Foundation for Economic Growth - Newsletter

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Last Updated: Mar 3rd, 2014 - 11:01:36


Newsletters : 2012 Newsletters : 6 February 2012
Thought for the Day

The boom can last only as long as the credit expansion progresses at an ever-accelerated pace. The boom comes to an end as soon as additional quantities of fiduciary media are no longer thrown upon the loan market. But it could not last forever even if inflation and credit expansion were to go on endlessly. It would then encounter the barriers which prevent the boundless expansion of circulation credit. It would lead to the crack-up boom and the breakdown of the whole monetary system. - Ludwig von Mises

Everything I have read of Mises confirms to me that his ideas are the truth about economics.

We, however, are following a Keynesian path of continual money printing, or credit expansion by computer, and we see the process developing at an accelerating rate. Numerous books have been written about Keynes' "Grand" theory pointing out the numerous errors and illogical arguments but all to no avail.

Any mathematician knows that calculus methods only hold true when used on functions (curves) that are smooth and continuous. Economics doesn't seem to contain any such curves. Have a look!

We have lost our way and are working from a base of fiction.

This is very dangerous to our well-being.


Jan 31, 2012, 11:58

Newsletters : 2012 Newsletters : 6 February 2012
The Real Economic Picture

As a "numbers" person I can't help being continually disturbed at the amount of incorrect information that masquerades as statistics and continually impinges on our subconscious assuring us that the world economy is "fine and it is just a temporary perturbation".

Dr. Paul Roberts shows how far off track the US government statistics have become since Reagan's time and what a difference it now makes. The Western world follows the same methodology and we are similarly misinformed.

What concerns me most is that the people in charge are starting to just believe that these statistics are true and then make decisions based on a fairy tale.

This then leads us rapidly down the slippery slope to poverty.

Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following.

Shadow Stats.com is written by Walter J. "John" Williams. He received an A.B. in Economics, cum laude, from Dartmouth College in 1971, and was awarded a M.B.A. from Dartmouth's Amos Tuck School of Business Administration in 1972, where he was named an Edward Tuck Scholar. During his career as a consulting economist, John has worked with individuals as well as Fortune 500 companies.

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Feb 7, 2012, 09:05

Newsletters : 2012 Newsletters : 6 February 2012
In a Focus on Gold, History Repeats Itself

Ron Paul is forcing the issue of gold as money onto the public stage for this year's elections in the US of A. The New York Times illustrates that the issue has entered the mainstream news but in this article comes to a very strange conclusion.

Rely on hope!

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Feb 4, 2012, 13:23

Newsletters : 2012 Newsletters : 6 February 2012
Living In A QE World

These graphs show us the beginning of hyperinflation.

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Feb 3, 2012, 09:16

Newsletters : 2012 Newsletters : 6 February 2012
Currency Wars - the Battle of the Future has Started

Doug French gives us a great summary of the two Currency Wars we have had over the last century and uses James Rickards recent book to show us how the third war is starting and the likely conclusion.

We are in trouble.

If you care to look at REAL Economics

http://www.economicgrowth.org.nz/artman/publish/real-economics.shtml

you will see how this has come about and understand the best investment strategy for the next few years.

There is a point to REAL Economics. It shows us how we can create REAL Wealth and how we can retain it.

Visit Website ]
Feb 3, 2012, 08:52

Newsletters : 2012 Newsletters : 6 February 2012
Great Deals on Gold and Silver: James Turk

This interview will get you thinking.

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Feb 2, 2012, 18:58

Newsletters : 2012 Newsletters : 6 February 2012
A Bluffing Game

European Politicians in Denial as Greece Unravels

The European debt situation only gets worse as they continue to live beyond their means. As Mrs Thatcher said, "Socialism is fine until other people's money runs out."

Well, in Europe the money ran out some time ago and they are now running on fumes. Keynesian economics doesn't work. Printing more and more money is just printing more and more debt. It can never be paid back and we are now at the stage where just inflating into the future will demolish confidence in the paper money game.

At this stage the game is ended.

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Feb 2, 2012, 14:14

Newsletters : 2012 Newsletters : 6 February 2012
Failed Fed Policies Prolong the Agony

Ron Paul understands REAL Economics. He is running for the US Presidency and despite fierce ignoring from the main-stream media he is making a great showing.

He wants to "abolish the Fed" and go back to using REAL Money. Strangely he has the other presidential candidates also talking about moving to a "gold standard".

Fairytale economics does not work. There is no substitute for creative work in the private sector which produces REAL Wealth. The only way that this wealth can be stored is by using REAL Money like gold and silver which has value in and of itself - as Aristotle explained so many years ago.

Paper money cannot work in the long term and we are seeing it failing right now.

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Feb 1, 2012, 10:54

Newsletters : 2012 Newsletters : 6 February 2012
Varna Necropolis

"The Oldest Gold in the World - The First European Civilization"

Just for interest. These people had a gold society long before the Egyptians.

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Jan 31, 2012, 19:21

Newsletters : 2012 Newsletters : 6 February 2012
Doug Casey on the Collapse of the Euro and the EU

Paper currencies cannot last. The world has so much debt now that we have no way of paying it all off. The thought of just inflating it away leads us towards hyperinflation. I think we are so far along that road that it will inevitably follow.

Time will tell.

In the meantime Doug Casey has his shot at the future.

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Jan 31, 2012, 18:26

Newsletters : 2012 Newsletters : 6 February 2012
Worship of the Mob

What is a democracy?

This answer is food for thought.

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Jan 31, 2012, 14:33

Newsletters : 2012 Newsletters : 6 February 2012
Spring Festival sparks a 'gold rush' in China

Just imagine what will happen when paper money goes into hyperinflation. Gold mania will spread like wild fire.

Governments will take stern measures for your own good!

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Jan 31, 2012, 14:20

Newsletters : 2012 Newsletters : 6 February 2012
Gold Market Positioned for Massive Upside Move

Egon understands REAL Economics (Austrian economics). Here is his biography:

"Egon von Greyerz (EvG) is the Founder and Managing Partner of Matterhorn Asset Management AG and GoldSwitzerland. EvG started his working life in Geneva as a banker and thereafter spent 17 years as Finance Director and Vice-Chairman of Dixons Group Plc, the UK’s largest electronic and electrical retailer and a FTSE 100 company.

Since the 1990s Egon von Greyerz has been actively involved with financial investment activities including Mergers and Acquisitions and Asset allocation consultancy for private family funds. This led to the creation of Matterhorn Asset Management -MAM, (www.matterhornassetmanagement.com) an asset management company based on wealth preservation principles. MAM is part of the Aquila Group, Switzerland's largest independent asset management group.

The GoldSwitzerland Division (www.goldswitzerland.com) was created to facilitate the buying and storage of physical gold and silver for private investors, companies, trusts and pension funds. GoldSwitzerland’s precious metals programme is totally unique in that investors have direct and absolute control over their gold and silver bars. The precious metals are stored in one of the world’s best protected vaults underneath Zurich airport. Investors have personal access to the vault.

EvG makes regular media appearances such as on CNBC and BBC and also speaks at investment conferences around the world. He also publishes articles on the world economy and wealth preservation."

His whole life is devoted to wealth preservation. What is he doing about it? Here is what he thinks.

Visit Website ]
Jan 31, 2012, 14:07

Newsletters : 2012 Newsletters : 6 February 2012
Lehrman To Romney, Santorum: Join the Alliance for a Sound Dollar

The only sound money is gold. Silver is almost as good and fills a need for coins of a lesser value.

Serious people in America are starting to consider the damage being done by a world of paper money and there is some possibility of this question being part of the presidential debates this year.

New Zealand should move forward towards using gold as money by purchasing gold bullion beginning now. Since its value (as measured in paper money) is likely to soar this can only be a good thing for our Reserve Bank.

The least we should do is discuss this topic seriously.

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Jan 30, 2012, 15:36

Newsletters : 2012 Newsletters : 6 February 2012
Is the United States in a Liquidity Trap?

Keynesian economics is not REAL Economics. It is a figment of Keynes' imagination that economies are smoothly running money flows round and round in an ever increasing circle as the Central Bank increases the supply of money.

To then apply calculus techniques to this unreal description just produces unreal economic models.

The world of economists is even now beginning to question the veracity of their computer outputs. I can tell them now that no amount of adjustment will improve the answers. Perhaps all this activity is just to improve the money flows!

This discussion illustrates some REAL Economic thinking.

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Jan 27, 2012, 10:46

Newsletters : 2012 Newsletters : 6 February 2012
Breaking Up the Western World

The Daily Bell makes a point about Boris.

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Jan 26, 2012, 12:12

Newsletters : 2012 Newsletters : 6 February 2012
Quote for the Week

Gold, unlike all other commodities, is a currency...and the major thrust in the demand for gold is not for jewelry. It’s not for anything other than an escape from what is perceived to be a fiat money system, paper money, that seems to be deteriorating.

Alan Greenspan, ex-US Federal Reserve Chairman, August 23, 2011


Jan 25, 2012, 12:46

Can we fix it?