Tag Archives: money

You’ve Heard About the Japanese Tsunami, What About the American Tsunami?

We have all been watching the devastating aftermath of the Japanese tsunami and earthquake. The unforgiving wave claimed an undetermined amount of lives and property. It will take years to rebuild the areas affected. Of course it may take longer considering the serious economic turmoil present in Japan.

Economic turmoil takes on a life of its own. Sometimes, especially to the untrained eye, it’s hard to notice or see serious economic issues rising. Often times it is “felt” long before it is discussed. Unlike an earthquake or tidal wave which brings immediate destruction, an economic wave of inflation, unemployment, and boom bust cycles lie dormant waiting to break down the proverbial door. When an economic tidal wave crashes through a market jobs vanish, prices increase, cost of living rises which then drops the standard of living. Lives are effected in ways people don’t even understand.

These financial tsunamis have a few causes however they are generally set forth by central banks, corrupt banksters, and government officials. When the public cries out for help or cries out in rage these same crooks explain (in their own way) that the fix to the problem is more of the problem, they disguise it in big words, confusing lingo, etc. The result is a band-aid which doesn’t heal the cut. To move this over, if they were in charge of Japan – their fix would be to find a way to set off another earthquake and bring on another tsunami.

My question is how long until a real economic tidal wave hits the United States? We are already seeing signs. You feel it at the pump, at the grocery store, at school, work, etc. You “feel” it. You might not see the wave but you know the flood is coming. The waters are starting to rise, and personally I feel they are already too high. This video from CSL Financial Group does a great job of explaining some important statistics currently brewing in our country. It is important you watch and listen. No, it’s crucial.

The flood is coming and you need to be ready.

Gas Prices: The Difference a Month Makes

I decided it was time to delete some of the pictures stored on my iPhone. As I was going through my collection I found these two taken at my local gas station. I have a habit of snapping pictures when I’m at gas stations, I like to keep track of the prices. Imagine my surprise when I noticed these pictures were taken roughly 30 days apart.

It makes you wonder what the next 30 days will have in store for the consumer. How much longer until we can’t afford to leave the house? The supply shock coming from the Middle East is hard on us now but I’m glad to see it didn’t get worse.

So what next? More political turmoil? More inflation? The world will find out soon I’m sure.

Japan to Respond to Disaster with Inflation

Yikes, according to the Dow Jones Newswire Japan is set to flood (no pun intended) its market with fresh currency:

The Bank of Japan plans to pump “massive” funds into markets on Monday in a bid to help them stabilise following a catastrophic earthquake and devastating tsunami.

While water is immediately destructive to people and property – this is the kind of practice that tends to destroy countries in a more long-term way. The economy of Japan was already struggling before the quake, adding “liquidity” won’t do much to help. I believe this is only going to weaken an already unstable area.

Once Again, Buy Nickels

I’ve been telling people to allocate some savings in the form of everyday nickels. Why? Because they contain 75% copper. Copper is rising in price daily which means your $0.05 nickel is actually worth something closer to $0.08 which makes it a great way to “invest”.

If you are asking how you “make money” on something like this the short answer is go long on nickels. Buy up or collect a bunch of them, save them for a rainy day. Some nickels and other coins from the 40′s, 50′s, and 60′s are now selling for close to $2 a coin, that’s a huge profit if the legal value is $0.10 or something. This price increase is largely based on metal content per coin. Future coin collectors will buy the nickels of today down the road at collectors prices.

I project that nickels will begin to vanish from the market (Gresham’s law) as people begin to hoard them. Once they vanish you will then see the collectors market take off for these nickels. Right now the US Mint is subsidizing your metal and commodity purchases, take advantage of this! It won’t be available for much longer.

Alan Greenspan Give Me a Break

From Economic Policy Journal:

According to Greenspan’s new theory, note our spies, it seems he blames the crisis on a lack of investment in “illiquid” assets in relation to cash flows. This ratio of “illiquid” investment to cash flow fell to its lowest level in the first in quarter of 2010. If this ratio remained at or around its historic norm, Greenspan claimed the unemployment rate would be much lower.

Greenspan needs to look no further than his irresponsible and disgraceful policies to find the root and cause of the market collapse. His massive money printing counterfeiting and artificially low interest rates sent the market into a tail spin. Government decided everyone should own a house and opened the flood gates. This is textbook Austrian Business Cycle Theory, a Keynesian inflationist wouldn’t understand though.

Pathetic. We’ve had quite enough Alan.