August 2012


Do you think Dexter should die at the end of the series?
No (87%)
Yes (13%)
Total Votes: 76,552

I voted no. I’d like to see him continue to “get away with it,” after all, he’s killing the bad chaps.

Is now posted next door. I’ll have the results up later.

To libertarians every re-distribution of welfare that ignores property rights is indefensible. But why should property rights be put above our rights to medical attention, education and health? To secure the possibilities of a decent life may demand redistribution, and meaningful freedom presupposes that we can develop our capabilities and take part in the welfare. Freedom has to do with more than property.

Simply because “medical attention, education, and health” are not rights. They are scarce economic goods. A right must be a “universal.”

In his speech Friday at Jackson Hole, Federal Reserve Chairman Ben Bernanke made it clear that the Fed stands ready to help the economy with further quantitative easing. But he also acknowledged the headwinds now facing the economy — challenges that may be immune to QE3′s tonic

Second, spending cuts at all levels of government have hurt business activity. Plus, uncertainty about the fiscal cliff and lifting the federal debt ceiling “are probably also restraining activity,” Bernanke said.

So, stimulus on all fronts.

I am a little surprised, with the election around the corner, I thought he would commit to a date. Operation Twist is still going, so until that ends…?

Long Trannies/Short SPX.

Bernanke, to date, has proven that he is no Volcker. Therefore it is a safe bet to state that his only possible reactions will be [i] continue to inflate [ii] do nothing further. It is unlikely, with a Presidential election looming, and Romney publically stating that he will be replaced, that he will favour any requests from Obama to “help” his chances in winning the election through an improvement in the economy.

Bernanke sincerely believes that inflating is the way forward, unless he has been lying for all these years. Therefore, the question becomes not “if” but “when” will Bernanke open the spigot of further money/credit creation again?

How quickly do markets react? Quickly. Any announcement of further QE will have an effect in the market as soon as the words leave his lips. The initial move, may not be the true move. QE will, at some point create another bull move in stocks, but, the first move may not be bullish, it could go either way, such are the games played in the market.

However, this move in the market, does not represent the move in economic indicators. They require far more time to register inflationary pressures. I suspect therefore, tomorrow Bernanke will announce a new QE.

An important chart.

Note the inflation in the 1860’s created by the Civil War. Then, as hard money re-established its pre-eminence, the relative stability. Money, gold money is never going to be stable, nor should it be, prices allow for change, that is their purpose and function.

Then in 1913, the creation of the Federal Reserve. Look at the fluctuations. The Federal Reserve enabled the government to inflate, which accentuated the business cycles of boom/bust based on credit expansion, while gold, acted as a limiting factor as to just how far they could inflate. Which is of course why, they tried, and eventually succeeded in getting rid of gold altogether in 1971.

You don’t think it’s possible to “inflate” on the back of gold?

Courtesy of the Federal Reserve.

That lack of property does not only prevent the property-less‟ self-determination, but also makes him an instrument to attaining others‟ goals never enters the libertarian‟s mind. Nor does the fact that some people‟s property rights restrict others‟ freedom.

No-one is property-less. Every individual owns [property] himself. Every individual owns what they produce. Thus, it is the responsibility of each individual to raise himself to the economic, spiritual, level that he desires.

Individuals have reasoned that co-operation, with other individuals, the division of labour, is more productive than operating as a self-reliant unit. Thus, social structures are created from co-operative property. Due to an inequality of talent/luck, some individuals will surpass in the accumulation of economic wealth, other individuals. That may, or may not matter, this depends on each individuals ordinal value scale.

Freedom, as previously indicated, is an economic good. It is derived from property rights. Without property rights, you cannot have freedom – but the volume, type, and quality of that freedom can, and will, vary.

Kristin and I will be going to the judging of the Wallace Trust Art awards on Monday 3 September, where, she is a finalist in the photography category.

Art, as I surely don’t need to elaborate, is highly speculative and collectible. Art currently, once again, is a hot asset class, and the returns from art can be pretty spectacular. Kristin just recently graduated from Art College and is featured on the website. This award, is a big deal in the art world, and if she wins, her values will rise.

Now Kristin has a run of 12 photographs that predate by about 1 year the artwork that she has in the competition. She has already sold 6 of them. She will keep 1 herself, leaving 5 to be sold. If you are an art speculator, and you like her art, then at $1000.oo you may have a bargain on your hands.

Here is the artwork that you can buy: “Censored.” Simply go to my newsletter tab and use the PayPal link.

Next Page »