|Last Updated: Mar 25th, 2013 - 16:46:15
Thought for the Day
We set out on our journey of discovery in 2003. We wanted to find out how New Zealanders could increase their wealth and once more be the third wealthiest peoples on Earth.
We discovered many things and recorded them in our newsletters from 2004 to the current time. Fortunately for us, the world is full of countries discovering that socialism just makes everyone equally poor and they were trying all sorts of "new" ideas. We had the advantage of seeing how those ideas worked.
The world is our laboratory and we are the interested observer!
Unfortunately the world is also experiencing a massive increase in paper money. This is not good and is the most pressing problem of the moment. Real economic progress cannot be made during a boom period because the incentives cause people to misallocate their capital - We are all into buying properties instead if investing in productive enterprises. And certainly we cannot make economic progress during the bust that follows.
This paper money problem must be addressed first!
Aug 8, 2008, 10:03
Getting Closer to Debasing the Currency
As Ludwig von Mises states, "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."
So, have we reached the "crack-up" boom and bust this time or do we have a few more rounds to go before the paper money system has to be replaced?
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Aug 8, 2008, 09:54
Province Told To Ignore Critics, Implement Tax Changes
Zero company tax in Canada? What a boon that would be for New Zealand!
Aug 8, 2008, 00:46
The Market Process in Action
As long as politicians don't interfere with the natural pricing systems of the open market place these systems will automatically adjust prices to the levels that best suit the participants in that market place - you and me!
Aug 7, 2008, 18:16
Grabbing The Bank
Venezuela's government will nationalise the country's third-largest bank.
One of the interesting things about living in the 21st century is to observe other countries around the world as their politicians attempt to provide more prosperity for the citizens. We can watch policies working and policies failing and hopefully learn what would suit New Zealand.
Hugo Chavez is having a go at providing a "workers' paradise" in Venezuela. We hope he makes it but we think the odds are against him.
Socialism didn't work in the 20th century - why should it work now?
Aug 7, 2008, 14:48
Naked Shorting's Early Critic Starts To See Some Vindication
One of the dangers of excess paper money floating around the banks and money traders is the continual drive to be more imaginative in how to use the systems to generate more profits.
Naked shorting sounds alarming but is just the common practice of selling shares not owned or borrowed in an attempt to drive down the price. Selling shares that don't exist gives the impression on the market that the company has issued more shares than they truly have. This tends to drive down the price and enables the short sellers to make a profit by buying later at a lower price.
Artificial manipulation of shares without investing any cash!
The USA government is starting to take action against this practice. How was it ever allowed to arise in the first place?
Don't forget that the US government has in place the "Plunge Protection Team" which has the task of ensuring that the Dow doesn't suddenly drop too suddenly causing a wide spread panic. But, isn't this more manipulation of an ostensibly free market?
Running a paper money system gets worse and worse and more and more difficult as the years go by. How much longer can the Central Banks keep all the balls in the air?
Aug 4, 2008, 16:33
Quote for the Week
"Most of the greatest evils that man has inflicted upon man have come through people feeling quite certain about something which, in fact, was false."
- Bertrand Russell
Jul 8, 2008, 10:49