Posts Tagged ‘Yuan’

giant_wave_goldcIT’S COMING – Will you be able to ride it out? – 

“The Golden Tsunami – Krakatoa Style”

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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?

“The Man with the Golden Balls” (apologies to Ian Fleming’s James Bond)

3 Golden Balls

“Two to one, you won’t get your stuff back”.

There is an old joke that these three balls mean – 

“Two to one, you won’t get your stuff back”.

But there’s more to it than that…far more……

(click on the balls above for a good yarn…go on…do it!) Enjoy…….

This is the third and final chapter in the series – “The War Begins….and It’s coming Your Way!”

Please enjoy……it may save your financial life!

Why "VANUATU GOLD"?

Why choose “VANUATU GOLD” as my heading?

Simple – I have been living in VANUATU for over 7 years and I am a firm believer in the merits of investing in GOLD!

VANUATU is a treasure in itself. “Yes!” – of course it has its own frustrating elements about it. It takes time to get anything done here (just ask anyone who is building a home here or has to have any dealings with the Lands Dept.) and as for the shopping – bloody expensive (due to the cost of imports) and a very limited range of goods available. On the upside, however, is the lack of restrictive Rules & Regulations, no traffic lights (you gotta love that!), NO INCOME TAX, wonderful people with a strong attachment to their traditional culture and great weather.

GOLD is the one element on this planet that is virtually indestructible! Every culture throughout history has revered it. Governments print “money” without apparent fear or favour (look at the US at present) and have their economic policies based on false premises. HOWEVER, those economies/currencies which are backed by strong GOLD reserves are those that will ultimately do well/better during times of financial crisis or what may be coming and that is – a financial holocaust. Which currencies would I invest in right now? Easy – the Swiss Franc and the Yuan. The $US is an absolute basket case. The US government’s bail-out policy (and those of follower nations such as the Eurozone and Australia) of ‘rescuing’ private commercial enterprises such as the banks, finance companies, car manufacturers and the like is DOOMED to failure. It is at best a band-aid solution to a situation that requires major surgery without anaesthetic. If we don’t bear the pain now, it will become a financial near-“life and death” situation sooner than most people realize. Watch out in in late 2012 as I believe that’s when it will “hit the fan”! Soooo – consider your GOLD position before then.