Not quite disengaging yet...

 

It’s the Economy Stupid

Hello everybody. I have disengaged a little but not a lot. Well, mostly disengaged.

Do western governments running deficits for decades matter? It doesn’t seem to.

Apparently, the health of the economy determines whether the current political party is kept on or changed.

It appears that many people would welcome one world government, one world army, one world currency, one world media and only the one world government sanctioned opinion. These people are not critical thinkers.

The current crop of chaos, known as current affairs, will get far worse fairly quickly. Central planning has got us into this mess and an increase in central planning will make the mess even worse.

Government deficits create inflation and our accumulative collective efforts to make things better cause deflation.

I notice that the worlds greatest financial minds have completely failed to grasp the significance of recent significant changes. Putin has recommended that Russians store some of their wealth in gold so as not to be affected, too much, by foreign governments crashing the value of the rouble. He then did two further things to assist with this. The first was to remove the 20% VAT from gold purchases AND put a number that the central bank would buy gold for. In other words, a minimum price that your gold would be purchased by the Russian Central Bank. The second thing was to PRICE Russian gas in roubles.

What this means, going forward, could be significant. As western governments continue to run deficits the rouble. price of gas / oil etc. could well remain fixed. In that there won’t be any (rouble.) price increases. However, it will take more and more euros and pounds to buy the Russian gas. Home heating and fuelling the car will cost more and more. Our governments will blame evil Putin for what? Not increasing the price in roubles.?

Whatever, what about the gold thing? What about it?

As the Europeans and British face brutal and continual price increases in energy costs, Russians will enjoy no increase in any energy prices. As German Industry crashes as gas becomes scarce and expensive, Russian businesses enjoy price stability. How is Evil Putin achieving such acts of dark magic? Simple, he is not accepting the consequences of our western governments continuing to run vast deficits. Will our own governments admit that forty years of deficits have consequences or will they merely point at Putin and state that he is the monster.

Whatever, what about the gold thing? What about it?

I had a silver position, until last week. I liquidated it because people are as stupid as I thought they were. The gold price, or rather the western perception of gold is carefully managed. I wrote a post about public perception management. The public are carefully fed whatever is necessary to produce the required general response.

What about the gold thing? As all currencies are linked via currency exchanges, Putin has put a floor on the price of gold. His Central Bank is happy to buy gold when it falls to a certain price in roubles. On June 30^th this price will be revised. Follow the value. Russia is selling valuable gas and so wealth ought to be flowing into Russia. As soon as the financial experts notice that gas priced in roubles. remains constant and that gas prices in pounds and euros gets ever more expensive, the world realises that Putin is financially incentivising them to hold roubles. over the other more mainstream currencies.

Putin is a brilliant strategist.

That is only a taste of what is to come.

Did I mention gold? Did I mention that Putin is a brilliant strategist? Anyway, whatever.

Disengage, disengage, disengage.

As gold falls in price in roubles., Putin will, every three months, decide not to change the price his central bank will buy gold for. This will, very effectively, stop the price of gold falling in roubles.

Anyway, critically think or wait to be told how evil Putin is. That forty plus years of deficit spending is not the problem. That our collapsing economies are collapsing because of Putin and not because of forty years incompetence by our own bunch of Political overlords.

Unless you are a greater strategist than Putin, for example me, then you don’t know who your enemies really are. I suggest you disengage. I shall continue to attempt to disengage.

Take care.