Kev preaches new era of "social capitalism"

Prime Minister Kevin Rudd paves way for era of bigger "big" government and economic irresponsibility

Australian Prime Minister Kevin Rudd has conveniently ditched his "economic conservative" rhetoric to reveal his true disdain for free market economic principles. The PM is expected to release an 7000 word essay next week attacking neo-liberals who ultimately "brought about the global financial crisis". (More of my views of the free market can be seen here)

No question, Kev is using the financial crisis to lay the ground work and rationale for driving the budget into a giant black hole. Expect a very large budget deficit come 5 May. It won't matter if fiscal and monetary policy becomes even more economically unsustainable if it means Kev gets to pursue his core socialist ideology (economic left).

A snipet of what is to be released this week can be seen at Phillip Coorey's article in the Sydney Morning Herald.

Some extracts from the article:

“The time has come, off the back of the current crisis, to proclaim that the great neo-liberal experiment of the past 30 years has failed, that the emperor has no clothes,” he writes of those who placed their faith in the corrective powers of the market.

Mr Rudd writes in The Monthly that just as Franklin Roosevelt rebuilt US capitalism after the Great Depression, modern-day “social democrats” such as himself and the US President, Barack Obama, must do the same again. But he argues that “minor tweakings of long-established orthodoxies will not do” and advocates a new system that reaches beyond the 70-year-old interventionist principles of John Maynard Keynes.

“Neo-liberalism and the free-market fundamentalism it has produced has been revealed as little more than personal greed dressed up as an economic philosophy. And, ironically, it now falls to social democracy to prevent liberal capitalism from cannibalising itself.”

Australian's should be concerned at this strong position Kevin is detailing. He is trying to justify why more Government is better. Why pushing the budget deep into the red (many billions of dollars) can be justified. Throwing money at problems won't fix anything. Nor will printing money fix the global financial crisis, or rising unemployment, the property bubble, and DEBT implosion more generally in Australia and abroad.

Australia as a nation is by in large financially and economically uneducated. For too long we have been conditioned and taught in our schooling system to be consumers, not investors. Now at the top, our Prime Minister is showing all signs he does not understand the history of monetary policy, and the basics principles of economics. Money has to be accountable. If you borrow a dollar of someone today, they will expect it to be repaid in the future. Principle + interest. Maybe Kev should consider financial education as the conrerstone to his education "revolution".

As Alan Kohler stated this week at the Business Spectator:

Most of the world’s political leaders are seeing the financial crisis and recession as a chance to borrow money to bolster their sagging popularity or to bring in some spending programmes that are ideologically dear to their hearts before they get booted out.

Kohler was also spot on when he said this about Obama after his inauguration:

Barack Obama’s inauguration was, as expected, a wonderful, inspiring event. It might even have a lasting impact on sentiment in the US, and might, in itself, help the recovery by improving consumer spending and business investment.

But I seriously doubt it, and so does the market: this financial crisis is just not susceptible to rhetoric, no matter how soaring.

Keynesian Economics is the problem Kev, not the solution

Keynesian Economics (which Kev is preaching) is the very economic branch which is responsible for the global financial crisis - not the solution. With a world monetary system dominated by debt-backed fiat currencies, spending (printing) more Australian Dollars to keep inflated property prices high, or keep people in jobs which should not exist under a competitive market place. Kevin cannot beat the market. The more government intervention and regulation there is in a market, the greater the distortion on the allocation of resources.

The PM has given two thumbs up to further devalue the purchasing power of the Australian dollar. The more "stimulus" and handouts he will announce, the more dollars will have to be borrowed to fund consumption. The Government is now a lender, buyer,

PM's reference to FDR

With the PMs reference that President Franklin Roosevelt rebuilt US capitalism after the Great Depression is nothing short of bias and ignorant. The US was still in a depression up till World War II. Unfortunately the saying that "Those who win the war write the history" somehow also applied to FDR's economic credibility. FDR failed to create sustainable long-term jobs. He failed to secure a strong monetary system. US Citizens were flocking towards sound money, gold and silver, because they no longer had trust and confidence in the US Government and the banks. As a consequence of FDR's ambition to instill "big" government on the economy, he outlawed gold ownership (which was not lifted until 1974), thus taking control of money from the individual back to Government. You can only have big government if the citizens are using the money government wants them to use. When gold and silver are king, governments are economically powerless.

As Mike Maloney details in his book, Guide to investing in gold and silver,

"What got us out of the Great Depressoin wasn't the government spending and work programs of the Roosevelt administration, or even WWII, as most people think. No. What got us out of the Great Depression was the tremedous influx of gold from Europe. When the United States raised the price of gold by nearly 70 percent to $35 per ounce... countries now buying from the U.S. now found their currency purchased 70 percent more U.S. stuff than it used to."

This all eventually led to the Bretton Woods system - the monetary system that ensured the U.S. and the western world would not fall back into depression after WWII.

Kev's Track Record:

* $10.4 billion Stimulus Package, including increasing the first home owner grant

$10.4 billion dollars on one-off consumption. This action defies belief. All it did was made the retail spending numbers look half-decent for Xmas. It did not create jobs (just delayed sackings for a couple of months). It did nothing but create a $10.4 billion hole in the budget. There was nothing sustainable with this spending whatsoever.

* $6.2 billion package for Australia's automotive industry

The Government picking and choosing winners and losers. Under a free market the worst performing operations and companies should be taken over by better performing companies. It is not sustainable for Governments to prop up industry. They need to live on their own two feet. The vicious cycle of hand outs must stop. Lets also not forget that these car companies were going to build more fuel efficient vehicles regardless. The Government is using the word "green car" to replace the negative connotation word of "protectionism" and "subsidiary".

* $30 + million to "buy time" on ABC Learning

Again, waste of taxpayers money so families could take 4-6 months to find a new childcare provider...

* $4 billion Australian Business Investment Partnership (commercial property fund)

* Plus other non-economic failures to do with his vision of centralised government. FuelWatch, FoodWatch, and now talk of InternetWatch (filter). The PM is ideologically opposed to individualism, entrepreneurialism and free market principles.

The Government were let off before Xmas. Centro Properties almost went into Administration if it were not for the Commonwealth Bank changing its tune... A collapse of Centro would have immediately made commercial property prices fall across Australia, and insert downward price pressures on other types of property (residential, industrial, rural).

Kev's Fed Government have now put in $2 billion, along with the 4 major banks contributing the other $2 billion. The new fund will offer loans to companies which could be used to refinance existing syndicated loans. It may also lend up to another $26 billion for commercial property projects by government guaranteed debt. "Commercial property projects that could be supported by this initiative include shopping centres, office towers and factories under construction, as well as existing properties of that nature."

Propping up debt-laden property companies is like trying to build a sea wall around the Australian coast. The tide will continue to its thing. Debt will continue to implode, and the market will shake out the over leveraged property developers. Government manipulation of the markets to intentionally keep commerical property prices up will just not work. Kev cannot beat the free-market.

The main loosers from Kev's actions

Kevin has especially had a distain for the X and Y Generations. Largely as a consequence of an aging population, the younger, working generations have been singled out. If you are a working taxpayer and don't have children - no handout. If you earn too much - no handout. Redistributing wealth comes at the cost of one person, to give to another. The final insult to the younger generations is the $14 to $21K first home owner carrots to appeal to aspiring first home buyers. The numbers show it, most young people wouldn't be buying a house without Kev's carrot. The carrot and artificially low interest rates are there to manipulate investment decisions. Where is the disclaimer that housing prices are likely going to head sharply lower in Australia within the next 18 months? Too bad if you buy at the top of a falling knife.

What Kev and the media fail to acknowledge

On Friday Gold made a new high in Australian Dollar terms, going over $1,400 per ounce. Silver had a strong rally as well.

Chart 1: Gold hit a record high of $1,456 p/ounce on Friday.

Kev should count his lucky stars that the media in Australia focuses on reporting commodity prices (incl gold and silver prices) in terms of US Dollars. As I've mentioned previously gold and silver prices denominated in US Dollars continue to be manipulated by a couple of the large US commerical banks through issuing paper-gold and paper-silver (through short-selling Derivatives). An unprecedented level of gold and silver ownership is taking place around the world. Governments around the world whom show economic ignorance will eventually loose to the shadow monetary system. All fiat currencies fail eventually.

Conclusion:

The more Kev wants to fight an ideological war on free-market economic principles, the more you should think about buying gold and silver in Australia, while you still can. As I write there is now a 16 week wait on delivery of silver from a bullion dealer. The financially educated citizens are taking a position. Unfortunately Kevin will only devestate the very people he wants to help, the poor and disadvantaged. The more he wants to print (and push the budget into spiraling deficits), the more everyone's purchasing power will decrease. If social capitalism was sustainable... We wouldn't be closing down hospital beds... We would've thrown extra $100's of billions at education, defence, infrastructure long before now. Even our spending in the last 20 years is not sustainable with our aging population.

We cannot afford to live beyond our means and let Government fund consumption. Kevin cannot beat the market.

Don't take Kevin's carrots with open arms. Question the actions. Question the need for more big government. Invest time and money into financial education today.

- Scott

British Financial Crisis deepens, All Ords to follow bear trap!?

British Financial Crisis Deepens

Royal Bank of Scotland

The UK financial system took another huge blow earlier this week with the Royal Bank of Scotland announcing it will post the largest financial loss in British history with 2008 losses expected to be around £28 billion. As result of the announcement Royal Bank of Scotland closed down 67% on Monday. As the chart shows, strong sell signs were present a a good 18 months ago.

Chart 1: Royal Bank of Scotland - the chart says stay away!

Instead of letting RBOS and insolvenet firms fail, the British Government has tried a new wave of reforms. More Government intervention will not fix the crisis. It hasn't worked yet and it won't work going forward - it's only going to add fuel to the fire!

The British Government has now:
- Offered banks to take up government insurance against their expected bad debts
- will increase its stake in Royal Bank of Scotland o nearly 70% from 58%.
- The Bank of England will be able to buy up to £50bn worth of assets in companies in all sectors of the economy.
- Allowed Northern Rock extra time to repay its loans from the government

The otther remaining big banks are also falling as a consequence of RBoS announcement. Barclays is down over 30 percent and Lloyds is down over 50 percent so far this week. Total nationalization of the whole banking system is all but guaranteed in the UK. (Don't think it won't and can't happen in Australia someday soon....)

Pound Sterling plummets

Meanwhile the Pound Sterling is free falling against other major world currencies. It is now at its lowest level against the US dollar since September 1985, and heading towards parity with the Euro. This is the economic consequences of a faltering economy.

Measuring the loss of purchasing power in Pound Sterling vs other fiat currencies is really a side issue. All fiat currencies continue to loose their purchasing power towards their true value - zero.

Chart 2: Gold measured in £Pounds is showing some strong price movement once agian.

All Ordinaries Index

Back in Australia, the All Ordinaries index is showing another bear trap setup! The recent sideways movement is looking very similar to the previous pauses in this bear market.

The market fundamentals are not improving. The financial crisis is becoming more noticeable in Australia these days with recent high profile job losses by large companies such as BHP, Rio Tinto, David Jones. Companies continue to scramble for equity injections to reduce exposure to debt. Market conditions are not healthy... Proceed with caution.

Chart 3: All Ordinaries - January 2009

2009 Outlook Videos

I thought it would be worthwhile to put up some more recent videos on some of the commentators I follow.

James Turk: Key "Factors That Will Drive Precious Metals' Bull Market" (1 of 5)


Micheal Maloney: Predictions 2009 (1 of 5)


David Morgan: Predictions 2009 (1 of 2)


Peter Schiff predictions for 2009

and


Peter Schiff & Steven Keen on Dateline Sept 2008 (1 of 2)




Cheers
Scott

2009 - another turbulent year...?

Welcome to 2009.

For my first post for 2009 I thought I would quickly touch over some key monetary themes of 2008, then highlight the key risks for the world economy and then the Australian economy in 2009. A lot of the areas covered below will be brief in nature; some follow up posts will try to fill in the details. I will then finish this post with a "Must do" list of action items which you, your family and friends should examine.

2008:

Here is a summary of some of the major developments of 2008. Arguably the world avoided a global systemic collapse of the world's financial industry.

In the United States and elsewhere:

- In the U.S., 34 banks declare bankruptcy and were taken over by FDIC, including IndyMac Bancorp – the largest bankrun in US history.
- However, the Fed and US Govt prevented systemic collapse when Washington Mutual (WaMu) collapsed (with $307 bn in assets, compared to $32bn in IndyMac) by orchestrating JP Morgan to add it to its family. A bank run on WaMu would have easily sparked bank runs across the U.S. and the world instantly placing the world in economic depression.
- Indeed there has been silent bank run in progress across the globe, particularly in the later half of 2008, with investors piling their money into cash and precious metals.
- The Investment Bank model collapses with Bear Stearns folded into JP Morgan, and Lehman Bro. filing bankruptcy.
- Merrill Lynch sold to Bank of America,
- AIG, the world's largest insurance company collapses.
- US Govt announces US$700 bn bank rescue package (TARP)
- Price of oil crashes 78% from its July 2008 peak to go below US$40 a barrel.
- Deflation hits almost all commodities.
- Bernard Madoff was charged with with perpetrating the largest investor fraud ever committed by a single individual in the U.S. with his fund's liabilities of approximately US$50 billion. "A giant ponzi scheme.

In the Australia:

- Australian Govt announces $10.4 billion stimulus package to encourage consumption. The Govt also announces a guarantee on bank deposits.
- ABC learning, Allco Fiance collapse. Babcock and Brown, Centro reprieved from collapse (for now). Many small mining companies go into administration, with the one of largest, OZ Minerals fighting for its survival.
- The RBA custs interest rates to a seven year low of 4.25 percent.
- The ASX announces a complete ban on short-selling.
- The Australian sharemarket looses 41.3 percent for the year
- Australian housing prices start to experience strong quarterly declines towards the end of 2008.

Chart 1: How the major sharemarkets faired in 2008. The All Ords ended up closing down 41.3 percent for the calendar.

Major Risks for 2009:

When I say major risks, I mean systemic collapse of the world financial system. Arguably the process is still in full effect, and there are a number of plausible Lehman Brothers type events which could easily unfold in 2009.


Big 3 US Carmakers continue to live off Govt handouts and/or enter official bankruptcy

The big 3 US carmarkers: General Motors, Ford and Chrysler continue to operate while on deaths door. The only way they will continue to operate is if the US Government continues to through tens of billions at them every month. Declared bankruptcy by one maker will almost certainly cause a complete loss of confidence in the other two. Also be watchful of other non-US carmarkers, whom are in a lot of trouble as well.

The Big 3 US auto companies are a major risk because of their sheer size and outstanding liabilities. Historically, they have greater revenues and employment then many countries. It is reported that about 2.6 million people (direct and indirect jobs) could join the unemployment ques if the Big 3went under.

One aspect of the US car industry which gets small coverage is their pension liabilities. The Big 3 are directly and indirectly responsible for funding the health care of its 2 million plus employees, retirees and dependents of their own companies and their suppliers. The Big 3 are facing the same precarious problem as Governments all around the world which are hoping Superannuation schemes will work out. GM's pension liabilities are by far the worst with pension agreements going all the way back to 1950. Roger Lowenstein of the New York Times stated this in July 2008:

"G.M. acknowledged in its most recent annual report that from 1993 to 2007 it spent $103 billion “to fund legacy pensions and retiree health care — an average of about $7 billion a year — a dramatic competitive and cash-flow disadvantage.” During those 15 years, G.M. paid only $13 billion or so in shareholder dividends. The company has been sending far more money to its retirees than to its owners."
http://www.nytimes.com/2008/07/10/opinion/10lowenstein.html?pagewanted=print

There is speculation the Federal Government will end up taking it over to keep GM afloat for as long as possible.

However the problems will spread much further as William Engdahl stated on 15 December 2008,

"these 3 companies account for a combined 25 percent of all US corporate bonds outstanding which are held by banks, mutual funds, and private pension funds. If the auto parts suppliers of the Big Three are included, an estimated US$1 trillion of corporate bonds are now at risk of chain-reaction default. Such as bankruptcy failure could trigger financial catastrophe which would make what happened since Lehman Bros. appear as a mere hiccup in a hurricane."

Watch this space closely…

Derivatives implosion

As discussed previously on the blog, there continues to be the risk of the global derivatives market systematically imploding. With the more-or-less collapse of the debt-driven investment banking model, and the subsequent merger and absorption of many of America's biggest financial entities, the bankers have so far managed to hide many trillions of junk derivatives amongst themselves. Be very werey of JP Morgan, Bank of America, and Citigroup (remember it was in trouble...). There was always going to be huge problems unwinding over US$750 trillion worth of derivative "bets".

Collapse of Pension System

(more to come)

Obama and Bernanke

Without hesitation I am putting incoming President Obama (US Govt) in the "major risks" category for 2009, along with his economic advisors (Paul Volcker) and Ben Bernanke (Federal Reserve).

Obama is set to embrace with open arms the Economics 101 textbook from George W Bush. With talk that Obama is preparing to cut taxes by around half a trillion, whilst also spending another lazy trillion on a 2nd huge stimulus package - all in the first few months of his 1st term, I have little doubt these actions will further contribute and exacerbate the global financial crisis considerably. Obama and "Helicopter" Ben may avoid a systemic collapse in the short term, but the trillions of dollars of bailouts, stimulus packages and massive deficit spending programs will undoubtly push the world towards a Weimer-Germany (or Zimbabwe style) Hyperinflation. Forget deflation (asset deflation needs to happen because of all the debt), hyperinflation is the real cause for concern.

The world is heading towards Hyperinflation

The short term trend is asset-deflation, while basics such as food and rent will continue to increase. However, I have no doubt whatsoever, the long term consequences of the Federal Reserve (and other central bankers) and the US Government (and other Western Governments) "stimulus" packages and pumping liquidity into the financial markets will result in hyperinflation in the United States, and most financial markets (particularly hard and soft commodities). The Flow through effects will spread around the world.


Assets risks and opportunities in 2009 (Australia):

Risks:

Australia has so far witnessed very little of the global financial crisis (except for investors caught in some bad stocks, or parents with children in an ABC Learning centre). However 2009 will be much worse for the Australian economy.

Avoid cash

Cash = debt derived asset

Today's money supply is backed by nothing more then our confidence in Government. So as Governments worldwide expand their money supply to the likes never seen before, all fiat currencies (including the Australian Dollar) will continue to devalue towards its real value – zero (all fiat currencies have collapsed). Your purchasing power will continue to erode. If you put $1 dollar away 100 years ago, it would only have a purchasing power of 3 cents today. This is the power of currency erosion to inflation (expansion of money supply) To date, people have accepted gradual inflation, and don't mind if Coffee rises from $3.50 to $4 per cup, but you only have to look at media reports on "costs of living" such as food, fuel and rent in the last few years, that many people are struggling today.

Governments and central bankers have a blank checkbook and will print trillions worldwide in 2009 to try to make people "feel" prosperous again. A $100 Australian dollar note printed today will be have $99 or $98 purchasing power tomorrow morning. All levels of the governments in Australia will enter fiscal deficits in 2009. The more the federal government tries to "stimulate" the economy or "guarantee" more money, the more worried you should be if you are holding lots of cash. Avoid cash by buying real money, gold and silver, while you still can. The window of opportunity to take a substantial stake in the shadow monetary system is closing rapidly.

Avoid Real Estate

- Stay tuned for post blog coming…

Opportunities:

Sharemarket and Commodities

As always there will be some great opportunities in the sharemarket, but success will depends on your strategy and your discipline. Trade to a plan and keep losses small.

As chart 2 shows below (page 15 of Financial Review 6/1/2009), the US Sharemarket has risen at least 21 percent in the first year after every bear market since 1932, with the average post-bear year bounce of 46 percent. It is quite plausible a large bounce could easily happen with the trillions of liquidity the central bankers are pumping in the financial system. All this money has to find a home, and some of it will trickle into the sharemarket. The other question is whether the current economic circumstances and the risk of further major institution collapse will mean mean the market continues to follow a similar path to the 1929 great-depression bear market (which it is currently doing).

Chart 2: First year recoveries in the S&P 500

On commodities, both hard (metals) and soft (food) commodities could easily rebound strongly over 2009. People will not stop eating and will pay whatever they can do obtain it. Similarly, more and more people will change their context around the world and accumulate gold and silver – the monetary system that will expand ones purchasing power.

So getting exposure to physical gold and silver should remain a long-term priority in the coming years. Once you have exposure to the physical metal, the best leverage will be in unhedged, no debt, gold and silver mining companies (and ASX has a lot of interesting gold and silver stocks worth examining). If you want to venture further, some low debt, high margin soft commodity companies may be worth looking at.

However, no doubt 2008 has taught that investing in gold and silver stocks is very risky when a sharemarket is in free fall. Strengthening fundamentals for gold and silver does not automatically equate to rising stock prices for gold and silver companies. If you invest in any stocks, formulate your exit strategy before you enter. In the current environment watch what the USD is doing, as gold usually acts in an inverse relationship to it. Also be aware of price manipulation which occurs in the gold and silver markets (see GATA and Ted Butler links below).


What you must do early this year:

* You must change your context

This is at the top of the list, because if you still believe many parts of the media and Government that the world (including Australia) will only have a short-sharp recession, then think again. Beware the boiling frog syndrome.

We are currently on a trajectory (world sharemarket terms) which riviales

* You must take action

i) Invest time into basic financial education and have a basic understanding on the consequences of Government/Central Bankers actions on the world and domestic economies. You should spend at a minimum a couple of hours a week studying current events (eg. US carmarkers

ii) Reduce debts and liabilities. All high interest bearing debts should be reduced significantly, not increased. Budget to reduce liabilities such as credit cards, car loans.

iii) Buy gold and silver. People are starting to save once again for a raining day. Be sure that you are saving real money and not paper money - "cash is trash".


* Must watch Library *

Priority #1: Watch the Economic Crash Course @ www.chrismartenson.com

If I had to select 1 item as the be all and end all, take-home message from my blog it is this video by Chris Martenson. He has summarised many of the things I have already discussed on my blog + a lot lot more.

The Economic Crash Course explains in simple terms why the next 20 yrs will be completely different from the last 20 years. He explains while population growth, money supply growth, debt growth, peak oil all mean that our future will be completely different from the past.

You will not sleep well the night after you watch this. Be sure to take 3 hours one lazy Sunday afternoon and watch this with family and friends.

Also see Money as Debt series on Youtube and video listed on www.goldsilver.com


* Must Follow Library *

The following is a list of market commentators worth looking for on Youtube and/or visit their websites regularly.

- Peter Schiff
- Nouriel Roubini
- Marc Faber - www.gloomboomdoom.com
- Michael Maloney - www.goldsilver.com (in particular see video listings page)
- Bill Murphy - www.gata.org (Gold anti-trust Action Committee)
- Ron Paul (only US Presidential candidate focused on changing the monetary system)
- Ted Butler – http://www.investmentrarities.com/tb-archives.html (Newsletter on Silver manipulation and shortage)
- David Morgan - www.silver-investor.com (silver newsletter)
- Alan Kohler - www.businessspectator.com.au


* Must Read Library *

Books:

* The Coming Collapse of the Dollar and How to Profit From It By James Turk & John Rubino





* Conquer the Crash: You Can Survive and Prosper in a Deflationary Depression by Robert R. Prechter






* The Dollar Crisis: Causes, Consequences, Cures by Richard Duncan




* Rich Dad's Prophecy by Robert Kiyosaki






* Rich Dad's Advisors: Guide to Investing In Gold and Silver by Michael Maloney





* Rich Dad, Poor Dad, by Robert Kiyosaki






Articles:

* Biggest wealth transfer ever: http://goldsilver.com/newsletters/newsID/3592/?ss=43faa8f38f0723bd62a597e86309fdf4"
Must look at these charts - The banks perceive the current crisis to be 100 times larger then the Savings and Loans crisis of the late 1980s.

* Weimar-style Hyperinflation: http://www.engdahl.oilgeopolitics.net/print/FED%20&%20Hyperinflation.htm

* False Deflation: http://www.marketoracle.co.uk/Article8030.html

* Global systemic crisis – New tipping-point in March 2009: 'When the world becomes aware that this crisis is worse than the 1930s crisis'
http://www.leap2020.eu/GEAB-N-30-is-available!-Global-systemic-crisis-New-tipping-point-in-March-2009-When-the-world-becomes-aware-that-this_a2567.html


Closing Comments:

I have posted a great deal of topics, links and commentators worth following above. I know that there it can be information overload at times, particularly when events such as the collapse of Lehmann Brothers unfolds. There is just too much information to digest, so it's important that to set a goal and read a little bit each day, or a couple of hours a week. Get in the routine of understanding some of what is happening, because it will have long term consequences.

No one has a crystal ball and can accurately predict what will happen in 2009 or beyond. However, recent actions by governments and central bankers in 2008 coupled with decades of unaccountable spending, debt, inflation, monetary expansion and market manipulation all point the world economy in one direction. It is simply a timing issue. If you know the direction and the likely consequences, you will know exactly what action you will need to take, today.

I wish everyone a healthy, happy and prosperous 2009.

Best Regards
Scott Reeve