Was chatting to a friend 41yrs old who says that everyone he knows has only managed to buy property through using their inheritance, money from parents or working overseas. So much for affordability.
On another note....for those not familiar with Gerald Celente http://www.trendsresearch.com/forecast.html
"There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved." -Ludwig Von Mises
For all the property bears - another pessimistic forecast from Rode & Associates can be found here: http://property.iafrica.com/ideas_advice/1814120.htm
The problem with the local economic direction is that there is interference. Financial frugality and saving should be priority, but massive government spending on infrastructure (often unnecessary and purely for the sake of 'keeping the economy going'), wage increases in the public sector as well as unions forcing unrealistic spending by private companies, inflation targeting by the reserve bank and a slightly less aweful position due to the NCA mean that prices are not falling the way they SHOULD. It SHOULD be that prices decrease and materialistic excesses and spending be curbed, but it isnt, because of an artificial situation that has taken hold due to interference.
I say that a natural contraction and less painful end to spending and price increases will not happen as it should - but rather, interferece will ensure decadence to prevail before a final inevitable total catastrophe of the currency system.
The problem with saving is that there is no debt....since all money is debt it means there will not be much flowing in the way of interest and commissions and taxes into the pockets of banksters, governments and the elite who get to eat and live like kings while others work (and buy 2 flashy cars with backseat entertainment systems too)
One must realise that massive asset bubbles are in someones interest, no pun intended. That interest is not the man in the streets even though you might think so because you picked up a few scraps.
Thomas E. Woods, Jr. Testimony in Support of HR 1207, The Federal Reserve Transparency Act of 2009 House Financial Services Committee September 25, 2009
I am speaking this morning in support of HR 1207, the Federal Reserve Transparency Act. As the Committee knows, this bill would require a full audit of the Federal Reserve by the Government Accountability Office (GAO). On November 10, 2008, Bloomberg News ran the following headline: “Fed Defies Transparency Aim in Refusal to Disclose.” The story pointed out that the Fed was refusing to identify the recipients of trillions of dollars in emergency loans or the dubious assets the central bank was accepting as collateral. When the initial $700 billion congressional bailout was being debated last September, Fed chairman Ben Bernanke and then-Secretary of the Treasury Hank Paulson couldn’t emphasize their commitment to transparency strongly enough. But “two months later, as the Fed [lent] far more than that in separate rescue programs that didn’t require approval by Congress, Americans [had] no idea where their money [was] going or what securities the banks [were] pledging in return.”
If there is any truth to the idea of Fed independence, it lay in precisely this: the Fed may reward favored friends and constituencies with trillions of dollars in various kinds of assistance, while keeping the public completely in the dark.
Most Americans, not unreasonably, seem convinced of another thesis: that Goldman Sachs, for instance, might be just a little bit more politically well connected than the rest of us.
Thanks Benny, reminds me of an article written by Rob Kirby last year during the crash
For gold, 3 U.S. banks held a short position of 7,787 contracts (778,700 ounces) in July, and 3 U.S. banks held a short position of 86,398 contracts (8,639,800 ounces) in August, an eleven-fold increase and coinciding with a gold price decline of more than $150 per ounce. As was the case with silver, this is the largest short position ever by US banks in the data listed on the CFTC’s site. This position was put on and resulted in massive market price collapse as our GLD gold-price proxy shows:
I know Global Research well and I have read that articcle. The problem with analysing rigged systems is that normal market behaviour and principles do not apply. If global finance was honest it would have gone up in flames years ago. The relevant factors are rather how smart and devious the banksters are and how greedy and stupid the rest of us are. These things are much harder pin down and make predictions from. That said, the frauds seem content to let gold kick around the high US$900s, so anyone willing to go long in gold is effectively being subsidised by the scum. I've been putting most of my liquidity in Krugerrands for a while now.
9 comments:
Was chatting to a friend 41yrs old who says that everyone he knows has only managed to buy property through using their inheritance, money from parents or working overseas. So much for affordability.
On another note....for those not familiar with Gerald Celente
http://www.trendsresearch.com/forecast.html
http://www.shtfplan.com/forecasting/gerald-celente-september-2009-when-commercial-real-estate-crashes-theres-going-to-be-no-bottom_09142009
"There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved." -Ludwig Von Mises
For all the property bears - another pessimistic forecast from Rode & Associates can be found here:
http://property.iafrica.com/ideas_advice/1814120.htm
The problem with the local economic direction is that there is interference. Financial frugality and saving should be priority, but massive government spending on infrastructure (often unnecessary and purely for the sake of 'keeping the economy going'), wage increases in the public sector as well as unions forcing unrealistic spending by private companies, inflation targeting by the reserve bank and a slightly less aweful position due to the NCA mean that prices are not falling the way they SHOULD. It SHOULD be that prices decrease and materialistic excesses and spending be curbed, but it isnt, because of an artificial situation that has taken hold due to interference.
I say that a natural contraction and less painful end to spending and price increases will not happen as it should - but rather, interferece will ensure decadence to prevail before a final inevitable total catastrophe of the currency system.
But I still want my investment property ...
The problem with saving is that there is no debt....since all money is debt it means there will not be much flowing in the way of interest and commissions and taxes into the pockets of banksters, governments and the elite who get to eat and live like kings while others work (and buy 2 flashy cars with backseat entertainment systems too)
One must realise that massive asset bubbles are in someones interest, no pun intended. That interest is not the man in the streets even though you might think so because you picked up a few scraps.
Thomas E. Woods, Jr.
Testimony in Support of HR 1207, The Federal Reserve Transparency Act of 2009
House Financial Services Committee
September 25, 2009
I am speaking this morning in support of HR 1207, the Federal Reserve Transparency Act. As the Committee knows, this bill would require a full audit of the Federal Reserve by the Government Accountability Office (GAO).
On November 10, 2008, Bloomberg News ran the following headline: “Fed Defies Transparency Aim in Refusal to Disclose.” The story pointed out that the Fed was refusing to identify the recipients of trillions of dollars in emergency loans or the dubious assets the central bank was accepting as collateral. When the initial $700 billion congressional bailout was being debated last September, Fed chairman Ben Bernanke and then-Secretary of the Treasury Hank Paulson couldn’t emphasize their commitment to transparency strongly enough. But “two months later, as the Fed [lent] far more than that in separate rescue programs that didn’t require approval by Congress, Americans [had] no idea where their money [was] going or what securities the banks [were] pledging in return.”
If there is any truth to the idea of Fed independence, it lay in precisely this: the Fed may reward favored friends and constituencies with trillions of dollars in various kinds of assistance, while keeping the public completely in the dark.
Most Americans, not unreasonably, seem convinced of another thesis: that Goldman Sachs, for instance, might be just a little bit more politically well connected than the rest of us.
http://www.house.gov/apps/list/hearing/financialsvcs_dem/woods_testimony.pdf
@ ad
And if you like that try:
http://www.zerohedge.com/article/declassified-state-dept-data-highlights-global-high-level-arrangement-remain-masters-gold
If you've been following the gold price for the last few weeks it will come as no surprise.
Thanks Benny, reminds me of an article written by Rob Kirby last year during the crash
For gold, 3 U.S. banks held a short position of 7,787 contracts (778,700 ounces) in July, and 3 U.S. banks held a short position of 86,398 contracts (8,639,800 ounces) in August, an eleven-fold increase and coinciding with a gold price decline of more than $150 per ounce. As was the case with silver, this is the largest short position ever by US banks in the data listed on the CFTC’s site. This position was put on and resulted in massive market price collapse as our GLD gold-price proxy shows:
http://www.financialsense.com/Market/kirby/2008/0825.html
An article on Global Research..
More Bubbles Waiting to Burst
http://www.globalresearch.ca
/index.php?context=va&aid=14680
Interesting to note what the BIS has to say considering it is the central bank of all central banks and Bernanke is on the board
I know Global Research well and I have read that articcle. The problem with analysing rigged systems is that normal market behaviour and principles do not apply. If global finance was honest it would have gone up in flames years ago. The relevant factors are rather how smart and devious the banksters are and how greedy and stupid the rest of us are. These things are much harder pin down and make predictions from.
That said, the frauds seem content to let gold kick around the high US$900s, so anyone willing to go long in gold is effectively being subsidised by the scum. I've been putting most of my liquidity in Krugerrands for a while now.
Thank you Mr. Bernanke!
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