Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks Correct into Bitcoin Happy Thanks Halving - Earnings Season Buying Opps - 4th July 24
24 Hours Until Clown Rishi Sunak is Booted Out of Number 10 - UIK General Election 2024 - 4th July 24
Clown Rishi Delivers Tory Election Bloodbath, Labour 400+ Seat Landslide - 1st July 24
Bitcoin Happy Thanks Halving - Crypto's Exist Strategy - 30th June 24
Is a China-Taiwan Conflict Likely? Watch the Region's Stock Market Indexes - 30th June 24
Gold Mining Stocks Record Quarter - 30th June 24
Could Low PCE Inflation Take Gold to the Moon? - 30th June 24
UK General Election 2024 Result Forecast - 26th June 24
AI Stocks Portfolio Accumulate and Distribute - 26th June 24
Gold Stocks Reloading - 26th June 24
Gold Price Completely Unsurprising Reversal and Next Steps - 26th June 24
Inflation – How It Started And Where We Are Now - 26th June 24
Can Stock Market Bad Breadth Be Good? - 26th June 24
How to Capitalise on the Robots - 20th June 24
Bitcoin, Gold, and Copper Paint a Coherent Picture - 20th June 24
Why a Dow Stock Market Peak Will Boost Silver - 20th June 24
QI Group: Leading With Integrity and Impactful Initiatives - 20th June 24
Tesla Robo Taxis are Coming THIS YEAR! - 16th June 24
Will NVDA Crash the Market? - 16th June 24
Inflation Is Dead! Or Is It? - 16th June 24
Investors Are Forever Blowing Bubbles - 16th June 24
Stock Market Investor Sentiment - 8th June 24
S&P 494 Stocks Then & Now - 8th June 24
As Stocks Bears Begin To Hibernate, It's Now Time To Worry About A Bear Market - 8th June 24
Gold, Silver and Crypto | How Charts Look Before US Dollar Meltdown - 8th June 24
Gold & Silver Get Slammed on Positive Economic Reports - 8th June 24
Gold Summer Doldrums - 8th June 24
S&P USD Correction - 7th June 24
Israel's Smoke and Mirrors Fake War on Gaza - 7th June 24
US Banking Crisis 2024 That No One Is Paying Attention To - 7th June 24
The Fed Leads and the Market Follows? It's a Big Fat MYTH - 7th June 24
How Much Gold Is There In the World? - 7th June 24
Is There a Financial Crisis Bubbling Under the Surface? - 7th June 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Baby Boomer Pensions The NEXT crisis! (and what to do about it)

Politics / Pensions & Retirement Jan 13, 2009 - 05:37 PM GMT

By: Brian_Bloom

Politics Baby Boomers who will be relying on pensions as a backup support because of losses in the stock and property markets, will find that those organizations which are supposed to pay the pensions don’t have the funds. http://www.bloomberg.com/apps/..


And Central Banks are exerting downward pressure on interest rates, in an attempt to discourage savings? (They are terrified of a slowing velocity of money)

Some economists argue that low interest rates allow consumers leeway to service their debts. Others argue that low interest rates encourage investment. What in fact happens is that pensioners who have saved their whole lives are prejudiced (punished) so as to support (reward) those who have been profligate credit consumers; and also those who have made unwise investments using borrowed funds. Sound investment policy revolves around riding your winners and cutting your losses. This is exactly the opposite of what governments and financial authorities are doing.

Can governments print their way out of this? The very idea is absurd.

There is only one way out of this mess: A wave of grass roots, entrepreneurial endeavour that is “focused” on achieving a clearly defined target outcome – an outcome that is more than just a sound-bite, like: “we gotta create 3 million new jobs”. The “How” needs to make sense; and printing money does not make sense. For example, Zimbabwe has just printed a $50 billion note. That note will buy two loaves of bread – this week.

The places to look to facilitate entrepreneurial endeavour are:

  1. Fossil fuel replacement industries (solar, hydrogen, wind, electromagnetic). Oil alone is roughly a $3 trillion industry per year including refineries, pipelines and gasoline revenues at service stations; and replacement energy paradigms are strategically important because they will facilitate the creation of new downstream industries. This is necessary in any event, because we have passed peak oil – which is why no new refineries have been built in the West for several years.
  2. Soil beneficiation industries (minerals for agriculture; as opposed to chemicals for agriculture). This is roughly a $100 billion industry per year; but is strategically important because it will facilitate downstream agricultural industries in both existing farmlands and so-called barren farmlands. If climate change morphs to become global cooling then third world countries in the Southern Hemisphere will need to become the world’s breadbaskets.
  3. One example of a downstream energy related industry: There are roughly 600 million internal combustion engine motor cars in the world. Retrofitting these to embrace a new energy paradigm (there are alternatives) at, say, $2,500 a vehicle, will represent a $1.5 trillion industry

This is what is meant by “focused” activity. In the meantime, if we know which direction we are heading, governments can build infrastructure to support the new direction – by way of a stopgap measure – to create new jobs immediately.

Private Enterprise cannot set the direction for a coordinated approach.

By Brian Bloom

www.beyondneanderthal.com

Beyond Neanderthal is a novel with a light hearted and entertaining fictional storyline; and with carefully researched, fact based themes. In Chapter 1 (written over a year ago) the current financial turmoil is anticipated. The rest of the 430 page novel focuses on the probable causes of this turmoil and what we might do to dig ourselves out of the quagmire we now find ourselves in. The core issue is “energy”, and the story leads the reader step-by-step on one possible path which might point a way forward.  Gold plays a pivotal role in our future – not as a currency, but as a commodity with unique physical characteristics that can be harnessed to humanity's benefit. Until the current market collapse, there would have been many who questioned the validity of the arguments in Beyond Neanderthal. Now the evidence is too stark to ignore.  This is a book that needs to be read by large numbers of people to make a difference. It can be ordered over the internet via www.beyondneanderthal.com

Copyright © 2009 Brian Bloom - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Brian Bloom Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in