Friday, July 15, 2011

Weathering The Financial Storm

This morning it was simply gorgeous weather when I set off for Ruidoso, Nogal then Capitan running errands. But by the time I reached Capitan the rain was pouring down. Back at Alto the thunder rolled and the sky was dark, but we did not get the same type of rain Capitan was getting.

Dozens of "spikes" and doe's had come in to beg for food. This drought is seriously depleting their resources and they are not looking as healthy as usual.

I have been over a day without a migraine, and I felt so good today I was almost back to my old self.. but for this awful deep seated fretting and worry about a home. Very rarely do I feel well enough to take care about what I look like. This is such a depressing, desperate situation and when you are dirty, ill and in despair you tend to forget about the dirty aspect. But today I felt well enough to look like my old self.. neat, tidy and wearing a smile.
Tonight I pray the stress of trying to figure out the house and barn doesn't throw me for a loop again. I never thought that I would ever see the day come where a home, especially when you have paid for one, was luxury and not a priority in our society. It is so terribly stressful.

The economy is certainly taking the spotlight as the disagreements betwixt Republicans and Democrat's continue to rage in Washington DC about raising the debt. I don't understand national or international finances and can't pretend to, but I do understand it when I see working class people unable to meet their financial obligations and I see prices soaring sky high.

We are in dangerous, perilous times.
Return To Gold Standard As The World Order Unravels

On one side of the Atlantic, the eurozone debt crisis has spread to the countries that may be too big to save - Spain and Italy - though RBS thinks a €3.5 trillion rescue fund would ensure survival of Europe's currency union.

On the other side, the recovery has sputtered out and the printing presses are being oiled again. Brinkmanship between the Congress and the White House over the US debt ceiling has compelled Moody's to warn of a "very small but rising risk" that the world's paramount power may default within two weeks. "The unthinkable is now thinkable," said Ross Norman, director of

Fed chair Ben Bernanke confessed to Congress that growth has failed to gain traction. "Deflationary risks might re-emerge, implying a need for additional policy support," he said.

The bar to QE3 - yet more bond purchases - is even lower than markets had thought. The new intake of hard-money men on the voting committee has not shifted Fed thinking, despite global anger at dollar debasement under QE2.

Fuelling the blaze, the emerging powers of Asia are almost all running uber-loose monetary policies. Most have negative real interest rates that push citizens out of bank accounts and into gold, or property. China is an arch-inflater. Prices are rising at 6.4pc, yet the one-year deposit rate is just 3.5pc. India's central bank is far behind the curve.

"It is very scary: the flight to gold is accelerating at a faster and faster speed," said Peter Hambro, chairman of Britain's biggest pure gold listing Petropavlovsk.

"One of the big US banks texted me today to say that if QE3 actually happens, we could see gold at $5,000 and silver at $1,000. I feel terribly sorry for anybody on fixed incomes tied to a fiat currency because they are not going to be able to buy things with that paper money."

China, Russia, Brazil, India, the Mid-East petro-powers have diversified their $7 trillion reserves into euros over the last decade to limit dollar exposure. As Europe's monetary union itself faces an existential crisis, there is no other safe-haven currency able to absorb the flows. The Swiss franc, Canada's loonie, the Aussie, and Korea's won are too small.

"There is no depth of market in these other currencies, so gold is the obvious play," said Neil Mellor from BNY Mellon. Western central banks (though not the US, Germany, or Italy) sold much of their gold at the depths of the bear market a decade ago. The Bank of England wins the booby prize for selling into the bottom at €254 an ounce on Gordon Brown's orders in 1999. But Russia, China, India, the Gulf states, the Philippines, and Kazakhstan have been buying.

China is coy, revealing purchases with a long delay. It has admitted to doubling its gold reserves to 1,054 tonnes or $54bn. This is just a tiny sliver of its $3.2 trillion reserves. China's Chamber of Commerce said this should be raised eightfold to 8,000 tonnes.

Xia Bin, an adviser to China's central bank, said in June that the country's reserve strategy needs an "urgent" overhaul. Instead of buying paper IOU's from a prostrate West, China should invest in strategic assets and accumulate gold by "buying the dips".

Step by step, the world is edging towards a revived Gold Standard as it becomes clearer that Japan and the West have reached debt saturation. World Bank chief Robert Zoellick said it was time to "consider employing gold as an international reference point." The Swiss parliament is to hold hearings on a parallel "Gold Franc". Utah has recognised gold as legal tender for tax payments.

A new Gold Standard would probably be based on a variant of the 'Bancor' proposed by Keynes in the late 1940s. This was a basket of 30 commodities intended to be less deflationary than pure gold, which had compounded in the Great Depression. The idea was revived by China's central bank chief Zhou Xiaochuan two years ago as a way of curbing the "credit-based" excess.

Mr Bernanke himself was grilled by Congress this week on the role of gold. Why do people buy gold? "As protection against of what we call tail risks: really, really bad outcomes," he replied.

Dr. Kenneth Ogilvie, Michael Huckins, Patricia Ogilvie-Huckins ( Diana Huckins? Dominic Huckins? Malcolm Huckins? ) I don't know whom in your family can motivate Robert Huckins to return our stolen building fund, but I pray that someone can make him return it. I'm exhausted, and so ill. I miss my mum, I want my career back. I am in despair. We can't get a home unless your son, brother, cousin returns the building fund he stole. I tried every means to stop him from stealing the money, and every means to stop him from hiding the money. Every means to get an indictment. But Robert Huckins is far smarter than the judicial system, and he knew that our system cannot force him to return the money. He knew that before he plead guilty to multiple felony fraud charges and was given 27 years in jail.. suspended, that all he had to do was pay the minimal payments for a very short period of time.. leaving us homeless, destitute, desperate. He knew that the system doesn't care about the victims.
And he knew that we would probably not survive homelessness for very long anyway. I don't know who else to turn to because I have exhausted all routes so I am begging for your help heart and soul and with such sincerity. Someone in this family must have the means to motivate Robert Huckins to reveal where he has hidden our building fund, and return it to us. The ONLY thing we have ever wanted is the home we bought and paid for, the opportunity to get our family and career back together. Yet each day of homelessness we are being robbed, abused, victimized over and over again. Please, I beg. Please help us find and retrieve the stolen money so we can have a home and our lives back.
We have deluded ourselves into believing the myth that capitalism grew and prospered out of the Protestant ethic of hard work and sacrifices. Capitalism was built on the exploitation of black slaves and continues to thrive on the exploitation of the poor, both black and white, both here and abroad. ~ Martin Luther King, Jr.