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Compounded

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Everything posted by Compounded

  1. Thatcher did the necessary IMHO I remember the 70's the power cuts and no toilet rolls, bread or sugar in the shops. There was real fear the union leaders would take real power from the elected government. It needed a strong person unafraid of being disliked to sort it, she did it. It's amusing how the feminist lefty lot don't see Britain's first woman PM as a trailblazer , she got nothing from them but abuse. They hated her but the people voted for her.
  2. If wind power was any good it would be taxed not subsidised.
  3. Royalty has lasted so long because there are no good alternatives. It's a sad reality politicians must lie to get elected, dictators go mad and republics are always subverted by the very rich. Government here is possibly as good as it ever gets.
  4. http://etfdailynews.com/2013/12/10/the-correction-isnt-over-but-golds-headed-to-20000/ Petrov Mid cycle correction that's all it is, it will take up to 9 months more to run. Fundamentals, charts everything say bull market is still on and the mania will come the peak is years away.
  5. The Main Stream Media dont report it hence only a very few informed people are aware of it. I suspect it's a brewing disaster of biblical proportions, I fear that the sea food in the pacific if eaten in much quantity will increase the risk of cancers significantly.
  6. Seems to me a successful business would eliminate debt and be able to sustain investment from profits. Eternally in debt as this chap seems to be is like paying a never ending tax to the banks in the form of interest which has got to drag you down. Am I old fashioned, silly or sensible?
  7. It's a better bet than money in the bank. The shame is there is no sure way to preserve purchasing power.
  8. Me too though mine was £365. I had a bit of trouble later and only used goldmoney and coininvestdirect after that.
  9. The arguments haven't changed if you think the paper money is rubbish, the debts can't be repaid and the financial system is at serious risk then acquiring gold makes sense but gold then was cheap it isn't now.
  10. The really good stuffs at the beginning. Good posters and gold and was desperately undervalued.
  11. A mates mother has just gone into a care home. There's been a complete lock down of her financial assets to pay the fees (shes in care in England) I think it would have been nice for my mate if she had some of her money in gold coin that nobody knew about.
  12. The last time I was on a Sheffield bus was in the 70's, it was incredibly cheap then, 6 or 3 pence to get to the medical school from the train station for an interview if i don't really remember other than it was incredibly good value. Very friendly old ladies told me when to get off that bus, I have still got a warm feeling for the place, thanks to those ladies and the bus fare.
  13. "Gordon Brown has systematically undermined Britain's savings culture over 10 years" - George Osborne Dec 2008 "Printing money is the last resort of desperate governments when all other policies have failed" - George Osborne Jan 2009 - So what do Cameron & Osborne do? Print money and leave interest rates at 0.5% when inflation is over 5% The gold strategy is simple. It is a low risk saving medium if you need long term savings ie for retirement. Paper money has been rendered unsuitable as a saving medium as it attracts .5% interest in a 5% inflation environment and is therefore currently a certain loser. Review periodically, if interest rates change and offer a genuine return over real inflation rates; move back to government money.
  14. Agree totally, some businesses by their nature have few large customers, these are vulnerable to customers not paying. The exit plan bit is something i have been thinking about a lot as I near retirement. The idea that more easy debt is the way for the central planners to expand business seems madness to me. It's a measure of the exuberant excesses of the current credit bubble that a central planner should think increased indebtedness could ever make struggling businesses successful.
  15. When to Exit Gold these are my suggestions. 1. Positive real interest rates these should account for CPI manipulation, interest rates were raised aggressively around the time the gold Bull Run in the 1970’s ended. 2. DOW/Gold ratio below 2, it may go lower than 1 as this crisis is worse than the 1970’s 3. Average UK house price around 75oz 4. Share dividend yield above 6% 5. Signs of mania, TV, adverts selling gold as a sure fire investment, queues at coin shops. 6. A parabolic price move – in late 1979 into 1980 the gold price nearly doubled in 6 weeks to what seemed at the time a ludicrous price of $850.
  16. The money came from the banks obscene privilege that is the power of creating money. The solution is monetary reform. It will be difficult as there are many very powerful vested interests.
  17. Gold is the superior savings medium as long as real interest rates are negative. Simply, money as a medium for saving is a certain loser when interest rates are lower than inflation. Fiddled government inflation stats are a wrinkle that will fool fewer and fewer people as time passes. So, I expect gold to rise but with progressively more violent price action and then because gold acts as an investment its price action will eventually become a bubble. I do not think a gold price bubble has happened yet, so few are in it, the media is not interested, the continuing failure of the alternatives (stocks nowhere in 10 years etc.) is not sufficiently understood by the majority yet.
  18. So the benefit/tax regime means there is no reward for hard work or entrepreneurial initiative for the average man unless he can be exceptional. Are we are headed the way of the USSR whose best and brightest near the end wanted jobs as nightwatchmen. Then the USSR went through economic collapse, will we soon? I would not be surprised if we do.
  19. How today’s fiat currency systems work In all the world’s fiat currency systems, all currency is created by the act of borrowing. Currency is initially created by the government borrowing currency from its central bank (or ‘reserve’ bank), which the central bank creates out of thin air (the act of borrowing is inseparable from the act of creating the currency out of thin air, so we say the currency is ‘created by borrowing’) Also the use of the word “borrowing” conveniently hides from the population that money is simply being created from nothing. However bank lending creates most currency: • The bank can lend about 90% of deposits made to it out. This system is called ‘fractional reserve banking’, because the bank retains a fraction of deposits as a reserve then lends out the rest. • The depositors still have their currency in the bank, while borrowers also have currency to spend. Hence, borrowing creates new currency. • The borrowed currency nearly always ends up as a deposit in a bank, where 90% of it can be lent out again. And so on. In this manner, for each dollar that is deposited, up to $10 of loans i.e. new money can eventually be created by the banking system. • As a loan is paid off the principal part of the loan is destroyed, that money ceases to exist. The bank however keeps the interest. • The system is safe enough as long as not too many bank depositors withdraw their currency at once and defaults are few. • Money in bank accounts securing loans remains available to be spent because, most spending is by card, cheque and electronic transfer; this money does not leave the banking system but is still available to be spent over and over. By the way, ‘printing’ only creates physical notes or coins to be substituted as required for the currency created by borrowing—printing does not actually create the currency. At least 97% of currency exists as numbers in bank accounts. Thus: • All fiat currency is someone’s debt. Someone out there is paying interest on every unit of fiat currency. Most people are surprised to learn that in today’s system if every debt were repaid there would be no money. • A fiat currency is essentially a system of IOU’s, a system of credit. • Lower interest rates encourage borrowing and thus increase the rate of growth in the amount of currency. • Higher interest rates discourage borrowing and thus decrease the rate of growth in the amount of currency and after a delay price inflation rate slows in response. • The amount of currency owing on loans (the amounts borrowed plus interest) is more than the total amount of the fiat currency in existence (the amounts borrowed). So either the amount of fiat currency must continually increase, or there will be many failures to repay loans. A fiat currency system must expand to survive. Some quotes on this system. "The bank hath benefit of interest on all moneys which it creates out of nothing." William Paterson, founder of the Bank of England in 1694, then a privately owned bank. "Let me issue and control a nation's money and I care not who writes the laws." Mayer Amschel Rothschild (1744-1812), founder of the banking House of Rothschild. "The few who understand the system will either be so interested in its profits or be so dependent upon its favours that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests." The Rothschild brothers of London writing to associates in New York, 1863. "Banking was conceived in iniquity and was born in sin. The Bankers own the Earth. Take it away from them, but leave them the power to create deposits, and with the flick of a pen they will create enough deposits to buy it back again. However, take it away from them, and all the fortunes like mine will disappear, and they ought to disappear, for this world would be a happier and better world to live in. But if you wish to remain slaves of the Bankers and pay for the cost of your own slavery, let them continue to create deposits." Sir Josiah Stamp, President of the Bank of England in the 1920s, then the second richest man in Britain. "I am afraid the ordinary citizen will not like to be told that the banks can and do create money. And they who control the credit of the nation direct the policy of Governments and hold in the hollow of their hand the destiny of the people." Reginald McKenna, as Chairman of the Midland Bank, addressing stockholders in 1924. "The banks do create money. They have been doing it for a long time - I doubt very much whether you would get many prominent bankers to attempt to deny that banks create it." H W White, Chairman of the Associated Banks of New Zealand, to the New Zealand Monetary Commission, 1955. Politicians "I believe that banking institutions are more dangerous to our liberties than standing armies." Thomas Jefferson, US President 1801-9. "When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes. Money has no motherland; financiers are without patriotism and without decency; their sole object is gain." Napoleon Bonaparte, Emperor of France. "If the American people ever allow private banks to control issue of their currency, first by inflation, then by deflation, the banks and the corporations will grow up around them, will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." Thomas Jefferson in the debate over The Re-charter of the Bank Bill (1809). "Money plays the largest part in determining the course of history." Karl Marx writing in the Communist Manifesto (1848). “The surest way to overturn the existing order of society is to debauch the currency, all the hidden forces of economics are unleashed on the side of destruction in a way that not one man in a million can diagnose”. Karl Marx. "The government should create, issue and circulate all the currency and credits needed to satisfy the spending power of the government and the buying power of consumers. By adoption of these principles, the taxpayers will be saved immense sums of interest. Money will cease to be master and become the servant of humanity." Abraham Lincoln, US President 1861-5. He created government issued money during the American Civil War and was assassinated. "The death of Lincoln was a disaster for Christendom. There was no man in the United States great enough to wear his boots and the bankers went anew to grab the riches. I fear that foreign bankers with their craftiness and tortuous tricks will entirely control the exuberant riches of America and use it to systematically corrupt civilisation." Otto von Bismark (1815-1898), German Chancellor, after the Lincoln assassination. “It is well enough that the people of the nation do not understand our banking system, for if they did, I believe there would be revolution before tomorrow morning” Henry Ford "Of all contrivances for cheating the laboring classes of mankind, none has been more effective than that which deludes them with paper money." -- Daniel Webster"
  20. The demand for landing and takeoff slots greatly exceeds those available at Heathrow and has done for years. Changes in the flight figures here are IMO more to do with policy than demand.
  21. Government does not believe in property rights - they believe whats yours is really theirs and will try to take it one way or another. Only solution is real stuff in your personal possession - stock up on toilet rolls, spirits, shampoo anything that you use up that keeps, a strategy that was good in the inflationary 70's. A few sovereigns for later exchange makes sense too.
  22. Why do they allow low rank employees to make loans that will never be paid off? Answer - A fraudulent system that allows bankers to create money from nothing with a few keystrokes on a computer. (That's why bankers are rich) It's the monetary system that is the cause of it, it must be changed but probably reform will only come when it fails. It's not good, a monetary system failure is a disaster for a country.
  23. It's such a shame but I feel exactly the same. Gold has done so well and it amazes me so few of the people I know are interested. Gold is the go to asset in troubled times, it always has been. Yet so few seem remotely interested at least here in the UK.
  24. I hope it crashes, that means all is well. I think it will go much higher because I believe there is trouble ahead (peak oil, credit bubble collapse, fiat money failure), I hold it for these reasons. There an old Wall St. saying keep 10% in gold and hope it does not perform.
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