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13 October 2008

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This shows our relative differences. You have had a successful life & have the money to show for it, thus this post. Not that many years your junior, I have had a hand-to-mouth life with only a struggling business for my accomplishment. "Investment advice" is incomprehensible to me.

The financial strength of these companies is unquestioned. As that is so, they are at risk of having their stock prices bid up to unsustainable levels. Just as the prices of houses were bid up. There is a lot of hot cash that needs to go somewhere. Anywhere, really.

Another way of looking at the present financial mess is to observe that nations are now being forced to re-establish control over their currencies. Iceland will doubtless serve as the example. Forced to throw out their phony currencies & establish genuine ones.

How can this be done / how will it be done, one way or another? It seems to me that countries will total up what they have in hard assets (factories, raw materials, etc.), divide it by their population, and issue currency accordingly.

Such is a way in which we can get rid of the "hot cash", aka the fake money, problem. Because, right now, as existing financial markets collapse, there are fewer & fewer places for this money to go. Which means that, day by day, there is more and more hot cash that needs to go somewhere.

Fake cash has already bid up the price of oil, as you perceptively remarked some months ago. There is a real danger it will bid up the price of foodstuffs, thus creating mass starvation next spring. It can bid up the price of Google & destroy the internet. Fake money is incendiary. Fake money is the problem. Like a raging inferno, it needs to be extinguished.


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