Finance

Beware The Ides of March…

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Can You Trust Your Bank

Students of Literature, will recognise the title from the warning given to Julius Ceasar, as epitomised in the Shakespearean play of that name.

It was a warning to the general, to beware, by a soothsayer (who remains nameless). A warning that apparently he ignored. Of course, as the conspirators – the Senators, stabbed at Ceasar, and Marcus Brutus a former long-time friend plunged his knife into the man, Shakespeare’s Ceasar uttered those now immortal words – “Et tu Bruté” (And you Brutus?)

Of course, in the modern era, the last major play, that resembles this drama, is the death of John Fitzgerald Kennedy on November 22nd 1963, as he was brutally slaughtered by a conspiratorial cabal operating in the upper echelons of the power political scene in America.

Who all these conspirators are, has remained largely unspoken… But some people, are doing what should have been done 50+ years ago, by the Dallas Police, before the CIA and the FBI took over the post assassination conspiratorial machinations, to cover up their involvement, and to plant the idea in the public’s mind, that “it was a lone gunman” a Russian Sympathiser, who spent three years in Russia, but who was in receipt of $200 per month from the FBI as an informer, and who received special training by the CIA to learn Russian, before he allegedly dropped out by going to Russia and staying there for three years…

Those invoved in the Conspiracy carefully massaged the images and the Warren Commission headed up by the very man, that Kennedy had fired just a few months earlier as Head of the CIA to ensure the story remained “on message”.

Of course George Herbert Walker Bush, when asked where he was at the time of the shooting, had vague recollections of where he was, despite someone of that name making a call to J. Edgar Hoover’s office – Head of the FBI just hours after the shooting proving he was in a hotel in Dallas. And his recollections apparently varied on subsequent questioning of the same incident, The same George H. W. Bush who went on to be Carter’s head of CIA, and then Vice President, during the 8 years that Ronald Reagan was President, and almost made it to the presidency when President Reagan was shot, by a lone nutter… But the President in true Cowboy hero fashion, survived.

JFK’s brother Robert Kennedy who also later ran for political office also met a sudden death when yet another lone nutter (CIA – MK-Ultra participant?) allegedly shot him at close quarters as he emerged from the hotel kitchen into the glare of waiting reporters, TV cameras and waiting dignatories – and CIA operatives?

Here is the best documentary I’ve seen on this and other subjects…

JFK Jr., had his 3rd birthday just three days after his father’s death, and after growing up and becoming by, all accounts, an honourable man, handsome, suave, considerate and latterly a pilot and publisher of a magazine called “George” – Was this a clue to the mystery surrounding his father’s demise?Why George?

And of course, John F Kennedy Junior ALSO met an untimely demise, when his plane came down late in the evening, as his plane disappeared off his flight path and plunged into the Atlantic, just 1 minute after he called in to the Martha’s Vineyard Airport, to say he was at 2,500 feet and ready to descend to the airport… But he never made it, falling out of the sky almost vertically just 60 seconds later… Meanwhile, George Bush Junior, for the three days, was nowhere to be found… Hmmmm… “Curiouser, and Curiouser”…cried Alice…

You can get a better description of events here…

So what does this have to do with the Ides of March?

Well, as President Trump has already made known to the world, some of the things he wants to do is to “Drain the swamp”, and began the process, though CIA leaks have been made to discredit him, but even the MSM have had to eat some of their words. However, many things seem to be happening that suggests he won’t see out his full-term – one way or another…

Already people are setting Trump up for a fall… Here’s how Zero-Hedge put it


Roberto Gualtieri, chairman of the European Parliament’s economic and monetary affairs committee, also criticized Trump. “Some first concrete confirmations of a new more unilateral policy stance by the new U.S. administration, including on sensitive financial markets regulatory issues, raise concerns and require both thorough reflection and action from the EU side,” he told the committee.

Meanwhile, Draghi deflected accusations lobbed at him over the weekend by German finmin Schauble, who said not Germany, but the ECB and Mario Draghi, are responsible for the undervaluation of the euro:

And SGTReport who holds views similar to my own, regarding the economy,  believes  much the same with regard to Trump’s likely outcome, as those behind the scenes are attempting to undermine, discredit, or if they can’t impeach him, probably develop a plan to slay him, when they produced this video…

 

And of course #Pizzagate is just another FAKE News story…

Err.. Maybe.


And of course, it was Trump and those Russian hackers who stole the election… Except it wasn’t…

 

BUT, at least Trump is fighting back, and so are the Americans…

Those evil Bankers, Oil-men, Military Corporate CEOs and multi-million share-holders, and those working for them in the secretive security organisations – all 16 of them, are now going to have their teeth pulled as the fight-back begins…As Ron Paul, that arch-enemy of the Federal Reserve has already had his £0.02 worth..

http://www.zerohedge.com/news/2017-03-08/arizona-senate-committee-passes-bill-treat-gold-money-remove-capital-gains-tax

So, if you’re in the markets, now might be prudent to lower your risk somewhat… Events have a habit of coming out of the blue, and given recent rises to bubble territory… and Cliff High’s, Jim Rickards’ and Bill Bonner’s and JIm Willie’s and Peter Schiff’s, David Morgan’s and Dr. Paul Craig Robert’s warnings a pull-back is long overdue.

UPDATE

This is an important adjunct to the above piece, as events come into focus:

The 15th March (Ides) is the day that Netherlands goes to the polls to elect a new leader. One in which the populist Geert Wilders is steadily making progress in the polls and is looking increasingly likely to win. BUT as Turkey and the Dutch go head to head over the latest political intrigue, will this mean Wilders gets more of the sympathetic vote, against the population concerned about the (as they see it) invasion of Islamists guaranteeing him the  vote?

The second concerning thing is the reaching of the $20 Trillion debt ceiling in the U.S. on that date, while also the Federal Reserve on that day too will decide whether to raise interest rates for just the 3rd time in 10 years.

And, in the UK, after the House of Commons rejected the amendment voted for by the House of Lords, this frees the PM’s hands to announce the formal Brexit process.

And finally, Clif High – researcher, has been announcing over the last two months that March onwards is likely to be tumultuous, and after all that, I found this…(below)

Anyone who has been reading this blog for any length of time, will know my feelings on Precious metals, and this just threw petrol on the bonfire.

 

 

 

 

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Just Another Fake News Story?

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Whilst browsing the internet, I come across many things, that deserve a wider audience, but am unable to offer any further evidence of these sometimes outlandish claims. Not so today.

This piece linked to below, really revolves around a much talked about subject, and one I have myself been involved in writing about, so this piece would appear to add further credence to the mystery.

http://themillenniumreport.com/2016/10/treason-who-did-911-and-why-did-they-do-it/

Who was responsible for 9/11?  WHY did they carry out the attacks of the World Trade Center (WTC)?  And if two planes brought down buildings one and two, how did building 7, a block or two away, across a wide expanse, collapse vertically, and yet was still upright when a BBC news anchor with a live link behind her, showing the building – that could be seen by all those sufficiently awake to notice, – was still visible, while we were being told that the building had already gone down?

The piece linked to above reads like an episode of: “The Bourne Trilogy” with a cast of characters taken from: Politics, Corporate Energy, Mafia and Banking Interests across the western world. I wrote too in the book  “The Coming Battle – 2013”  that events were spiralling out of control.

General Wesley Clark in a video interview explained that he was told in advance of plans to intervene in seven middle-eastern countries, all based on the lie of 9/11… The latest in a long line of black-ops “False-Flag” events, that were used to sway American -and in this case – worldwide opinion to permit those with their own agenda to influence events. And he also discussed what happened next and he recalled how the decision was taken back in 1991 –

It used to be that the propagandists with people inside the military and secret service industries, could modify the News agenda to get the outcomes that they wanted, and due to secrecy laws, their misdeeds would go unpunished for thirty years or more until after the secret documents could be widely accessed. BUT, the Internet has changed all that. The Mainstream News Organisations (MSM) exist to make money for their shareholders and senior management teams – and the corporations that advertise and market their wares on them, are generally large multi-nationals – the very corporations that the MSM is supposed to be keeping a beady eye on, in its role as defender of the public and the customer,  are the very same ones using politics to pursue their own agenda.

As ever, “He who pays the piper, calls the tune.”

So, as corruption apparently swirls around the world, I hear of imminent plans to rid the world of physical coins and notes – particularly in America, where many of the U.S.’s states, and institutions are seemingly hell-bent on destroying the last vestige of freedom – the freedom to spend as you like – by outlawing payment in anything other than digital means.

So will Gold and Silver be once more used to “Barter” with?

Will the closure of your bank, be the event that makes you take action?

Will the ATM closing, or your Bank closing one weekend and not re-opening again on Monday make you take action?

Will the disappearance of your pension fund make you take action?

The time has come.

 

 

 

Digital Currency – The Last Refuge of a Banking Scoundrel?

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In the news over the weekend, we heard the story that Andrew Haldane, the chief economist and executive director for monetary analysis and statistics at the UK’s Bank of England, has tried to run up the flagpole, the prospect of a digital only currency. America too is discussing this.

Now, why would a Banker do this?

What is a Bank? Primarily it stores savings (Capital) for its customers, and loans out this money (well we’ll call it money for now) to businesses and others to finance the development of new products and services, which add value, assist in growth, employ people, and spread prosperity throughout the nation (or currency union).

However, when a country has excess savings, these are liabilities on the bank’s books, and has been touched on several times throughout the time of this blog, these have to be paid back. However, there may be times when there are fewer good opportunities to loan money out for the banks, with huge amounts of money sitting in savings and today is one such time.

The driving force behind this excess savings is demographics. Demographics is the study of populations. The studies look at birth, and death rates, gender etc, and at how those births and deaths impact the society, and the economy. Where we build schools, hospitals, and even infrastructure like industrial parks.

After the second world war, all those returning service personnel got busy making babies. It happened in America and the Pacific region in ’47, it happened in Europe in ’46, as those two major conflagrations came to an end.

Twenty years later in the sixties, those babies, now young adults drove the swinging sixties, and Carnaby Street, the music and fashion scene as they all began doing what young people do. The children of those people reached maturity 20 years later, in the 80s and early 90s, driving Punk music, New-wave and the New Romantics, the “Acid house” scene, and the Brit-pop and Indie scenes of the 90s. This was the shadow boom as you might call it. These children of the baby-boomers are driving the economy now, as they reach their 40s, and lead consumption spending, but soon this too will slow.

Of course the baby-boomers as they are known, those born after WWII, are now frantically saving for their retirements, buying buy-to-let properties, and investing in their pension funds and therein lies the rub. All that capital going into savings has led to several booms; in Technology, in Housing, and since the 2009 credit crunch, the stock-markets in general. But since early 2012, the baby-boomers have been retiring in droves at the rate of circa 8-10,000 people per day, in the U.S. alone, and because of the low interest rates, and the drive to “save the economy” the Central Banks have loaned the people, and their representatives (governments) huge amounts of money.

America has an $18 Trillion public debt. Britain is in an even worse situation (person for person) with a public debt of £1.4 Trillion ($2Trillion+) And those Bankers are now worried that they might not get their money back.

And what IS money? When money was just Gold and Silver, the Bankers got rich, by lending pieces of paper, that were exchangeable for Gold and Silver, that they had mysteriously created out of nothing more than paper and ink. This fractional reserve lending, grew their power, and grew their immense wealth.

The Houses of Rothschild, Morgan, Seif, Rockefeller and others who ran or owned Banks became the powers behind the thrones of more countries than could be imagined.

Digital Currency Drawbacks?

If we can just take our money “out of the banks”, this should force Bank Presidents to be prudent with it, or, as we saw with Northern Rock, we get a run on the Banks. When our money (or rather currency) is just digits on a Bank Balance sheet, we cannot. This means Bankers can fund whatever they want, without worrying about us cutting off their drug supply.

But a purely digital currency has several other drawbacks too.

With a purely digital currency, EVERY transaction will register on a computer somewhere. Tax Authorities will therefore be able to trace every transaction – And TAX it. That tax goes to pay salaries of government employees, but it also pays for those in politics, who may not always disclose where that money goes: Funding Wars overseas, providing incentives and making deals in private rooms under the guise of “National Security”, and it pays off the loans that bankers make to governments – all made possible by greater tax taking.

But a further worry is that the account details of every person will also need to be held somewhere too, making the prospect of 1984 as written about by George Orwell a frightening reality.

The informal economy disappears too.

Tipping a waiter, a Cabbie, a Pizza Delivery boy or even the Bin-man come Xmas time, becomes almost impossible. The loss of these ways of showing appreciation, potentially makes poor service a given, as with no financial incentive to provide excellent service, these people may offer mediocre service at best, or even leave the industry making many restaurants forced to pay higher wages forcing up costs, and thus reducing the number of visits per week, per month or per year. Giving someone a £50 note for a Birthday present, or Xmas present becomes impossible too. Teenagers everywhere will suffer, and grand-parents will actually have to get to know them and find out what their kids actually need – or want – and they may get a few unusual requests or worse…

But, the one big drawback for everyone, is not zero interest, it is negative interest rates. Which means charging you to hold your money. Anyone with savings in an account, or perhaps as the result of a house sale, becomes just another potential donor to a Banker’s lifestyle.

BUT the ultimate issue is one of liberty and trust. A business deal of old, demanded nothing more than the money, and a handshake. This relied on trust of the money, and the person. In a digital world, all trust comes down to is your credit rating, and your government granted identity number. Perhaps ultimately your radio frequency identification (RFID) chip implanted under your skin, so you don’t even need to carry a bank card.

But it also opens up a world of potential to deny you access to things the government thinks you shouldn’t see, or get access to. In effect WE become slaves to government, and the people who pull their strings, instead of government working for us. And that is the most important reason, why it should NEVER be considered the only way to pay.

“Bank paper must be suppressed and the circulation restored to the nation to whom it belongs.
“The power to issue money should be taken from the banks and restored to congress and the people.
“I sincerely believe that banking establishments are more dangerous than standing armies.
“I am not among those who fear the people. They and not the rich, are our dependence for continued freedom. And to preserve their independence, we must not let our rulers load us with perpetual debt.”

Thomas Jefferson – Former President of the U.S. of A.

And in his farewell address to the people, March 3, 1837, President Andrew Jackson solemnly warned the people against the Banker’s power, after the recent financial crisis; as the “Credit Crunch” is still ringing in our ears, it appears VERY apposite

“We are not left to conjecture how the moneyed power, thus organized, and with such a weapon in its hands, would be likely to use it. The distress and alarm which pervaded and agitated the whole country, when the Bank of the United States waged war upon the people in order to compel them to submit to their demands, cannot yet be forgotten.

The ruthless and unsparing temper with which whole cities and communities were oppressed, individuals impoverished and ruined, a scene of cheerful prosperity suddenly changed into one of gloom and despondency, ought to be indelibly impressed on the memory of the people of the United States. If such was its power in a time of peace, what would it not have been in a season of war, with an enemy at your doors.

No nation but the freeman of the United States could have come out victorious from such contest; yet, if you had not conquered, the Government would have passed from the hands of the many to the hands of the few; and this organized money power, from its secret conclave, would have dictated the choice of your highest officers, and compelled you to make peace or war, as best suited their own wishes. The form of your Government might for a time have remained, but its living spirit would have departed from it.”
(Read more at: The Coming Battle 2013 )

And Finally, if the above comes to pass, what will our International trading partners make of a currency, that can be conjured up on a computer by a banker? If China sells us Cars, Computer Equipment, Smart-phones etc, and all they get in return is a ledger entry on a computer, what confidence will they have that those digits will be worth anything, when they decide to spend them, possibly years later. What would you do if you were China?

If we are ever to have international finance based on trust, then there is only one solution – currency must be in the final analysis, backed by precious metals. and those metals represent true value, even if their value may vary from time to time – but Gold is still gold, and Silver is still silver. Platinum, and Palladium too are useful – usable in catalysts, jewelry and other uses. Silver is usable in 10,000 uses and rising, and its value and availability are about to get a whole lot rarer, and a whole lot more expensive as a result.

So if this does come to pass, who is really in charge in the UK? The Government? or its Financiers?

If you want to move your money out of the Bankers’ way? Then Click Here to get started.
PS:
After posting this I discovered a video clip by Max Keiser of the Keiser Report, which mentions the speech by Andy Haldane. Let me know what you think below.


W.

Money, Politics and Media

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This piece will be short and to the point, and full of visual elements, in keeping with modern trends.

Our monetary system has by many independent commentators become corrupted, and this has been allowed because of the benefits to the few. It begins with a discussion of Fiat versus, “Real” money. Continues with discussion on the future, and then finally discusses why we got what we got.

Egon von Greyerz, talks about the currency devaluation over the last 100 years versus Gold, and how with charts he suggests that the U.S. is technically bankrupt.

The end result of which will be a collapse of the currency and with it much of Western Banking and finance.

In the second half of this next video, Max Keiser talks to Bitcoin entrepreneur – José Rodriguez, about crypto-currencies, and how both Mexico, and Argentina, have taken to them, to help solve their financial problems, which have beset the two countries, because of corruption, and the dominance of the American Banking System, which has had a detrimental affect on their nation’s finances.

And the British political scene seems to have opened up in this last election pre-season friendly, as some of the political commentators, seem to have tripped up, and lost some of their moral high ground.

Maybe some good will come of all this.

A corrupt Media system, policing a corrupt political process, presiding over a corrupt monetary system, for its own mutual survival.

Who’d have thought it?

W.

Money for nothing, and their clicks for FREE.

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Stagnation, Inflation, Deflation, Dis-Inflation – and more – Hyper-inflation?

Back in 2010, in October, William H. Bonner of Agora Financial, a Baltimore based Financial Publishing house and regular commentator on the Financial Markets, released the following piece. Since then, the markets have boomed in some areas, and bust in others. But the real value of many of life’s essentials: Food, Clothing, Shelter and the basic necessities of life, and many of life’s “nice to haves” – Copper, Tin, Zinc, Nickel, Iron, Gold, Silver and of course Oil and Gas, have all experienced significant price changes. But are the prices accurate? Do they reflect the effort and cost of capital needed to extract them, or of their true value, if we run out of them? We may live to find out…

That’s the trouble when you start printing money for nothing, the people who get it first make the most profit, and the further it spreads out from the central bank, the less profit it appears to make. But the good Central Bankers, will do everything they think they can to make things better. The only question is: “For whom?”
Read on to find out.

===========================
Plaza II Accord

Bill Bonner – Friday, October 15, 2010

Keynes was right about one thing…

Peace talks broke down last weekend. Observers had expected the IMF meeting on the weekend to result in the equivalent of the Peace of Amiens or the Surrender at Appomattox. But Treasury secretaries and central bankers went home, unpacked their bags, and resumed their premeditated mischief.

The dollar went down. Why would anyone pay 100 cents for an old, worn out greenback when the Fed promises to create trillions more of them, brand spanking new? Europe and Japan resumed firing with their new QE guns. Asian nations sent out snipers to intervene in the currency markets directly. And China and the US resorted to “trench warfare,” reported The Financial Times, neither apparently ready to give up an inch; that is, neither was prepared to allow its currency to buy more today than it did yesterday. In America, China has become an election-year bogeyman. The electorate seems convinced that any nation that stockpiles $2 trillion worth of America’s I.O.U. greenbacks must be up to no good.

So, the war goes on. But it is an ersatz war. All the combatants really want the same thing – to debauch their currencies at the expense of savers and creditors. Sooner or later, they’ll conspire to get the job done. A full 93% of US financial professionals believe the Federal Reserve Bank is on the case. It is expected to launch major debauch in November. Investors have run up almost all asset classes in anticipation. The Dow passed 11,000 on Friday. Soft and hard commodities hit new highs. And if, on a given day, gold does not set a new record, it is probably because the markets are closed.

What a remarkable period in financial history! We can hardly believe our luck. Absurd things are happening. John Maynard Keynes was wrong about practically everything. But he was right about this:

There is no subtler, surer means of overturning society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction and does it in a way that not one man in a million is able to diagnose.

And we get to see it live. And probably dead. The US dollar fell under the control of the debauchers, partially, in 1913…when America’s central bank was formed…then fully, in 1971, when gold backing for the dollar was completely eliminated. In the 100 years before the Fed was formed, the dollar lost not a penny of its value. In the almost 100 years since, it has lost almost all of them. If the greenback were to lose another 5% of its 1914 value, there would be nothing left at all.

Such slow larceny bothered no one. As long as the dollar slid gradually, and peacefully towards worthlessness it seemed almost natural, even healthy. Central bankers could mix with polite company and hold their heads up. None was arrested, as far as we know. None was so tormented by his crime that he had to be restrained or sedated. But now central banks are committing their felonies in broad daylight. Economists argue for more. But investors are confused and worried. Today, they buy gold. Tomorrow they may buy shotguns.

But what else can the managers do? After increasing for 61 years, the volume of credit in the US – and hence, the volume of sales – is no longer expanding. This leaves householders with debt to pay down and exporters with no alternative but to fight for market share. What to do about it? Lower the value of the currency! But in a correction, the natural thing is for prices to go down with a decline in demand. So, money tends to become more upright just when the managers would most like to see it slouch.

The poor central bankers. They are victims of their own delusions of competence. They have never actually managed anything successfully. When the economy is expanding, they exacerbate the boom. When it is contracting, they slow down the correction. And now, they fight a currency war not of their own choosing, but of their own making. The war is their response to the correction, which results from the bubble, which was caused largely by the managers themselves.

And now they’re looking for a hotel where they can do it again. It was at the Plaza Hotel in New York in 1985 that they managed their Treaty of Versailles. It ended the currency war of the early ’80s…and prepared the way for an even bigger war later on. Back then, Japan was the go-go economy. Like China today, Japan was the world’s leading exporter. It wanted to keep the yen low. The US meanwhile, was losing market share. James Baker and the other US managers threatened sanctions. Japan gave in. By early the following year, the yen was 40% higher against the dollar and Japan’s GDP growth rate had been cut in half. But the managers fixed that problem as they fix them all. In Japan, they cut rates 4 times in 1986, creating a flood of hot money. Four years later, Japan was the envy of the entire world. In January of 1990, the Nikkei Dow hit a new record – 4 times higher than it was when the Plaza Accords were signed. Then, the bubble popped. You don’t need to be reminded of what happened next. The Nikkei crashed. Real estate crashed. Everything crashed. The economy went into a 20-year tailspin, failing to create a single new job in two decades. Neither stocks, nor real estate, nor the economy ever recovered.

No one wants to follow the Japanese down that road. Ben Bernanke manages the dollar, desperately trying to avoid it. And Premier Wen of China said it would be “a disaster for the world” if Western nations tried to force China in that direction. He’s right. But he needn’t worry about it. Disaster is coming anyway. The managers will make sure of it.

Regards,

Bill Bonner,
for The Daily Reckoning
============================

And once more, the Banks are mired in controversy. Late on 12th June 2014, we heard that the UK., Chancellor of the Exchequer, will outline new laws to regulate the largely unregulated Foreign Exchange markets (For-Ex).
Every day, over $4 TRILLION changes hands globally in these markets, but several Big Banks – those closest to the Central Bankers, have been allegedly manipulating these markets for their own ends.
The Chancellor will make manipulating these markets a criminal offence.

I welcome the attempt to rein in the worst effects of the bankers actions, but it is a brave policeman, or Financial Conduct Authority, who will apply the new legislation, as Bankers have historically threatened governments of all political persuasions with dire effects if they apply regulations too rigidly.

If you don’t believe me, after the scandals that have come to light in the last five years, including LIBOR, Silver, Gold and other events such as the London Whale, then perhaps you need to read my free E-book, all 633 pages of it – “The Coming Battle”, which documents the worst excesses of these “Wizards of Oz” who pull the political strings from behind the curtain. These bankers who threaten governments, who manipulate stock-markets, Foreign exchange markets, Precious metals markets, and use their financial muscle, to wreak havoc when they fail to get the outcomes they feel they deserve.

But who can take them on?

The latest news from Iraq is ISIS appears to have taken control of parts of Western and Northern Iraq, and Eastern Syria.

Their goal it appears, is to create an Islamic Fundamentalist State. Part of me feels they deserve everything they get. BUT I should point out to all, and any who think that we ought to intervene again in the Middle-East, that our last attempts probably created this hotch-potch of anti-western sentiment – rapidly becoming a “Holy War”.

Besides just by ignoring the problem, these radicals will burn themselves out. Apart from the oil-fields in Northern Iraq, what do they have to sell? Oranges? Lemons? Mangoes? I am at a loss to call to memory anything that is exported from the middle-east apart from oil and/or gas. And therein lies the crux of their problem.

A modern economy has to pay for things that others have to sweat to build. German Engineering comes at great expense, and organisational and engineering expertise. British know-how in Financial Markets comes from a few centuries of having travelled the globe, and of having access to a large capital base, and expertise in how to make use of that. (And maybe that’s another topic of discussion for the future). Jamaica has the right climate for sugar cane, and so uses it to make Jamaican Rum. Mexico, has Silver mines, America has its software and computer hardware. Kenya has its tea and coffee plantations, and Japan, its electronics businesses. Each taking advantage of that country’s strengths.

Adam Smith the father of all economists, called it “comparative advantage”. What he meant was that each country should learn to make the best of its natural resources, and use its natural advantages to their fullest.

But as the world becomes more intertwined, the fruits and bounty of this planet will have to be paid for with real money, not money you can just print up at will. Money (Gold and Silver) has to be dug from the earth, smelted, refined into bars and coins, and thus the labour stored up in them – the knowledge, skills, ore, blood, sweat and tears, becomes a tradeable and valuable commodity. Pieces of paper with pretty pictures on, printed in their billions will not.

Education, research, and expertise gained over long periods gives countries an advantage in particular spheres. And asking the Lord Almighty, in whatever guise you see him, will not cut it anymore.

The Lord helps those who help themselves is a phrase I was brought up on. It is time for the middle-east to wake from its 1500 year slumber, and broaden its economic base through acceptance of certain verifiable truths.

Men are the captains of their own destiny not an all seeing prophet, or god from on-high. Such thinking should be reserved for the home and hearth.

Science, and the application of science – truths in physics, if you will, will improve the lot of the many. A country of fundamentalists, however ruled, who do not realise that they can only pay their way in the world by exchanging things of value, will, if ignored, like grapes of wrath, wither on the vine.

Forcing people to live a particular theocratic life in poverty, will mean they will take the first opportunity to leave. And the oil and gas will stay in the ground if others refuse to buy from these tyrants.

In the meantime, those oil and gas producers outside the middle-east, will be reaping the rewards as the oil price rises once more. Two small producers, I have had a smallholding with for over a year, for just such reasons are: Lenigas and Oil (AIM:LGO) and Sound Oil (AIM:SOU). Both have had good news of late and I believe are multi-baggers from here.

LGO operates in Spain and Trinidad and Tobago, and SOU operates in Italy.
As the world price of oil and gas rises due to the increasing political risks, these small businesses will find their product adds increasing amounts to the bottom line, and thus their prospects will rise alongside it.

Eventually, the public will wake up to the fact that the notes and coins in their wallets, and their bank accounts don’t represent real wealth, and demand alternatives to the currency dictated by governments. Alternatives that have stood the test of time, such as Gold and Silver, and newer alternatives such as the crypto-currencies, I’ve mentioned many times will stand out as value and wealth preservers – Bitcoin et-al, and Gold and Silver, will achieve their true place in the realm of matters economic just as they have always done when governments do stupid things like debauch the currency.

If you liked this post, please like it or even just copy and paste saying where from.

W.