selecting from dual.

John Maynard Keynes Was Right: “Money Doesn’t Matter”

John Maynard Keynes Was Right: “Money Doesn’t Matter”.

In fact, walking down the street and giving money to random persons would make them happy in the short-term. However, in the long-term, they will find themselves utterly miserable from the lack of purchasing power for food, heating, cooling, and smoking.

The currency is about to go to zero.

There is nothing we can do to stop it.

So, what do we do next?

Posted in credit, economics, economy, federal reserve, inflation, keynes, money doesn't matter | No Comments »

Hong Kong Dollar begins de-coupling with U.S. Dollar, as Hong Kong reads Singapore’s tea leaves

This is a good things for many economies in Asia. All Asian economies remember what happened when the currency crisis started in Thailand. Singapore flinched first. Now, Hong Kong’s Monetary Authority must move quickly to not be the last person standing when the music stops.

Further reading:

• Bloomberg
• CBS MarketWatch
• The Economic Times

Posted in dollar peg, hong kong dollar, inflation, peg, singapore | No Comments »

Migrant Workers In Rural China Dig In Heals To Brace For Inflation Shockwave

Factories are shutting down all over Southern China. With this development may come an upheaval of Hong Konger amenities and family support services.

Discussing these issues with colleagues has left me rather downtrodden, but this is the reality of the “bubble”.

Well – more like a game of musical chairs. The migrants workers in China had perspective, because they are keen to see scarcity in the presence of temporary excess. The understood that while

* Start the music. * (something by Vivaldi)

When engineering jobs were shipped to China from America, anyone in Southern China could open a factory and hire workers. This is what many of the Hong Kongers did.

With economic investment agreements, such as CEPA, the future was supposed to be a dream of mercantilism. However, as more Hong Kongers lost good-paying jobs, many were forced to take lower paying jobs to feed their families.

They sought refuge and comfort in the Hong Kong stock market, where you could roll dice and pick stocks and become rich overnight or at least pay the bills. But, for many that did not last for long.

Then, there was the investment real estate boom in Hong Kong, then there was … wait…

* The music stopped. *

Silence.

Uh-oh, not enough chairs.

Hong Kongers, on the other hand, have a short memory and were not ready for the music to stop. Several farmers are saving their pigs from market to take a loss upfront, but they know will have food for remainder of the year.

Let me re-phrase this so you can completely understand what I am talking about: Chinese migrant workers are not returning to the factories. Expect delays on shipping for anything made in China. 

Posted in china, economy, from dual, hong kong, hyperinflation, inflation, inflation shock, migrant workers, new economy, shipping | No Comments »

Four Loaves of Bread Per Gallon of Gasoline — Hyperinflation makes you decide: work or eat

We are now at Four Loaves of Bread Per Gallon.

Just as you may owe more on your house than it is worth, you may start experiencing diminishing returns from driving to work everyday.

Feed your car? or Feed your family?

What say you?

Posted in from dual, gasoline, hyperinflation, inflation, loaves of bread per gallon | No Comments »

Several Loaves of Bread Per Gallon

I have talked earlier about price of food and gas.

• http://www.primezero.com/blog/2007/05/22/a-loaf-of-bread-per-gallon-of-gasoline/
• http://www.primezero.com/blog/2007/11/04/two-loaves-of-bread-per-gallon-of-gasoline/

We are now approaching Three Loaves of Bread Per Gallon.

The unit loaves of bread per gallon started as a joke. It is now an economic indicator for me. It is a currency-neutral calculation and has helped me predict market direction very well.

Posted in from dual, gasoline, hyperinflation, inflation, loaves of bread per gallon | No Comments »

Brooding about lack of liquidity, the bad credit crunch, staggering hyperinflation, new fears, new losses, and pending outage

Brooding about the following thoughts:

1. The U.S. banks no longer trust each other.
2. 500 Billion dollar loan from Europe doesn’t scratch the surface of what the banks really need.
3. People are not ready for worldwide shortages of food and supplies.
4. Hyperinflation is rampant, as the cost of driving is approaching THREE loaves of bread per gallon.
5. The currency markets are about to experience the greatest shock since the Great Depression.
6. There is almost no liquidity in the market.
7. HKMA continues to oversell Hong Kong Dollars to defend the peg with the U.S. Dollar.
8. The credit derivatives market is filled with analysts who do not know how to use a ledger
9. Upper management of Fortune 500 companies is packed with individuals who never experienced sacrifice, let alone even read about the Great Depression, its causes or its aftermath.
10. Insurance companies are worried about widespread arson; they announced this “concern” as a “risk management tactic”.
11. Hypothecating property in business will no longer be accepted.
12. Charitable foundations may fold without inflation hedges firmly in place
13. The currency will change overnight and will catch world markets by surprise
14. Gold will reach insane historical highs only to be stalled by the fact that you can’t eat gold
15. Sections of the Internet may collapse due to lack of funding for infrastructure (power and water), in which case, Gopher and Archie may become popular again.

All these figments of my imagination. right?
…

EDIT: Probably. It’s just a bad dream.

I’ll wake up soon. I’m not worried at all. No, really.

Posted in bank failures, brooding, credit crisis, economy, food shortage, from dual, gasoline, great depression, hkma, hyperinflation, inflation, loaves of bread per gallon, shortage | 4 Comments »

Two Loaves of Bread Per Gallon of Gasoline

Earlier this year, I posted: A Loaf of Bread Per Gallon of Gasoline.

I underestimated the problem. The price of gasoline will exceed two loaves of bread soon. This is pitiful, but expected, as the cost of a barrel of oil starts its rise past $100.

So, I need to re-pose the question:

Are you willing to drive in your car to and from work for TWO LOAVES OF BREAD PER GALLON OR MORE?

Then you may need to ask yourself:

Is it more important to work? or is it more important to eat?

… but we are not there yet…

Posted in from dual, gasoline, hyperinflation, inflation, loaves of bread per gallon | 1 Comment »

A Loaf of Bread Per Gallon of Gasoline

This week, the national average for the price of gasoline was about $3.22 per gallon. That is about the price of a loaf of bread.
Hmm. Oh, dear.

So, here’s the conundrum:

Are you willing to drive in your car to and from work for a loaf of bread per gallon?

Furthermore, you will be able to get change for a loaf of bread when you go to buy half a gallon of gas? Well, simply put, if you cannot afford to go to work or 50% of your work day is spent paying for your transportation then you have a problem, huh.

This is the part of the post where I provide a solution or some idea to mitigate this issue.

** Clicks Publish, then runs away **

Posted in from dual, gasoline, hyperinflation, inflation, loaves of bread per gallon | 2 Comments »