Cicero

Emerging Market Investing: Really an Ex-Communist Play?

Flash, my point is that private control of the money supply and interest rate is not capitalism. If the fedgov didn't force us to use fiat money and if they didn't force us to pay interest to the private bankers, we would be free to seek alternatives (and would inevitable end up with a gold or silver backed currency, unless a new form arises). I agree 100% that the fed alone couldn't create the .com or subprime disasters - greed and stupidity on the parts of the lenders and investors and individual home owners were vital ingredients.

Inflation, on the other hand, seems to rest squarely on the shoulders of the Fed and Congress, who allows the shell game to take place. Only the Fed can inflate the money supply. This IS inflation. Rising prices are the results, just as wet streets are the result of rain, and not rain. Prices can rise and fall in any given geogrpahic area or section of the economy, but on a large scale across the economy as a whole, only the creation of more money causes inflation. Think of the nutritional vale of any pot of soup. Add a bit ore water to thin it down, and you don't notice the difference. Double the water and you need two cups of soup to get the same nutrition as you got in one before. Check out how many times they have doubled the supply of money in our economy, and you realize how thin our monetary soup has become. And I'm not even getting into "fractional reserves", which allows them to loan $9 for every new $1 they create from nothing.

Emerging Market Investing: Really an Ex-Communist Play?

The rule of law and capitalism does not eliminate human greed and stupidy and ignorance, it merely minimizes them and maximizes human creativity, ingenuity, and voluntary good will (charity). America is doing as well as it is DESPITE our slide into collectivism. The Kleptocracy in DC sees private bankers and corporations colluding with Congress to skim off most of the cream and a good bit of the milk too. What's left is still healthier and more nutrious than any other nation at any other time in history. Can you imagine how much propserity might be unleashed in the world if statesmen like Ron were elected and we tried re-applying the Constitution? For decades Paul warned Congress about our decades long unconstitutional and immoral meddling in the Mid East and for about the private "Federal Reserve" (not federal and there are no reserves) creating money at essentially no cost and reaping perpetual interest payments out of taxpayers' pockets because Congress makes us pay about 8% of our national debt in interest only payemts to this private mafia.

Sources on Ron Paul's speeches to Congress are all public records and easily proven (his book Foreign Policy of Freedom is a collection on just that topic). And here's proof about the Fed courtesy of the NY Times and the Federal Reserve itself:

The NY Times article “The Nixon Recovery” of 2/4/04 admits the Fed is independent and that they print or don't print money to sway elections, causing runaway inflation (as in the 70's): query.nytimes.com/gst/...

The NY Times, article, The Education of Ben Bernanke admits the Fed is independent and that they created the housing bubble by pumping easy money in an effort to stem the damage of the dot.com bubble (that they fueled with easy money in the 90’s): www.nytimes.com/2008/0...
It notes the Fed has “…control over the supply of money” and that this “…power ...is unique... only the…Fed can create new money.” It notes Bernanke helped create the housing bubble and that the Fed ignored the warnings (of people like Ron Paul) and “the speculative lending continued.”
The same article notes the Fed flooded the economy with money specifically to manipulate the 72 election for Nixon, creating the “brutal recession” and massive double digit inflation that marked the economic havoc of that decade. We learn that idle builders (my father was a carpenter) “were so enraged that some sent him two-by-fours in the mail.”

Bernanke admits Fed caused depression in the conclusion of this 2002 Speech here on Fed Website: www.federalreserve.gov...

Bernanke admits creating money from nothing in a speech on 11/21/02 on the Fed’s website: www.federalreserve.gov.../ (4th paragraph under heading “Curing Deflation.” He is duplicitous in stating the US gov’t creates it – if this is so, why pay independent private bankers 8% of our national budget in interest? Talk about an investment! Imagine spending $3,000 to print a million back in 1960, lending it to the fedgov, and collecting 3% “interest only” for life. That’s $30,000 a year for perpetuity – a 1000% return on investment each and every year for perpetuity without investing another dime.

Wake up America, join the revolution!

Emerging Markets Definitely Due for a Pullback

Make up your mind?

A ten year old could suggest this kind of logic?

Moronic?

Looking at the simple big picture (EM's tend to crash big time periodically) is nothing if not part of smart investing. The first three posters are probably still trying to recoup their losses from the dot.com and real estate bubbles because they didn't have a moronic ten year old to help them rebalance their portfolio when the bubbles got too big. We all know that the market can stay irrational far longer than we can stay solvent, but the idea of this forum is to keep scanning the horizon for as many factors as possible to consider in making decisions. Good job Jim, don't let the negative comments get to ya'!