If you didn't like the astrology or other technical forcasts of a global depression and stock crash perhaps an International Monetary Fund report would be of interest.
MM

In a just-released 250-page report, the IMF is warning that there are terrifying storm clouds on the horizon — “alarmingly high risk” of a deeper global slump.

Here are just a few bombshells we’ve gleaned from its hot-off-the-presses report:

The global economy will grow less than any time since the 2009 recession. That means most companies around the world will suffer a big decline in profits for many quarters to come.

The world is choking on government debt: The debt has now reached pandemic proportions — an undeniable reality that raises the likelihood of skyrocketing interest rates, another big negative for growth, profits and stocks.

The U.S. Fiscal Cliff is a huge threat: Unless U.S. lawmakers can somehow avoid the automatic tax increases and spending cuts slated for January 1, it will trigger an even deeper global recession.

Government spending cuts are killing the world economy: Austerity budgets — massive government cutbacks already hitting in Europe and also on the way in the U.S. — are smothering the global economy with no end in sight.

Unemployment “gains” are a mirage: Global growth is far too weak to cause any REAL reductions in the unemployment rate.

Business and consumer confidence is “exceptionally fragile.” In fact, it’s already sinking and is likely to fall a lot more.

The stock rally is a trap: According to the IMF, massive, unprecedented central bank money printing — including the Fed’s “QE-Infinity” is the ONLY thing buoying economies and investment markets. Moreover, that money printing is making global inflation more likely — another big negative.

• Sources
• http://www.csmonitor.com/Business/Latest-News-Wires/2012/1009/Stocks-slump-after-weak-IMF-report
• http://www.telegraph.co.uk/finance/economics/9594804/IMF-sees-alarmingly-high-risk-of-fresh-global-slump.html
• http://www.bangkokpost.com/news/world/314109/global-financial-reform-stuck-in-growth-slump-imf

This entry was posted on October 10, 2012 at 7:58 PM and has received 1416 views. There are currently 0 comments. Print this entry.

I have been told that investing in gold has two strikes against it:

1. Frozen money

Strike 1. When you buy stocks or bonds, you help create jobs, and support a vital economy. Owning gold is *purely* speculative; it adds nothing to the economy, and “freezes” money, which contributes to recession. Buying gold makes a crash *more* likely.

My view: I am viewing gold as an store of value as insurance against paper money inflation and crashes more than a speculation. I imagine it is as economically productive as making an insurance payment for other kinds of "insurance".

As far as not adding to the economy I am not clear how buy a stock, gold or anything else is different from each other. In all cases money changes hands and the other person may spend the money on employee salaries or buy other goods and services. Most money invested in stocks does not go to the company who's stock you buy - that only happens with an original IPO or other stock issue. The rest of the time the money is going to someone else who had bought the stock previous, who bought it from someone else,... The stock changes hands many times at no direct befit to the original company or their jobs. Is that not "freezing the money" too? Sure it creates jobs in the stock market and back office, but that is true of any trading, including gold trading.
 

2. Dirty mining

Strike 2. Mining gold is a politically corrupt, environmentally damaging, and exploitative process. Buying gold supports wars and displaces indigenous people. The production of one gold ring generates 20 tons of wastes. Gold mining is without doubt one of the world's dirtiest industries: it uses cyanide, generates heaps of wastes, and leaves a long-lasting scar on landscapes and communities. More than half of all gold comes from indigenous peoples' lands. In places as diverse as Ghana, Indonesia, the United States, and Peru, gold mining operations have displaced people from their homelands against their will, destroyed traditional livelihoods, and damaged ecosystems. Indigenous people in particular disproportionately suffer the negative effects of gold mining, adding to the injustices they already endure.


My view: Most of the investment gold on the planet was mined many years ago, only a small percentage is mined each year. And I can see how demand for gold does increase the incentive to do more mining now. Just as the price of oil increasing has led to more dangers oil extraction methods like deep water drilling, tar sands and fracking. This is true for all extraction on a finite planet I think.

 

As to whether you want to support a particular type of economic activity such as gold mining that is another question. I imagine you are right about the effects and while I have not seen gold mines in South America I have see the local people protest about pollution and poor working conditions from other mining here in Peru and Bolivia. In addition many mutual fund index funds hold stocks in all kinds of companies that you may not like what they do eg selling tobacco or alcohol or employing cheap labor abroad. Let alone tax money and treasury bond purchases that partly goes to pay for wars in other countries... And as many companies and certainly their employees pay taxes you can be sure that some of your money is going to support some pretty nasty wars.

However I think it is the case that most natural resource extraction these days has similar issues. So for example if you own a car (or even just ride on the bus) you are contributing to oil company behavior for the gas and plastics used, plus the rubber plantations for the tires, and metal mining for the car body. The same can be said for many other purchases in modern society. As for computers and electronics they use gold and rare earths in their construction, so consider that next time you use a laptop or iPod.

 

The question then becomes how useful is what I gain from buying a certain item vs the trade off negative consequences of that purchase. That is a personal ethics question and balancing act.

The ethics of economic activity

I have thought about the "bad" effects of my economic choices which companies I contract to (and who do they contract to...) a lot in the past. And in the interconnected world we live in it is very difficult to reduce my effect on the planet let alone eliminate it. When I have a clear choice I often do what is better. I also thing that there is a level where all is good, both the "good" and the "bad". And I look to see if my direct interaction with others is positive for them and me.

How to insure your wealth in a financial crisis

Back to the question of how to insure your wealth against high inflation or other financial crashes. An alternative stores of value that may do well in a financial crisis that might appeal if you don't like gold are

• farm land
• collectibles such as artwork
• foreign currencies such as Norway Krone, Singapore dollar, Chile Peso held in a foreign bank with a high liquidity ratio (ie they either only loan out less than 50% of the deposits or many none)

If anyone has any other suggestions I am interested!

Diversification in asset types, currencies and countries is a good strategy to preserve your wealth in all times, and especially so in chaotic times like we are in now.

This entry was posted on October 10, 2012 at 6:52 PM and has received 1802 views. There are currently 0 comments. Print this entry.

Manifest tips and dealing with blocks from the super energetic Marie TV with guest Gabby.

 

1. Get Clarity on what you want/goal. Allow room for "that and even better...". Language in choice ("I chose..." rather than "I have to ..."

2. Feel the energy of what being and having that result is like. "I am ..." not "I want ...". Take time each day to focus in this energy.

3. Be brave to see and address any blocks to feeling that way. Notice Old beliefs and patterns about your goal. Have a regular practice to clear them.

4. Notice any guidance and synchronisties about your goal. Take inspired action steps towards your goal.

5. That includes ignoring any external evidence that appears to contradict your want

6. Know that god/your higher self has your back and that you will manifest this goal for sure! Be patient, not anxious.

7. Feel gratitude for the results you get. Gratitude is one of the most powerful vibrations for manifesting. Guilt and shame are some of the worst. Stay in a high vibration throughout your day in order to manifest more.

This entry was posted on October 10, 2012 at 4:41 PM and has received 1764 views. There are currently 0 comments. Print this entry.

Here is an Update on Spain from someone on the ground visiting there. And a suggestion to park some funds abroad before capital controls come here too. Actually they have already started to move in that direction in the US too - with increased reporting requirements of FACTA causing individuals and banks to fear US accounts abroad. And I have noticed that banks in US are questioning foreign wire transfers (due to regulatory pressure I believe) - both incoming and outgoing ones. I think it will only get worse. If you have been thinking of diversifying some assets among different countries best act now...
love
Michael

It takes all of three seconds on the ground in Spain to realize that this country is hurting. Big time.

I was just here three months ago, eight or nine months before that. Each time it seems worse-- more strikes, more homeless, more unemployed, more unrest, more storefront vacancies. It's amazing what the combination of debt, deceit, and a bona fide banking collapse can do to a nation.

In a most intellectually disingenuous statement, European leaders recently announced that Spain is A-OK and would not require a bailout. I suppose it's true to a degree. Spain doesn't really need a bailout. More like an exorcism. Or at least last rites.
 

After all the debt, austerity, government collapse, riots, etc., there's a new crisis du jour here: the banking system. Individuals, businesses, and institutions are all predicting a breakup of the eurozone, and nobody wants to have cash in this country on the day they introduce a new currency (and then immediately proceed to devalue it.)

Consequently, depositors are moving money out of the country en masse, often to the tiny principality of Andorra next door-- a highly capitalized, low tax banking jurisdiction. This leaves the already thinly-capitalized Spanish banks in an even weaker position.

As you probably know, the way the banking system works in most of the world is a complete fraud. Most banks only hold a tiny percentage of their customers' deposits in cash. The rest is 'invested' (gambled) or loaned to a bankrupt government.

This is a high-risk model that only works well when people have tremendous confidence in the system. The moment there are more than a handful of depositors wanting their money back, the bank has a big problem.

This is happening nationwide in Spain, so the entire banking system has a problem. Nearly every bank here is technically insolvent... and yet they have droves of customers trying to withdraw funds that aren't there.

As such, the IMF is now recommending that Spain (and other nations in the eurozone periphery) take action "at the national level" to stem this flight of funds and prevent people from moving money abroad.

Of course, they won't come right out and say it, but there's a name for 'national level' action to stem the international flight of funds. It's called capital controls.  

This is when governments restrict the free-flow of funds across borders, often -requiring- that citizens hold a rapidly depreciating currency at sub-inflation rates.

It's one of the worst forms of theft imaginable-- robbing the purchasing power of people's savings and incomes, all to meet some unachievable objective, or for 'the greater good' as defined in the sole discretion of the ruling elite.

Over the summer while in Europe, I saw early signs of capital controls being rolled out.  In Italy, for example, the government imposed bank withdrawal limits... essentially holding people's savings captive. Then they initiated strict border controls with Switzerland in an attempt to thwart citizens trying to sneak cash out of the country.

It's going to happen here in Spain as well. And unfortunately, the people who didn't see the writing on the wall and take action early are going to find the door shut in their faces by the next wave of regulation.

Moving some savings abroad isn't the sort of thing where you want to run with the crowd. As with anything, the dynamics change quickly when the idea becomes mainstream. Smart, thinking people ought to recognize the signs early and be well ahead of the crowd.

From http://www.sovereignman.com/expat/is-the-imf-now-recommending-capital-controls-8975/

This entry was posted on October 10, 2012 at 2:26 PM and has received 729 views. There are currently 0 comments. Print this entry.