Beat the dust

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Plan not to fail and fail not to plan

Although investment methodology is easy to understand , still people are looking for something impossible. All in all, it's just an open secret "Buy low sell and sell high".

Next you may ask is this a good time to invest? Well there is no absolute answer for that.

Let put in this way for each of us, we need a different strategy. This is because everyone of us is unique. We need to know our very own strategy to suit our own strengths and weaknesses.

Having 10 million to invest is entirely different from having only 100 thousand. For those Warren Buffet wannabe, wake up hun it is essential that we understand ourselves first before we start our investment.

We are not millionaire!

Part 2: How many money you have?

As I promise my readers on the previous entry, here you go the second part. Please tide your seat belt to find out more from untold mystery "The Truth Is Out There"..

We had being taught at school about mathematics, accounting, general knowledge just too bad that the teacher never tell us where the hell money come from. (This is because the teacher also don't know how to explain to us sigh)

It would seem natural, that the money is created by the Government, and in fact most Central Banks seem to be owned by the Government and run by it. I say "seem" because when the Government needs money, it does not order the Central Bank to credit some money to the treasury's account. The Government only has two ways to obtain money. One is taxation of it's citizen, the other is borrowing from the bank.

Okie. If you are still with me from the Part 1: How can the banks "create" money? That is a good question. Is it not the Government's printing office that prints all the banknotes?

Most of the time, we are misleading by the movie that the Government can simply printing money when they need to do so. As I mention early money is create by credit. When the Government need some cash credit either budget from taxation or borrow from privates (through the banker) and that is has to pay interest for this. That is why Governemt's Bond interest rate is alway chepaer than banker :p

Now we start to see why the Government never has money, and why much of our taxes go "off the top" of the budget, towards debt service. As a strong prove of my statement, the Government budget alway showing negative which means using future taxpayer's money.

The important thing to know: Money is created just by inserting some numbers into a computer.

To be continue...

Part 1: How many credit you have?

In today context, credit card no long a luxury however is a must. We pay our air-ticket, Internet bill, phone bill, housing loan, car loan, student loan, personal loan, Ikea or Courts furniture, Pak Tohing expenses and many more to be mention. Just take out your so call Plastic Credit Card and someone will swipe your card on a machine. The purchase transaction is done when you signed on the doted line. Wola within a minutes magic does happen between you the buyer, the retailer and the banker. When you walk out loaded huge carrier with "wind" all party are satisfy and happy. This is because you are given 5-10% discount for the rebate. On the other hand the retailer get profit of 30-40% depend on case to case basis. Finally the banker earn 3% for the service provided or even up to 24%p.a. if you are minimum monthly paymaster. Don't be too surprise this happen everyday and who know you are one of them. Here are the clip of Money As Debt:
Enjoy the clips ^^
1. Money As Debt 1: what money is & why we are bankers' slaves
2. Money As Debt 2: what money is & why we are bankers' slaves
3. Money As Debt 3: what money is & why we are bankers' slaves
4. Money As Debt 4: what money is & why we are bankers' slaves
5. Money As Debt 5: what money is & why we are bankers' slaves

Without beating around the bush, here is the hot potato: Money is being created not by our governments, but by a private monopoly run by the (private) banking corporations.

How many credit cards you have? The more the merry :p To be continue..

Baltic Dry Index

Wondering how many readers will give supportive feedback to me after reading the title above. This is just another index as a world's economy growth indicator. Nonetheless the chart is heading to North with a sharp decline. I dare not to put the graph up over here to avoid any panic to my readers. This index is closely followed by all Wall Street Insiders because it is a good indicator of economic growth and production. In a nutshell, the BDI reflects how much it costs to ship raw materials (like coal, iron ore, cement and soft commodities like grains and sugar) by sea. The level of this index is also impacted by fuel costs, fleet numbers and seasonality but if the index rises, it means that demand is generally strong causing other ports to be congested. In short, BDI has a very strong correlation against oil price. Well until here I bet you will understanding why I insisted not to put the graph :p

P/S: Please google BDI yourself for more info. Thanks to the Internet ya~

Long or short?

This had been long time never login after the last entry. Here you go my sharing about the financial cirsis happening around us.

Financial advisors are like any other profession; some are very smart and talented, whereas others border on the edge of incompetency. In the middle is a mix of people who generally do a decent job managing their clients' money.The problem in bear markets is that many individuals let anger interfere with rationale decisions. Rather than stick with strategies that have worked in the past (and have been proven to work over the long-term), many investors look for alternatives. Often these changes do more harm than good.As an analogy, the same thing happens with dieting. Individuals who lose weight and then switch diet plans when the pounds start to come back are likely to gain even more weight than those who go back to the diet plan that originally worked for them. Investing is no different. If a diversified portfolio comprised of fundamentally-sound stocks with rising earnings estimate and attractive valuations has worked in the past, why change the strategy now?Bear markets are painful, but they are also temporary. Remember, investing is about the long-term. So stick to strategies that have proven to work over the long-term.

Happy Birthday!

Is good to be a blessing to other people around. Well I would like to take this opportunity to show my appreciation to my fellow brother Dr Lee.
Thank You to your generously invited me to join you as a blogger. (though I'm a poor and lazy 1)
Thank You to your professional advise on my father sickness.
Thank You to your brotherly concern during our short period of fellowship.
Thank You to your sharing never out dated game "Spy & Killer".
Thank You to your unconditional friendship lending to me.
Thank You to your photo shooting skill capture my vivid memories with love one.
Thank You to your sharing with me regarding insurances protection vs investment.
Thank You to your good example showing to us as Spiritual Elder.
Thank You to your godly leading in the cell. (never have chance to join you)
Thank You God I have you walk through my life with your very own creative ways.(yy said a very skillful friend to hint his friends he is getting older)
Haha cheers!

P/S Happy Delayed Birthday to my dear friend 'Little Weapon' on 26th.