Archive for February, 2014

The terrible “twos”

February 28, 2014 Leave a comment

Bitcoin is around 2 years old and is going through the same growing pains any 2 year old endures.

Mt Gox has blown up.  But note – Bitcoins are still trading at reasonable prices on other exchanges, which is quite surprising given the publicity over Mt Gox.

And note that Mt Gox apparently ran a fractional reserve system.  So even with Bitcoin the gremlins and shysters appear.

What to do?

1. Be careful what exchange holds your bitcoin, just like being careful about which bank holds your cash.

2. If you have substantial holdings of savings in bitcoin, I’m amazed.  You don’t have better places to park and grow your money?  Like a Caribbean island?

Bitcoin will still be around.  Just like fiat money is still around.  It’s “true” value (after the attacks and the government propaganda and the hysteria have died down) is yet to be determined.

The lesson?

Never buy in the middle of a bubble.  Buy at the beginning or at the end.  Bitcoin looks good value now.  So does Argentina.  So does Ukraine.

UK property and Australian properties do not.


The quintessential “politician”

February 20, 2014 Leave a comment


Am I crazy or is the whole world crazy?

February 15, 2014 Leave a comment

How often have I been screaming that fractional reserve banking creates perverse incentives to concrete over precious arable land for suburban homes?  How often?  How often have I predicted environmental disaster – not because of climate change – but because of insane banking practices?  How often?

Well, here it comes.  How maddeningly predictable.

Every time fractional reserve banking has gotten out of control there have been dust bowls.  Why?  Because fertile land was concreted over for speculative land development which then takes decades to re-balance.

I want to die before there’s a full blown environmental crisis because I won’t be able to take it when all the commentators blame capitalism or climate change when that’s not the real cause.

Oh, and by the way – flooding in London in 2014 and Brisbane in 2011 was substantially caused by over-development, leaving stormwater to flush down poorly planned sewage systems, rather than be soaked up on farmland where the water used to find its proper home.

I hate the stupidity of the majority.  They deserve to die but they won’t, they will continue to steal from the productive minority until all the farmland is bitumen-fucked to death.

Gold is coming back. Big time.

February 11, 2014 Leave a comment

Who is laughing now, eh?

Gold has been best asset to hold since QE Taper.  It will be the best asset to hold when the world goes Greek.  You can take that to the insolvent bank.


Work in government. Then run.

February 11, 2014 Leave a comment

The best strategy when living at the end of a fiat money cycle has always been the same – get as high up in government as you can.  Put your savings in a farm far far away.  When the whole economy blows sky high because your (and your fellow parasite’s) bloodsucking on tax proceeds kills the host, run.

Exhibit 1 – End of fiat money.  Tick.  Washington (and Canberra) biggest median incomes in the US (and Australia).  Tick.  Washington by far the most optimistic people in America.  The parasite is happy but the host is dying.  How long will that last?  As long as China doesn’t pull the gold pin, that’s how long.


The Likeness of God

February 10, 2014 Leave a comment

I am posting the most succinct and eloquent summation of this blog I could possibly write.  Pity I did not.  Read it and weep my friends, read it and weep…


The Likeness of God is to Create not Consume.  Ingenuity and innovation are hallmarks of our human creativity. Curiously, those marvelous characteristics unique to mankind, which have delivered the most astoundingly advanced technological productivity gains ever conceived, are now fast displacing a multitude of relatively menial jobs previously attended to by human beings, who having been anchored to unsatisfying and unfulfilling laborious routines, were less able to enjoy the free time and space certainly required to become more creative enlightened beings themselves.

Surely, the simple answer to our current macro economic dilemma, namely low growth with vanishing jobs, is to once again call upon our God given human ingenuity and innovation, so as to quite simply redesign and rearrange the furniture in our grand house more adeptly.  If we so choose, we can freely create more, we can joyously labor less, and we no longer must be slaves to the degradation of excess consumption.  See how that works?

A word of caution, getting there will not be plain sailing and rather tempestuous I’m afraid.  Change will be vigorously opposed and resolutely resisted, particularly by those who have attained much power, privilege and affluence, as they have been conditioned to measure and value their own success, sense of significance and acquired tenure in the presently established order of society. They will understandably do all in their power to defend and cling onto an organized societal system and set of values, where they have clear vested interests and which has seemingly served them so well, no matter how obviously clear it is that the world around them is increasingly becoming unglued before our very eyes. The desperation of the QE monetary policy dependency itself, is but a misguided manifestation of the dangerous hubris and arrogance that puts forth and fiercely holds on to an obtuse refusal to acknowledge and accept the reality of the inevitable change in the winds that is now howling so vociferously upon us.

Purposely degrading this Nation’s hard earned reserve currency status, which was so honorably passed on to us by previous generations who built this great country from the ground up with their virtuous and industrious blood, sweat and tears, only to then implement a disgraceful monetary policy that deliberately steals from future unborn generations in order to facilitate living standards beyond our means, so as to sustain an unearned, undeserved and unprincipled culture of grotesque illegitimate debt financed over-consumption, can only be characterized as a deplorable unconscionable abomination of Biblical proportion.

We physically finite mortals just so happen to inhabit a physically limited globe also made up of finite resources, inevitably, the days of unlimited growth and excess mass consumption must be expeditiously put behind us. To artificially sustain this decadent overindulgence via unsustainable debt financing is absurdly short sighted lunacy which borders on sheer insanity. Either we adapt or we die, same as it ever was.

This free choice which has been divinely granted to us is entirely ours to make.

Bastiat’s seen and unseen

February 10, 2014 Leave a comment

Better fire fighting services, or the Grand Prix?

Tax payers dollars carefully allocated or squandered?

Who decides?


Categories: Miscellaneous Musings