Saturday 27 December 2008

A Mouse and Groups Power

A mouse is programmed to search for food, reproduce and find a way out of trap. The man's programme is a bit more developed. It has an added dimension which enabled him to create civilisation, propaganda, economies and wars. It makes a man subject to Groups Power.

Groups Power is a dynamism of individual policies which makes a man obey the stronger (as long as he has no choice) and bully the weaker (possibly to make them even weaker). Men join or create groups in quest for power. They regroup. Groups strenghten or destroy their members.

I always had a tendency of steering away from people, for security purposes. I am self-sufficient and do not need "friendship". For me, being a part of group has unpleasant disadvantages. The flip side of my policy is not loneliness, as common sense would suggest. It is agression and generally lack of sympathy for my independance. It scares them, feeds their flawed imagination. They want to test me into their games. But group members get outsmarted by mice.

I am like a mouse. I am programmed to store value. I see traps laid around.

"The policies now being pursued by the Bush administration to revive growth by boosting consumption aren’t the solution to the country’s long-term structural economic problem."

Zhou Xiaochuan, Governor of Central Bank of China

So why to boost consumption in China the way the FED does? Is there anything the Chinese want? So let them produce it. Plus allow private banking with sane reserve system. You do not need Anglo-Saxon 'capitalism'.

"Under normal circumstances, no question bankruptcy court is the best way to work through credit and debt and restructuring”. “These aren’t normal circumstances. That’s the problem" .

George W Bush, President of Most Powerful Group

That's right, Mr Bush. Under normal circumstances, you wouldn't be a president.

Monday 15 December 2008

Cornerstone of Year 2013

Something you must bear in mind is that price levels do not drive perception. You better consider perception do not influence price movements either.

What I want to suggest is Perception and Price go hand in hand.

What really drives Perception and Price is time. Trend is a bigger picture which shows how Price and Perception evolve over time.

Year 2008 has been a coffin for some long term ideas, and gave birth to some new which can be long term until 2013.

Mr Decoupling, after a considerable success of worldwide tour has been shot dead in his Sunday Best. Mrs Houseprice also collapsed, after stating last year she would be fine by then.

Bad boy Buck, after being whipped and sent to hell on many occasions, has come back and taken the high street by force. He expelled all the witches asleep in their commodity booths.

A new religion was born. Its Preacher, Mr Bailout and his ranks grow strong. And the stage was dimly lit - Mrs Deflation pays the bill and urges to save.

The army of investors came home defeated after a decade of successes. They lick their wounds. They won't fight : they want to teach their sons about not to lose.

Some time before 2013, we will see Mr Buck take on Mr Bailout. The winner will consumare la vita with Ms Depression. Then, the stage will be set for new roles.