Posts Tagged ‘fiscal cliff’

 A lot, I think…..

Gold Bull

BILLIONAIRE ERIC SPROTT: “GOLD STOCKS WILL GO UP MULTI TEN THOUSANDS OF PERCENT!”

“You have to be a buyer when people are non-believers. You have to believe in something based on data that says you’re right when the world will tell you you’re wrong because when the world says you’re wrong and you’re right, you know that the return will be outsized because no-one is there. It’s like buying gold stocks in 2000 which I did to a very large extent. The HUI index was at 35 and it went to over 600. It went up 1700% in eight years. And that’s because everyone was against it. It was like a killing field for an investor to go in and buy things cheap and I really believe it’s kind of a similar opportunity again today.

Personally, I think he’s “Sprott on”…….Read more here

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Aliens in Human Form

Aliens in Human Form

Locally, well not much has changed over the past week or so– we’re getting a 1.5 Billion Vatu Convention Centre, courtesy of China. A likely white elephant, in my view and all the while sorely-needed money for health and education goes wanting.

Sometimes, I swear, I think there must be something to the “there are aliens amongst us in human form” theory because the actions of the policy-makers and law-makers here defy human logic.

Looking abroad, I guess the first point to make about the past week is that watching the markets has been as about as exciting as listening to the Antartic weather forecast for tomorrow (COLD!). All very “Ho hum”, you might say.

Apart from Japan’s, the others have all experienced small daily pluses/minuses with the end result that all ended “up” for the week.

What could have affected the markets in a manner that drove them in the same direction?

It’s all been to do with “money” or rather, the lack thereof.

JapanJAPAN. Currently has a national debt that is 24 times the tax revenues. Their new Prime Minister, Shinzo Abe, has declared a new strategy for their economy. You guessed it – grease the wheels of the money-printing presses and let ‘er rip! This, from “The Guardian”, U.K…… The interest rate on Japan’s 10-year government bonds is now less than 1% – the lowest in the world, despite a very high level of government debt and annual budget deficits. Indeed, Japan’s debt is roughly 230% of GDP, higher than that of Greece (175% of GDP) and nearly twice that of Italy (125%). The annual budget deficit is nearly 10% of GDP, higher than any of the Eurozone countries. With nominal GDP stagnating, that deficit is causing the debt/GDP ratio to rise by 10% annually.”

One response from angryboy that had what I reckon is a good take on the issue, said –

“The Japanese have been trying to “kick start” their economy for years but all they seem to be doing is proving that Keynesian “stimulus” efforts work just like any other artificial stimulant by providing a short lived boost that does nothing to provide any sustainable, positive changes and leaves the country ever deeper in debt.
The one positive note is that there are plenty of lessons on what not to do for the West to learn from”

U.S. President Barack Obama says Congress has to raise the debt ceiling because they already spent the money.” 

Oh dear! And this from the leader of the largest economy on the planet (sigh).

CHINA. A different story to remind you about. There is continuing discussion and speculation about the Yuan gaining increasing status as a “currency of choice”. The facts speak for themselves and this CBNC article “Yuan as a World Currency? Getting there Fast” is but one of many snippets of the “facts” out there in mainstream and academic media.

PHOCEA SAGA. We’re watching the events and news surrounding this issue and will keep you posted. Is this the straw that will break the back of the Kilman government?

Looking back on 2012, what would you rate as the most important/significant events of the year? What about yourself? Did you have a good year…or something else? For some thoughts from yours truly, check out my first diatribe for 2013 – “The Certified BULLS**T Club – New Members Welcome!

Globally, I feel it’s fair to say that the major events of the year were the US Presidential elections, events in Syria and the London Olympics. Whatever the world events, it’s the things that happen in YOUR close world of friends, family, business colleagues and community that affect you most and therefore are most likely to hold priority for you.

For most of the people I know, it’s been a financially challenging year and for some – devastating. Businesses closed down, bank re-possessions, jobs lost, no money for school fees and so on.

Sure, there have been some individual successes as well. I wish I could name some of these great people, men and women who are quietly achieving….in the true sense of the word. I won’t though, as they are unequivocally entitled to their privacy. I can say this – I’m eagerly awaiting the next 12 months as these people continue to grow their successes, more often than not because of the challenges faced by them. The most personally gratifying factor for me is that each and every one of them is, without exception, a good person and human being!

2012 was an interesting year for yours truly. Apart from a couple of temporary “nasties”, it was a pretty good year from a health perspective. I have worked with some really cool and successful people this past 12 months. Had some fun too…..small stint on radio, my regular shell (or two) with my nakamal mates, some special occasions with my wife and social occasions with friends. Overall, I consider 2012 to have been a good year ending in a foundation for an even better 2013.

Okay, now let’s leave the beer & skittles and roses behind for a spell…….

My perception is that there is a distinct air of “change” omnipresent. I have heard it said many times recently, in many different quarters, that people are looking to 2013 as a year of change – for the better. Perhaps we are on the verge of an era that will bring with it a greater participation, numbers-wise, in meeting the challenges ahead, in concert with others and for the benefit of all. I hope so. It’s not going to be an easy task but one that is ”do-able”.

Gold Medal Award-January 2013I plan to keep up my writings to you, dear reader and with a bit of luck, keep you entertained as well as informed. I’ll also be doing my bit on the anti-corruption front, particularly locally, so you can expect to read/hear more on this subject. On that note, I ask that you check out the “Certified BULLS**T Club” site and please, if you feel you have a possible contender for an award, send in your nomination for the inaugural January Awards.

Inside the MadnessFirst up – thank you to everyone for your readership support over these past several months. I hope that my writings have stimulated your own thoughts from time to time, educated you in a small way and raised your consciousness a little as to what’s happening in the world around you. By the way, I also hope that I may have helped improve your financial position in some fashion. Hopefully my occasional attempts at humour have also helped to entertain you along the way.

 

As part of my “Goodbye” to 2012 and “Hello!” to 2013, I thought it appropriate to include a link to my final article for 2012 – On the Steps of Madness“.

Enjoy!