Monday, September 7, 2009

Gold and more lies

Gold climbed over $1000/ounce today (a huge step for Gold in general), when this is being written $1005.10. EDIT: Oh, sorry, it climb to $1006.80 just under the time I wrote this post...

Do you know how much money you could have earned if you had listen to me just 6 months ago and bought gold? About 40% in profits. If you had listen to me back before the bubble you would be up 250% by now. How about that? If you have money, gold is still a fantastic investment because the price will hit $2000 within a year; I have predicted a peak of $2300 around x-mas of 2010. And this is despite the massive sellout that is soon going to take place to keep the price down. If it wasn’t for the manipulations and fictive decreases thanks to our enemies, the price of gold would be $100-$200 higher already today.

At the same time equity markets seem to continue upwards today, thanks to lots of fiat money, stimulus, ridiculous book-keeping from banks as well as governments all over the world. The mother of all bubbles is forming and is still getting inflated; the only question is when it will burst. And when it does, which I believe will be quite soon, it will be like an arse-penetration by a telephone-pole without lubrication.

While all this is going on, prices on certain commodities like eating out or buying a house is rising in Sweden. Prices on housing in the UK is also going up because banks buy real-estate and homes from themselves to hide all their losses. And the same phenomenon can be seen throughout, when prices should be going down.
I’m just waiting for that first sign that will make mainstream cornflake economists and journalists realize that things are going straight to hell. Oh, it’s going to be so fun reading about how they will try to explain this one, even funnier will be to see all the headless chickens of the world running around wondering if they are going to rebel or lay down and die.

The elitists agenda continues

To no big surprise, I wrote about it a half a year ago, the Swedish government is now starting to waste, waste and waste money all around. An additional SEK 11 billion (1 billion to the scam of Swine Flu) is now being thrown at local councils so they can burn it. The whole move is pure socialism, and again one needs to wonder; aren’t we seeing “green shoots”? Didn’t the Finance Mentalist and the Prime Mentalist argue, just weeks ago, that things looked brighter and the economy had stabilized?

Of course they would cave under pressure, both in order to keep voters happy and to take some edge of the opposition parties. The power is what is important. But mostly this is a move that will make local politicians happy, during the happy days they squandered like there was no tomorrow, not only emptying the treasury, but surpassing it with debt. But now Sweden’s supposedly “center-right” government comes to the rescue with more tax money. Well, it’s more likely borrowed money, but the tax payers name is on the lending contract.

Isn’t it fun to waste other people’s money?

I could almost understand this madness if they, at the same time, cut state expenses in other areas and stopped throwing billions at some Astronaut, but with a deficit of SEK 200 billion this is nothing but pure evil.

And worse will it be when the depression keeps going and lead to a worldwide collapse within months from now. For the first time the “real” socialists are actually correct in accusing the “right” for destroying the economy. They have always blamed “right”-government before, but back then it wasn’t the “rights” fault, they just took over a very bad situation created by the far left. This time, however, they are mainly to blame. Not for the crisis itself, that’s rather global and imported, but the worsening and for every willful stupidity after stupidity getting hatched they should get run down with pitch-forks and torches.

What should they do?

Cut the deficit down completely and cut expenses even more i.e. around SEK 300 billion in cuts, all the money over after that reduction should go to lower taxes. Then they should “force” the central bank to increase interest rates up to 4-5%.
A lot of cornflake economists and others will shake their head at this and say that would worsen the situation, and yes, that is true, it would, temporarily. But it is better to have a deep recession now and maybe a year into the future, and then it is over. Rather than we wait for decades of depression-waves to hit us while we have all these massive deficits and fictive markets. Either we swallow the bad tasting medicine now, or, down the road, we will be cutting off all our limbs. That’s the choice we need to make.

Just remember that those in power are your enemies, but so is also the alternative that wants to do even worse damage. It’s not just the current Swedish government that should be fed to hungry Polar Bears, so should also the opposition.

Strange interpretations – yet more lies

Two reports came out today/yesterday from a couple of Swedish institutes.

The first one from the Bank SEB (which is one of the worst banks in Sweden) and the survey says that 53% of the populace thinks that housing prices will go up in the near future, in contrast to 41% last month. Both the bank and newspapers quoting these numbers interpret it as good news. I’m thinking to myself, why?

Since when is rising prices on a big investment good news for the buyer? Okay, it’s good news for the bank that can indebt the Swedish populace even further, rising prices will also increase GDP, provided that the quantity of morons buying is about the same. But for the market in general it’s hard to see why higher prices is a good thing, in fact, it’s a bad thing, and that’s only looking at it from this perspective. If we also add in the rising unemployment, a shaky financial future and that the total debt of Sweden is close to 150% of GDP, and I cannot help wonder where the money will come from? More debt is the only answer, and that’s a good thing?

The Swedish government is currently running a SEK 200 billion deficit, interest rates are ridiculously low (one reason for the increase in prices we have seen so far), and people keep losing their jobs, so how the hell is it a “good thing” that people believe that prices is about to continue upwards?

The other report at display among Swedish papers is the one coming from UC AB. According to this business and credit information agency; companies going out of business were a meager 11% higher this August than a year ago. For some reason this is also regarded as “good news”. How about that?

If one actually read the report (find that here: Swedish) and look at the numbers being presented two fun things stand out. Firstly, counted Jan-Aug we can read it’s a total increase of 43% which is a much better indicator then one single month. Since the increase was higher in June and July, one may assume the number is going down, which, of course, isn’t really the case. Because, secondly, the report itself claims that one of the mayor reason for this lower percentage was that the crisis had already picked up speed a year ago, hence lower numbers to compare with than usual already back in Aug. 2008 in oppose to June and July. This nit little fact is ignored by the media, in effect this is yet another lie! Or maybe they are just incompetent..?

When comparing the number over a couple of years it looks even worse. According to SCB (The Swedish Statistic) there was an increase 2007 to 2008 by 35%. Even considering that 2007 was a very good year, bankruptcy-wise, this is consequently the comparison number we need to look at to really understand how bad/good it really was in August this year.

In other words, from a bad number to an even worse number in two ways. A) August last year (2008) was a worse month than June and July was during the same year, and B) August last year was also much worse than August the year before (2007).
Okay, so, again, the same question needs to be asked; how the HELL IS THIS GOOD NEWS!?!?

Finally, here I do need to remember you all that Sweden is actually in great shape in contrast to many other countries. (“Great” in the sense that the numbers don’t look as horrid, just less bad) So the Swedish government, idiots in so many ways, is actually one of the better ones out there… But in a very export-dependent country whose two of the main trading partners are UK and the US, two countries going faster downhill than a ski jumper, we are going to regard such reports as the ones mentioned above as “good news”? Please.