Foundation for Economic Growth - Newsletter

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


Newsletters : 2010 Newsletters : 3 December 2010
Thought for the Day

As you have realised by now the Americans, the British and the Europeans are printing money to try and stave off disaster. However printing more paper money is not a solution to the problem of having too much paper money backed entirely by government (ie taxpayer) debt. All it does is put off the evil day of reckoning and ensure that the final reckoning will be an even bigger disaster.

Here in New Zealand we are not going down that route - yet. Our M3 money supply (according to the Reserve Bank figures) expanded to $216bn in February 2009 and by October 2009 it had shrunk to $212bn. One year later in October 2010 the M3 money supply had shrunk to $210bn. The Reserve Bank spreadsheet shows this as an increase of 1.8%. Unfortunately it is a shrinkage of 1.1%.

So although the figures are currently showing a positive result for the first time in a year they are wrong. Our money supply is still shrinking year on year - if their base figures are correct.

This is to be expected and indicates that we are experiencing deflation. Soon we will see price deflation in the economy. This is not a bad thing as it means that when people are hard up things will get cheaper! If our government can allow all prices (including wages) to gently degrade to their natural level (whatever that may be and the market will decide) then we will survive the world depression in good shape.

If not then not!


Dec 3, 2010, 14:40

Newsletters : 2010 Newsletters : 3 December 2010
Ireland's Debt Servitude

Ireland has a real problem. It is on the horns of a dilemma and the options are both nasty. Make no bones about it, when the money men come with instructions a country is in deep doo-doo.

Ambrose explains it very nicely.

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Dec 1, 2010, 16:19

Newsletters : 2010 Newsletters : 3 December 2010
The Horrible Truth Starts to Dawn on Europe's Leaders

We have spent some time recently observing Ben Bernanke's efforts to boost the American economy with more paper money. But across the Atlantic there is another fight taking place.

This may have even more dire consequences.

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Dec 1, 2010, 15:10

Newsletters : 2010 Newsletters : 3 December 2010
Speaking Truth to Euro-Power

Things are not going very smoothly for the Eurocrats these days. Have a look at Nigel Farage's speech printed here and also spoken on Youtube. It is very good.

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Nov 30, 2010, 10:32

Newsletters : 2010 Newsletters : 3 December 2010
Global Depression Just a Dodge?

I really enjoy these articles from The Daily Bell. They ask such impossible questions and the discussion opens up such a vast array of possibilities.

I am not a strong advocate of the conspiracy theory. I am more an advocate of Mises' Human Action theory and what we observe on the world scene is just more of the action as human's juggle for advantage. Because I know that at the deepest of levels of the physical universe everything is aggregations of random perturbations and that these fluctuations will always provide surprising actions by people, all "grand plans" will go astray and the never-ending dance will continue unabated.

The discussion certainly broadens one's perspective, though!

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Nov 29, 2010, 18:10

Newsletters : 2010 Newsletters : 3 December 2010
Merkel's Reputation on the Decline in Europe

Merkel got her own house in order some years ago and Germany has been flourishing ever since. Now she is running the only successful economy in Europe and the others all expect her to look after their debts.

Why don't the children grow up!

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Nov 29, 2010, 13:40

Newsletters : 2010 Newsletters : 3 December 2010
EU Rescue Costs Start to Threaten Germany Itself

As Welfare States grow and grow they kill off more and more of the Golden Geese which have provided all the wealth upon which their life had been based.

As the daily clutch of golden eggs reduces so does the borrowing increase as the leaders seek to maintain the same easy life style to which many many bureaucrats and beneficiaries have become accustomed.

Then the debt gets too big. Even Germany can't support all the other profligate nations of the EU. The German people buy gold and protest vociferously whilst awaiting their doom.

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Nov 29, 2010, 12:41

Newsletters : 2010 Newsletters : 3 December 2010
Merkel Seeks to Calm Euro Breakup Fears as Markets Lose Faith

Will Germany go down with the other Welfare States and set up a competitive devaluation against the US dollar?

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Nov 29, 2010, 11:00

Newsletters : 2010 Newsletters : 3 December 2010
Interview With Theodore Butler

One of the advantages of understanding REAL Economics is that one understands what is really happening behind the propaganda blast of our modern media - TV talking heads and newspapers.

This can be profitable!

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Nov 26, 2010, 12:08

Newsletters : 2010 Newsletters : 3 December 2010
China, Russia Quit Dollar

This is much bigger news than most people will realise.

Just think through the implications!

Both China and Russia are keeping all the gold from their mines in their respective countries as reserves. This might be a clue.

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Nov 25, 2010, 14:33

Newsletters : 2010 Newsletters : 3 December 2010
Bernanke's Solutions Are the Problem

Yes mother, one man can make a difference.

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Nov 22, 2010, 10:34

Newsletters : 2010 Newsletters : 3 December 2010
Elite Eye on Africa

The paper money ponzi scheme moves on to the next victim.

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Nov 22, 2010, 09:45

Newsletters : 2010 Newsletters : 3 December 2010
"I don't want speculation, I want clear investment"

"I don't want speculation, I want clear investment," says Folker Hellmeyer, the chief analyst with the Bremer Landesbank.

A clear analysis of the current world investment situation.

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Nov 20, 2010, 15:01

Newsletters : 2010 Newsletters : 3 December 2010
Quote for the Week

You cannot find a bank safe deposit box in Germany because every single one has already been taken and stuffed with gold and silver. It is like an underground Switzerland within our borders. People have terrible memories of 1948 and 1923 when they lost their savings.

Professor Wilhelm Hankel, Frankfurt University, The Telegraph... November 25, 2010


Nov 18, 2010, 14:12

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