Category: Z Legacy: Finance


Bruce Lee and the stock market

December 5, 2013 Sovereign Valley Farm, Chile This morning I woke up bright and early to participate via the Internet in a live auction that was being held halfway across the world. The Hong Kong branch of Spink & Son, a British firm originally founded in the mid-1600s, was putting a series of

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Yet another massive nail in the dollar’s coffin

On the other side of the world today, a couple of gentlemen that few people have ever heard of signed an agreement that has massive consequences for the global financial system. It was a Memorandum of Understanding signed by representatives of the Singapore Exchange and Hong Kong Exchange. Their aim– to combine their

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“Let’s just say Richie ran that $400 up pretty good…”

December 2, 2013  London, England  [Editor’s Note: Tim Price, Director of Investment at PFP Wealth Management and frequent Sovereign Man contributor is filling in for Simon today.]  In 1983, commodities trader Richard Dennis set out to show that anybody could trade profitably provided they were taught some simple rules.  His partner, William Eckhardt,

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Why your savings account WILL lose money

November 26, 2013 Santiago, Chile On the flight down to Chile the other day from the US, I opened up a local Texas newspaper to an article entitled something like: “Getting the most out of your savings account”. The reporter went on to list all the banks in the area where you could

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Financial Data

Madness, and sanity

November 25, 2013 London, England [Editor’s Note: Tim Price, Director of Investment at PFP Wealth Management and frequent Sovereign Man contributor is filling in for Simon today.] “In investing, what is comfortable is rarely profitable.” — Robert Arnott Valuations still matter. Assuming that one is -investing- as opposed to -speculating-, initial valuation (i.e.

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The future of Bitcoin is in Asia…

November 19, 2013 En route from Hong Kong to the United States Senator Tom Carper (Delaware) is confused about Bitcoin. As Chairman of the Senate Committee on Homeland Security and Governmental Affairs, this is how Carper framed his opening remarks yesterday at a hearing about digital currencies– with complete, incoherent confusion. Carper’s hearing

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HK Dollar

Think the dollar is a Ponzi scheme? Here’s a unique solution…

November 18, 2013 Hong Kong You’ve probably heard by now that there’s a politician in Russia trying to ban the dollar, calling it a Ponzi scheme. 20 years ago this would have been considered blasphemous. 10 years ago it would have been laughed at. Today, it’s taken seriously. And with good reason. If

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Trust Fund Theft

You and I would go to jail for this…

November 6, 2013 Bangkok, Thailand Last week, the US Treasury Department released a statement amid great fanfare and triumph, that the federal budget deficit for fiscal year 2013 was ‘only’ $680 billion. Yes, the sad state of affairs today is that a deficit of ‘only’ $680 billion is actually considered good news. Now,

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3 currencies to avoid like the plague

October 23, 2013 Santiago, Chile In the 13th century, Marco Polo wrote with utter astonishment at the paper currency standard he witnessed in China: “[a]ll these pieces of paper are, issued with as much solemnity and authority as if they were of pure gold or silver… and indeed everybody takes them readily. .

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Check out the Fed’s dismal track record

As we’re coming up on the 100th anniversary of the establishment of Federal Reserve, one thing has become abundantly clear– these guys are horrible at their jobs. According to the popular lie, the Federal Reserve was supposed to have been established to smooth out the economic cycle, thus preventing booms, busts, recessions, and

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This guy has more passports than I do

October 18, 2013 Santiago, Chile Last night I had drinks with a few of our premium members who were in town visiting Chile. This is one of the great pleasures of my life; I feel incredibly lucky that I get to spend time with the amazing, sophisticated people in our community. One of

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When countries go broke

October 14, 2013 Sovereign Valley Farm, Chile It’s become almost cliche these days to point out how many governments are broke beyond belief. In Japan, where the country’s debt level already exceeds 200% of GDP, the government has to finance 46% of its budget by issuing more debt. In the United States, the

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Four important estate planning steps you should consider

September 25, 2013 Sovereign Valley Farm, Pencahue, Chile It goes without saying that parents want the best for their children… and that each generation wishes the next to be even more prosperous and successful. For the most part, this has been the historical pattern since the Industrial Revolution; every successive generation has enjoyed

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They blew it…

September 23, 2013 London, England [Editor’s Note: Tim Price, Director of Investment at PFP Wealth Management and frequent Sovereign Man contributor is filling in for Simon today.] “This took guts.” – Comment by Steven Ricchiuto of Mizuho Securities in response to the Federal Reserve’s surprise decision to refrain from “tapering” its $85 billion

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To challenge these statements is blasphemous

September 19, 2013 En route to Chile “Truth. noun. The quality of state of being in accordance with fact or reality.” This is how my dictionary defines truth: it can be ‘fact’. But it can also mean ‘reality’. The people who control the system have figured this out– if they can change someone’s

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Fiscal Cliff

What time would you leave?

September 17, 2013 En route to the United States In mathematics, the term ‘linearity’ describes a relationship in which the rate of change for a variable is constant. If you’re driving from Paris to Frankfurt at 100 kilometers per hour, then this is a linear system– your rate of change (speed) is constant.

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Why Japan’s new home run king forebodes the biggest default in history

September 16, 2013 Tokyo, Japan Suicide has long played a bizarre role in Japanese culture. In feudal Japan, for example, dishonored samurai would often commit seppuku, a suicide ritual that involved ceremonial disembowelment. It was torturous pain lasting for hours. In World War II, the Japanese military churned out suicide attackers known as

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Investment bank manager: “Nobody knows what the f**k is going on…”

September 13, 2013 Hong Kong Financial circles in Hong Kong are buzzing today on the new Goldman Sachs projection that gold may drop below $1,000 an ounce. And in merely suggesting such a death sentence for the metal, Goldman’s pronouncement pushed the paper price of gold contracts down $20+. Many technical indicators underscore

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Truth: This is what the numbers really have to tell us…

September 2, 2013 En route to Singapore After two months of criss-crossing Europe on somewhat of a bankrupt nations tour, the chilly autumn weather that has settled upon much of the continent is my cue to beat feet out of here for the steamy, humid energy of Southeast Asia. So I’m presently sitting

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Ben Bernanke

A very subtle form of capital controls

Capital controls are the ultimate ‘smoking gun’ to evidence the complete collapse of an insolvent government. Only the most desperate governments have to restrict the free-flow of capital across their borders. And once they hit, you know the endgame is near. Capital controls can take a variety of forms… often as blunt as

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If you have an IRA, you need to know this…

August 7, 2013 Makarska, Croatia I recently received some disturbing news that I felt critical to pass on to you. As we’ve been writing for over four years now, it’s long been a common approach for government sliding into insolvency to confiscate wealth from their own citizens. Charles I of England infamously commandeered

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Here’s some hard data on the ‘safest’ fiat currency

July 30, 2013 Vilnius, Lithuania Is there such a thing as a ‘safe’ fiat currency? The term itself is as intellectually disingenuous as terms like ‘fair tax’ or ‘government innovation’. But as we’ve been exploring recently why modern central banking is completely dysfunctional, it does beg the question– is any currency ‘safe’? Let’s

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US Dollar

Think those are dollars in your wallet? Think again

July 29, 2013 Kiev, Ukraine Here’s a question– if you’re in the Land of the Free, do you think those green pieces of paper in your wallet are dollars? They’re not. A US dollar was defined by the Coinage Act of 1792 as 416 grains of standard silver. No, those green pieces of

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Here’s what happens when a central bank goes bust

July 26, 2013 Kiev, Ukraine Over the past several decades, people around the world have become so brainwashed that few people really give much thought anymore to the safety of their currency. It’s not something people really understand… there’s apparently some Wizard of Oz type figure at the top of the hill pulling

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Wow. This story about Iceland’s “recovery” is a complete lie.

July 22, 2013 Reykjavik, Iceland Without doubt, Iceland was the canary in the coalmine for the sovereign debt crisis that is unfolding across the world right now. It was the first place to go bust, crumbling under the weight of a credit-fueled boom that brought down most of the country’s banking sector and

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You won’t believe this deal I got on these gold coins

July 18, 2013 Lisbon, Portugal Yesterday afternoon while strolling around Lisbon, I happened upon a row of antique stores. Like most retail storefronts in the city, the proprietors were in a serious cash crunch and looking to quickly liquidate some inventory. I found this to be an exciting opportunity given that collectibles are

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Nigel Farage destroys Europe’s latest bad idea

July 3, 2013 Frankfurt, Germany I’ve landed this morning in Frankfurt… financial capital of one of the few remaining ‘healthy’ countries in Europe able to inspire a modicum of confidence among investors. As southern Europe buckles under the weight of unserviceable debt and 60%+ youth unemployment rates, Germany is coasting along with an

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Money Printing

Why the fundamental rationale for holding gold is as robust as ever

June 13, 2013 London, England [Editor’s note: Tim Price, Director of Investment at PFP Wealth Management in the UK and frequent Sovereign Man contributor, is filling in for Simon this morning.] As Ben Graham, the father of value investing, observed, an investment operation “is one which, upon thorough analysis, promises safety of principal

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Time to get out? What the cult of Bernanke is telling us…

June 6, 2013 Jakarta, Indonesia [Editor’s note: Tim Staermose, Sovereign Man’s Chief Investment Strategist, is filling in today while Simon is looking at agricultural property in Chile.] It’s always a bit amusing to meet an investor making money in the markets right now who actually thinks it’s because he’s smarter than everyone else.

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Monkey on the phone

Try this experiment yourself…

May 22, 2013 London, England [Tim Price, frequent Sovereign Man contributor and Director of Investment at PFP Wealth Management, is filling in for Simon today.] James Montier’s bible on behavioural finance, ‘Behavioural investing’, points out two recent discoveries by neuroscientists that have relevance to all investors: 1) We are hard-wired to think short-term,

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Follow Myanmar

How to invest in Myanmar

Myanmar is among the hottest “frontier” investment markets today. The country is going from an authoritarian regime to democracy, from a conflict situation to a situation of relative peace, and, most importantly, from a closed economy of state-owned companies, to an open, free market economy. Such positive change all at once in one

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Is this what prosperity is supposed to look like?

May 16, 2013 Dhaka, Bangladesh As I’ve been traveling across Asia recently, one recurring theme I’ve been seeing are these constant headlines that ‘inflation is under control.’ Across the region, and in fact across the world, the official statistics tell us that inflation is moderate, so it’s OK to continue printing more money.

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I couldn’t see because of the bullet hole…

May 15, 2013 Dhaka, Bangladesh The only English word my taxi driver knew was “shit”. And perhaps, given the state of his vehicle and road conditions, it was the most appropriate. I lost count of the number of pedestrians we nearly mowed down on the way from the airport; it was difficult to

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Don’t fall for this banking scam

If I told you that your bank only held 1% of its customer deposits in reserve, would you feel that your money was safe? If I told you that the insurance fund which backed your bank deposit only had enough cash to bail out 0.35% of the banking system, would that make you

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