Last Updated: Mar 25th, 2013 - 16:46:15 Newsletters : 2011 Newsletters : 18 November 2011 Thought for the Day Greece and Italy have now lost their democracy. Their leaders have been ousted because they were unable to give the people what they wanted AND solve the financial problem of overwhelming debt. No-one can solve people's life problems with paper money promises. That is the illusion we have been discussing here for some time now. We are seeing the end game approach. Whoever wins our election next Saturday will have major problems to wrestle with for the foreseeable future. There is no easy solution although some parties promise such. The best option is to knuckle down to a lower standard of living and get our debts paid off. Our politicians have just received a pay increase worth about 50% of the old age pension so they obviously do not feel any obligation to tighten their belts for the greater good. The newspaper and TV journalists seem to be fixated on the two Johns and their cups of tea. Serious discussion is to be avoided. So we will just wait and see. May your favourite politicians win. Nov 18, 2011, 17:04 Newsletters : 2011 Newsletters : 18 November 2011 Rich pricks vs bludgers The problem with democracy and the Central Bank system is that we soon learn that we can vote in politicians who will provide us with free money. Helen Clark's free money for students being a recent example. As more and more people get a living provided by the state so they proliferate. Eventually, of course, the demands become excessive and the only solution for the Welfare State is to print huge quantities of paper money. We see how this happened in the United States with Ben Bernanke producing trillions of dollars out of thin air to keep the system going. Politicians have two choices. Agree to sensible but austere measures to bring the economy back to its natural level where it lives on earned money and not get elected OR get elected by promising to solve the problem by printing yet more money. This problem is playing out around the world at this moment. It should be quite clear how it will end. [ Visit Website ] Nov 18, 2011, 16:27 Newsletters : 2011 Newsletters : 18 November 2011 Your Economics Lesson for Today When the reward is great, the effort to succeed is great, but when government takes all the reward away, no one will try or want to succeed. An economics professor at a local college made a statement that he had never failed a single student before, but had recently failed an entire class. That class had insisted that Obama's socialism worked and that no one would be poor and no one would be rich, a great equalizer. The professor then said, "OK, we will have an experiment in this class on Obama's plan". All grades will be averaged and everyone will receive the same grade so no one will fail and no one will receive an A.... (substituting grades for dollars - something closer to home and more readily understood by all). After the first test, the grades were averaged and everyone got a B. The students who studied hard were upset and the students who studied little were happy. As the second test rolled around, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too so they studied little. The second test average was a D! No one was happy. When the 3rd test rolled around, the average was an F. As the tests proceeded, the scores never increased as bickering, blame and name-calling all resulted in hard feelings and no one would study for the benefit of anyone else. To their great surprise, ALL FAILED and the professor told them that SOCIALISM would also ultimately fail because when the reward is great, the effort to succeed is great, but when government takes all the reward away, no one will try or want to succeed. It could not be any simpler than that. Remember, there IS a test coming up. The 2011 elections. These are possibly the 5 best sentences you'll ever read and all applicable to this experiment: 1. You cannot legislate the poor into prosperity by legislating the wealthy out of prosperity. 2. What one person receives without working for, another person must work for without receiving. 3. The government cannot give to anybody anything that the government does not first take from somebody else. 4. You cannot multiply wealth by dividing it! 5. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that is the beginning of the end of any nation. Nov 18, 2011, 15:59 Newsletters : 2011 Newsletters : 18 November 2011 The Euro Collapse You may recall I posted a video clip of "The Angry Irishman" which showed that the ordinary Irishman has figured out the truth. We all deserve to know the truth and here it is with a strong Irish accent: [ Visit Website ] Nov 18, 2011, 13:15 Newsletters : 2011 Newsletters : 18 November 2011 A German Referendum on Europe? Europe continues to crumble but behind the scenes Germany is thinking about what actions they should take. Can they possibly hold the EU together. We certainly have our problems (all brought about by using paper as money) but we do have a democracy and we all understand that we are in this boat together. This next election will give us an idea of whether we can weather the storms to come or not. It will take a steady hand at the tiller to achieve success for New Zealand. [ Visit Website ] Nov 18, 2011, 13:03 Newsletters : 2011 Newsletters : 18 November 2011 Spain and Italy's borrowing costs soar as Angela Merkel remains defiant over eurobonds So far the Germans are refusing to allow the Central Bank of Europe to print money - quantitative easing as it is now called. How much longer can they hold out? [ Visit Website ] Nov 18, 2011, 10:17 Newsletters : 2011 Newsletters : 18 November 2011 The euro Titanic The problem is still there and getting worse. Still they come back with the same answer - print more paper money. What nonsense! Hyperinflation is the very worst condition which paper money causes in the end. Best not to go there. [ Visit Website ] Nov 17, 2011, 19:03 Newsletters : 2011 Newsletters : 18 November 2011 The great euro Putsch rolls on as two democracies fall I think that those of us who enjoy democracy will be disturbed by the take-over of Greece and Italy by bureaucrats. Just remember the golden rule. Those who have the gold make the rules. The world is on a one way trip with its paper money system and Keynesian economics driving everyone to more and more debt. The result is what is happening now to Greece and Italy. When the people catch up with the implications the protests are likely to turn violent and no good will come from this present approach. Greece and Italy must leave the EU and go back to their traditional paper money devalued by however much is needed get them back on their feet. This is not a long term solution of course as paper money will just continue losing its value as the bankers print more and more of it but at least the country can function until people understand the truth behind Central Banking and force the bankers to shift onto gold and silver as money. I hope that we understand and learn the truth so we can improve our debt levels while working out how to shift back to REAL Money. [ Visit Website ] Nov 17, 2011, 18:27 Newsletters : 2011 Newsletters : 18 November 2011 European Ponzi Goes Full Retard As EFSF Found To Monetize... Itself We are really living in Wonderland. Words fail me. [ Visit Website ] Nov 16, 2011, 19:11 Newsletters : 2011 Newsletters : 18 November 2011 Guan Jianzhong: Downgrading the US I have been disappointed with the BBC of late. I feel that it has been dumbed down and that BBC Knowledge provides information with a bias that implies untruths. So I have been watching Al Jazeera and Russia Today and I have been very pleasantly surprised. I can get in depth analysis and reasoned arguments which provide real information and in an interesting way. This is an example with an interview of the chairman of China's only independent credit rating agency. Although the headline is about US downgrades most of the discussion is about Europe and general thoughts about the world debt problem. It is so interesting to get a direct insight into what a senior Chinese person thinks. I get a sense that he tells it like he sees it. Remember that China has had a civilisation for thousands of years while the rest of the world has been in turmoil and that they are four or five times bigger than the US or all of Europe. The perspective is enlightening. [ Visit Website ] Nov 16, 2011, 18:48 Newsletters : 2011 Newsletters : 18 November 2011 Central bank gold purchases soar The Wall Street Journal explains: Nov 15, 2011, 13:57 Newsletters : 2011 Newsletters : 18 November 2011 Russian Central Bank Aims To Buy 100 Tons Of Gold In 2011 China and now Russia are buying up as much gold as they can without spooking the market. [ Visit Website ] Nov 15, 2011, 13:47 Newsletters : 2011 Newsletters : 18 November 2011 Quote for the Week There are decades where nothing happens; and there are weeks where decades happen. Vladimir Lenin Nov 14, 2011, 13:50