Foundation for Economic Growth - Newsletter

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


Newsletters : 2010 Newsletters : 26 February 2010
Thought for the Day

Ludwig von Mises, in Human Action (1949), talked about the inevitable bust that follows the boom. The world has had the boom and now we are seeing the beginning of the bust:

"The boom produces impoverishment. But still more disastrous are its moral ravages. It makes people despondent and dispirited. The more optimistic they were under the illusory prosperity of the boom, the greater is their despair and their feeling of frustration. The individual is always ready to ascribe his good luck to his own efficiency and to take it as a well-deserved reward for his talent, application, and probity. But reverses of fortune he always charges to other people, and most of all to the absurdity of social and political institutions. He does not blame the authorities for having fostered the boom. He reviles them for the inevitable collapse. In the opinion of the public, more inflation and more credit expansion are the only remedy against the evils which inflation and credit expansion have brought about."

So Keynesian economics follows naturally as a means of appeasing the mob. Greece has riots in the streets and appeases the people with more borrowed money.

But as Maggie Thatcher pointed out 30 years ago, "Eventually we run out of other peoples' money".

We can see the bust unfolding around the world. The more profligate and weaker economies going first and others slowly following. Zimbabwe, Iceland and now Greece and the other Mediterranean EU countries collectively called the PIIGS - Portugal, Ireland, Italy, Greece and Spain. But the US the UK and France are also in the same trouble and they are major western powers.

REAL Economics applies to us all.


Feb 25, 2010, 19:28

Newsletters : 2010 Newsletters : 26 February 2010
Deathbed of Keynesian Economics Will Be in U.K.

Is this round of recession and depression the death bed for Keynesian economics? Will logic and a scientific approach to economics win the day after Keynes' failure? Will paper money and the government printing presses be replaced by honest gold?

This year will give us a clue!

Visit Website ]
Feb 25, 2010, 09:24

Newsletters : 2010 Newsletters : 26 February 2010
Government Sachs

The Daily Reckoning Presents:

It's Goldman this. And Goldman that. And Goldman rhymes with greed.

But it's "Thank you, Mr. Blankfein," when it's money that you need.


Feb 23, 2010, 10:36

Newsletters : 2010 Newsletters : 26 February 2010
London Firm Was Created to Route Cash

What a tangled web we weave . . .

Central Bankers talk about "moral hazard", the problem caused by having the ability to print money at will. So far New Zealand seems to be doing quite well - certainly in comparison to most players in the western world.

But, one thing leads to another until eventually disaster strikes.

More about Greece's financial journey and the part that Goldman Sachs has played:


Feb 23, 2010, 09:20

Newsletters : 2010 Newsletters : 26 February 2010
Wall Street's Bailout Hustle

The problem with paper money arrives when the people in charge start to print it to get themselves out of trouble.

This story is all true and could well be the foundation of the next Hollywood blockbuster. If this ever becomes general knowledge there will be fun and games in America.

Read slowly and drink something soothing!

Visit Website ]
Feb 22, 2010, 10:58

Newsletters : 2010 Newsletters : 26 February 2010
IMF Gold Sales v. the Alchemy of Gold Futures – What’s the Impact on Gold Prices?

One commentator on this article had this to say:

"As a dealer in both bullion and rare coins for the past 20+ years and having a degree in finance from the University of Chicago I have been screaming about this for years!! This is an exceptionally well written and informative article addressing a topic few will even acknowledge. Kudos….I’d love to see this in the WSJ, on CNBC and other well read mainstream publications. Unfortunately, mainstream intellect dictates this will never occur."

Nevertheless, word is getting out. The Western newspapers may find this information a bit hot to handle but Asia is a big place and they are already moving towards gold as money. In Vietnam they use gold to purchase REAL Estate. The Chinese government is advertising the benefits of owning gold and silver on national TV.

At some stage the penny will drop.

Visit Website ]
Feb 20, 2010, 12:45

Newsletters : 2010 Newsletters : 26 February 2010
Trouble at the Fed

Someone else thinks it is not possible for a Central Bank to manage an economy.

Visit Website ]
Feb 18, 2010, 18:04

Newsletters : 2010 Newsletters : 26 February 2010
The Bailout of Greece and the End of the Euro

The future looks grim. The timing is unknown.

Visit Website ]
Feb 18, 2010, 14:53

Newsletters : 2010 Newsletters : 26 February 2010
Silver Review and Outlook

The best information I can find indicates that the Bullion bankers in America (J P Morgan and HSBC) are manipulating the price of gold and silver.

They are doing this to help support the price of the US Dollar.

Ted Butler has been studying this question for the last 25 years. This is his latest assessment.

Visit Website ]
Feb 18, 2010, 13:19

Newsletters : 2010 Newsletters : 26 February 2010
Second Half of 2010: Sudden Intensification of the Global Systemic Crisis

Who are the readers of the GlobalEurope Anticipation Bulletin?

GEAB is an affordable and regular decision and analysis support instrument intended for all those whose work involves some understanding of ongoing and future global trends seen from a European point of view: advisors, consultants, researchers, experts, heads of public institutions, research centres, international companies, financial institutions and major NGOs.

This bulletin has this to say:

The sudden intensification of the global systemic crisis will be characterised by the acceleration and/or strengthening of five fundamental negative trends:

- the explosion of the bubble in public deficits and a corresponding increase in state defaults

- the fatal impact of the Western banking system with mounting debt defaults and the wall of debt coming to maturity

- the inescapable rise in interest rates

- the increase in issues causing international tension

- a growing social insecurity.

Read the full article:

Visit Website ]
Feb 18, 2010, 12:59

Newsletters : 2010 Newsletters : 26 February 2010
Are U.S. Taxpayers Bailing Out Greece? Audit Fed to Find Out

Ron Paul is moving closer to getting an audit of the Federal Reserve Bank. He is keeping the pressure on and the result should be very interesting.

We have been very well served by our banking system (by and large) but that does not change the fact that every fiat currency that has ever existed goes to zero value eventually. Some faster than others as we saw with Zimbabwe, but zero for all nevertheless.

George Soros is preparing for this eventuality.


Feb 18, 2010, 11:09

Newsletters : 2010 Newsletters : 26 February 2010
The 'Ultimate Bubble' Meets The Ultimate Speculator

Soros Increased Bet on Gold Last Year

If you want to get a good idea of what is going to happen around the world then watch carefully what the REAL Investors do.

Actions always speak louder than words.


Feb 18, 2010, 10:53

Newsletters : 2010 Newsletters : 26 February 2010
Greek Crisis is Beginning of The End For The Euro

George Soros broke the Bank of England.

Who is breaking the Bank of Greece?

Who will profit from the destruction of the Euro?


Feb 16, 2010, 20:13

Newsletters : 2010 Newsletters : 26 February 2010
Sovereign Alchemy Will Fail

If you read nothing else all year - READ THIS and study the web site.

Visit Website ]
Feb 15, 2010, 09:58

Newsletters : 2010 Newsletters : 26 February 2010
‘Volcker rule’ Gives Goldman Stark Choice

What are the chances that regulators can control the money system and the banks and non-banks who operate therein?

REAL Economics teaches that regulations cannot control paper money supply and hence the ultimate death of paper money. After all, they have had lots of regulations and regulators for years and that did not work. Do they really think that new regulations will work?

Human beings are very ingenious and governments are very interfering. Therein lies our problem.

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Feb 13, 2010, 14:01

Newsletters : 2010 Newsletters : 26 February 2010
Plot Thickens in The Battle of The Plunge

There are no free markets any more. Governments have managed Money markets since the time of Central Banking. They have since progressed to Stock markets and Precious Metals markets.

The New York Post is still trying to unravel the inner workings of the President's "Plunge Protection Team."

The economic world assumes that we have free markets. Obviously, any deductions based on that as a premise will have flawed conclusions!

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Feb 13, 2010, 13:44

Newsletters : 2010 Newsletters : 26 February 2010
Quote for the Week

As Ludwig von Mises wrote, "It is impossible to grasp the meaning of the idea of sound money if one does not realize that it was devised as an instrument for the protection of civil liberties against despotic inroads on the part of governments. Ideologically it belongs in the same class with political constitutions and bills of rights."


"Deficit spending is simply a scheme for the hidden confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights."

From "Gold and Economic Freedom" a 1966 Essay by Alan Greenspan.


Feb 10, 2010, 19:23

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