Sobering facts

The older you get the poorer you get…

Nikkei hit 1982 low today.

Meaning someone who had bought a low MER Index fund would have seen his purchasing power eroded by 90% today with any appreciation of the last 25 years pretty much wiped out! On the other hand with a 25% rise in the Yen, you can probably afford to go 25% further to nowhere!

An interesting note would show that the older the population gets the worst the stock does over time…

QUEBEC, CANADA Socialism, debt and health care …

This would make for very interesting coverage for socialized medicine and welfare over all. As Quebec has the largest per capita aging population and the unions calling for a bigger piece of the pie next year…With a $110BB debt, this place is starting to scream get the F)()(&)& out!

Canada is not much better with a loss of 350K manufacturing jobs in the last 6 years…

Canadians might have voted a Conservative government but it is not morally, ethically or strategically equipped to deal with the Tsunami coming.

Condensed History… 1830-2007

There was:

The industrial revolution

Exploitation of the masses

Union Labor

The car revolution

Sundays off

Development to Suburbia

Speculation

Great depression

Soup kitchens

Election by the masses

The New Deal

The introduction of the weekend

Fascism

WWII

The GI Bill (Education and mortgages)

the introduction of statistical issuance of Consumer credit

Pursuit of the American Dream with imported credit

Leverage finance

Carry trade hedge funds

Failure to create value

After WWII, you might still have had gender and race movements but pretty much all of Middle America was defined by a credit score, Chevy vs. Caddy, jeans vs. plaid, College tuition and your type of holiday plans. All of this availability to 80% of the population with the ability to consume now what you would agree to settle over the next 30 days to 30 years.

Now nobody wants or can pay what is owed let alone buy for tomorrow. Politicians think that by printing more paper the problem will go away. THEY ARE JUST PROLONGING AGONY!

WHAT YOUR FUTURE HOLDS

2008-2010

Now

There is no more credit of any kind:

Business loans, Credit cards, mortgages, car loans, store cards.

So you are asked to live within your means! What a novel idea…

If we think that 63 years of social and economic fabric can all of a sudden reversed, you have something else coming.

Imagine a world where credit is granted to corporations, governments and individuals who can actually pay back their loans.

A yearly house rate of appreciation of is less than then interest rate of the mortgage on it.

Car sales will have to be profitable to the remaining manufacturers

Wall Street will go back to clipping coupons

Hedge fund managers will go back to flipping burgers, cleaning stables and shinning OP boat decks

DE-LEVERAGING IS ENDING SOON

Just a salmon hurling itself to its spawning grounds, The USD is having its last hurrah until Xmas and then it will be bringing with it 20% stagflation!

Are all fiat currencies about to get their place besides the throne of a port-a- potty?

WHAT TO DO?

Hold on to gold bars as the Bond market is next and then the state of Champlain bridge will be the least of your worries!

On this cheerful note, have a good one!