Wearing a grand headdress made of feathers, jade, and gold, a bronze-skinned priest chanted holy verses beside the rim of a sacred pool. The Maya called these pools ts’onot. They were believed to be both a gateway to
Just "invested" in thirteen old bicycles that I shall refurbish with very simple but tough Chinese made spares, lots of stock-spares too... Next investment is in PV-cells, glass-fiber, epoxy and polycarbonate for DIY panels as well as a DC-solar pump system. Then get a good qty. of compost-earth for the raised veggie-beds as well as looking for a sniper-instructor.
All very unholy items; no sacred or believe-in-commodities like stock, futures, crypto, gems or precious-metals will get you through on a daily basis WSHTF...
I enjoy your stories Leon and your insights. Two comments on which I'd love your feedback:
1) Is not investment in precious metals based in trust as well--trust they will retain their value even if they have no intrinsic value? Can't eat them, can't build shelter with them, can't generate power? Sure there may be historical precedent, but if the economic collapse is as bad as some are predicting, seems the trust in value of metals may also plummet.
2) You say you're also lowering your company's debt liability and real estate loans. Makes sense if your loans have variable interest rates. If those rates are fixed, makes sense to me to leave those balances alone as they become better investments as interest rates increase.
Hey Mark, to answer your question on precious metals, you're absolutely right: they only have value because we all agree they do, just like any fiat currency. However (in my humble opinion at least) these will be the last forms of exchange (apart from items of value like shelter, food, power, etc) that will fail, simply because we've trusted them for so long. Long story short, if I'm going to hold my means of exchange somewhere, it'll be gold and silver.
On your second point, yes it would definitely make sense if we had a fixed interest rate. Unfortunately here in Iceland where almost all our business debt is held, only individuals can attain a truly fixed interest rate. For companies, it's solely two different types of variable interest loans.
Precious metals have never fallen to zero value, despite the obvious limitations. Humanity has been using precious metals for currency for at least 200 generations. I think gold and probably silver as well have an inbred hold on our psyches. That being said, "Bullets, beans and bandages. Then bullion"
Total agreement both on the problem and the solution. A storm is coming, throw out the sea anchors, bring down the sails and batten the hatches, it is going to get really rough.
When the faith in govt and insitutionscolapses due to their evident incompetence and indeed corruption in dealing with affairs like covid, afghanistan, and the economic consequences post shut down... we are not in cal, saunny waters.
I believe in money derived from natual elements. It also happens to be the elements that the US Constitution defines as money, namely gold and silver. These natual precious metals, albeit easer to obtain than obsidian, has held their value over time and does not rely on theosophy, esoteric principles; or an unholy alliance between the over bloated ever hidden agendas and violator of its founding documents that comprises the US Federal Government and the hidden hand ever changer of its models of deceptive definitions, the Federal Reserve, especially of New York. These two entities are like those Mayan priests of old in which they pierce us with their pitch-black knives of which the blood of our purchasing power flows into the murky depths of their unholy financial fornication.
Excellent writing Leon. Your articles are the only financial literature I can make time for reading, unless I'm doing work or consciously trying to improve my money quotient or as I coined it yesterday, wealth quotient... However, I have a bone to pick with you I'm sorry😅 It is with regards to the word belief and faith in your article. Like to think of myself as someone who values believing more so than being purely rational (only) at the core of my being and have family in Australia(which I would love even more if it wasn't for all the hypocritical self righteous racists who emigrate to Oz/(stralia) from South Africa) who hate on me because of this and because my dad used to be more religious without the integrity to back it up unfortunately, so I'm kind of stuck in a prejudiced mold the world doesn't exactly empathize with - anyway - poor me. I started my trading career on a "belief", believing in my ability to be successful because of what I thought to be an above average ability to predict, yes "predict..." the market in a specific way and it has actually worked out 9 years later, after starting without knowing the reality of how what I knew right off the bat should work- trusting that my intelligence was initially correct without any experience. So my investing/or trading (they are not the same I know - but are quite similar) was done by "believing" in what I saw myself doing against all general consensus and without the proof that it would be sustainable and only the conviction that I was correct in a rational way because my intelligence told me it would work and that I'm not just guessing or gambling even though people would not believe me. Anyhow, yes I know you probably didn't mean faith in terms of the supernatural or religious way even though some people's investment styles do resemble preaching but to some people like myself(I'm sorry) even though I also had a "moment of truth" to begin with it kind of feels a little unfair when believing is interwoven with people's money who most likely don't believe in God anyhow when reading from an (my)objective perspective where faith is something different really... In my life journey I learned that faith unlike it is sometimes portrayed by secular Christianity is not just kind of a/blind faith or some kind of baseless claim for being able to achieve ridiculous things by willing them into reality(not to be confused with salvation😅) but instead, that faith is a lifestyle that produces fruit that may resemble what would otherwise seem impossible or at least kind of hard in the very least. I did some research about the word faith in Hebrew and what made sense to me is that the actual meaning of faith is, is "to make a living by God's truth", meaning that you simply act in accordance to the prescribed integrity and principles of God as you go through life and go about your business to survive and/to make a living. Kind of think it is very much the Jewish understanding of faith and (really do) think it explains why Jewish people are more wealthy on average - I can't see how it is just a coincidence. Anyhow, just a heads up about faith. Thank you for the subscription and Sorelle's videos - it really means a lot to me.
Keep well
14 What good is it, my brothers, if someone claims to have faith, but has no deeds? Can such faith save him? 15 Suppose a brother or sister is without clothes and daily food. 16 If one of you tells him, “Go in peace; stay warm and well fed,” but does not provide for his physical needs, what good is that? 17 So too, faith by itself, if it does not result in action, is dead. 18 But someone will say, “You have faith and I have deeds.” Show me your faith without deeds, and I will show you my faith by my deeds.
Could you not argue that some unpopular industries/companies with strong balance sheets may be undervalued as well as companies based in the commodities industry as opposed to the popular “growth” stocks which are overvalued?
Agree with much of what you say. Additionally, some might suggest that the absence of transparency, both in governments and other institutions does nothing to foster or encourage confidence in the integrity of such bodies. Citing J Edgar Hoover and Tony Blair are two individuals who come readily to mind for their puzzling leaderships
And considering that Warren Buffet, not too long ago had accumulated a rather large portion of cash by selling off stock, seemed to know that cash, even with the ridiculous inflation rates, is safer than stocks. Over €15 trillion and about $12 trillion and who knows how much of other currencies has been put into circulation, in just the last 13 or so years. We live in interesting times where so many people seem to have the modern day equivalent of that old miners disease, gold fever.
No dig at at your opinion on gold intended. But maybe the pun is.
Cheers and thanks for a though provoking newsletter.
My parents lived through the Great Depression and it affected their financial decisions for the rest of their lives. I saw people NOT learning from the dot com bubble and eight years later we saw the sub prime mortgages destroy a huge part of America's wealth. The fascination with crypto currency seems to be another manifestation of the lack of institutional memory among investors. With 30 trillion plus dollars of US debt (don't even mention unfunded liabilities) the world is at more risk than during the Great Depression. One of every six dollars IN THE WORLD is US debt. There will be no soft landing from the next crash I fear.
Just "invested" in thirteen old bicycles that I shall refurbish with very simple but tough Chinese made spares, lots of stock-spares too... Next investment is in PV-cells, glass-fiber, epoxy and polycarbonate for DIY panels as well as a DC-solar pump system. Then get a good qty. of compost-earth for the raised veggie-beds as well as looking for a sniper-instructor.
All very unholy items; no sacred or believe-in-commodities like stock, futures, crypto, gems or precious-metals will get you through on a daily basis WSHTF...
You're right: when SHTF, not even gold will have much value.
I enjoy your stories Leon and your insights. Two comments on which I'd love your feedback:
1) Is not investment in precious metals based in trust as well--trust they will retain their value even if they have no intrinsic value? Can't eat them, can't build shelter with them, can't generate power? Sure there may be historical precedent, but if the economic collapse is as bad as some are predicting, seems the trust in value of metals may also plummet.
2) You say you're also lowering your company's debt liability and real estate loans. Makes sense if your loans have variable interest rates. If those rates are fixed, makes sense to me to leave those balances alone as they become better investments as interest rates increase.
Hey Mark, to answer your question on precious metals, you're absolutely right: they only have value because we all agree they do, just like any fiat currency. However (in my humble opinion at least) these will be the last forms of exchange (apart from items of value like shelter, food, power, etc) that will fail, simply because we've trusted them for so long. Long story short, if I'm going to hold my means of exchange somewhere, it'll be gold and silver.
On your second point, yes it would definitely make sense if we had a fixed interest rate. Unfortunately here in Iceland where almost all our business debt is held, only individuals can attain a truly fixed interest rate. For companies, it's solely two different types of variable interest loans.
Precious metals have never fallen to zero value, despite the obvious limitations. Humanity has been using precious metals for currency for at least 200 generations. I think gold and probably silver as well have an inbred hold on our psyches. That being said, "Bullets, beans and bandages. Then bullion"
{....Bullets, beans and bandages..... then bullion...} BINGO !!
Total agreement both on the problem and the solution. A storm is coming, throw out the sea anchors, bring down the sails and batten the hatches, it is going to get really rough.
When the faith in govt and insitutionscolapses due to their evident incompetence and indeed corruption in dealing with affairs like covid, afghanistan, and the economic consequences post shut down... we are not in cal, saunny waters.
I believe in money derived from natual elements. It also happens to be the elements that the US Constitution defines as money, namely gold and silver. These natual precious metals, albeit easer to obtain than obsidian, has held their value over time and does not rely on theosophy, esoteric principles; or an unholy alliance between the over bloated ever hidden agendas and violator of its founding documents that comprises the US Federal Government and the hidden hand ever changer of its models of deceptive definitions, the Federal Reserve, especially of New York. These two entities are like those Mayan priests of old in which they pierce us with their pitch-black knives of which the blood of our purchasing power flows into the murky depths of their unholy financial fornication.
Excellent writing Leon. Your articles are the only financial literature I can make time for reading, unless I'm doing work or consciously trying to improve my money quotient or as I coined it yesterday, wealth quotient... However, I have a bone to pick with you I'm sorry😅 It is with regards to the word belief and faith in your article. Like to think of myself as someone who values believing more so than being purely rational (only) at the core of my being and have family in Australia(which I would love even more if it wasn't for all the hypocritical self righteous racists who emigrate to Oz/(stralia) from South Africa) who hate on me because of this and because my dad used to be more religious without the integrity to back it up unfortunately, so I'm kind of stuck in a prejudiced mold the world doesn't exactly empathize with - anyway - poor me. I started my trading career on a "belief", believing in my ability to be successful because of what I thought to be an above average ability to predict, yes "predict..." the market in a specific way and it has actually worked out 9 years later, after starting without knowing the reality of how what I knew right off the bat should work- trusting that my intelligence was initially correct without any experience. So my investing/or trading (they are not the same I know - but are quite similar) was done by "believing" in what I saw myself doing against all general consensus and without the proof that it would be sustainable and only the conviction that I was correct in a rational way because my intelligence told me it would work and that I'm not just guessing or gambling even though people would not believe me. Anyhow, yes I know you probably didn't mean faith in terms of the supernatural or religious way even though some people's investment styles do resemble preaching but to some people like myself(I'm sorry) even though I also had a "moment of truth" to begin with it kind of feels a little unfair when believing is interwoven with people's money who most likely don't believe in God anyhow when reading from an (my)objective perspective where faith is something different really... In my life journey I learned that faith unlike it is sometimes portrayed by secular Christianity is not just kind of a/blind faith or some kind of baseless claim for being able to achieve ridiculous things by willing them into reality(not to be confused with salvation😅) but instead, that faith is a lifestyle that produces fruit that may resemble what would otherwise seem impossible or at least kind of hard in the very least. I did some research about the word faith in Hebrew and what made sense to me is that the actual meaning of faith is, is "to make a living by God's truth", meaning that you simply act in accordance to the prescribed integrity and principles of God as you go through life and go about your business to survive and/to make a living. Kind of think it is very much the Jewish understanding of faith and (really do) think it explains why Jewish people are more wealthy on average - I can't see how it is just a coincidence. Anyhow, just a heads up about faith. Thank you for the subscription and Sorelle's videos - it really means a lot to me.
Keep well
14 What good is it, my brothers, if someone claims to have faith, but has no deeds? Can such faith save him? 15 Suppose a brother or sister is without clothes and daily food. 16 If one of you tells him, “Go in peace; stay warm and well fed,” but does not provide for his physical needs, what good is that? 17 So too, faith by itself, if it does not result in action, is dead. 18 But someone will say, “You have faith and I have deeds.” Show me your faith without deeds, and I will show you my faith by my deeds.
James 2:14-18
Could you not argue that some unpopular industries/companies with strong balance sheets may be undervalued as well as companies based in the commodities industry as opposed to the popular “growth” stocks which are overvalued?
I enjoyed this! That was a good listen!
Agree with much of what you say. Additionally, some might suggest that the absence of transparency, both in governments and other institutions does nothing to foster or encourage confidence in the integrity of such bodies. Citing J Edgar Hoover and Tony Blair are two individuals who come readily to mind for their puzzling leaderships
And considering that Warren Buffet, not too long ago had accumulated a rather large portion of cash by selling off stock, seemed to know that cash, even with the ridiculous inflation rates, is safer than stocks. Over €15 trillion and about $12 trillion and who knows how much of other currencies has been put into circulation, in just the last 13 or so years. We live in interesting times where so many people seem to have the modern day equivalent of that old miners disease, gold fever.
No dig at at your opinion on gold intended. But maybe the pun is.
Cheers and thanks for a though provoking newsletter.
My parents lived through the Great Depression and it affected their financial decisions for the rest of their lives. I saw people NOT learning from the dot com bubble and eight years later we saw the sub prime mortgages destroy a huge part of America's wealth. The fascination with crypto currency seems to be another manifestation of the lack of institutional memory among investors. With 30 trillion plus dollars of US debt (don't even mention unfunded liabilities) the world is at more risk than during the Great Depression. One of every six dollars IN THE WORLD is US debt. There will be no soft landing from the next crash I fear.
Love this format sorry I’m in heat I’ll be back