Stagflation, currency manipulations and Bear attacks - these are the forces that make us poorer everyday. We are losing control over our own finance and destiny.
Our governments are promoting inflation by devaluing our local currency, cutting interest rates, and injecting liquidity into a market that is already saturated with nothing but liquidity!
We see currency manipulations everywhere. Yesterday, the Fed wanted a weak usd to save the big landlords and banks. Today, the Fed is saying that they must talk up the usd to tackle inflation. Tomorrow, the Fed may tell us that they are going to abolish money and use gold or something like gold e.g. oil as reserve. What will happen the day after tomorrow?
Yesterday, we heard that Canada must lower interest rates to counter the US slowdown. Today, we are told that the slowdown cannot affect Canada's economy. Tomorrow, we may hear that Canada will raise interest to tackle inflation. What will happen the day after tomorrow?
Why must we live at the mercy of these manipulations? What kind of financial system is governing our world, our lives and our future? I think the world must establish a central and independent body to regulate and monitor major currencies. Clearly, central banks are not suitable to do such task. They have too much political and national interests to look after! They are bullied by big landlords and banks, their ruling elites and administration.
The bears may now eat up all of us. We are the sweet salmons swimming up to their mouths. How about shorting equities worldwide? I am sure you have already gained a lot if you did that a little earlier. But don't worry; you still have your chance. Financials, oil, real estate, technology, airlines, ...are all going down and it's just a matter of time before they tank below their lowest level this year.
Have you got the story that Vietnam would be the starting point of another Asian financial crisis as in 1997-98? I tend to agree with such story mainly because Vietnam is a place where you see bubbles and asset inflation. Wherever bubbles are floating, you will have crises sooner or later and the bubbles are contagious. Once they burst in Vietnam, they will start a butterfly chain effect. Thailand, Malaysia, Indonesia, Singapore, Taiwan, Hong Kong, South Korea...will standby to contract the viruses. Who can be safe? Those who genuinely regulate and control bubbles. But which one?
So you must now understand why our Central Government in Beijing is fighting so vigorously against inflation, asset bubble and price manipulations. They are the best government that sincerely look after the interest of the people with conscience and compassion. I wonder what would you think about the US Fed when they have been promoting inflation to bail out big landlords and banks? Which government would you like? I am not flattering our Central Government in Beijing but they surely show us how good government should behave.
Fasten your seat belts and prepare for another flight to Mars!
Wednesday, June 11, 2008
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