Wednesday, June 6, 2012

Desperate Times Call for Desperate Measures

Sometimes you see and hear things that are too incredible to believe.

Like, the tooth fairy, or life on Mars.

Yesterday I read, with incredulity, a statement from the President of the United States, that would make any weird belief seem sane.

The President touted giving "$3,000 to everyone to buy thingamajigs."

Yes, it is coming down to quantitative easing without limit.

Anyway, it appears the  markets didn't really believe Obama when he said this. They took his laughter as this being a joke. The dollar didn't collapse in a frenzy of selling on expectations of hyper-inflation either.

But if it was a joke, it would be a cruel one. After all, new, printed money has to come from somewhere. You see, even if you print money, the 'wealth' it produces has to be taken from elsewhere in order for the "negative to equal the positive" if you like. Systems need balance and monetary systems definitely need it. It's what a market is.

The wealth comes from savers and wealth owners not already protected by gold and other hard assets. The wealth is literally stolen.

Mind you, some do get it. China has bought 100 tonnes of the yellow metal in April alone. This is a record. This is sensible.

But not many people in the middle-classes understand what's happening yet. Most think they deserve the wealth from the rich anyway. So if Obama steals it, so what.

And all this on calls today for America to bailout Europe. Now let's think about that statement. Where not talking big Wall Street Banks or a petty $3000 per American small business owner here. Nope...the whole of darned Europe.

What desperate measures will be required for Europe? This week the G7 talk about the problems in Europe. Don't expect any answers, just the usual indecisiveness bordering on confusion.

Anyway, perhaps they are waiting for desperation to come so that they can foister some wider plan on a  desperate people? Hmm.

As an aside, I wonder why they didn't ask New Zealand to bailout Europe, after all, we can print NZ dollars as well as the US can print US dollars. Then we would own the Eiffel Tower and the paintings in the Louvre, Rome, Vienna and all the other great historical places. Perhaps even cheap holidays.

However, as the saying goes, "desperate times call for desperate measures". This means that when people get into difficulties, and all seems lost, they will do anything it takes to survive.

With Global Meltdown III (ie The Big One) underway, we will see more desperation and more stupidity than we ever dreamed possible.

Gold in New Zealand dollars: $2137.63 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $37.72 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)

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