The Morning Report examines the potential results of big government.
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I agree with Trader Rog,
I think that we are on the verge of witnessing a number of “game changers” in the very near future.
But then again, what can anyone expect? The “it’s all about me mentality” that started about fifty years ago is coming home to roost.
Sad but true. Stay informed and make wise decisions to protect yourselves and your loved ones.
Big Al
Hi Trader Rog,
I really like how you think reguarding the bond markets being the final decider. I am enjoying the movie being played out. Thanks
The pundits on Greece, I believe, have gotten the referendum idea wrong.
Led by the Guardian newspaper, they take an opinion pole of 59% of Greeks against austerity measures, as implying that will cause a NO vote on the referendum. Georgios Papandreou is much smarter than people think. There was another opinion pole about staying in or leaving the EU; and in that pole over 80% of the Greeks votes in favor of staying in the EU.
Thus if the referendum, which will not take place until next year is phrased more in terms of staying in the EU than in cuts in benefits, I believe it can obtain a YES vote, as the Greek populace comes to the realization that it is better to stay in the EU with cuts, than to drop out of the EU and still get cuts(I’m still not sure that the EU has enough money to bail out Greece and ring-fence all the banks though)
Morning cfs,
Interesting points.
I am not convinced, at this point, that the Greeks will vote in favor of the measures. But then again, if they don’t it is the perfect example of “cutting off your nose to spite your face!”
Big al
I agree. Italy is a much bigger problem.
HI cfs (David in England)
I think that rather than quantify the problem contributed by each country it is much more important to realize (And, I know that you do!) that combined all the countries pose a gigantic problem and we must prepare for the worst in order to protect ourselves.
Best,
Big Al
Hello All you Great People,
Big Al is off to Vancouver for the day.
I will be contributing again late afternoon or perhaps late evening.
You folks are great!
Big Al
The way I see it ( and I watch pertinent news chanels, not the menucia that is spewed on TV ) the Greek people want a default rather than have their country sold off and austerity imposed upon them. The markets see a NO vote and so do I. Just my 2 cents (which is worth about a nickle in copper).
HI Big Al M,
I think you are correct.
More on this tomorrow,
Big Al
Iceland said no. Ireland (the people) seem to be all saying no. Greece is going to get austerity no matter what, but I think they will choose a route where they are in in-charge (even by perception) of their own cutbacks, rather than having it foisted from outside. I think there’s a better-than-even chance they’ll cut whatever it takes the €100 billion from the EFSF, pretend that things are progressing for a while, then welch on the whole thing and leave the EU. It will largely be a needed action more than a choice.
Al: Good discussion. A point about Financing Big Government is extremely important to understand. When Governments finance by printing they leave the legitimacy of governing for the citizens and become lackeys of various interests least of which is the Nation.
I highly recommend reading James Rickards new book “Currency Wars”. An introduction to the book by James Turk gives some insights to what is happening and where gold will return as sound money.
I meant to say, When governments finance by printing money, they soon begin to represent only special interests and not the people or the nation. In a recent interview of Adam Fergusson author of “When Money Dies”, Mr. Fergusson mentioned a wise comment by a Luxemburg politician who said “We all know what must be done, but the problem is how to get elected after we do it”.
http://www.goldmoney.com/gold-research-videos.html
I believe a great many of these social, economic, geopolitical and industrial military problems around the world are caused by governments not being on some kind of Real Standard like gold. When nations like the US use fiat money created through debt, they do things which result in all these problems we are now suffering from.
Like James Grant has said, “We will go forward to a Gold Standard, that is not a threat nor is it a promise, it will happen”.
HI Clay,
I will definitely pick up that book on my Kindle. Thanks for the tip.
Regarding James Grant’s quote, and I can say is a big YUP!
Big Al
Sound money put EVERYBODY ON A LEVEL PLAYING FIELD……the impetus of greed, corruption and downright scandal was opened fifty years ago when we got off the Gold Standard…everything else is simply smoke and mirrors. Invest accordingly or poof – everything else will go up in smoke!
Marc
Hi Marc,
That has been my exact philosophy for the past 30 years!
Big Al
the gold standard is like dempcracy: It’s the worst system except for everything else.
The so-called panacea of the gold standard could work just fine, except politicians go off it when it’s not convenient as during wars, they manipulate it as they did in the genoa conference if i remember dines correctly. ( The economies of the world were stagnant in early 1920’s so they essentially printed money while on a gold standard in the 20’s which lead to a speculative bubble which caused you-know-what….
Gold is having a huge role to play, but through a monetary free market of sorts. Friedman’s theory treated currencies as a part of a global free market, if investors don’t like one currency, they go to another and now they are going to the best currency:
Gold
Speaking of Milton Friedman watch this:
Thanks Peter,
Will watch it tomorrow as I am about ready to drive home from Vancouver, B.C.
Big Al
With regard to our own national problems, Greece, the EU, and the world generally, and when viewed from an excruciatingly honest, “macro” philosophical point of view, in conjunction with everything we have all been discussing on this blog over the last year or so, that as it pertains to human nature and human beings, one thing seems abundantly clear; “Mankind is incapable of rightly and justly governing himself!”
Reading posts like this make surfing such a plruease
Morning Mr. C,
Interesting topic for an editorial.
Big Al
Taking the ovwveire, this post is first class
The ills of big government have been well reported by others. The normal idea for this growth is to make new jobs and get the votes from those who are employed. The bond markets (global credit) will be the final decider as to who lives and who dies (governments). We are seeing this morning ,the first of the early, smaller collapses (Greece, Ireland) signaling the new trends. Watch what happens when Italy goes over the edge. That one will a game changer- Traderog