Thursday, February 4, 2010

I'm a farmer!

Just started work in an aeroponics farm today! It's a great chance to study agriculture.
Next 10 years = years for precious metals and agriculture commodities! The bull run should last even longer for agriculture.

I am also in the process of setting up a company dealing with silver bullion, with a friend. Our website - in addition to silver bullion products - will contain educational information on what money really is, how money comes about, and what the banks and the governments around the world are doing to our money in the modern world. More details will be posted later!

On another note, I've recently watched Obama's State of the Union address too. It's the same old stuff. No fundamental changes to the way the economy functions. Only on-the-surface changes which he thinks are real changes. And then he outlined some contradictory plans too: Ever-increasing spending, tax cuts for the majority of the nation, more borrowings, and at the same time talking about getting the budget deficit under control.

The US can only fund its $3.8 trillion in spending plans for this year with $2.4 trillion in tax revenues. Where will the other $1.4 trillion come from? From foreign lenders, and from the printing press. But with China already scaling back in their lendings (and starting to sell US denominated debts), and other nations following suit, the printing press will become a much more viable option.

Note that I use the word 'spending', because the US are not investing their money.

This is the madness of Keynesian Economics. Spend your way out of trouble! Too bad they will soon realise that a national budget is no different from a household budget.

It would be interesting to watch his State of the Union address again one year from now and see what he has to say.




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