Last Updated: Nov 19th, 2009 - 11:07:39 Newsletters : 2009 Newsletters : 31 July 2009 Thought for the Day This week the Queen asked for answers on why nobody had anticipated the credit crunch. The headline in the Dominion Post of Tuesday 28 July says, "Sorry Ma'am - we just didn't see it coming." The interesting thing is that they still do not know why - and they are still not drawing the obvious conclusion: Their Macro-economic theories are obviously wrong. Jul 31, 2009, 12:54 Newsletters : 2009 Newsletters : 31 July 2009 Socialized Healthcare vs. The Laws of Economics Some interesting thoughts as Obama moves to "improve" the American Health System. Are we ever interested in the truth and improvements or are we just more interested in ideology and power of life and death over people? [ Visit Website ] Jul 29, 2009, 18:11 Newsletters : 2009 Newsletters : 31 July 2009 Upside Down and Backwards: Is Central Banking on Death’s Door Step? A large number of investors are now beginning to question even the basic tenets of Central Banking. People are starting to seek the truth and they are finding it very worrying indeed. Is the world paper money system just a giant Ponzi scheme? It is beginning to look like it, and when confidence in the system goes it will go with a rush that will leave all of us gasping - even those who are expecting it. [ Visit Website ] Jul 28, 2009, 10:53 Newsletters : 2009 Newsletters : 31 July 2009 Romulus, Remus, Stimulus: A Brief History of Monetary Madness Easy money never did anyone any good. As Bill Bonner says: "Without the sweat of honest toil on it, money seems to play a pernicious role in history. There are no examples – none – where it produced genuine prosperity. Instead, when a nation suddenly runs into some easy cash, it is soon spending more than it can afford...and getting into trouble." And that was with REAL Money. And only one country at a time. Is the whole world going mad with paper money? Jul 27, 2009, 14:24 Newsletters : 2009 Newsletters : 31 July 2009 Half a Trillion; Where Did it Go? Federal Chairmen Bernanke is under questioning by Florida Congressman Alan Grayson. Of the missing half a trillion dollars New Zealand got $9,000,000,000.00 and a mention in congress. Bernanke is not sure why. [ Visit Website ] Jul 27, 2009, 13:41 Newsletters : 2009 Newsletters : 31 July 2009 Is Grousing About Goldman Reaching Critical Mass? When America shifted from a strict gold standard in 1913 and set up the Federal Reserve as a Central Bank no-one realised how that decision would play out. Later on Ludwig von Mises wrote: "There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved." When Nixon finally killed the remnants of the gold standard in 1971 the die was cast. As you can see, and as I predicted, America and other countries are pulling out all stops to keep the paper money ship afloat and booming. Our conclusion then must be that the American economy will collapse: "later as a final and total catastrophe of the currency system involved." The US$ is doomed. Jul 25, 2009, 10:51 Newsletters : 2009 Newsletters : 31 July 2009 The Great American Bubble Machine One of the corollaries of REAL Economics is that paper money systems always go bust. They all have so far. The world has been fudging itself off the gold standard since America set up the Federal Reserve as a Central Bank in 1913. Nixon completed the job in 1971 and paper money was finally loosened from the golden shackles. It will go bust. It is going bust and Matt explains just how Goldman Sachs is making a profit from the process. It all fits in with everything I have read and studied - theoretical as well as journalists' reporting. It is long but the story is absolutely amazing. The world will be a different place when you finish this story! [ Visit Website ] Jul 24, 2009, 13:58 Newsletters : 2009 Newsletters : 31 July 2009 You Can't Print Production and Prosperity Mr Krugman, who recently won a Nobel prize for Economics had it all wrong! And he is now admitting it. He is quoted by The Economist of 13th June 2009 as saying, "Most work in macroeconomics in the past 30 years has been useless at best and harmful at worst." You will see what some of his advice was in this article. [ Visit Website ] Jul 24, 2009, 10:35 Newsletters : 2009 Newsletters : 31 July 2009 Liquidity is Gone New Zealand does not have it as bad as the USA. We had a big clean-out in the late 1980s and early 1990s and our recent housing boom was not too extreme. Unfortunately the housing boom in America was extreme and the bust is still on-going. It will get worse over the next two or maybe three years. In America there is also the Plunge Protection Team that works with the President to keep the markets on an even keel. Which, of course, makes one assume that when the bust occurs and then rapidly gets back on an even keel that this is due to manipulation rather than a fundamental recovery. Many things point to an even bigger bust in America which is due to start some time soon. This event will undoubtedly be bad for Kiwi-Land. Here is another straw in the wind: [ Visit Website ] Jul 24, 2009, 10:08 Newsletters : 2009 Newsletters : 31 July 2009 What Economy? There's Nothing Left! Paul Craig Roberts was assistant secretary of the treasury in the Reagan administration. He is obviously no lightweight and he certainly doesn't pull any punches in this article. "Matt Taibbi describes Goldman Sachs as a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money." Powerful stuff indeed. America has major problems and we will be very lucky indeed if we can survive them. Keep your fingers crossed. Jul 20, 2009, 17:23 Newsletters : 2009 Newsletters : 31 July 2009 John Key, Speech to Business In this major speech, John Key tells it like it is, and what we are going to do about it. In particular I like this bit; "In the end, New Zealand’s economic prosperity relies on the hard work and inventiveness of our businesses and their employees." And this: "Therefore the most direct thing the Government can do to improve the productivity of New Zealand economy is to get its own house in order. The previous government spent a lot of money on the public service without a corresponding increase in actual services to the public." Read the whole speech here: [ Visit Website ] Jul 20, 2009, 16:55 Newsletters : 2009 Newsletters : 31 July 2009 Causes and Effects People are more and more becoming aware of age old truths. Our moment of reckoning is approaching. Jul 20, 2009, 12:28 Newsletters : 2009 Newsletters : 31 July 2009 Quote for the Week Lenin was surely right. There is no subtler, no surer means of overturning the existing basis of society, than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose. John Maynard Keynes Jul 10, 2009, 11:05