Page 12 - PowerPoint Presentation

> Governments – How they can destroy your savings

The Bond bubble is the mother of them all
It is clear to me that THIS is the core of the financial problems we face now. It has been

accumulating for almost the whole century and it will now bring the world as we know to its

knees sooner or later.

A debt that financed consumption not production

We have turned our backs on the genuine production of goods and services. The

abolishment of real value in gold standards allowed the debt go on to penetrate all sectors.
Most Western economies have become service economies with fiat currencies.

The supply curve has been abandoned. Central bank’s manipulation of interest rates brought

housing bubbles and diminished genuine national savings. Investment has been located in
housing!

Huge amounts of money have been “invested” in property. Houses are a consumable good
and do not, like actual, real assets, produce or manufacture goods or services. How could we

have allowed policy makers have this “mania” spread like a disease?

I suppose people react to incentives and the incentive was a low interest rate and easy
access to cheap money created by irresponsible banks and policy makers.

Maybe, if we left supply and demand curves for the “invisible hand” to regulate and to
govern financial issues, instead of allowing employing governments “help” the markets, we

would be way further down the road today?

We have to give savings to real investors and de-regulate government to grow again.

By doing this we could have thriving and competitive nations with genuine production and a

place where capital is attracted by high returns and soft-touch regulation.

Otherwise, in 10-40 years, we may still be where we are now.