Thursday Social engineering schemes always fail. As the 20th century English philosopher Ringo Starr eloquently noted: “Everything the government touches turns to shit.” My Starr was quite correct. Since the dawn of human society, centralised control, in one form or another, has always, eventually, collapsed that society. But why is that? The usual suspect … [Read more...]
Socialist Kleptocracies
Thursday Countries never recover from a socialism that is allowed to run its course, i.e., until it has squandered the capital accumulated in the prior period. Compounding this problem is that the human capital also vanishes – for sunnier (saner) climes. The gene pool is weakened as only the old, apathetic and party apparatchiks are left. Lacking capital, intellect and … [Read more...]
There is Nothing Positive About Negative Interest
Monday From: https://monetary-metals.com/ Constantly falling interest rates are destructive. Those businesses that borrowed at the earlier rate are at a disadvantage to those businesses that borrowed later at a lower rate. As each new business is encouraged into existence by the incentive of lower interest loans, so the viability of the previous businesses is … [Read more...]
Central Banks
Sunday Central Banks are the equivalent of the Central Planning Committees of the old USSR and present-day China. They specialise in distorting markets such that sane investing is disincentivized and speculations leading to capital destruction are incentivized. Anger against central banks is rising, and spreading, and rightly so. But they operated with the … [Read more...]
Economic ‘Downturn’
Thursday As the Australian economy falls ever-deeper into recession, it behoves thoughtful people to contemplate how they will protect their business as best as possible. I began my first business 61 years ago; I’ve been around. I’ve seen the highs and lows and with complete confidence I will state that this ‘downturn’ will be of a severity far worse than anything … [Read more...]