I started this blog in June 2007 asking these questions: Are we in a massive asset bubble that will blow up in our faces ??? - ANSWERED YES ! Is western and particularly British society on the verge of social collapse??? What are the best common sense long term investment strategies to keep you rich? When will consumption/debt bubble economics end and a real savings/production economy begin ???

Monday, 31 May 2010

Negative US M3 points to more deflation and a double dip ?

Chart of U.S. Money Supply Growth

The M3 money supply in the United States is contracting at an accelerating rate that now matches the average decline seen from 1929 to 1933, despite near zero interest rates and the biggest fiscal blitz in history.


The response to this is critical. If the US starts helicoptering money into the economy then hyperinflation is assured.

Eurozone M3 at -0.1 % growth:


UK M4 not contracting (maybe this is why it has the highest inflation rate in the developed economies)

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Sunday, 30 May 2010

Naomi Wolf - The End of America



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Better off stateless: Somalia before and after government collapse

Could anarchy be good for Somalia's development? If state predation goes unchecked government may not only fail to add to social welfare, but can actually reduce welfare below its level under statelessness. Such was the case with Somalia's government, which did more harm to its citizens than good. The government's collapse and subsequent emergence of statelessness opened the opportunity for Somali progress:



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Saturday, 29 May 2010

Total U.S. debt reaches level at which any new debt reverses rather than stimulates growth


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If China's economy is so strong why does it have to get most of its growth from increased lending ?

the composition of China's growth has undergone a potentially treacherous change: in the absence of expanding foreign demand for its exports, it has instead come to rely on a massive surge in domestic bank lending to fuel its growth rate.

Indeed, when measured relative to the size of its economy, the 27pc point jump in bank loans to GDP is unprecedented; at no point in history has a nation ever attempted such an incredible increase in state-directed bank lending.

What a turnaround: from an export juggernaut to a credit addict. Who would have thought it necessary back in 2001, the year everything all started to work out for China?


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Friday, 28 May 2010

High inflation does not necessarily mean higher stock prices

in a high inflation world the Dow crossed 900 97 times between 1965 and 1982, and crossed 1000 65 times between 1972 and 1982. Since 1999 we haven’t had inflation to ease the adjustment as the overall CPI price level is only a third higher.


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Tuesday, 25 May 2010

The beginning of a U.S. currency crisis and hyperinflation

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Monday, 24 May 2010

Prechter on Yahoo! Finance: "On Schedule for a Very, Very Long Bear Market"

This massive deflation that Prechter speaks of could only happen on a gold standard. Thus comparing the 30s to now is foolish. There will be massive deflation in the next 10 years but only when measured in terms of gold. In fiat currency terms we will have massive inflation as central banks print and print in accordance with their 'New Keynesian' ideology.

The question is how much deflation can the Euro zone take before it breaks up so the consistent countries can start inflating ? Will Germany end up leading a new 'Hard Euro' north eastern European block ?


Robert Prechter's Glimpse Of The Apocalypse To Come

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Sunday, 23 May 2010

The Dollar Bubble

The US/UK governments have only one answer to deflation: print money !

All this will do is create a yo-yo economy that swings between jobless inflation boom and deflationary bust until some supply shock (e.g. peak oil price spike) tips these economies into hyperinflation.

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CIA Whistle Blower Reveals The Truth About Government

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Monday, 17 May 2010

Denationalisation of Money - 1995 essay by Max More

What is the point of removing the government monopoly on money? Is it simply an ideological dream of radical free market enthusiasts? It may be a dream, but it's a dream with substance. The desirability of competing currencies comes from practical considerations. We can expect competing currencies to provide remedies to four economic ills: inflation, instability, undisciplined state expenditure, and economic nationalism.


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Saturday, 15 May 2010

The China syndrome

When the China asset bubble bursts (and I suspect it is a when, rather than an if), it won’t just destroy wealth, it will also sink people’s faith that this time it’s different, emerging markets are here to stay, and we’re in the middle of an historic shift of wealth from West to East.

Sadly, the West won’t be in a position to celebrate




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Saturday, 8 May 2010

The Euro under the ECB: all the pain of a gold standard with non of the benefits

But states in the US are not like states in Europe. Labor and capital mobility in Europe is very low compared to the US, and the Civil War in the US ensured that sovereignty, including most importantly fiscal sovereignty, resided in Washington DC, and not in the various state capitals. The US is clearly as much an optimal currency zone as any large economy can be.

This isn’t the case in Europe. In fact I would argue that the existence of a common currency in Europe, the euro, is only a little more meaningful than the existence of various currencies under the gold standard, and it was pretty obvious under the gold standard that balance of payments crises could indeed exist.

So why not also in Europe under the euro? As I see it, domestic German policies, perhaps aimed at absorbing East German unemployment, forced a structural trade surplus. The strong euro, along with the automatic recycling of Germany’s large trade surplus within Europe, ensured the corresponding trade deficits in the rest of Europe – unless Europeans were willing to enact policies that raised unemployment in order to counter the deficits. As long as the ECB refused to raise interest rates, southern Europe had to accept asset bubbles and rapidly rising debt-fueled consumption.


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Monday, 3 May 2010

You are living in a fiat currency matrix

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Saturday, 1 May 2010

How America Can Be Saved [Hans-Hermann Hoppe] 1996

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Warren Buffett Watch

Amazon UK Picks