TedBits: Exploring the Worlds of Finance, Economics and Government.
Details of our mission in serving you and a broad description of what's unfolding globally and what you can expect from Tedbits as a regular reader.
Tedbits is commentary dedicated to understanding the evolving world economy, broad social trends and politics as they relate to investing and economic growth. Featuring a broad range of topics and subjects to stimulate thought-provoking mental exercises, ranging to almost any subject: Capital formation, Central banking, solid technical analysis of worldwide markets, inter-market analysis, taxes, trade issues, globalization, government and politics, absurdities, market psychology and sentiment, Foreign Exchange, interest rates, grains, rising and declining empires, just to name just a few. We will touch on endless subjects and how they relate to global economics (click here to see how it is created). They don't call it "Smart Money" for nothing: it requires hard work to properly observe and, moreover, recognize what is unfolding and then to lay down your investments in an intelligent and proper manner.
However, there is one common theme which runs through all these subjects and that theme is MONEY and the pursuit of economic growth, future prosperity and wealth. It is (what is?) the law of nature written economically. Globalization is the wonderful event of 3 billion people emerging into what America was for generations. As an open and growing global capitalist economic system emerges, the wealth generation created by creative destruction, increasing productivity, individual initiative and rewards, hard work and competition are combining and creating always-evolving, new and better ways of doing things. As with evolution and Charles Darwin, globalization is nature in modern-day economics. It is where political, economic and business models go to thrive or die, just like the animals and plants of nature do in the eco-system. It is about seasons and the economic cycles of spring, summer, fall and winter, unfolding in the world's economies and political systems.
Globalization is unstoppable: It is the future unfolding one day at a time. Politicians and central bankers are powerless to stop it. Globalization is the waves of the future washing ashore changing the horizon of the future. Central bankers and politicians can build barriers to slow it down but the waves will someday reduce them to nothing. Broad-based economic activity is lifting BILLIONS of people out of poverty and into more modern and prosperous lifestyles. Homes, factories, widely-distributed education, the internet, modern communications and transportation are remaking the world as we know it.
Middle classes are being created around the world. It is a wonderful thing!! With a more educated and increasingly wealthy group of people, more and more accountability will be placed on governments. The industrialization of Europe and America created many generations of wealth creation since World War II. The industrialization and modernization of the emerging world will do the same - the first episode involved 300 million people, this one involves 3 billion people - it will be proportionally bigger and the world is set for many generations of wealth generation and economic growth.
As globalization unfolds, politicians are being challenged in ways that have happened for centuries; some see the future and embrace it, creating wealth for their citizens; some run away from the future which they have no power to stop. Some politicians are trying to create barricades to change, while others build bridges to the future - all this is creating the winners and losers in the competition for wealth and prosperity. Today's political behavior is no different then that seen many times in history. Students of history know that those who fail to learn from history are doomed to repeat it. It is repeating now! Today's interesting episodes will be recorded for the history books of tomorrow. It will make interesting reading. There are broad political, psychological and social trends at work in both developing and developed economies which are powerful investment themes. These themes are macro in nature, to take advantage of them is micro. Tedbits covers the macro. If you want micro, give me a call or contact me at www.TraderView.com/contact.htm .
Defining the word "money" is a curious exercise. It is HARD to define. It is more an illusion than anything else. Is it defined as currency as priced in gold? Is it a store of value, a means of exchange or a confiscation scheme? Or all three? Is it an investment theme and opportunity? Is it a religion as in the "full faith in government?" This is what it implies. This term is now universal in monetary systems around the world. In various parts of history, investing in the full faith in government has been rewarding or punishing, depending on the stage of the government in which you are placing your faith. At this point in time, all currencies have been torn lose from their millennium-long anchors of precious metals. This has been tried many times in history, always with the same result. The definitions of wealth and money are not the same.
Central bank reserves around the world now mostly consist of someone else's liabilities (foreign currency holdings), or their own liabilities (domestic currency), and the values of those currencies are underpinned by the responsibility or irresponsibility of their respective sovereign financial and political leadership. Different levels of foolishness or bouts of political soundness push wealth around the world as it seeks shelter and good growing conditions, or seeks to get out of the rain. Physical precious metal stockpiles, which previously underpinned currencies as monetary reserves, are quickly being disposed of by the developed world banks, and are more and more embraced by the emerging world banks. These are the two principle elements causing currency markets to fluctuate, as global financial perceptions change with the unfolding of world events. Governmental actions and policies on interest rates, money and credit creation, trade, taxes, and future liabilities, etc. is a broad subject with thousands of facets, and they are intricately linked like a fine tapestry, domestically and internationally.
There is a Cancer in the world's monetary systems and it is called Fiat currency and credit creation. In the modern era, it started in 1913 when the Federal Reserve was created and has since spread around the world. Its malignancy really began to spread in the early 1970's and with the Breton Woods Currency Agreements. Fiat currency and credit creation are institutionalized immorality and theft of wealth by politicians and their elite constituents. They get the money first and last! This fiat scheme has now moved into the arteries and vital organs of the global financial systems, but I believe has a long way to go before it is terminal. This theme impacts every issue of Tedbits we discuss; it is one of the master threads to unraveling the unfolding events and how to play them.
It is a game we all need to learn and, moreover, play in order to prosper and protect our futures. Very early in his career, Alan Greenspan wrote: "In the absence of the gold standard, there is no way to protect savings from confiscation through inflation..." As he assumed his duties as chairman of the Federal Reserve, he became the principle practitioner of it (confiscation through inflation), now widely emulated by governments and financial authorities worldwide. It is you against them, to see who gets what. Understand how they are doing it and thrive, misunderstand and be the victim of it.
The analysis of the shifting sands of wealth is a fascinating exercise, requiring careful observations of thousand of events. Grains of sand on a sand pile. The ability to see them and then structure your finances in such a way as to thrive and grow is a very challenging exercise practiced by financial consultants, investors and citizens worldwide. It is quite a competition: 20% of the people make 80% of the money and the other 80% make 20% of the money. This is what I strive to do for my clients on a daily basis, I work to get them on the right side of that reality. Tedbits is part of my preparation to do a good job for them. To be successful requires good risk management, foresight to identify emerging events, trends, in-depth understanding of the methods of capturing them, and then carefully organizing your portfolio to unfold your sails to catch the breezes, and maneuver around the storms.
Financial and mainstream news organizations are journalists, so when they cover the news and bring it to you they can be played like a fiddle by: Government officials, global elites, banks, wire houses and brokerages who are the spin meisters, trying to suck you into the illusions and the "spin" they use to milk you. There are many huge investment opportunities in the world, so please keep your eyes wide open and your brain fully engaged. We hope to help you take advantage of them.
Tedbits is the Financial and Economic NO SPIN zone.
It is the pursuit of reality. It is the attempt to take the complex things among us and make them simpler and clearer for you and for us. We will step on toes and closely-held beliefs you may have and challenge them, asking you to think and rethink your views. If the facts change, you may choose to change your opinions, in an open and matter-of-fact-manner. Nothing of what we say is ever to be taken personally, this is a mental exercise, pure and simple, if along the way we offend you, we apologize. To just keep on reading and thinking is all we ask of you. To agree or disagree is your choice: We respect your thoughts and beliefs and offer you ours to think about. No offense is ever intended; please take none from our words. Send us your feedback in a non-personal manner, we wish to hear it and consider it. Tedbits is not about ideologues spouting their pabulum to the lumpen investor, it is about close observations, and it strives to be a practical and common-sense extrapolation of unfolding events that affect the world of finance, investing and economics. Tedbits is the nemesis of ideologues and ideological thought! Common-sense solutions, practical thinking applied to tough economic and political issues, grounded in history's lessons is what we hope for in the world today and in our commentary. Tedbits is mental body building, and just as an athlete exercises and trains all day long, it is the same for us, up at dawn and quickly into the mental gymnasium. We strive to make you "SMART" money! Join us in this journey.
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