Do you own any gold? It's a very hot investment now that the United States dollar, as printed by the Federal Reserve Bank, seems to be losing value on a daily basis.
I suggest you own gold. Furthermore, you ought to take physical possession of it. Put it in a safety deposit box, offshore if you can. ETF's, gold futures, and other claims on gold are subject to the risk that some counter party will fail to come up with the gold at some point.
Also, you need to recognize that gold is NOT an investment. Sure, there are some industrial uses for gold in some electronics and perhaps someone will discover more industrial uses which might justify gold as an investment of sorts, but I wouldn't count on it. There is no interest rate, reinvestment of capital, or dividend associated with gold, thus, gold is simply best thought of as a way to protect your wealth from being stolen by the government's central bank, the Federal Reserve Bank.
Gold is a bet against the Federal Reserve and its counterfeiting activities. What the Federal Reserve Bank does is mostly kept secret, so we don't know how much they have counterfeited in the recent past and we certainly can't know for certain how much they will counterfeit in the future. Eventually, we can find out how much money Bernanke and his gang have counterfeited, though they try very hard to hide which of their gangster pals they give the counterfeited money to. Think Goldman Saks, other Wall Street firms, banks, big corporations like GE, and other people and firms with pull. That's how it works in America these days.
Ignore, mostly, M2 and other government propaganda when trying to determine what the counterfeiting activities have been. Instead, look at True Money Supply Statistics, currently showing criminal counterfeiting at about 12% annualized.
The price of gold is affected by the market assumption of past and future counterfeiting activities. If it ever becomes evident that the Federal Reserve is counterfeiting at a rate significantly below that at which the market had assumed they would, then gold prices will fall to reflect a lower expectation of future counterfeiting. That's what happened back in the early 1980's when then Federal Reserve Chairman Voekler decreased the amount of counterfeiting.
I don't expect Federal Reserve Chairman Bernanke to decrease his counterfeiting. To do so, he would have to stop buying Treasury debt, which would allow Treasury yields to increase dramatically, but would strain government finances and cause a default.
Therefore, the value of the dollar will continue to fall and gold prices will continue to rise, other than for very short term trading reasons. The Federal Reserve can create as many dollars as it wants. Its political bosses wants lots and lots of dollars to pay off their cronies and to fund their re-election campaigns. On the other hand, no one can simply create gold.
Wednesday, August 24, 2011
Saturday, August 20, 2011
Cops
A few years ago when we lived in San Francisco, my wife and I went out for dinner in San Francisco's North Beach neighborhood. It's an older neighborhood, but nice and filled with tourists and restaurants, some good and some touristy. I saw two cops cross the street and approach a homeless man who was sleeping on the sidewalk in front of a restaurant window. One cop walked up and without saying a word, he kicked the homeless man in the head as hard as he could. Like something out of pro wrasslin, only it was a real kick. We were less than 10 feet away when this happened, and I can assure you the brutality was shocking.
In Fullerton California just a few weeks ago, a gang of men severely beat and killed a homeless man in his twenties. The man begged for his father to come help as he was beaten. There were witnesses and some video evidence of the beating, yet no one has been arrested or charged. The gang can be identified easily as they were wearing blue costumes with a shiny badge and each of them is employed by the Fullerton Police Department.
Just last week in Philadelphia, a nearly blind man was beaten severely by a gang of thugs as he was being helped across the street by his guardian. The man is in the hospital and a witness who lived across the street was tasered and arrested on his front porch, but none of the gangsters has been arrested or charged with a crime. They can easily be identified as they were wearing blue costumes with a shiny badge and each of them is employed by the Philadelphia Police Department.
In recent weeks, a homeless man was shot and killed by BART (Bay Area Rapid Transit) police in San Francisco. The police claim he charged at them with a knife, but all of the non police witnesses say otherwise. The BART police is the same group responsible for the shooting murder of a man who was laying face down, unarmed, on the platform a few years ago.
Two weeks ago we were staying at a fairly nice business hotel near the train station in Niigata Japan. We departed the hotel around 7AM to catch an early train and during the 2 block walk we noticed a group of policemen standing around. It appeared as if 2 or 3 homeless (or maybe college age guys on vacation) had been sleeping in the doorway of a business. Their sleeping bags and personal items were scattered about. There were about 4 police, and the conversation was somewhat animated, especially for Japan. However, it was plain to see by the tone of voice and the body language of the police that they were trying to diffuse the situation. There was no command voice being used, no tasers, no guns, no threatening, no use or threat of force, no attempt at arrest. Just calmly trying to explain to they men that they had to gather their belongings and move on.
You can deny it if you want, but the truth is that America is an authoritarian police state. You can practically hear the jackboots coming in America. The police in America conduct and get away with violent beatings and killings on a frequent basis. Another blogger, Will Grigg, has made it a practice to keep a blog record of the police abuse. Check it out, but take your blood pressure medicine first.
Japan is not a police state, even though I am certain there are abuses. I have never heard any accounts of violent beatings or murders conducted by the police here. Another reason why Japan is better than America, far better.
In Fullerton California just a few weeks ago, a gang of men severely beat and killed a homeless man in his twenties. The man begged for his father to come help as he was beaten. There were witnesses and some video evidence of the beating, yet no one has been arrested or charged. The gang can be identified easily as they were wearing blue costumes with a shiny badge and each of them is employed by the Fullerton Police Department.
Just last week in Philadelphia, a nearly blind man was beaten severely by a gang of thugs as he was being helped across the street by his guardian. The man is in the hospital and a witness who lived across the street was tasered and arrested on his front porch, but none of the gangsters has been arrested or charged with a crime. They can easily be identified as they were wearing blue costumes with a shiny badge and each of them is employed by the Philadelphia Police Department.
In recent weeks, a homeless man was shot and killed by BART (Bay Area Rapid Transit) police in San Francisco. The police claim he charged at them with a knife, but all of the non police witnesses say otherwise. The BART police is the same group responsible for the shooting murder of a man who was laying face down, unarmed, on the platform a few years ago.
Two weeks ago we were staying at a fairly nice business hotel near the train station in Niigata Japan. We departed the hotel around 7AM to catch an early train and during the 2 block walk we noticed a group of policemen standing around. It appeared as if 2 or 3 homeless (or maybe college age guys on vacation) had been sleeping in the doorway of a business. Their sleeping bags and personal items were scattered about. There were about 4 police, and the conversation was somewhat animated, especially for Japan. However, it was plain to see by the tone of voice and the body language of the police that they were trying to diffuse the situation. There was no command voice being used, no tasers, no guns, no threatening, no use or threat of force, no attempt at arrest. Just calmly trying to explain to they men that they had to gather their belongings and move on.
You can deny it if you want, but the truth is that America is an authoritarian police state. You can practically hear the jackboots coming in America. The police in America conduct and get away with violent beatings and killings on a frequent basis. Another blogger, Will Grigg, has made it a practice to keep a blog record of the police abuse. Check it out, but take your blood pressure medicine first.
Japan is not a police state, even though I am certain there are abuses. I have never heard any accounts of violent beatings or murders conducted by the police here. Another reason why Japan is better than America, far better.
Wednesday, August 17, 2011
Radiation
People in America are still asking me about the situation at the Fukushima nuke plant. They are concerned that the situation remains bad. According to today's report by NHK World News, radiation levels have fallen by 80% in the past month and are at 1/10 millionth of the levels reported in March, right after the accident. Whew!
Now that we are beyond the hysteria and can look at the situation in a more rational manner, I am still concerned about nuclear power. The facts are that the plants are unsafe. They blow up (from hydrogen leaks) if the power is lost and not restored. The nuclear reaction continues to generate massive amounts of heat, enough to easily cause a dangerous melting of the nuclear material, even AFTER the nuclear reaction is shut down in an emergency. Having the plants clustered together means that one accident can prevent workers from accessing the other nearby reactors, thus potentially causing a chain of serious accidents.
In terms of economics, I question whether the actual full cost of nuclear generated power is so low. These plants receive massive government subsidies in the form of loan guarantees for construction as well as from the exemption from having to pay for liability insurance, again thanks to government. Now that there's this massive accident, the government of Japan is paying for the damages. It is my understanding that nuke plants in America, and probably around the world, are similarly exempt from having to pay for liability insurance. They don't set aside profits for self insurance either.
The truth is revealed by the situation in America. When the subsidies were withdrawn, no more nuke plants were built, going on for 35 years now. If the true cost of nuclear power was competitive, power companies would build and run the plants without any government subsidy for either the construction or ongoing operating liability.
Yes, it is true that only 1 or 2 workers were killed at Fukushima and most of the leaked radiation was dispersed over or into the ocean, mostly away from people, so long term effects on people's health is likely to be minimal. That was a matter of luck, frankly. The next accident could be at a plant where the prevailing winds blow toward a populated area. Having good luck is not a sound basis for continuing to operate nuke plants.
Solution: allow people to sue power companies for damages caused by their nuke plants. The result will be a true accounting for and payment for some sort of liability insurance. Guaranteed, the plants will either be made safer or shut down and replaced with a safer alternative if the power company's money is at stake.
Now that we are beyond the hysteria and can look at the situation in a more rational manner, I am still concerned about nuclear power. The facts are that the plants are unsafe. They blow up (from hydrogen leaks) if the power is lost and not restored. The nuclear reaction continues to generate massive amounts of heat, enough to easily cause a dangerous melting of the nuclear material, even AFTER the nuclear reaction is shut down in an emergency. Having the plants clustered together means that one accident can prevent workers from accessing the other nearby reactors, thus potentially causing a chain of serious accidents.
In terms of economics, I question whether the actual full cost of nuclear generated power is so low. These plants receive massive government subsidies in the form of loan guarantees for construction as well as from the exemption from having to pay for liability insurance, again thanks to government. Now that there's this massive accident, the government of Japan is paying for the damages. It is my understanding that nuke plants in America, and probably around the world, are similarly exempt from having to pay for liability insurance. They don't set aside profits for self insurance either.
The truth is revealed by the situation in America. When the subsidies were withdrawn, no more nuke plants were built, going on for 35 years now. If the true cost of nuclear power was competitive, power companies would build and run the plants without any government subsidy for either the construction or ongoing operating liability.
Yes, it is true that only 1 or 2 workers were killed at Fukushima and most of the leaked radiation was dispersed over or into the ocean, mostly away from people, so long term effects on people's health is likely to be minimal. That was a matter of luck, frankly. The next accident could be at a plant where the prevailing winds blow toward a populated area. Having good luck is not a sound basis for continuing to operate nuke plants.
Solution: allow people to sue power companies for damages caused by their nuke plants. The result will be a true accounting for and payment for some sort of liability insurance. Guaranteed, the plants will either be made safer or shut down and replaced with a safer alternative if the power company's money is at stake.
Monday, August 15, 2011
Transportation
My family and I recently completed a week long mountain hiking vacation and we spent the last couple of days enjoying life in the big city, in Niigata. Niigata is a big city, but it's not exactly thriving and appears to have seen better days. Where we live it's a small town, but when in Niigata or any other large city it always seems necessary to take public transportation. By a long shot, Japan's public transportation is superior to that of America's.
My experience in America's public transportation is mostly from having lived in San Francisco and Philadelphia, though I have used the New York, Atlanta, and Chicago public systems when visiting there, not to mention having used AMTRAK on many occasions.
All government run transportation systems in America are inefficient and plagued with poor employee attitudes. The bus schedules are non existent, they show up whenever they feel like it and the trains are usually late. Of course, the employees are rude or non caring for the most part. Since they receive no benefit from being polite and no punishment for being rude or disinterested, why would we expect otherwise?
It's not uncommon that people are mugged or assaulted on America's buses and trains, especially in the subway. Just recently in Philadelphia, a woman called ahead to her family members and asked them to shoot up a bus full of people because one of the other passengers had made a comment about the way she disciplined her unruly child on the bus. The shooting was caught on film by security cameras. Something like that is not at all typical, but crime and violence in the transportation system is far too common, as opposed to Japan where muggings and assaults are most rare.
In Niigata as elsewhere in the Japan, the bus arrives and departs according to a schedule, and an on time performance is typical. We wanted to take the tourist bus that goes to all of the museums and the aquarium at a discount fare. Just as we were crossing the street toward the bus station, that bus departed. My wife was hustling to get to the bus pad before it left, but didn't make it. A bus company employee saw what happened and ran out to the street to knock on the bus door. He asked the driver to stop and open the door for us. Could you imagine a government run bus company employee in America helping out a passenger like that?
In America, on countless occasions, I have seen bus drivers ignore passengers who were knocking on the bus door just prior to the bus departing the bus stop. The driver will keep his or her eyes straight ahead and pull away, leaving the customer standing there waiting for the next bus. The drivers often shout at customers or speak in a rude command voice. It isn't even rare to see all passengers kicked off a bus simply because the driver decides they want to go home. One time, an AMTRAK employee ignored my question about a late train because he was more interested in attending to the fish that he kept in his fish bowl.
Now I doubt that Japanese employees at government run transportation systems get paid more to provide good service. It seems as if politeness and good service are expected as a matter of pride, and poor performance would result in some sort of punishment, perhaps a demotion or a dressing down. No matter the reason, the results are good, and that's what counts.
Using trains to travel instead of our car and using the city bus in Niigata all enhanced our vacation due to the polite and efficient service. Chalk up another win for Japan. Yet another reason it's better here.
My experience in America's public transportation is mostly from having lived in San Francisco and Philadelphia, though I have used the New York, Atlanta, and Chicago public systems when visiting there, not to mention having used AMTRAK on many occasions.
All government run transportation systems in America are inefficient and plagued with poor employee attitudes. The bus schedules are non existent, they show up whenever they feel like it and the trains are usually late. Of course, the employees are rude or non caring for the most part. Since they receive no benefit from being polite and no punishment for being rude or disinterested, why would we expect otherwise?
It's not uncommon that people are mugged or assaulted on America's buses and trains, especially in the subway. Just recently in Philadelphia, a woman called ahead to her family members and asked them to shoot up a bus full of people because one of the other passengers had made a comment about the way she disciplined her unruly child on the bus. The shooting was caught on film by security cameras. Something like that is not at all typical, but crime and violence in the transportation system is far too common, as opposed to Japan where muggings and assaults are most rare.
In Niigata as elsewhere in the Japan, the bus arrives and departs according to a schedule, and an on time performance is typical. We wanted to take the tourist bus that goes to all of the museums and the aquarium at a discount fare. Just as we were crossing the street toward the bus station, that bus departed. My wife was hustling to get to the bus pad before it left, but didn't make it. A bus company employee saw what happened and ran out to the street to knock on the bus door. He asked the driver to stop and open the door for us. Could you imagine a government run bus company employee in America helping out a passenger like that?
In America, on countless occasions, I have seen bus drivers ignore passengers who were knocking on the bus door just prior to the bus departing the bus stop. The driver will keep his or her eyes straight ahead and pull away, leaving the customer standing there waiting for the next bus. The drivers often shout at customers or speak in a rude command voice. It isn't even rare to see all passengers kicked off a bus simply because the driver decides they want to go home. One time, an AMTRAK employee ignored my question about a late train because he was more interested in attending to the fish that he kept in his fish bowl.
Now I doubt that Japanese employees at government run transportation systems get paid more to provide good service. It seems as if politeness and good service are expected as a matter of pride, and poor performance would result in some sort of punishment, perhaps a demotion or a dressing down. No matter the reason, the results are good, and that's what counts.
Using trains to travel instead of our car and using the city bus in Niigata all enhanced our vacation due to the polite and efficient service. Chalk up another win for Japan. Yet another reason it's better here.
Monday, August 1, 2011
Jingoism
According to the Webster's Dictionary, Jingoism means: extreme chauvinism or nationalism marked especially by a belligerent foreign policy.
One of the reasons I believe Japan is better than the USA is because we have far less jingoism here in Japan. If you don't believe me about America and it's belligerent foreign policy, just ask someone who lives in Libya, Pakistan, Iran, Iraq, Yemen, Afghanistan, Serbia, Kosovo, Croatia, Vietnam, Cambodia, Laos, Panama, Grenada, Nicaragua, or any of the other countries where the people have been bombed and attacked in various ways by the US Government, all with a great deal of support from the US citizenry.
Japan has apologized, perhaps not enough, but has apologized to China and South Korea for having attacked them 75 years ago. Russia and North Korea are still waiting for an apology I suppose. In any case, Japan's government no longer engages in murderous behavior against innocent people in other countries. Knowing that I live in a country that has a government that is not led by creepy aggressive murderers makes me feel good about living here.
Clinton, the Bush's, Obama, and most all of the USA President's have created a mountain of corpses, and the blood is on their hands.
The jingoism even carries over onto the playing field. Remember the last time you watched the Olympics? The Olympic spirit is profoundly dead in America. Remember the Olympic oath, that the competitors are there to participate and the goal is not necessarily to win? But what is the reality? USA - USA - USA chanted out the wazoo. It's sickening, the epitome of jingoism.
On the contrary, Japan's women's soccer team just won the World Cup. Barely anyone here cares. Few people watched, perhaps due to the game being played in Germany and the time zone differences, perhaps because it was a woman's game and not a man's event, but my opinion is that people here are just less jingoistic so they don't care quite so much if Japanese people or teams win a sporting event. Sure, people here would probably enjoy seeing a Japanese person or team winning a sports event. The big difference is that Japanese people are far far less likely to act in a jingoistic manner about winning.
On the contrary, when the USA woman's soccer team won in their semi final game, they saluted the government's war jets as they streaked over the stadium. It looked like some propaganda film from Nazi Germany.
Don't you agree that jingoism is offensive? It's another reason to prefer Japan.
One of the reasons I believe Japan is better than the USA is because we have far less jingoism here in Japan. If you don't believe me about America and it's belligerent foreign policy, just ask someone who lives in Libya, Pakistan, Iran, Iraq, Yemen, Afghanistan, Serbia, Kosovo, Croatia, Vietnam, Cambodia, Laos, Panama, Grenada, Nicaragua, or any of the other countries where the people have been bombed and attacked in various ways by the US Government, all with a great deal of support from the US citizenry.
Japan has apologized, perhaps not enough, but has apologized to China and South Korea for having attacked them 75 years ago. Russia and North Korea are still waiting for an apology I suppose. In any case, Japan's government no longer engages in murderous behavior against innocent people in other countries. Knowing that I live in a country that has a government that is not led by creepy aggressive murderers makes me feel good about living here.
Clinton, the Bush's, Obama, and most all of the USA President's have created a mountain of corpses, and the blood is on their hands.
The jingoism even carries over onto the playing field. Remember the last time you watched the Olympics? The Olympic spirit is profoundly dead in America. Remember the Olympic oath, that the competitors are there to participate and the goal is not necessarily to win? But what is the reality? USA - USA - USA chanted out the wazoo. It's sickening, the epitome of jingoism.
On the contrary, Japan's women's soccer team just won the World Cup. Barely anyone here cares. Few people watched, perhaps due to the game being played in Germany and the time zone differences, perhaps because it was a woman's game and not a man's event, but my opinion is that people here are just less jingoistic so they don't care quite so much if Japanese people or teams win a sporting event. Sure, people here would probably enjoy seeing a Japanese person or team winning a sports event. The big difference is that Japanese people are far far less likely to act in a jingoistic manner about winning.
On the contrary, when the USA woman's soccer team won in their semi final game, they saluted the government's war jets as they streaked over the stadium. It looked like some propaganda film from Nazi Germany.
Don't you agree that jingoism is offensive? It's another reason to prefer Japan.
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