Section 179

Section 179?

A classic case of politicians stealing future wealth for votes now. Barack Obama knew he would be up for election at the start of 2012.

This one piece of legislation could stop America's growth dead in it's tracks in 2012

http://www.fsponline-recommends.co.uk/page.aspx?u=tvsec179&tc=EHVAMC30&PromotionID=2147067964&

Fractional Reserve Banking

Not a very interesting subject I know but important we understand what it is and how it effects our wealth.


Some call it counterfeiting but our society depends on it to increase the money supply and create wealth. It can have terrible consequences if misused like the Banks had been doing leading up to the crash of 2008. It can cause huge bubbles in investments such as property and can have even worse consequences when it is withdrawn after a binge.


The following link to a Moneyweek video tutorial explains simply and clearly how it works and how banks turn £100 into £1000 by magic. Problem is banks have been turning £100 into £4000!

http://www.moneyweek.com/investment-advice/how-to-invest/video-tutorials/video-tutorial-how-banks-create-credit-14200

Inflation

Inflation affects us all, one way or another. It lowers the value of money, and it's key to the cost of cash – otherwise known as the level of interest rates.

Britain's headline consumer price index (CPI) inflation is now rising at 4.8% a year, more than twice the Bank of England's 2% target. Meanwhile, the older-style RPI inflation – the Retail Price Index, which includes housing costs – is running at 5.2% a year.

So is a climbing cost of living turning into a major problem for the UK? Before inflation really sets in, there are always early warning signs. 

You can read in detail what each indicator suggests for UK inflation – and for some, the bank rate too. But to summarise, external factors such as soaring oil and food prices, and price pressures in China, are already doing some inflation damage. That's showing through in the BRC Neilson shop price index. 

British industry is having to charge more for its products, so factory gate prices, which end up influencing what the consumer pays in the shops, are moving up. The latest CBI survey, in contrast, suggests manufacturing price pressure could be easing, though we need further confirmation on this next month. And another warning sign that isn't glowing amber or red as yet is wage inflation.

One final comment. If the UK's bank rate (what we all used to call 'base' rate) rises, mortgage rates won't be far behind. That could mean higher mortgage payments for millions. In other words, RPI is about as high as it's been compared with the Bank's core interest rate since 1980. For how long can this continue? Source: Moneyweek

False Chinese Growth

After all China's double digit growth, does this must see report predict a pending crash in their false housing market? http://www.sbs.com.au/dateline/story/watch/id/601007/n/China-s-Ghost-Cities

Silver shortage

Imbalances in the supply and demand of precious metals, particularly silver, could lead to a shortage of physical product in the near future. There is a high likelihood of increases in the price of silver, and other precious metals. There simply isn't enough physical silver to deal with the demand of a fiat currency crisis. As the paper silver market pushes prices down, all hell will break loose in the physical market. While that conclusion may or may not be applicable just yet, when coupled with recent revelations of potential double counting of precious metals at the warehouse level , the situation will certainly get only more exacerbated. A price jump may be imminent.

Gold still holds its own

It's been some year.

Stock markets across the globe have performed woefully. Developed markets did better than emerging ones, but the fact is your money would have been better off in a savings account than in the average index tracker this year.

Gold did well – it peaked mid-year, but in terms of annual performance, it still thrashed just about any other asset class around.

Euro Mess

Angela Merkel and Nicolas Sarkosy have yet again come up with a new fix to the Euro crisis. Place big fines on countries who run up big deficits......Which brain donor thought that one up then? With most Euro land countries already running massive deficits its a bit like closing the door after the horse has bolted.

Lets look at how these countries can significantly reduce current deficits by likening it to house hold bills,  reduce overheads on council bills, Police and interest payments (your mortgage, utility bills and credit cards)  and increase gross domestic product (your wages). Now, as we all know our friends at the bank don't like lending money any more, the money supply has shrank which means no/low economic growth (wages). So how else can the Government reduce its debts? Inflation!!! brought on by quantitative easing (printing money out of thin air)

Either way the out look is grim. Europe's leaders either don't have the political will or don't know how to fix this crisis. Keep in touch and we will explore ways to protect your wealth from the up coming crash.

Welcome to my new investing blog

Hello there and welcome to my all new blog about making sense of the financial mess in the world and how to plough through it. I want to keep it simple and avoid all the financial jargon they use to keep the man on the street in the dark. Even if you have no experience in financial markets, I hope to either explain or give you access to authors and trainers who will give you the knowledge to protect you and your wealth and I wont charge you a penny for my thoughts!!


But first a little about me, I am 44 years old and have had several businesses over the last 18 years. By 2008 I had a turn over of £1.2 million and 45 staff and was making........nothing!! Left with nothing to do I I picked up a book By Robert Kyosaki called Rich Dad's Conspiracy of the rich. Oh boy did my perspective of the world change, it was like I had just taken that red pill in the film The Matrix. I was Alice looking down that rabbit hole and it was scary. One book led to another (on audio tapes as I was driving round because I'm lazy!) and it all started making sense.  


Follow my blog and I will share with you the latest and most relevant information from around the world and if I don't explain it properly please email me at CarlDenisJones@gmail.com