I set great score by the accuracy of the material presented in my Blog. A single source of information is not enough.
The level set is that of a Jury; Does the material meet the standard of "Beyond Reasonable Doubt". Because the material is so far beyond what a person is exposed to the standard is higher. You can perform the checks & balances yourself. I hope you will as your life and the future of the Human Race hangs in the balance.
We live in a time that might occur once in 25,000 Years.

Friday, August 26, 2011

No Great Words From The Jackson Hole


The comments of Paul Krugman suggesting an Alien threat facing the Planet would be sufficient to "Kick Start" Obama's 'Green Shoots'.

Nothing like a look back to 1945 Europe and Keynesian Economics is vindicated, all those buildings and factories turned to rubble.

IMHO anybody who believes that the destruction of production , the materials, labor and capital used to produce a Bomb is way to create work and restart an Economy is nuts.

A Padded UFO will be landing to pick them all up. 40 Years of using colored paper in ever increasing amounts has produced debt.

The solution is for Governments to get out of the process, imagine for a moment what a Trillion Dollars of available capital utilized by individuals and companies to innovate, start small enterprises etc.

Instead I see men in the poorest of countries walking around with AK47's and Bandoliers of Ammunition. How much is one .50 Caliber Bullet?...... After its fired; at best an empty Brass case, at worst a wounded or dead person.

Below is a quote from Mr Keynes...

" If the Treasury were to fill old bottles with banknotes, bury them at suitable depths in disused coalmines which are then filled up to the surface with town rubbish, and leave it to private enterprise on well-tried principles of laissez-faire to dig the notes up again (the right to do so being obtained, of course, by tendering for leases of the note-bearing territory), there need be no more unemployment and, with the help of the repercussions, the real income of the community, and its capital wealth also, would probably become a good deal greater than it actually is"

And now from Mr Paul Krugman.

"Keynes then goes on to explain that the actual business of gold mining — in which basically useless ore is mined and refined at great cost, then sent to sit idle in the basements of central banks — is for all practical purposes identical to his coalmine idea.

He was right then, and I’m right now — and if you find it strains your personal credulity, so what?"

Yes it strains my credulity, the same could be said for a Canvas daubed in Paint by Picasso. No practical value?

I wasted a year learning about Keynesian Economics, I remember something about "Statutory Reserve Deposits". Banks have become the Mad Masters of the World. Let no-one suggest War as a solution to Economic bad management.

Governments get out of the way, lets put an end to this nut job thinking and all those idiots awaiting great words from Ben Bernanke, the leading Nut Job. I am off to buy some Gold and Silver.

How long will it take for the generation who have never known any better to wake up?

A Fundamental Change of Thinking is now Required
'If its written on paper its worth the paper its written on'

With Global Gross Product around $35 Trillion, and paper Monetary Instruments + actual printed FIAT Money now measured in the Quadrillion or close to it. We have come to point in History like no other in the recorded memory of Humanity.

To even consider using the recommended methods of saving money / safeguarding the product of your labor you have to take in the absurd and dangerous situation the Global Economy is in.

The so called Recession started in 2008 and now is a full blown Depression in many countries. People are prone to denial of reality outside of 'Normal' , the 'Normalcy Bias' I have heard it referred to.

It will take Decades to repair the damage, unless some breakthrough in Energy Technology or some other change equivalent to the discovery of Fire is made, its going to be a long haul.

I believe that given a free hand, real Capitalism could speed the process. In the meantime real assets , Gold, Agriculture, Energy are the way to go. Some Dividend Stocks might have a place, for the moment I would not go near the Stock Market.

Presently FRAUD is the primary means of production, the destruction of wealth through Inflation / Financial Repression is in play. When the edifice of the Global PONZI Scheme is collapsed and sound money introduced then we may be able to trust a Bank.

Presently all 4 of Australia's Banks are a few percentage points away from a run on their assets. They are up to their necks in overpriced Real Estate.

I am not a Financial Adviser, this is my opinion based on observation & common sense. A Trillion is a very large number, a quadrillion is insanity when its needed to describe money and DEBT.

Buy Food, then work on the rest.

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