When Bernanke panicked and lowered interest rates in response to the whining crowd of stock market investors, credit became cheaper: a lot cheaper, in fact, the interest rate in the USA dropped from 4.25% to 3% within a few days. This is a savings of 29,4% to the “grasshoppers” who borrow money freely and a minus of 29,4% to the “ants” who toil all summer long to save for the winter.
People who saved got punished, while those who got in over their heads are being rewarded.
And the punishment will be extended to the very limits of society as inflation will make life more expensive for everyone.
Buy Gold.
Monday, February 11, 2008
Wednesday, January 2, 2008
Speeding in Japan can be expensive
I was caught speeding at 170 km/h en route to Hakuba. It was getting late and we had fun in the car and just as Cyd pointed out that I was going too fast and I started to slow down, I saw the flashing red lights in the rear view mirror.
They pulled me over at the nearest highway exit / toll station that allowed for parking. I had to join the two policemen in their unmarked patrol car. The radar screen on their dashboard showed: 112 km/h.
3 points off my license and a 25,000 Yen fine (ca 250 USD)
The speed limit in Japan is 80 km/h.
Had they not cheated on the radar, my license would have been revoked and the fine would have been 10 fold. At first, I tried bargaining for a "chuui" which is a warning without a fine, but when I realized that they were already more than generous, I just agreed to the fine and put my signature and fingerprint under the ticket.
Monday, December 31, 2007
A few days in the snow
Went to Hakuba skiing from Dec 25 - 29. We met the Stummer family whom we know from their Kobe days. The first 2 days were beautiful with crisp snow and blue skies, the 3rd day was overcast and when it was time to leave on the 29th it rained.
All in all, a big success. Eva got some ski lessons and Conrad also spent a day with Ito sensei he, Conrad gained a lot of confidence on skis.
Wednesday, September 26, 2007
The Greenspan Standard
This is an excerpt of a recent article posted by Michael Nystrom on his website www.bullnotbull.com
It is well known that former Fed Chief Alan Greenspan was a disciple of Ayn Rand, who believed in (among other things) unregulated capitalism. When interviewed recently on NPR's Fresh Air, Greenspan was asked if he didn't see some irony that, despite his own self-proclaimed libertarian beliefs, he spent much of his time as one of the world's most powerful regulators.
Greenspan's response: Regulator? Moi?
Here is a transcript of the actual exchange. (This comes in the last seven minutes of the interview):
Greenspan: Well actually, we were not fundamentally regulators [at the Fed]. The vast portion of our efforts were not involved in bank regulation.
NPR: No, but you were regulating interest rates, which have a profound effect on world economies.
Greenspan: You're raising really a very interesting question. I have always argued that the gold standard of the 19th century was a very effective stabilizer. It kept inflation essentially at zero, and I felt it was critical for the tremendous growth that occurred for the American economy in the latter part of the 19th century. When we went off the gold standard essentially in 1933, we then had to have what we call "fiat money" which is essentially money that is - it's printed paper money. Which unless we restrict the volume of, can be highly inflationary.
The type of interest rate regulation that I and indeed most central banks in the last 20 years have been involved in...has been to try to replicate the laws and rules that were governing the gold standard. And so it is an odd situation where all the central bankers -- while none of them are advocating a return to the gold standard -- nonetheless try to replicate the various types of interest rate policies that the gold standard would have created. And it is an interesting question whether you call that regulation, or basically functioning of a central bank in stabilizing the economy."
In listening to his smooth, soothing voice, the meaning of his words can easily get lost. The man nearly puts you to sleep with what sounds like soothing wisdom. But in reading the above transcript, clarity returns with a vengeance. Allow me to clarify. What he said was: The gold standard was responsible for the tremendous growth during one of America's most innovative and productive periods, but unfortunately we "had to have" fiat money. (Really? We had to have it? Who made that decision for us?) Greenspan then goes on to admit that fiat money can be very inflationary, so it has to be regulated. However, in spite of the fact that he is the Chairman of the institution charged with regulating it, he is not the regulator.
How can this be possible!? Because, he soothingly reassures us, he was simply emulating the gold standard! He would have us believe (if we did not have brains) that he was simply an automaton - doing what the gold standard would have been doing automatically anyway. Which begs the question: If this is the case - if the gold standard worked so well - why do we need the Fed to attempt to emulate it?? Why not just bring the gold standard back?
This is an excerpt of a recent article posted by Michael Nystrom on his website www.bullnotbull.com
It is well known that former Fed Chief Alan Greenspan was a disciple of Ayn Rand, who believed in (among other things) unregulated capitalism. When interviewed recently on NPR's Fresh Air, Greenspan was asked if he didn't see some irony that, despite his own self-proclaimed libertarian beliefs, he spent much of his time as one of the world's most powerful regulators.
Greenspan's response: Regulator? Moi?
Here is a transcript of the actual exchange. (This comes in the last seven minutes of the interview):
Greenspan: Well actually, we were not fundamentally regulators [at the Fed]. The vast portion of our efforts were not involved in bank regulation.
NPR: No, but you were regulating interest rates, which have a profound effect on world economies.
Greenspan: You're raising really a very interesting question. I have always argued that the gold standard of the 19th century was a very effective stabilizer. It kept inflation essentially at zero, and I felt it was critical for the tremendous growth that occurred for the American economy in the latter part of the 19th century. When we went off the gold standard essentially in 1933, we then had to have what we call "fiat money" which is essentially money that is - it's printed paper money. Which unless we restrict the volume of, can be highly inflationary.
The type of interest rate regulation that I and indeed most central banks in the last 20 years have been involved in...has been to try to replicate the laws and rules that were governing the gold standard. And so it is an odd situation where all the central bankers -- while none of them are advocating a return to the gold standard -- nonetheless try to replicate the various types of interest rate policies that the gold standard would have created. And it is an interesting question whether you call that regulation, or basically functioning of a central bank in stabilizing the economy."
In listening to his smooth, soothing voice, the meaning of his words can easily get lost. The man nearly puts you to sleep with what sounds like soothing wisdom. But in reading the above transcript, clarity returns with a vengeance. Allow me to clarify. What he said was: The gold standard was responsible for the tremendous growth during one of America's most innovative and productive periods, but unfortunately we "had to have" fiat money. (Really? We had to have it? Who made that decision for us?) Greenspan then goes on to admit that fiat money can be very inflationary, so it has to be regulated. However, in spite of the fact that he is the Chairman of the institution charged with regulating it, he is not the regulator.
How can this be possible!? Because, he soothingly reassures us, he was simply emulating the gold standard! He would have us believe (if we did not have brains) that he was simply an automaton - doing what the gold standard would have been doing automatically anyway. Which begs the question: If this is the case - if the gold standard worked so well - why do we need the Fed to attempt to emulate it?? Why not just bring the gold standard back?
This is an excerpt of a recent article posted by Michael Nystrom on his website www.bullnotbull.com
Friday, September 14, 2007
3 Year- Checkup Eva
On Sep 14 I had to take Eva to the ward office for her 3 year health and development check. What I hoped was going to be a quick in-and-out took 3 hours, as there were 100 other 3 year olds to be checked.
Eva weighed in at 17 kg and at 103 cm she was the tallest of the lot. While waiting for the various checks, she was also the noisiest. However, once it was her turn, she was brave and cooperative, while many of the other children started crying frantically when the doctors and dentists started working on them.
Eva weighed in at 17 kg and at 103 cm she was the tallest of the lot. While waiting for the various checks, she was also the noisiest. However, once it was her turn, she was brave and cooperative, while many of the other children started crying frantically when the doctors and dentists started working on them.
Happy Birthday Conrad!
Hard to believe, but Conrad just celebrated his 10th birthday.
His friends Deema, Oscar, Maurice and Brennan came over last night and the boys resigned to their Bionicles-madness for the better part of the night.
Tuesday, August 28, 2007
Outsheeping Sheep
Here's a quote from David Icke:
Humans have outsheeped sheep: Sheep need a dog to keep them in line - humans keep each other in line. Anyone that is different is punished with ridicule and condemnation.
Humans have outsheeped sheep: Sheep need a dog to keep them in line - humans keep each other in line. Anyone that is different is punished with ridicule and condemnation.
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