Again China stands out from the crowd. What's it all about? Well I'll tell you. It seems the UN or the Hague or some such entity, (I didn't take notes but if you read internet news you'll know what I'm talking about) made a warrant for crimes against humanity or something to the president of Sudan whose name escapes me at the moment but that don't matter here because I could probably neither spell nor pronounce it correctly. It seems the sheik of Sudan doesn't want to hear anything from "white man" while he kills off black man and rapes black woman because they're not a muslim.
China injected the opinion that their shouldn't be such a warrant nor should it be pursued. I admit that I don't know why China would say this but the first place I would look would be China's own human rights record and also note if their are any oil deals.
Mr Iran is still in the news. They say he's being intimidating. He's doing all he can to be the bull's eye caliph. Nukes give him backbone you know. Mymood Imonajihad sure has been living up to that nik name and he's going to prove it to the world. But first he's got to get in front of the mirror and practice the hard face for the next photo op.
Thursday, March 5, 2009
Printing Money
Yes I've spoken from time to time about how money will not survive technology because developing technology will eventually result in counterfeiting and monetary terrorism becoming more out of control than it already is. Click on the archives to see my prior work. All eloquent orations indeed. However today I must expand on this by saying who needs technology and counterfeiting when governments around the world are showing their willingness to print money with abandon. With much more abandon than I once thought possible I may say.
This is all why gold will eventually become the money of the world for those that will use money. Things only have value when they are rare. The common is always dirt cheap. Fiat currencies have their values undermined by excessive printing which is a historical fact proven to many times before. Counterfeiting is also part of that equation.
I've identified 2 general schools of thought on the subject of gold becoming the currency of the world. Their are those who have thought about it and the others don't want to think about it because they usually like things the way they are. Wouldn't it be nice. I mean if things in the world would remain a certain way just because we think it should. Those who don't like the concept of gold as currency usually do as the result of some imaginary fear based in not knowing what they are doing. The logical fact is that in order to preserve the value of money, gold will have to become the currency of the world and no matter what the shortcomings of gold that you think you can identify are, you will have no choice but to take whatever steps are required and make gold work.
Determining the value of gold is actually very simple. Since this value is based on gold as money/currency and the money supply should remain constant to preserve the integrity of an economy. First you take the amount of money in the world. I've seen claims that it is about $4,000,000,000,000.00 or equivalent and then add about $10 more trillion for U.S. debt then I heard another claim today that their is about another $10 trillion in mutual funds. Take that amount and divide it by how many onces of gold their are available. Nobody can provide these amounts precisely on a world wide basis. You'll get a minimum of about $3,000.00 an ounce. Today's gold price isn't anywhere near this and isn't even close to the inflation adjusted 1980 or so high. In today's economy gold is likely going to be the only performing investment asset for some time.
Yes I have a small position is gold that I use to pay my internet bill and keep food on the table. I identified these gold investment facts some years ago and sent some letters about this to Barron's magazine. They clearly showed my ideas to investment managers and they quickly picked up on it. That sparked the rally that has been going ever since.
This is all why gold will eventually become the money of the world for those that will use money. Things only have value when they are rare. The common is always dirt cheap. Fiat currencies have their values undermined by excessive printing which is a historical fact proven to many times before. Counterfeiting is also part of that equation.
I've identified 2 general schools of thought on the subject of gold becoming the currency of the world. Their are those who have thought about it and the others don't want to think about it because they usually like things the way they are. Wouldn't it be nice. I mean if things in the world would remain a certain way just because we think it should. Those who don't like the concept of gold as currency usually do as the result of some imaginary fear based in not knowing what they are doing. The logical fact is that in order to preserve the value of money, gold will have to become the currency of the world and no matter what the shortcomings of gold that you think you can identify are, you will have no choice but to take whatever steps are required and make gold work.
Determining the value of gold is actually very simple. Since this value is based on gold as money/currency and the money supply should remain constant to preserve the integrity of an economy. First you take the amount of money in the world. I've seen claims that it is about $4,000,000,000,000.00 or equivalent and then add about $10 more trillion for U.S. debt then I heard another claim today that their is about another $10 trillion in mutual funds. Take that amount and divide it by how many onces of gold their are available. Nobody can provide these amounts precisely on a world wide basis. You'll get a minimum of about $3,000.00 an ounce. Today's gold price isn't anywhere near this and isn't even close to the inflation adjusted 1980 or so high. In today's economy gold is likely going to be the only performing investment asset for some time.
Yes I have a small position is gold that I use to pay my internet bill and keep food on the table. I identified these gold investment facts some years ago and sent some letters about this to Barron's magazine. They clearly showed my ideas to investment managers and they quickly picked up on it. That sparked the rally that has been going ever since.
Thursday, February 19, 2009
Smoot Hawley
The Smoot-Hawley tarrif act. Here is a protectionist trade act that worked through the taxation of imports and it was intended to improve business conditions for American manufactures. It didn't do that however and more over it resulted in retaliatory tarrifs from foreign countries which many believe resulted in the great depression. The reason why for this is not what people usually think.
For instance many people believe that America can only be prosperous if their is foreign trade and imports. I see this as gray because it is both true and not. A truly great country is capable of producing for all of its needs and is self sufficient but America clearly must have imports in order to be prosperous.
The greater point is this. Smoot-Hawley and the like only harms an economy when the country is ALREADY addicted to the imports. Self sufficiency is always a workable option that is more resilient especially to shananigans of foreign governments.
America is clearly incapable of achieving this and the reason why is quite simple. The excessive greed of the unionized worker. These who have convinced themselves that they are worth more money than the typical world wage for the work they do and they are usually willing to resort to acts of extortion, the strike and lockout, to obtain their wants. And companies desiring to escape this have moved their manufacturing outside of the U.S. When money is your focus then money will be your downfall.
Here is something worthy of note. Obama ran his campaign on change yet his economic policies are the same old print it as fast as you can then throw it. I guess what he meant by change was stimulus by the train load. Then you notice how Washington is staying busier than ever trying to micromanage the nickels and dimes in the itemization of the stimulus bill. The economy would be stimulated just as well with a lot less work if they just dumped the money into a truck and had the people line up with a shovel and a sack.
An Observation. Washington is printing a lot of paper and taking on mountains of new debt in order to build buildings that many of which they don't need anyway.
I noticed Rush Limbaugh said last week that all of the government debt in a collapse is what caused the economic problems today. Interesting since he has said repeatedly over the years that the government debt would never be a problem.
Social tip for the day.
If you have guests over for food and you serve the drinks, don't handle the top of the glass. It is rude. It is not appetizing looking at greasy fingerprints where one's mouth is to go.
For instance many people believe that America can only be prosperous if their is foreign trade and imports. I see this as gray because it is both true and not. A truly great country is capable of producing for all of its needs and is self sufficient but America clearly must have imports in order to be prosperous.
The greater point is this. Smoot-Hawley and the like only harms an economy when the country is ALREADY addicted to the imports. Self sufficiency is always a workable option that is more resilient especially to shananigans of foreign governments.
America is clearly incapable of achieving this and the reason why is quite simple. The excessive greed of the unionized worker. These who have convinced themselves that they are worth more money than the typical world wage for the work they do and they are usually willing to resort to acts of extortion, the strike and lockout, to obtain their wants. And companies desiring to escape this have moved their manufacturing outside of the U.S. When money is your focus then money will be your downfall.
Here is something worthy of note. Obama ran his campaign on change yet his economic policies are the same old print it as fast as you can then throw it. I guess what he meant by change was stimulus by the train load. Then you notice how Washington is staying busier than ever trying to micromanage the nickels and dimes in the itemization of the stimulus bill. The economy would be stimulated just as well with a lot less work if they just dumped the money into a truck and had the people line up with a shovel and a sack.
An Observation. Washington is printing a lot of paper and taking on mountains of new debt in order to build buildings that many of which they don't need anyway.
I noticed Rush Limbaugh said last week that all of the government debt in a collapse is what caused the economic problems today. Interesting since he has said repeatedly over the years that the government debt would never be a problem.
Social tip for the day.
If you have guests over for food and you serve the drinks, don't handle the top of the glass. It is rude. It is not appetizing looking at greasy fingerprints where one's mouth is to go.
Thursday, February 5, 2009
Obama, Pelosi and Rush
Obama doesn't want anybody to listen to Rush. Rush doesn't want anybody to listen to Obama and Pelosi shows up. Rush has been doing his best to create a Clinton scandal like atmosphere around Obama these days but I myself see no real evidence of this unless you want to consider mass murder because Obama supports killing off babies that survive abortions. Just put a rag over their faces and push their little heads through the gate of death. He rationalizes this by saying that if his daughter was in the same position he wouldn't want to see her punished with a baby. A far cry from the days when punishment for this circumstance included a leather strap and/or a wailing with a switch and/or pa gettin' his shotgun and making the family whole. When their is folly their is a price to be paid somewhere.
Then Pelosi says that birth control could stimulate the economy or so Rush says she says. Quite a hunk of deficit is supporting illegitimate kids. Here Rush got his chance with a leading democrat supporting smaller government and he's blowing it. Of course Rush isn't happy and his show gets stale without a democrat to attack. However I see no reason to support this birth control measure unless it includes forced castration or equivalent measure.
Then Pelosi says that birth control could stimulate the economy or so Rush says she says. Quite a hunk of deficit is supporting illegitimate kids. Here Rush got his chance with a leading democrat supporting smaller government and he's blowing it. Of course Rush isn't happy and his show gets stale without a democrat to attack. However I see no reason to support this birth control measure unless it includes forced castration or equivalent measure.
Thursday, January 22, 2009
Presidential Records
So President Obama signs an order making presidential records more revealing. That won't sit well with the Clintons. They have to much to hide. Then when Obama asked (I'm paraphrasing an audio clip I heard on the Rush Limbaugh show) "That is what I signed does isn't it?" Somebody better check and make sure he didn't just sell his brother into slavery. He may not know.
So Hillary gets a unanimous nomination as Secretary of State. Quite an accomplishment for a party to a coup attempt. Only in America. Other countries throughout history have had more austere methods for dealing with unpopular power grabs.
This could be intriguing because their is more to it than sitting on Obama's lap. Muslim's really like it when the girl can talk tough to them. Course I may be wrong on this but I do believe its part of the sheik culture that if a girl sits next to him on the couch and feeds him grapes or something they get docile. I wonder if Hillary could bear to let the world see that.
The their is Iran. Their could be some good photo oops. But yet it was Iran that took the hostages and during the Carter administration I may say. Obama may be smarter than I think.
So Hillary gets a unanimous nomination as Secretary of State. Quite an accomplishment for a party to a coup attempt. Only in America. Other countries throughout history have had more austere methods for dealing with unpopular power grabs.
This could be intriguing because their is more to it than sitting on Obama's lap. Muslim's really like it when the girl can talk tough to them. Course I may be wrong on this but I do believe its part of the sheik culture that if a girl sits next to him on the couch and feeds him grapes or something they get docile. I wonder if Hillary could bear to let the world see that.
The their is Iran. Their could be some good photo oops. But yet it was Iran that took the hostages and during the Carter administration I may say. Obama may be smarter than I think.
Wednesday, January 7, 2009
Obama's Political Honeymoon Is Ending
What already!? He hasn't even been sworn in yet. But then this isn't really a surprise. Presidents may talk different but when they get in office things stay much the same. They all do what their advisers tell them to do. You can expect the same Middle East policies and the same economic policies.
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