Last Updated: Nov 19th, 2009 - 11:07:39 Newsletters : 2008 Newsletters : 24 October 2008 Thought for the Day This week's Listener contains an excellent article by Gareth Morgan. He sees that either house prices drop by 50% or average wages increase by 100%. This would bring the ratio of house price to wages more back to historical norms. In this current recession it is of course more likely that wages will decline as jobs disappear and the chances of wages doubling is remote - no matter how much the government gooses up the money supply. So houses are likely to drop significantly in price which will place many property millionaires into the poverty stricken class. This can only deepen the recession. Who in the private sector is capable of expanding their enterprise when all around are contracting? No-one! Hence we see Dr Cullen's sea of red ink expanding inexorably into the future. And the wealth of middle New Zealand declining significantly. Further on into the Listener we are confronted with a serious article about our new carbon taxes from David Parker our Climate Change Minister. Our Greeny led Labour government have now put the final nail in the coffin. After being in recession for 10 months of this year and the government's books showing a "sea of red ink" for the next 10 years, we are assailed with yet more taxes designed to send our money to some foreign nation. The Private Sector is the Golden Goose which produces all the benefits we have taken for granted for so long. This Greeny led Labour government has a firm strangle-hold on the poor beasts throat and the prognostication is not good. The latest TV3 poll shows National/ACT and Greeny/Labour as neck and neck with Maori as the Queen makers. Do the Maori politicians understand private enterprise? Oct 20, 2008, 10:42 Newsletters : 2008 Newsletters : 24 October 2008 Gold Conspiracy: Can You Afford To Ignore It? I do not think there is a "gold conspiracy". But, if you have come to understand the basics of REAL Economics you will understand that Bankers and their economists are in a fight to keep their fiat currencies afloat and stable. They cannot succeed in the long term. Each time they make valiant efforts to "save the world" they sow the seeds of the next bubble even as the current ones are thrashing in their convulsive death throes. And each time it gets worse and more unstable. Where is the new bubble forming and what are the indications that it will be a bubble? Very good questions!! [ Visit Website ] Oct 24, 2008, 11:46 Newsletters : 2008 Newsletters : 24 October 2008 Only Government Could Do This To Us In our crazy paper money system we can never go broke. As I have explained before, when the banks run out of cash they ring up the Central bank and order another truck-load to be delivered to the back door. And the US Federal Reserve has obliged to a remarkable extent. Just remember, if you are a banker, "When you sup with the devil, better use a long spoon." Oct 23, 2008, 15:38 Newsletters : 2008 Newsletters : 24 October 2008 Idea of Islamic Dinar Gaining Momentum Dr. Mahathir, Malayasia's retired Prime Minister, first mooted the idea of an Islamic gold dinar as a standard unit of currency for trade and financial transactions between the 54 member countries of the Jeddah-based trans-national Islamic Development Bank (IDB) in the aftermath of the currency crisis that hit the Asian countries, including Malaysia, so badly in 1999 and in 2000. He may not know about Austrian Economics, or as I like to call it, REAL Economics, but at least he understands the difficulties inflicted on the nations of the world by the "not so" almighty US dollar floating loose in a sea of debt. Eventually our paper money system will collapse. Maybe not in this boom/bust cycle but perhaps the next. The cycles do seem to be growing in amplitude and more and more countries are being drawn into the maelstrom with each iteration. This will cause great difficulties for all. [ Visit Website ] Oct 23, 2008, 11:10 Newsletters : 2008 Newsletters : 24 October 2008 The Importance of Capital Theory Paul Krugman has just won a Nobel Prize for Economics. It is not often that a Nobel Laurette is proven wrong in his thinking so quickly. What is going on here? [ Visit Website ] Oct 21, 2008, 14:20 Newsletters : 2008 Newsletters : 24 October 2008 The Decline and Fall of Gorbachev and the Soviet State I trust Helen Clark. Helen is a socialist. She controls how I bring up my children. She controls what they eat at school - and what they learn! She controls what light bulb I use. And she wants to control my morning shower. I trust Helen Clark to remain true to her socialist principles. If you want the truth about socialism, then read this article by one who was there with Gorbachev. It will make your hair curl. Oct 20, 2008, 13:16 Newsletters : 2008 Newsletters : 24 October 2008 Government Money Or Sound Money Forewarned is forearmed. Warren Buffett is the world's wealthiest investor. He didn't get there by blind luck, but by many years of looking for high value companies and purchasing them as cheaply as possible. He did not follow the herd - he analysed the situation and found the truth. When we know the truth we can then make rational decisions that will be beneficial to ourselves and our family. This is what we are trying to do here at the Foundation for Economic Growth. Hopefully we will succeed. Warren Buffett's father was Howard Buffett and he was a Senator in the USA Government. In the 1930s he explained how going off the gold standard, which is what Roosevelt was proposing (and did), would lead eventually to currency debasement, poverty and lack of liberty for the individual taxpayer. This article give us an insight to this process: How governments have gained total control over the people - even in a democracy. And the bankers own the politicians! We have a fight on our hands. [ Visit Website ] Oct 20, 2008, 11:45 Newsletters : 2008 Newsletters : 24 October 2008 Fears Of Lehman's CDS Derivatives Haunt Markets The amount of money is staggering. $55,000,000,000,000 of Credit Default Swaps. The big question, as yet unanswered is, "Who owes what to whom?" Oct 17, 2008, 17:49 Newsletters : 2008 Newsletters : 24 October 2008 Quote for the Week I thought this selection of quotes might help us understand that the money systems, alive and kicking in the world today, are not what they seem. These relate to the mighty dollar of the USA. *** *** *** "Historically, the United States has been a hard money country. Only [since 1913] has the United States operated on a fiat money system. During this period, paper money has depreciated over 87%. During the preceding 140 year period, the hard currency of the United States had actually maintained its value. Wholesale prices in 1913... were the same as in 1787." Kenneth Gerbino former chairman of the American Economic Council. ** ** ** ** "Some people think the Federal Reserve Banks are US government institutions. They are not... they are private credit monopolies which prey upon the people of the US for the benefit of themselves and their foreign and domestic swindlers, and rich and predatory money lenders. The sack of the United States by the Fed is the greatest crime in history. Every effort has been made by the Fed to conceal its powers, but the truth is the Fed has usurped the government. It controls everything here and it controls all our foreign relations. It makes and breaks governments at will." Louis McFadden (1876-1936) US Congressman (R-PA) (1915-1935), Chairman of House Banking and Currency Committee. Poisoned in 1936. Source: June 10, 1932 ** ** ** ** The following statements were made during hearings of the House Committee on Banking and Currency, September 30, 1941. Members of the Federal Reserve Board call themselves "Governors." Governor Marriner Eccles was Chairman of the Federal Reserve Board at the time of these hearings: Congressman Patman: "How did you get the money to buy those two billion dollars worth of Government securities in 1933?" Governor Eccles: "Out of the right to issue credit money." Patman: "And there is nothing behind it, is there, except our Government's credit?" Eccles: "That is what our money system is. If there were no debts in our money system, there wouldn't be any money." Congressman Fletcher: "Chairman Eccles, when do you think there is a possibility of returning to a free and open market, instead of this pegged and artificially controlled financial market we now have?" Governor Eccles: "Never, not in your lifetime or mine." Marriner Stoddard Eccles(1890-1977) US banker, economist, and Chairman of the Federal Reserve (1934-48) - Source: during hearings of the House Committee on Banking and Currency, September 30, 1941. Jul 22, 2008, 11:46