Last Updated: Oct 22nd, 2010 - 15:35:08 Newsletters : 2009 Newsletters : 9 October 2009 Thought for the Day As we look on the world scene we see much financial turmoil. We know that fiat currencies are inherently unstable and doomed to extinction. The Arabs are tired of selling their valuable commodity, oil, for American paper promises which show every sign of becoming worth less. The Chinese are not quite as inscrutable as ever and they both are not happy about American attitudes. Will they join with Russia and India and perhaps Brazil to found a new reserve currency - one with a 50% weighting of gold? Or is this just another rumour? The Reserve Bank of New Zealand assures me that they do not own any gold. How barbaric! Oct 9, 2009, 12:52 Newsletters : 2009 Newsletters : 9 October 2009 The Dollar Funds America’s Wars China, Russia and other countries moving to shift from dependence on the dollar are tired of funding US wars, says activist and former stockbroker Max Keiser. [ Visit Website ] Oct 8, 2009, 18:42 Newsletters : 2009 Newsletters : 9 October 2009 America Sinks With its Gold Our world wide paper money depends on the confidence of the population at large. When this confidence disappears then the gold mania starts. The American establishment can fool most of its population but it is not fooling the Chinese - nor the Arab oil producers. It is just a matter of time. [ Visit Website ] Oct 8, 2009, 09:57 Newsletters : 2009 Newsletters : 9 October 2009 Interview With Congressman Alan Grayson The Federal Reserve of the USA is in trouble. Ron Paul looks like getting it audited and Congressman Alan Grayson is on the trail as well. This is one of the biggest stories in the world today and no-one is saying anything. Listen up. [ Visit Website ] Oct 7, 2009, 10:51 Newsletters : 2009 Newsletters : 9 October 2009 Flawed Climate Data Ross McKitrick concludes: "I have been probing the arguments for global warming for well over a decade. In collaboration with a lot of excellent coauthors I have consistently found that when the layers get peeled back, what lies at the core is either flawed, misleading or simply non-existent. The surface temperature data is a contaminated mess with a significant warm bias, and as I have detailed elsewhere the IPCC fabricated evidence in its 2007 report to cover up the problem. Climate models are in gross disagreement with observations, and the discrepancy is growing with each passing year. The often-hyped claim that the modern climate has departed from natural variability depended on flawed statistical methods and low-quality data. The IPCC review process, of which I was a member last time, is nothing at all like what the public has been told: Conflicts of interest are endemic, critical evidence is systematically ignored and there are no effective checks and balances against bias or distortion." Climatologists lacking in integrity make a good living promoting unscientific propaganda, some politicians hope to distract people from the current and impending financial disaster, and Al Gore has apparently made US$300m for his efforts on behalf of his "big business" buddies. If you want the answer - follow the money! [ Visit Website ] Oct 6, 2009, 10:51 Newsletters : 2009 Newsletters : 9 October 2009 Gold vs. Paper Money At last, someone who thinks and expresses so well what I think: Egon von Greyerz, Managing Partner of Matterhorn Asset Management AG in Switzerland, is known for his clear cut analysis on worldwide financial developments. His message: “The Dark Years Are Here.” In an exclusive interview for MMnews, Mr. von Greyerz reflects on hyperinflation, the end of the “US empire” and his expectations related to the gold market. This is a must read article! [ Visit Website ] Oct 5, 2009, 19:47 Newsletters : 2009 Newsletters : 9 October 2009 Happy Birthday Buddy Rich Sometimes economics can be a bit depressing. The poor old human race just can't seem to leave well enough alone. Our constant economic tinkering is the problem not the solution. But here is another solution. Be happy. Buddy Rich is having a birthday and there are two surprise guests. Only the ancients among us will remember these guys. Please enjoy something different. [ Visit Website ] Oct 1, 2009, 10:33 Newsletters : 2009 Newsletters : 9 October 2009 Capitalism versus Statism There is in fact a "Third Way" - but not what Tony Blair envisaged. A longish article requiring much thought - perhaps for a wet Sunday! [ Visit Website ] Sep 30, 2009, 11:55 Newsletters : 2009 Newsletters : 9 October 2009 Gold vs Paper Ludwig von Mises was the acknowledged leader of the Austrian School of economic thought, a prodigious originator in economic theory, and a prolific author. Mises's writings and lectures encompassed economic theory, history, epistemology, government, and political philosophy. His contributions to economic theory include important clarifications on the quantity theory of money, the theory of the trade cycle, the integration of monetary theory with economic theory in general, and a demonstration that socialism must fail because it cannot solve the problem of economic calculation. Mises was the first scholar to recognize that economics is part of a larger science in human action, a science that Mises called "praxeology." This is REAL Economics explained for you. [ Visit Website ] Sep 29, 2009, 13:38 Newsletters : 2009 Newsletters : 9 October 2009 Global Competitive Index 2009 - 2010 The World Economic Forum has this to say about New Zealand's competitiveness: "New Zealand (20th) advances four ranks and joins the top 20. It is the only country within the top 20 to improve its score year on year (4.9 to 5.0), an increase attributable to a number of small improvements across the board. The country maintains or improves its rank-ing in no less than 85 indicators out of the 113 that compose the GCI. Public institutions are assessed very well, placing New Zealand in 5th position worldwide, behind only Singapore and three Nordic countries. The incidence of corruption is minimal by all measures. And when it comes to private institutions, New Zealand is second to none. It ranks 1st with respect to corporate ethics, the strength of auditing standards, and protection of shareholders; and 2nd for the efficiency of corporate boards. Overall, the environment is extremely conducive to business, supported by efficient goods (8th, up nine places) and labor (11th) markets, and by one of the soundest financial systems in the world (3rd).Yet the country is not immune to the crisis, which has been aggravated by its large current account deficit, the high level of household indebtedness, and the fall in commodity prices. After 10 years of uninterrupted growth, New Zealand will experience a mild recession in 2009. Furthermore, very much like neighboring Australia, New Zealand’ s infrastructure is in need of upgrading, as reflected in the country’ s 35th rank in this area - its lowest for any of the 12 pillars, after market size. In this light, within the government’ s stimulus plan, investment in infrastructure projects and incentives to boost innovation capacity would be expected to improve the country’ s competitiveness going into the future." Not too bad but still five places behind Australia! Sep 29, 2009, 12:37 Newsletters : 2009 Newsletters : 9 October 2009 No Reform, Just a Cosmetic Patch For a Discredited, Flawed Regime 'The ultimate result of shielding men from the effects of folly,' said the Victorian philosopher Herbert Spencer, 'is to fill the world with fools'. The politicians up north are desperate to keep their economies going smoothly, the bankers are keen to make the profits they had become accustomed to and the economists they employ are keen to keep their well paying jobs. Most macro-economists seem to spend their energies supporting their masters' desires with their smoke and mirrors hiding reality. However, all is not lost, some journalists are starting to "get" it. Reality will strike. Be prepared. [ Visit Website ] Sep 29, 2009, 10:15 Newsletters : 2009 Newsletters : 9 October 2009 The World's Most Powerful Currency? Mogambo floats an idea! Sep 29, 2009, 09:52 Newsletters : 2009 Newsletters : 9 October 2009 Money Figures Show There's Trouble Ahead New Zealand is standing up remarkably well, but for how long can we afford our welfare state? We assume that we can just borrow more and slowly things will come right. "Inflation will take care of it," is the catch-cry. But New Zealand has resumed the downward spiral into poverty that Helen Clark and Michael Cullen precipitated with their ideas of big government - Michael told me it was "capacity building" at the time. It wasn't until much later that I understood what he was talking about. Governments cannot plan their way into prosperity. They can only free up the economy by reducing the tax burden and let us workers generate the wealth that we all need. Governments cannot generate wealth. They can only take it form one section of the community and distribute it to another. Being able to borrow and/or print more paper money is not a solution. It is a temporary expedient. The rest of the world continues to get into a worse mess which doesn't help us at all. Keep smiling - it looks like a long slow gentle landing. Sep 28, 2009, 12:25 Newsletters : 2009 Newsletters : 9 October 2009 A New Magna Carta For Our Times Our paper money system must end some time. History says so. So does REAL Economics. It is likely to end in a burst of hyper-inflation. Whether we go in this crisis or in the next even bigger one remains to be seen. This money system certainly isn't boring! [ Visit Website ] Sep 28, 2009, 11:36 Newsletters : 2009 Newsletters : 9 October 2009 Paul Krugman's Identity Crisis Is the economic profession in crisis? It should be. [ Visit Website ] Sep 28, 2009, 10:56 Newsletters : 2009 Newsletters : 9 October 2009 How China Became The '800-pound Gorilla' in The Gold Market "China’s Central Television, the nation’s main state-owned television company, is now running news programs, which strongly resemble infomercials, explaining just how easy it is to purchase gold and silver as an investment." What is China up to? [ Visit Website ] Sep 27, 2009, 16:57 Newsletters : 2009 Newsletters : 9 October 2009 The Fed Under Fire Have you ever wondered what Central Banks get up to? Americans are starting to smell something fishy with the Fed! [ Visit Website ] Sep 27, 2009, 12:02 Newsletters : 2009 Newsletters : 9 October 2009 Quote for the Week I do not feel obliged to believe that the same God who has endowed us with sense, reason, and intellect has intended us to forgo their use. Galileo Galilei Sep 26, 2009, 10:08