9.11.08

Our F**king Leader

Yes, you read my title right. Most of World leaders are F**king. Most of them still don't understand our problem and continue their destroying work and i bet they will continue to do until we die.

All the so-called "smart" leaders of the world have unlimited amount of meeting and they always have the conclusion of not enough credit and interest rate is not low enough.

I remember Ben Bernanke said one thing in front of US Congress and what he meant is that world economy is in crisis and banks are not functioning well. As a result people who need money can't get their money and economy activity will be stopped.

However to answer Bernanke stupid statement, I remember Peter Schiff said a thing: what Federal Reserve and world central banks do is just to ensure people who need money get theirs but those money is worthless because of hyperinflation after this.

In other word, what central banks do to solve the problem actually create more problem and the problem become bigger and bigger.

What we need to do is: DO NOTHING. There are a lot of good fundamental banks that still can provide loan to those who survive. Don't fix the price, let the price adjusted by invinsible hand. Free market mechanism never fail and it never will.

Yesterday, world leader gathered once again to have a meeting about our economic situation. Let me teach them what they should talk about:

Economy is a business cycle. There are long term, medium term and short term business cycle. Business cycle mean we will have UPs and DOWNs and it's perfectly fine.

However, central banks around the world just want the UPs of the business cycle and try to prevent the DOWNs so they try to fix the price. Once they did it, yes, we will have more UPs and less DOWNs for a short term period but that is what we call a bubble.Bubble mean it's empty in the middle and may burst any time. It is phony and not real.

Every single economic crisis existed is created caused by central banks. They try to fix the price and try to prevent DOWNs in the business cycle that we should have. From the Great Depression 1929 to 1979 to Japan in 1990's to asia financial crisis in 1997 to dot-com to credit crisis now, they all are caused by central banks.

However, i think stock market will rally tomorrow due to short term effect of central banks action. As i say before stock market is irrelevent in short term. People can't resist to buy stock because everything looks good and credit is easy to get. However in the long term, please don't touch stock unless your are a short seller

1 comment:

Paras Tierea The Rize said...

This is one of the best blogs Ive ever read. Youve got some mad skill here, man. I just hope that you dont lose your style because youre definitely one of the coolest bloggers out there.
Paras Tierea sec 137
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