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Mind Mapping FRB

October 28, 2014 Leave a comment

Mind Map

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Categories: Miscellaneous Musings

Building blocks of logic

September 22, 2014 Leave a comment

Just as a quick mental note to myself in relation to this article that I’ve been working on for, well, around 10 years….

1. FRB causes malinvestment in two dimensions.  It promotes overinvestment in “higher order” goods (ABCT). And it promotes Ponzi speculation in housing (Minsky).

2. Both forces combine to underprice water and land for farming.

3. The Fed has every major market manipulated so the “truth” doesn’t appear.  The truth appeared in 2008.  What did it show?  Much lower stock and house prices.  Much higher oil and commodities prices.  To suppress these price signals is to suppress investment in these industries and guarantee future undersupply – all in the name of saving the financial system.

4. If this continues we will NOT have a financial crisis.  We will have an environmental or food or water shortage crisis.  Note:  This will not cause explosive food prices.  It will cause increased food contamination and food debasement scandals.

The warning bells have been silenced.  So the alarm will go off too late.

Best quote to sum up the end game:

The hint of what comes is seen in the devastating situation in Venezuela, whose tragedy few are paying attention to. They are exporting their essential products (beans, rice, oil) in order to raise hard currency and to prevent a domestic currency collapse. The same will be done in the United States. The early example of exported essentials is of hayfeed for livestock, heading to China from US farms on a growing basis.

Categories: Miscellaneous Musings

There may be a God

Now that Krugman is out of Princeton perhaps the Fed will be out of the US?  Too much to hope for….

I have despised this guy for years.  Finally he’s getting the ostracism he so richly deserves.

When (not if) China blows up what are the consequences?

March 31, 2014 Leave a comment

It’s coming.  No doubt.

But what are the consequences?

A lower $A.  A housing bust in Australia.

I’ve been waiting for the next 2008.  It’s gotta come.  With the system we have it’s inevitable every 5 years or so.  So we’re overdue.

Looks like China is going to be the “blow up” candidate this time around.

 

Ayn Rand

OK, she was a little kooky and doctrinaire, but she had insights and was a clear thinker.  To quote Ayn Rand:

When you see that in order to produce, you need to obtain permission from men
who produce nothing; when you see that money is flowing to those who deal not in
goods, but in favors; when you see that men get rich more easily by graft than
by work, and your laws no longer protect you against them, but protect them
against you, you may know that your society is doomed.

We are DOOMED.

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

tony-blair-selfie