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| Last Updated: Aug 15th, 2008 - 11:26:43 |
Newsletters
:
2007 Newsletters
:
19 October 2007
Thought for the Day
Vladimir Ilyich Lenin said: "The way to crush the bourgeoisie (middle classes) is to grind them between the millstones of taxation and inflation." He proved the truth of this in the Union of the Soviet Socialist Republics.
The first thing the Labour government did upon coming to power was to increase the personal tax to 39% for people earning over $60,000. Inflation is putting more and more people over the $60,000 limit. Those who can, are limiting their drawings from their private companies to under $60,000 in response and hence the IRD now has a large number of tax payers sitting under this limit. Surprise, surprise!
Since coming to power the Labour government has adopted a policy of inflating the currency by 10 to 15% a year. So inflation and tax increases are slowly crushing our middle class and making it impossible for half of us to buy a first home.
Labour's solution - More of the same!
Oct 16, 2007, 11:05
Newsletters
:
2007 Newsletters
:
19 October 2007
The Growth Effects of Federal Regulation
"Prosperity requires less regulation and more capital formation."
Ludwig von Mises
New Zealand is becoming more and more regulated. Every bout of regulation is another millstone around the neck of our faltering economy. We knew in 2003 that socialist regulations would reduce our prosperity and the proof is the drop in wealth from number 20 to number 22 in the OECD.
Much to Helen's chagrin.
Oct 17, 2007, 15:57
Newsletters
:
2007 Newsletters
:
19 October 2007
A Scramble For Exposure To Global Inflation.
The wonderful world of money. You will remember that one of the requirements for sustainable economic growth is a stable currency. Unfortunately money around the world is far from stable. The crisis is coming. Are you prepared?
Oct 16, 2007, 15:30
Newsletters
:
2007 Newsletters
:
19 October 2007
IMF Chief Changes Position, Says Dollar Has Room To Fall.
It is becoming clearer that Central Bankers and Money Men are no longer sure about what is happening to our money on a world wide basis. Or if they are clear they are not telling us and they continue to give conflicting signals.
I suspect that they have no idea about Austrian Economics and what it predicts. Even if they do they are stuck with the politicians in the present system of paper money. They have all said that we don't need a gold standard and that they know how to control a world of fiat currencies.
The cracks are appearing, however. We have had a full fledged bank run in England with queues in the street and the beginings of panic showing. The politicians forced the governor of the Bank of England to guarantee Northern Rock and thus guarantee all the others as well. How inflationary this will be remains to be seen.
The American sub-prime mrtgage problem is a long way from being solved. Most of these mortgages are due for big increases in interest rates from now through 2008. The pressure will increase. The only solution available is to provide more paper money and Central Bank credit. But this caused the problem in the first place!
If politicians can last through to the next election then they don't have a problem. But the rest of us do.
What has the IMF got to say about how all this affects the dollar? It depends on who you ask and when you ask.
Oct 16, 2007, 11:48
Newsletters
:
2007 Newsletters
:
19 October 2007
The Language of Government Decisions
George Orwell (1946) has observed that, because of the coercive nature of the decisions made by governments, "political language has to consist largely of euphemism, question-begging, and sheer cloudy vagueness."
Orwell's two best-known books reflect his lifelong distrust of autocratic government, whether of the left or right: Animal Farm (1945), a modern beast-fable attacking Stalinism, and Nineteen Eighty-Four (1949), a dystopian novel setting forth his fears of an intrusively bureaucratized state of the future.
Well, Big Brother in the form of Nanny State is still working to your detriment. The bureaucrats keep changing the language to stop logical and reasonable discussion. All to their advantage and to your disadvantage.
Oct 11, 2007, 09:56
Newsletters
:
2007 Newsletters
:
19 October 2007
Moral Hazard Encourages Weak Dollar
"Excess volatility and disorderly movements in exchange rates are undesirable for economic growth. We continue to monitor exchange markets closely, and cooperate as appropriate." - So say the G7.
Paper currencies produce booms which are followed by the inevitable bust. As Central Bankers around the world wrestle with this unsolvable problem politicians insist that they delay the bust by printing more money. So the Bank of England saves Northern Rock from a good old fashioned "bank run" - for now.
Are the Central Bankers working unconsciously to produce a major bust simultaneously in the mojority of Western countries? Will this strengthen the case for outlawing paper money and going back to gold and silver? What will this mean for us?
Oct 9, 2007, 11:00
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