New 'White Paper' On This

About the worst thing that anyone can do right now is allow pics of cool things to be singing into their brains: 'buy me, buy me.' LOL

And we are certainly an instigator or culprit of that kind of thing around here.

There is a major issue in world economies today of inflation, but the source of that inflation is never going to be seen in the media. It is directly coming from governments themselves, from the sorts of government systems (well, there really is only one type of system obtaining everywhere today...) and from their central banks.

'Buy me, buy me.'

If you are going to be an intelligent person, you are going to have to face the fact that the concept of a capitalist system is something that is 'of the past' now and does not exist anywhere in practical reality any more.

Output of useful products and valuable services is the objective of economic production - but these are not genuinely what drives corporations (which are legal entities designed to enshrine ownership and proprietorship within the over all society and social/political framework) any longer.

What drives the 'growth' figure stated in official data is debt and the rising and/or contraction of that creates the illusion of growth and 'rates of growth.'

And although central banks continuously run huge, impossibly huge, official lines of debt (ten year notes and longer), it is moot really who the 'lenders' (IE what are they lending?) or true borrowers actually are (what are they borrowing?) in the ultimate analysis. Well, in fact, the 'lender' is the issuer themselves, and they are not compelled to call any (monetary) loans in ever with the effect that a so-called 'capital account' exists somewhere which is claimed to be or said to be what the banking system owes, and what governments owe in absolute terms (not yearly or 'current account' obligations).

So what this in the end means, is that the system has been corrupted and is a corrupt one, in which only those ever smaller groups 'at the top' as it were - of the political system, effectively - sequester themselves off from any obligations to return anything they attain (steal) and so they are the only ones who can indulge themselves in listening to the siren singing of materialism.

Which you and I cannot, or at least, ought not, to do.

The thoughtless lusting of the rich...

But can we get ourselves into a place where we too are immune from the ludicrous forces of a delusional 'economic and currency system?'

To achieve that, we must have liquidity and perhaps also an in-flowing of revenue - that overcomes the rate of growth of nominal debt and the rate of decline in the spending power of dollars.

There is a point to us thinking about wines (or cognacs or at the margin, even whiskeys) here. These are commodities after a fashion -, they can be held and they can be stored for a duration; and they can also be sold.

Yet at the same time it is not easy to arrange each of those steps at all, to end up with the desired result as a certainty.

Yes they can be sold but only to an ever-narrowing market at the top. And these guys are not going to buy anything from just any old outsider, at least not in such a way that you can be guaranteed of a sale whenever you want it.

To overcome the rate of decline in purchasing power of the currency (yes, this is virtually of any currency in the world today) you require to get eight times your capital (on paper) at the time when the present system collapses catastrophically, which will be whenever central banks are forced to revert to a realistic pricing of capital regime.

Remember, the true cost of capital is a function of the exponent of debt (the debt coefficient in the equation - which is exponential at this point) in the currency system.

You don't drink this! It's soap.
Glycerine soap.
And hey! You don't eat it either.

When Powell last week kept rates on 'hold,' he seemed to have forgotten completely what all ratings agencies have recently said about the US government and its economy and money - which is namely, that they all downgraded the credit rating. The currency is riskier, the government is a riskier borrower and the economy is also riskier. These things are all true and in spades.

So once we accept that governments and central banks are actively engaged in suppressing price discovery on precious metals, then we are left with only the fluctuating but nevertheless real marginal utility facets of the trading topography: oil, and vanity and personal indulgence markets which of course, pertain more and more so, only to the top end.

Not without reason do legends tell of Roman senators and Roman dictators dying of either suicide or assassination in their vineyards.

Wine is a thing useful to the ordinary and lusted after by the intemperate wealthy. 

Down here we are extremely fortunate to be the beneficiaries of the continuing wealthy middle classes and politburo chieftains of Beijing's China - all of which either come down here to visit seemingly as 'tourists' or 'buy in' back home, the local Australian produce; the seafood, the wheat, the wine...

Bill Smith and myself and at least two others from the actual wine-making world, will be working on a 'white paper' - a new discussion paper with some details about how with a very little amount of opening capital, it will be possible to profit very meaningfully indeed, while at the same time the rest of the world is going to hell economically-speaking as well as in terms of politically and socially.

It will take at least several days, and probably more than a week to produce.