Friday, 16 September 2011


"A constantly expanding money supply, artificially low rates and cheap credit have encouraged borrowing, leverage and debt-accumulation on a gigantic scale, and have fed various asset bubbles, which in turn have further enhanced the illusion of wealth while diverting resources away from where they could have generated real prosperity. At the same time, a new generation has been raised on the belief that wealth comes from consumption, not saving and production, and that you can vote for it."
What he is writing about in that paragraph there has been going on in the major economies of the West for about 30 years now - approximately my entire lifetime.

I have written about this previously (e.g. here), and this was also the subject of my very first letter published by the Taipei Times way back in February 2009.

Of course, the Taipei Times being the SS hornet's nest that it is, I am now persona non grata there.

But look - this is why the price of gold is now at all-time historic heights: people are buying gold to protect themselves against currency collapse brought on by the looming enormity of base monetary expansion (never mind M3 numbers - and it is not only in the U.S. either).

You can view the charts at their web sources here and here respectively.

There are only two things worth thinking about now - one is how to look after yourself personally before the crash arrives, and the other is what to do after the crash.

But bear in mind this: nobody is listening.

No comments:

Post a Comment

Comment moderation is now in place, as of April 2012. Rules:

1) Be aware that your right to say what you want is circumscribed by my right of ownership here.

2) Make your comments relevant to the post to which they are attached.

3) Be careful what you presume: always be prepared to evince your point with logic and/or facts.

4) Do not transgress Blogger's rules regarding content, i.e. do not express hatred for other people on account of their ethnicity, age, gender, sexual orientation or nationality.

5) Remember that only the best are prepared to concede, and only the worst are prepared to smear.