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.



In 5 years of watching this chart (daily) I have never – never – seen this:


What does this suggest?

First, see those tiny little movements before today?  That’s called MANIPULATION.

Second see that big jump today?   That’s called “When the ball can no longer be held under water by the biggest manipulators in the world aka the central banks.”  There’s no news that would cause the jump.  It’s just that the ball is getting too big to hold under water anymore.

I said this would happen eventually.  When trust breaks.

Sadly the Chinese don’t trust each other.  They will end up trading in gold and silver.  And their idiotic rehypothecation-ponzi-lying will (ironically) bring down the Western monetary system.  Why?  Because the West lies but only strategically on the big matters.  Small people don’t lie day to day.   So Nixon can close the gold window and people continue trusting the system for another generation.  It’s been 43 years since August 1971 when the gold window was closed.

In China everyone lies.  Big and small.  No one can be trusted.  So the game blows up much quicker in China.  That’s why to survive people will ask for gold in China.  And that’s why the game will end, even if the Chinese government and the West don’t want it to.

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


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.