2004 Issues #1 to #16
Seventeenth Issue 10 January 2005
B M GM FMM S LT N L P
Twenty-eighth Issue 11 April 2005
Buy this essay and others in Jim's new book Being Sovereign.
The Indomitus Report
31 December 2005
If this newsletter isn't helping you become wealthier, either I've done a poor job of it, or you aren't using my suggestions to make gains in your wealth. On the other hand, if the newsletter is making you wealthier, we should be able to measure how much better off you are following our suggestions and ideas. Here's my analysis on all our tips since November 2004.
Free Market Money
"We have always had bad money because private enterprise was not permitted to give us a better one. In a world governed by the pressure of organised interests, the important truth to keep in mind is that we cannot count on intelligence or understanding but only on sheer self-interest to give us the institutions we need. Blessed indeed will be the day when it will no longer be from the benevolence of the government that we expect good money but the regard of the banks for their own interest.
"'It is in this manner that we obtain from one another the far greater part of those good offices we stand in need of (Adam Smith, The Wealth of Nations, 1776)' -- but unfortunately not yet a money that we can rely upon. It was not 'capitalism' but government intervention which has been responsible for the recurrent crises of the past. Government has prevented enterprise from equipping itself with the instruments that it required to protect itself against its efforts being misdirected by an unrelable money and that it would be both profitable for the supplier and beneficial to all others to develop. The recognition of this truth makes it clear that the reform proposed is not a minor technicality of finance but a crucial issue which may decide the fate of free civilisation. What is proposed here seems to me the only discernible way of completing the market order and freeing it from its main defect and the cause of the chief reproaches directed against it.
"Footnote: A reviewer of the first edition of this essay, John Porteous, sensibly observed, 'It would have seemed unthinkable 400 years ago that governments would ever relinquish control over religious belief.'
"...the only way to avoid being driven by continuing inflation into a controlled and directed economy, and therefore ultimately in order to save civilisation, will be to deprive governments of their power over the supply of money."
Refined: An Analysis of the Theory and Practice
of Concurrent Currencies, 3rd Edition, 1990
Some further comments from Hayek in his concluding chapters, along with discussion to follow.
This essay is to conclude my review of Hayek's book on competing concurrent currencies.
We'll continue our focus on Denationalisation next week.
Here's how the stocks we presently suggest in this area look of late ():
Free Market Money
Dow stocks The Dow:Au ratio is now
Silver The Au/Ag ratio is down a bit to 58.85.
Copper Ag/Cu ratio stands at 4.195. The related Au/Cu ratio is 246.88.
Zinc The premium on pre-1982 pennies is now stands at 36%.
U3O8 was $34.50/pound as reported from 28 November.
Schlumberger was $97.99 on the morning of 5 December. It is up $16.77 (or 20%) since our suggestion.
The four free market money stocks we've suggested in this sector are PVH, GBH, CGB, and MCG. Prices from Monday 5 December 2005.
The Gold Casino last sale was
NASA delenda est.
SpaceDev closed at $1.60 on Monday 5 December. It was up ten cents from our first suggestion.
NASA delenda est.
New Country Developments
FDA delenda est.
Legislatura delenda est.
Here's how our stock suggestions in the nanotechnology and life extension sector look right now (evening Thursday 8 December 2005).
Gratuitous example of bizarre legislation:
Gratuitous prediction: gold $555/oz by 31 December 2005.
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