Archive for the ‘Uncategorized’ Category

Seeing is believing, in some cases. When the scale of certain matters is so extraordinary it helps to visualise its relative proportionality.

This is the purpose of the following site, please view this page showing what makes up the entire global Money supply and where it is invested….

The following points strike me about these fascinating illustrations;

  • As far as verifiable facts and accepted knowledge are concerned, some of the points given are true. Yet, these two ‘facts’ which I am aware of seem to suggest that not everything is shown on this site subject to the information not being in the public domain.

Consider the largest companies, all US giants, which are all listed/publicly traded  and therefore the value can be determined via reference to an active market. Yet currently global investors are anticipating the listing of the Arab state-owned oil behemoth of Saudi Aramco, which is expected to eclipse all other company valuations, being estimated as a $2 Trillion company, such a corporation is not featured because it is not publically traded – are there other non public entities that are similar, not mentioned, giving a distorted, inaccurate picture of reality? This fact can only be true when looking at public domain based knowledge.

  • On a similar note, the wealth given of the richest individuals does not mention the extraordinary level of wealth known to be in the hands of certain family members of the Rothschild’s, for example. Some have reckoned this to be in the region of trillions of dollars…but again, this is not publicly known information
  • Physical notes and coins are estimated to be 8% of total money stock….slightly higher than other estimates I have read which are closer to 3%
  • The global Gold supply is estimated at approximately over $7 trillion, which compares favourably with the estimated value of global currency held in notes and coins…therefore physical money can almost entirely be backed by Gold, however the issue is more to do with a broader definition is money which is shown later in the graphic as approximately $90 trillion, yet this is dwarfed by the amount of global debt in the world – over $200 trillion
  • Almost 50% of residential asset values are associated with only 16% of the global population, all in Europe and USA.
  • “No one really knows the exact size of the market” in reference to the size of the derivative markets.
  • The quote by Warren Buffet is remarkably telling…someone known to invest in a very traditional way – get to know the company and buy equity in it – pretty much stays away from large investments in derivatives, although as a hedging mechanism, he may well use them perhaps?
  • Finally, it is an interesting link which is referenced by Jeff Greene, that derivatives are in existence due to debt, and presumably the hedging thereof, although this hasn’t stopped them from being highly traded for speculation and profit methinks…something to explore further
Advertisements

VIEW: Banking on Bitcoin

Posted: September 12, 2017 in Uncategorized

Banking on Bitcoin Poster

Set before the 2017 hyper boom in all things cryptocurrency related and the continued emergence of crypto’s as a mainstream asset, in which nation states and renowned private institutions announcing various block chain initiatives and giving their approval for greater adoption, this documentary gives a good life to date overview of this particular crypto coin and all the developments to do with exchanges, regulation and scandals that have thus far taken place.

Worth a watch – I find the following items interesting;

  • Why is there still so much mystery in terms of the founder of this technology. A potential unmasking of the founder has not quelled this speculation, much is still unknown about his identity. Do not ask what is Bitcoin, but rather, who is Bitcoin

 

  • Its worthwhile noting that even at the accelerated pace of online evolution these days, that a number of large scandals have already taken place….yet this has not permanently damaged the lure of Bitcoin or any other crypto….yet it does clearly show that these can be highly speculative and abused just like any other asset.

 

The IIBI (Institute of Islamic Banking and Insurance) hosted a lecture by Iqbal Asaria recently, for which I received this IIBI promotional mail.

I would like to draw your attention to the doubt cast upon the basis of the entire industry highlighted below;

Islamic finance has often been promoted as inherently ethical and therefore aligned with responsible finance. However, this claim rings hollow once one examines the actual workings of Islamic financial institutions.  The ethical content in their operations is very marginal and the claims look hollow.

From an established industry insider, this opinion carries some weight and once again is evidence of the reality being far from the projected image of this sector

Iqbal adds his concern to those of a number of others who have also exposed the underlying workings of Islamic Finance

An article from the 2008 economic crises written by the two scholars above makes for worthy reading.

I see it as evidence of calling the bluff of practitioners who dabble in nothing more than conventional finance twisted to fool millions who are easily swayed by superficiality

Boom, Bust, Crunch..

Platforms are rarely provided to scholars who wish to take one step back and question some of the fundamental concepts that are being applied. Few questions are raised regarding the validity of Islamic debt financing, limited liability structures, speculative methods of market trading, or the nature of the monetary system. Such matters are given little attention in the headlong rush to copy interest-based methodologies and this has resulted in a number of embarrassing paradoxes

A remarkable personality from Muslim history left his mark on the theory of matters economic as well as philosophical and sociological.

Read a summary of his life and work in this wiki post, further research would be highly recommended;

https://en.wikipedia.org/wiki/Ibn_Khaldun

A notable quote from this great scholar is on the effects of taxation and the state. His work underpins much of the contemporary view about low taxes maximizing incentives and government revenues, as this article draws attention to;

http://www.telegraph.co.uk/finance/economics/11857191/Stamp-duty-is-far-too-high-and-needs-to-be-slashed.html

Inflation IS policy

Posted: October 15, 2015 in Uncategorized

“The most important thing to remember is that inflation is not an act of God, that inflation is not a catastrophe of the elements or a disease that comes like the plague. Inflation is a policy.”

Ludwig Von Mises, Austrian Economist

DISTRIBUTISM

Posted: October 15, 2015 in Uncategorized

Consider the following blog site on a movement detailing an alternative system of distributing resources. A large range of articles and materials can be found for your perusal;

http://distributist.blogspot.co.uk/

In relation to the above, please also find this link to the Hilaire Belloc book; The Servile State

http://ldataworks.com/aqr/H_Belloc_The_Servile_State.pdf