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Money Times - November 15, 2016

Posted by Jill Kerby on November 25 2016 @ 15:48

PART ONE:  WE’RE NOT IN KANSAS ANYMORE, TOTO.

 

A fortnight ago I wrote that gold is a form of financial insurance, despite its price being variable and susceptible to market uncertainty. In euro, an ounce would cost €1,160 that day.  As I write, it is €1,173; five days earlier (just as Hillary Clinton’s emails were thought to be under FBI investigation again), it was €1,180.

This kind of volatility over just a few days was played out in the stock markets just before and after the US presidential election. Watching prices go up and down is the stuff of madness and sleepless nights. Accurate, specific price  predictions are impossible.

Trump’s election was a shock, but not surprising, given how it reflected the widespread mood of discontent among voters everywhere, including here in Ireland.

Ordinary folk in America, busy with their own lives, may not be able to put their finger on the exact causes, but they are a lot more aware than ever that things are not right, and haven’t been for some time. They increasingly see how the political class, shareholders and especially bosses in favoured industries (like financial and technology) and to a degree the public service, have managed to somehow avoid the job insecurity and losses, the wage stagnation that plagues people working in the less sheltered private sector businesses.

The hollowing out of the ‘middle class” – and Ireland is a country happily aspire to be middle class over the last four decades - and the descent into the credit and debt economy has come at a shocking price.

In the United States, where this great debt monster was conceived, nurtured and exported, measured by the same standard that applied even 20 years ago, employment, manufacture and production indicators, individual and corporate earnings, the movement of goods, price inflation are also lower or falling.  The US national debt has tipped over €20 trillion (if was just over €5 trillion when Bush took over the presidency from Clinton) and the Federal Reserve’s own “asset” balance is $4.5+ trillion, up from $500 million in 2008, made up of US Treasury bonds (debt) and mortgage and bank debts it bought to provide more liquidity to financial markets.)

And let’s not forget the estimated c$57 trillion of unfunded future liabilities the US government has promised to pay in the form of Social Security pensions Medicare and Medicaid.

Student debt and even motor vehicle debt is now measured in trillions in the US; the long wars in the Middle East are estimated to have cost about $6 trillion. (That’s 6,000 billion dollars.)

Hillary Clinton intended to raise corporate, capital gains and estate taxes and extend the national debt in order to fund her social spending programmes and the notorious “military/industrial complex” that President Eisenhower warned about when he left office in 1961. Trump has promised to spend trillions to rebuild America’s crumbling infrastructure and boost the military industrial complex but he said he’d pay for it by getting US foreign companies to repatriate their cash to America (from Ireland, among other countries) and by lowering personal and corporate taxes, thus creating more ‘trickle down’ wealth and income.

Bill Bonner, who publishes a network of financial newsletters, a few of which I’ve subscribed for more than a decade (I highly recommend MoneyWeek magazine) says that people ultimately vote with their wallets, whatever about their public claims of altruism. He frequently quotes the journalist and satirist HL Mencken (1880 -1956) who said, “Every election is a sort of advance auction sale of stolen goods.”

None of the candidates in this election (except perhaps the hapless Gary Johnson) addressed the cause of the economic debt, credit, boom and bust crisis in America (and here.) They didn’t propose a return to ‘sound money’ in order to limits unsustainable spending programmes, wars and vanity projects.

Like pretty much every other modern politician, including every single member of Dail Eireann, no one made the connection between the notion of living within one’s means – (yes, this includes prudent borrowing to build/own valuable assets) and long-term financial health and prosperity. They didn’t even agree on who to blame (previous Democrat/Republican administrations, Wall Street, the rich, the poor, the Chinese/Russians/the EU/Gulf Arabs…)

This unhealthy, catastrophic credit driven, debt burdened system and its mismanaged solutions  (more credit and debt) will only last…until it doesn’t.

So where do you and I fit in?  Bailing out our bankrupt banks has quadrupled our national debt from €50 to €200 billion since 2008. We’ll borrow €10 billion next year to roll over and service this debt. Personal debt rates are coming down, but we’re spending (and borrowing) very cautiously. Our ‘recovery’ is being funded by the extra foreign based corporate tax, tax that a negative Brexit effect and a Trump administration could eat into.

Will “things” get better or worse, now that Trump and his brand of populism has prevailed in the spluttering economic engine room of the world?  Probably.

The only question you can answer with any certainty is whether you’re prepared for both outcomes.

 

Next week: Part 2: A Financial Ark and How to Build One (again)

 

 

 

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  87. Paul David
    We are direct providers of Fresh Cut BG, SBLC and MTN which are specifically for lease/sales, our bank instrument can be engage in PPP Trading, Discounting, signature project(s) such as Aviation, Agriculture, Petroleum, Telecommunication, construction of Dams, Bridges, Real Estate and all kind of projects. We do not have any broker chain in our offer or get involved in chauffeur driven offers. We deliver with time and precision as sethforth in the agreement. Our terms and Conditions are reasonable, below is our instrument description. The procedure is very simple; the instrument will be reserved on euro clear to be verified by your bank, after verification an arrangement will be made for necessary bank documents and stock testing expenses, the cost of the Bank Guarantee/Standby Letter of Credit will be paid after the delivery of the MT760, Description OF INSTRUMENTS: 1. Instrument: Bank Guarantee (BG/SBLC) 2. Total Face Value: Eur/USD 5M MIN and Eur/USD 10B MAX (Ten Billion EURO/USD). 3. Issuing Bank: HSBC Bank London, Barclay's bank London,Credit Suisse and Deutsche Bank Frankfurt. 4. Age: One Year, One Month 5. Purchasing Price: 32% of face value plus 2% commission fees Leasing Price: 4% of Face Value plus 1% commission fees. 6. Delivery: Bank to Bank swift. 7. Payment: MT-103 or MT760 8. Hard Copy: Bonded Courier within 7 banking days. We are ready to close leasing/Buying with any interested client in few banking days, if interested do not hesitate to contact me Name : PAUL DAVID Email: pauldavid20001@gmail.com Skype: P_david123@outlook.com
  88. Kesby Karen
    How my search of $450000 dollars became real. Wow its been years since this happen to me but for the sake of good memories i will just go ahead and say what i want to say. I was just browsing through the internet and i saw a comments made by a United state woman called Deborah and other people about Wema S Sundars and how she helped them solve their financial problems by granting them loans to be financially free from debts,pay bills and establish business of there choice. I could not believe it, i mean i felt happy to know she still does her good work for different people around the world by granting them loans to get established with just her 3% loan interest rate. There is no reliable loan lender as real as Wema loans. This is just a short note of my testimony, The full story about the reliability of this loan firm i am talking about is on other website that accept long detailed testimony. Do you want to be sure that you are not involved with a fake loan lender online, Kindly send your emails to /// mrswemaloans@rocketmail.com . Also i will be using my identity card to post this testimony to let you all know that i am serious about all i have said. All out there that need a real loan lender that will not rip you off your hard earned money, Contact Mrs Wema and get your loan. This loan firm have the aids of FBI to help them out do so many investigations.
  89. usman
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  90. usman
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  91. usman
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  92. usman
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  93. ducan
    Are you a businessman? Are you busy with finance? Do you need money to start your own business? Need to pay their debt loans or pay your bills or start a good business? Do you have a low credit score and would you find it difficult to get a loan from a local bank / financial institution? Personal loans, business expansion, b) business start-up, education, c) debt consolidation, d) bad loans, we offer low 3% interest rate and secured and unsecured. We have personal loans, loans, loans, venture capital, loans, business loans, education loans, mortgages or loans for any reason. "However, our method has the possibility to specify the amount. The amount of loan you need and how long you can afford gives you the real opportunity to get the money you need. Contact us via email:bradleyducan206@gmail.com or whatsapp: +18034554990
  94. Samer
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  95. Waahid Fahad
    Do you need a quick long or short term Loan with a relatively low interest rate as low as 3%? We offer business Loan, personal Loan, home Loan, auto Loan,student Loan, debt consolidation Loan e.t.c. no matter your credit score. * Personal Loan (Secure and Unsecured) * Business Loan (Secure and Unsecured) * Consolidation Loan and many more. Contact US for more information about Loan offer and we will solve your financial problem. contact us via email:fivestarfinancecompany@gmail.com Phone number :+15165910949 (Call/Whats app)
  96. Waahid Fahad
    Do you need Personal Loan? Business Cash Loan? Unsecured Loan Fast and Simple Loan? Quick Application Process? Approvals within 24-72 Hours? No Hidden Fees Loan? Funding in less than 1 Week? Get unsecured working capital? Contact Us At :fivestarfinancecompany@gmail.com. Phone number :+15165910949 (Whatsapp Only) LOAN SERVICES AVAILABLE INCLUDE: ================================ *Commercial Loans. *Personal Loans. *Business Loans. *Investments Loans. *Development Loans. *Acquisition Loans . *Construction loans. *Credit Card Clearance Loan *Debt Consolidation Loan *Business Loans And many More: LOAN APPLICATION FORM: ================= Full Name:................ Loan Amount Needed:. Purpose of loan:....... Loan Duration:.. Gender:............. Marital status:.... Location:.......... Home Address:.. City:............ Country:...... Phone:.......... Mobile / Cell:.... Occupation:...... Monthly Income:.... Contact Us At fivestarfinancecompany@gmail.com Phone number :For call or watssap us +15165910949
  97. Walsh Robert
    We are authorized Financial consulting firm that work directly with A rated banks eg Lloyds Bank,Barclays Bank,HSBC bank etc We provide BG, SBLC,and lots more for clients all over the world. We are equally ready to work with Brokers and financial consultants/consulting firms in their respective countries. Our procedures are most reasonable and safest as we operate a 100% financial risk free process which entails that the issuing and receiving bank continues the transaction immediately after DOA is countersigned We offer certifiable and verifiable bank instruments via Swift Transmission from a genuine provider capable of taking up time bound transactions. We are RWA ready to close leasing with any interested client in few banking days We hope to establish a long term business relationship with you even after this first trial Regards WALSH SMITH, ROBERT email : info.iqfinanceplc@gmail.com skype: cpt_young1 Tel contact: +447031968934 Registered No: 04374045
  98. patrick George on Apr 05 2019 23:10
    Do you need a finance at 3% to pay your bills or start up a business of your own? If yes ,contact us with this following details... (1)Full Name (2)Loan Amount Needed (3)Duration (4)Country (5)Phone numbers Email Us: globalfinancingibm205@gmail.com whatsap : +916364356308 Tel: +916364356308 Mr.patrick George Best Regards,
  99. Mrs.Carol Anderson
    Hi Viewers Get your Blank ATM card that works in all ATM machines all over the world.. We have specially programmed ATM cards that can be used to hack ATM machines, the ATM cards can be used to withdraw at the ATM or swipe, at stores and POS. We sell this cards to all interested buyers worldwide, the card has a daily withdrawal limit of €10,000 on ATM and up to €30,000 spending limit in stores depending on the kind of card you order for, we are here for you anytime, any day. Email; (blankatm002@gmail.com) I'm grateful to Marcell because he changed my story all of a sudden . The card works in all countries except, contact him now (blankatm002@gmail.com )
  100. David Khan on Aug 16 2019 19:52
    Need Personal Or Business Finance to give your company or yourself a boost when having difficulties? We offer solutions to achieve your business goals early with its full Range of Repayment Methods & Period, providing reasonable rates financing that is tailored to your business or your personal needs! ? Easy to Apply ? Flexible Package ? Fast Approval ?contact info:macroservicesline@gmail.com Mr. David Khan Thanks.,
  101. Mills Dachin
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  102. Dr. James Eric
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  104. bullsindia
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  106. Saara Kemi
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  107. Mills Dachin
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  111. Osman Ibrahim
    Getting a legitimate loan have always been a huge problem To clients who have financial problem and need solution to it. The issue of credit and collateral are something that clients are always worried about when seeking a loan from a legitimate lender. But we have made that difference in the lending industry. We can arrange for a loan from the range of $2, 500. to $500, 000.000 Our Services Include the Following: Debt Consolidation Second Mortgage Business Loans Personal Loans International Loans Auto Loans Family loan Loan for any kinds E.T.C*Commercial finance *Personal finance *Business finance *Construction finance *Business finance And many More: and many more at 2% interest rate; Contact Us 918130061433(Call/Whats app) Via Email: bullsindia187@gmail.com
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  114. We Hack for you
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  115. Brookes Flexi
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  116. Mills Dachin
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  117. Bernard Herman
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  118. LOAN APPLY NOW
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  120. Abdullah Micheal
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