In a world of manipulated economic figures and markets, it is not always easy to maintain your sanity. The world economy is now based on fantasy and hope and has very little to do with reality. But the problem is that virtually nobody understands this. Whether it is a bank analyst or a Nobel Prize winner in economics, they are all spreading the same false message. The Western press and news media are just reporting what governments and the elite are telling them. There is no analysis and no attempt to find the truth in anything. This is why we are now in an era of indoctrination and total brainwashing of the masses. Most people are totally apathetic and incapable of realising that they are being led down a path, both morally and economically, that will make life on earth a lot more difficult not just for the present generation but probably for several generations to come.
50 years’ experience and the biggest dangers are still lurking
HOMCOM 14u2019 x 10u20... Check Amazon for Pricing. Some of us understand the risks very clearly but the world at large just sees our message as prophecies of doom. For most people the debt explosion and the excesses are just normalcy and they believe that this will go on for ever. Little do they understand the risks and the need for taking steps to insure against these risks. And the risks are at many different levels, social, financial, economic, geopolitical including war and social unrest.
There is some advantage in having almost half a century of active business life. The school of life and personal experiences can never be learned from books.
Gold and mining boom
As a young banker in Geneva I remember the mining boom in Australia in the late 1960s. The nickel miner Poseidon for example went from $0.80 to $270 within a year. At that time, it was valued at three times Australia’s biggest bank. The stock quickly crashed and the company went bankrupt. We were fortunate to have Adolf Lundin as adviser on resource stocks. He spent a lot of his time in Australis at that time. Adolf is the deceased founder of the very successful Lundin Group. The 1970s was of course also extremely exciting for gold and silver investors with gold going from $35 to $850. In the next few years, we are likely to see much bigger moves in the metals with gold reaching in excess of $10,000 in today’s money. The global problems today are immensely greater than in the 1970s.
Oil embargo, miners’ strike, 3-day week and stock market collapse
I came to the UK in the early 1970s and experienced the Opec oil embargo in 1973. Within a year oil had gone from $3 to $12 with devastating effects for the UK and world economy. I was finance director at Dixons that we over time built to the UKs biggest electronic retailer and a FTSE 100 company. But the journey was certainly not without major setbacks. Interest rates surged and in 1974, I paid 21% interest on my mortgage. Today, in most countries nobody could afford a 5% interest rate. And as they climb to 15% or 20% which I am convinced Steelwater AMSWEL-500 ... Buy New $379.00 (as of 08:05 EDT - Details) they will, nobody will be able to afford the interest of course. By nobody I mean both individuals, corporates, and sovereign states.
Stock markets worldwide also collapsed in 1973-4. The FT index declined by over 60% and the Dow by nearer 50%. I had my first options in the company at 130 pence and the stock went down to 9 pence. Dixons was always profitable and had no debt problems. It was a good lesson in what can happen to stock prices even in strong companies.
We also had a coal miners’ strike in the UK which led to major nationwide electricity cuts. Our shops only had electricity for 3 days a week. The other days we sold TVs and radios in candle light. There was also a dustman/garbage collector strike. London was full of rubbish everywhere in the streets. We also had serious IRA bombings in London and all over the UK.
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