Last Updated: Oct 22nd, 2010 - 15:35:08 Newsletters : 2010 Newsletters : 28 May 2010 Thought for the Day If you put the words "bankers Jekyll Island" into a Google request you will discover the beginnings of our problems with our current paper money systems. The US Federal Reserve was started as a secret means of helping out bankers that had got themselves into trouble by lending too loosely and causing the crashes of 1907. Rather than adopt the intent of the US Constitution and keep to gold and silver as money they moved towards paper as money and when banks had a run on them the new Central Bank would be able to print more money and send it round to the back door of the bank so they could pay out the crowd. You will recall that this happened recently in Britain at Northern Rock. It is hard for bankers to resist free money. Actually it is hard for anyone to resist free money. Especially for politicians who are stuck with paying for wars - especially large wars like World War I. The bankers now had the perfect solution. Pay for the war with paper money. So the US sidled off the gold standard and Britain followed by the 1920s. By the 1930s when Britain tried to get back onto the gold standard they found that their paper money had depreciated so much they weren't able to pay for the necessary gold unless they had a massive devaluation. This was not politically acceptable so no more talk of a gold standard and the world leaders changed to the Bretton Woods exchange rate mechanism. A semi-gold standard arrangement. But without the discipline that the gold standard brings they kept on printing too much paper and as each country's paper money became devalued they would just change the exchange rate between themselves. The populations hardly noticed. But France still insisted that America pay its debts in gold until finally when Nixon ran out of money after the Vietnam War he "closed the gold window" and from then on the world ran without any gold standard at all. After 40 years with unconstrained paper currencies the world has reached a point where we have the biggest financial problem ever known to mankind. This problem can only be solved by moving back to natural REAL Money - gold and silver. People are now moving there by default. We are really living in the most interesting of times. Good luck. May 28, 2010, 11:57 Newsletters : 2010 Newsletters : 28 May 2010 US Money Supply Plunges at 1930s Pace as Obama Eyes Fresh Stimulus This money supply thing is interesting. Hopefully we will understand it better as time goes by and we get more information about how it affects other countries around the world. Inflation is the increase of the money supply. Deflation is the decrease in the money supply. Changes in the money supply subsequently affect the prices of all goods and services. This occurs over some unknown time frame. In New Zealand our M3 money supply has been retreating strongly for the last few months. It has never done this before. More details can be found from the Reserve Bank spreadsheet of money supply found from our website here: http://www.economicgrowth.org.nz/artman/publish/statistics.shtml It looks like we are in for a period of deflation followed by hyperinflation around the world. Does Bernanke know what he is doing? More importantly is how the stupidities that we see overseas will affect us. [ Visit Website ] May 28, 2010, 11:06 Newsletters : 2010 Newsletters : 28 May 2010 Walker's World: Euro's Crisis Deepens It is not possible for Europe to fix their problems with paper money. [ Visit Website ] May 27, 2010, 14:41 Newsletters : 2010 Newsletters : 28 May 2010 The Only Currency That Can’t Be Printed on a Whim The main-stream press is starting to get the message and understand the implications. This is the beginning of the ultimate bubble. [ Visit Website ] May 27, 2010, 14:03 Newsletters : 2010 Newsletters : 28 May 2010 Hugo Salinas-Price on the Nature of Money and Why Silver Should Be Legal Mexican Currency A recent survey showed that 81% of Mexicans favour using silver coins as money. This may happen in the next few years. How interesting! [ Visit Website ] May 24, 2010, 18:31 Newsletters : 2010 Newsletters : 28 May 2010 Support Gold Dinar as Alternate Trade Instrument, WIEF Members Told I have mentioned former Malaysian Prime Minister Tun Dr Mahathir Mohamad before as after the last Asian Financial Meltdown he promoted the use of gold instead of paper money as a cure for the problem. Since then his ideas look more and more sensible. [ Visit Website ] May 24, 2010, 14:01 Newsletters : 2010 Newsletters : 28 May 2010 10 Gold Charts Commercial Investment Firms Never Want Clients to See Now that we know that gold is REAL Money it is interesting to see how the value of assets changes over time as measured in REAL Money. Remember that REAL Money holds its value over time - as does REAL Estate. So much for the value of our stocks and shares! [ Visit Website ] May 23, 2010, 14:11 Newsletters : 2010 Newsletters : 28 May 2010 UK Surveillance State Deflates? Looks like someone else knows the truth. [ Visit Website ] May 22, 2010, 13:53 Newsletters : 2010 Newsletters : 28 May 2010 Meltup This video is nearly an hour long but summarizes the information that we have gleaned from the internet over the past 5 years. They come to the same conclusion. Can we avoid America's fate? [ Visit Website ] May 21, 2010, 19:08 Newsletters : 2010 Newsletters : 28 May 2010 Ron Paul on the Euro, Greece, and The Fed Ron Paul explains REAL Economics without once mentioning economics. Reality is starting to take hold in the USA and Ron's message is getting out onto mainstream TV. Not bad after 40 years concerted effort! [ Visit Website ] May 21, 2010, 11:38 Newsletters : 2010 Newsletters : 28 May 2010 Alea Iacta Est As I have noted on a few occasions, Investment Advisers who understand REAL Economics know that countries that embark on credit inflation either succumb to the deflationary doldrums while the economy gets back to its natural level or they disappear in a whirlwind of hyperinflation of their paper money. The process has been going on for some while now as our previous newsletters will attest and I have always felt that politicians would take the hyper-option. This saves them and the population from immediate disaster but the inevitable will happen. With Germany's acquiescence to Greece's pleadings and Sarkosy's ranting "the die is cast". We can tell what will happen. We just don't know when. [ Visit Website ] May 19, 2010, 14:02 Newsletters : 2010 Newsletters : 28 May 2010 Resources Tax Could Cause The Greatest Capital Strike in Australia’s History When I watched Helen Clark and Michael Cullen talk about their economic transformation I realized that socialists seem to live in Lah-Lah Land. Kevin Rudd also seems to inhabit that weird dimension where the populace just pay their tax and do what they are told without ever deciding to take a better option. Rudd's recent super large tax on mining companies looks set to bit him in the rear. This could be the tipping point for Australia and if they go into recession, what with China being a bit dodgy and all, we are in trouble. Fingers crossed! [ Visit Website ] May 18, 2010, 18:42 Newsletters : 2010 Newsletters : 28 May 2010 More Than a Euro Crisis Read what The Guardian has to say. [ Visit Website ] May 18, 2010, 18:28 Newsletters : 2010 Newsletters : 28 May 2010 Euro Collapse Fears Spark Panic Buying of Gold That which we foresaw is now in the newspapers. The secret is out. People are starting to understand what is going on with the world's paper money system. The big problem is that even though the bulk of the population will never know exactly what went wrong, they will get caught up in the panic as the big rush out of paper money leads to a manic boom in gold. As George Soros said, "Gold is the ultimate bubble." We can see it starting. [ Visit Website ] May 18, 2010, 09:21 Newsletters : 2010 Newsletters : 28 May 2010 We Don’t Need Central Banks As my old Granny said, "the truth will out". If you read nothing else all year read this interview. I have been studying economics over the net for 6 or 7 years now and I have come to the same conclusions as Mr Kim. This interview saves me the trouble of ordering my thoughts into some sort of cohesive and comprehensible package. So I take the easy route. Besides it is nice to find a kindred spirit! [ Visit Website ] May 17, 2010, 17:20 Newsletters : 2010 Newsletters : 28 May 2010 Perfect Setup For a Gold Rally: Wall St. 'Flash Crash' Meets Rising Mistrust of Paper Currencies The secret is out! Gold is money. [ Visit Website ] May 17, 2010, 12:05 Newsletters : 2010 Newsletters : 28 May 2010 N.J. Governor Sets Tone for US A politician with courage. [ Visit Website ] May 16, 2010, 12:44 Newsletters : 2010 Newsletters : 28 May 2010 Quote for the Week We have now sunk to a depth at which the restatement of the obvious is the first duty of intelligent men. George Orwell May 15, 2010, 11:21