Just came back from the pre-premiere of a Swedish-made movie called “Overdose - The Next Financial Crisis“. It’s narrated by Cato Institute affiliate and free-lance writer Johan Norberg and the movie is also based on one of his books. I must say the movie portrays the dire mess we are in, in a manner that’s very easily grasped. This makes it a very good movie to share with your friends if you find it difficult to get people close to you to listen to boring financial lingo. Highly recommended! The film features trend forecaster Gerald Celente, investor Peter Schiff and many others.
A smart investor with influence spreads one rumor and does the opposite - that’s how markets are played. Like when Nathan Mayer Rothschild took control of the London Stock Exchange in 1815 when he had prior knowledge of the defeat of Napoleon. Here is Max Keiser on George Soros now infamouse statement that “Gold is the ultimate bubble”. Soros has since that statement at Davos doubled his gold holdings.
Great interview with Marc Faber. FT.com really lets Faber talk in this 4-part interview giving him the chance to go into more depth than he is usually allowed to in F-TV interviews. Video on FT.com
“We are all Keynesians now” quothed first Friedman, then Nixon going off the gold standard in 1971, and now the followers of Bush’s and Obama’s quantative easing money printing schemes. All quothed in despair, because only a fool cannot see that unlimited use of the money print will lead to hyperinflation. So, here we are in 2010, stimuli a la Keynes or sound economics with the Astrian School? Well, time will tell if we wise up. Enjoy this funny, yet thoughtful, rap video.
“If you’re living high on that cheap credit hog
Don’t look for cure from the hair of the dog
Real savings come first if you want to invest
The market coordinates time with interest
“Your focus on spending is pushing on thread
In the long run, my friend, it’s your theory that’s dead
So sorry there, buddy, if that sounds like invective Prepared to get schooled in my Austrian perspective”
Here is a good summery of the financial collapse. This TED-talk is held in Tallinn, Estonia, by Alar Tamming. He is the Chairman of the Supervisory Board at Tavid/Tavex, a gold bullion dealer operating in Estonia, Latvia, Finland and Sweden. He is also an Estonian and he should know a thing or two about what happens when fractional reserve banking runs amok. The crisis in Estonia, caused by wreck-less lending by Swedish banks, is far worse than in many other countries in Europe. Personally, as my readers know, I keep as little of my money as I can in fiat paper and on deposit at the bank, and as much as I can in real money - gold. As a customer at Tavid/Tavex I can recommend them for all your gold bullion needs.
As many of you know Peter Schiff is now running for Senator in the State of Connecticut. Schiff is an American economist of the Austrian School, author, commentator and popular video blogger who regularly appears in the role of a bearish pundit on numerous financial news networks. He predicted the Dotcom crash of 2000 and the Housing crisis of 2007/2008 and like the author of this blog he belives that the US Dollar is heading for hyperinflation. He is a licensed stock broker, the president of Euro Pacific Capital with a 100 employees who successfully protect their clients wealth by moving out of the US dollar and into real money such as gold etc.
If you want a crash course in the problems with the US economy, watch this. A good hour well spent with a lot of information and humor. Enjoy.
Disclosure: I have no vested interest in Euro Pacific Capital nor do I receive any payment for writing this.
“There’s this huge debate between the inflationists and the deflationists… I belong more to the camp that looks at inflation and deflation from a different perspective. In the sense that in every system you can have some prices going down up and some prices going up. Say if you have a glut in consumer goods, then consumer goods prices can go up. But if you print money and have a zero interest rate, then home prices theoretically could go up, or stocks, or commodities. In any event your cash purchasing power goes down, that’s a symptom of deflation.”
“The worst investments in an inflationary period, when you print money and have large fiscal deficits are, of course, long term bonds and then cash. The best is to have foreign currency and commodities… also equities can protect you to some extent because they adjust upward as the currency goes down.”
“Regarding the dollar he says, “well, it will go to a value of exactly zero eventually.” When pressed for a timeline he explains, “Looking at Mr. Obama and his administration it should already be there, but I think it will take roughly ten years until people really realize that the fiscal position of the US is a complete disaster.”
My personal favorite from this clip:
On Bernanke: “He’s a money printer. He does that well.”
Johnny Mellgren is a Swedish entrepreneur with a keen interest in macro economics and macro politics. This is his web site where he blogs about the economic collapse of our time, what to do about it and the economic future we create together. Contact Johnny Mellgren.
Services
I provide advice on investment portfolios for private and corporate clients. I also hold lectures in the history of money and the current economic collapse and how to protect your wealth in a time of transition.
