The Independent had a lot to say about the UK real estate market today. The front cover paints a gloomy picture about the capacity of young people to purchase their own homes, and several further articles speculate about whether people should even want to buy houses at all. Irrespective of their differing points of view, they all contain one common premise: that real estate matters. This is the key to the puzzle of the real estate market in the UK – the time to buy will arrive when people just don’t care one way or the other. My hunch is that this scenario is at least few years away…

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An update of the daily treasury statement charts for 31/5/11:

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Jim Grant & James Turk talk about gold, money, the history of money and much more. A truly fantastic video, I strongly suggest that you watch it in its entirety.

 


James Grant and James Turk discuss gold, the Fed and the US economy

 

Money is a vital part of any well-developed economy – in fact, it is no exaggeration to say that most of our lives depend on the existence of a monetary medium. This importance puts a great deal of power into the hands of the monopoly producers of money (i.e. central banks). Moreover, to quote Spiderman (!), ‘with great power comes great responsibility’. In the same way that a sound money can enrich our lives, an unsound money can sour our experiences. Unfortunately, the current monetary system is a major instigator of recurring ‘clusters of error’ (to quote Jörg Guido Hülsmann). Widespread social discontent is just one symptom of the current monetary system.

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This week’s update of the inflation vs deflation indicators show that deflation fears are gaining ground against inflation worries…

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An update of the daily treasury statement charts for 27/5/11 (apologies for the delay!):

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Marc Faber was interviewed on Bloomberg yesterday. He had some fantastic thoughts on markets and the global economy. I strongly suggest that you watch the video and/or view the summary.

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