some investment advisers think clearly and some don't. It helps to understand REAL Economics.

James G. Rickards, the Senior Managing Director of the consulting firm Omnis, Inc., gives in this exclusive interview his analysis of the so called currency war and explains why Germany should pick up its gold reserves from New York. Moreover, he gives his take on the secret gold policy of the major central banks of the world and discusses two scenarios for a new global monetary system.

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Dec 13, 2010, 10:12

Newsletters : 2010 Newsletters : 17 December 2010
Ron Paul, Author of ‘End the Fed,’ to Lead Fed Panel

Ron Paul versus Ben Bernanke. Should be a good fight. Ron just needs one good missile to down the Bernanke paper money helicopter.

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Dec 11, 2010, 14:38

Newsletters : 2010 Newsletters : 17 December 2010
Something’s Wrong in the Silver Pit

Those of you who have become interested in REAL Money will find this story fascinating.

The implications are enormous!

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Dec 11, 2010, 13:04

Newsletters : 2010 Newsletters : 17 December 2010
Gulf Nations Urged to Boost Gold Reserves

I wonder if our Reserve Bank has bought any gold yet?


Dec 10, 2010, 11:31

Newsletters : 2010 Newsletters : 17 December 2010
Hyperinflation Watch - December 13, 2010

If you go to our website at http://www.economicgrowth.org.nz/artman/publish/real-economics.shtml you will find our new discussion on our theories about REAL Economics.

Ben Bernanke is about to prove us right or wrong. Pity his efforts will be so harmful.

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Dec 7, 2010, 12:29

Newsletters : 2010 Newsletters : 17 December 2010
China Should Consider Increasing Gold Reserves to Boost Trade in the Yuan

They used to say, "We do the thinking and the Chinese do the work."

Then they used to say, "We do the spending while the Chinese save too much."

Now the Chinese have massive reserves and they have debt.

Chinese are going for gold while they have sold their gold reserves.

I wonder who is following the "sustainable" path?


Dec 7, 2010, 09:58

Newsletters : 2010 Newsletters : 17 December 2010
Want JP Morgan to Crash? Buy Silver

The banks have been screwing the people of the world with their paper money ponzi scheme. Now the people of the world are trying to screw one bank with their REAL Money reform.

Interesting, eh!

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Dec 7, 2010, 09:41

Newsletters : 2010 Newsletters : 17 December 2010
Gold Demand: 'Huge Buying from China'

It seems that China knows what she is doing. Does anybody think she is making a mistake? Me neither.

I wonder if The Reserve Bank of New Zealand still has zero gold in the vault?


Dec 6, 2010, 18:21

Newsletters : 2010 Newsletters : 17 December 2010
Duck Tales Inflation Lesson

Some would say that Bernanke's theory for solving the huge debt problem of America is a bit Mickey Mouse.

However Huey, Dewey and Louie get the good oil from Scrooge McDuck.

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Dec 6, 2010, 12:14

Newsletters : 2010 Newsletters : 17 December 2010
Gold - China's End Game?

Interesting thoughts on China's gold plans.

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Dec 5, 2010, 13:29

Newsletters : 2010 Newsletters : 17 December 2010
Quote for the Week

It’s taken almost two centuries for bankers to pull the wool over Americans’ eyes, but today you and I are working for intrinsically worthless paper that can be created by bureaucrats — created without sweat, without creative ability, without work, without anything but a decision by the Federal Reserve. This is the disease at the base of today’s monetary system. And like a cancer, it will spread until the system ultimately falls apart. This is the tragedy of the great lie. The great lie is that fiat paper represents a store of value, money of lasting wealth.

Richard Russell


Dec 4, 2010, 15:02

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