Dear Jim,

You discussed as far back as 2005 the concept of “Authoritarian Free Enterprise” as the replacement for our present business circumstances.

I have come to understand you were alluding to a form of modern “Fascism.”

I agree that the opportunity for the entrepreneur in general business is going to be limited as compared to what you and I experienced in our careers.

How do we advise our kids?

Sincerely,
CIGA Chris

Dear Chris,

I have given this a great deal of thought where my grandchildren are concerned.

They must be free to follow their heart’s desire to determine their own futures AFTER they have mastered a trade.

The trade they should master is a basic function required for future society, such as:

Nursing
Care of special needs people
Behaviorist to the challenged
Carpenter.
Plumber.
Electrician.
Mechanic.
Farming.
Animal husbandry.
Commercial Fishing
Long Haul trucking.
Dirty Jobs.

Once this has been accomplished so that they are licensed or reached the level of master at their occupation they can do their trendy thing if they still wish.

In society even more complex survival exists in simplicity.

Respectfully,
Jim

Jim,

OPM (Other People’s Money). Cheap money got us into this mess. Logically, cheap money will resolve it. Excuse my short hand, but that type of logic can only be described as f**ing idiocy. Policy decisions that continue to expand US’s foreign liabilities (chart 1) will only further devalue the U.S. dollar and send gold closer its equilibrium price (chart 2).

CIGA Eric

Hi Jim,

This article regarding HK business proves you right once more. The problem is omnipresent and omnipotent. The problem may resolve faster in Asia, but they still have problems too. And looks which city of which nation is coming to the rescue.

In Hong Kong thousands of firms go under, Shanghai offers partnership against crisis
Thousands of firms have already gone bankrupt this year. The economic recession might be slowing but id does not appear to be stopping. Local authorities in fact expect economy to shrink by 5.5-6.5 per cent. Shanghai boss offers hand to Hong Kong, like “brothers”.

Hong Kong (AsiaNews/Agencies) – In May bankruptcy petitions in Hong Kong jumped 54 per cent from a year earlier, an indicator that the recession shows is not letting up. Hong Kong’s economy tipped into recession in the third quarter of last year and the government has forecast it will contract by between 5.5 and 6.5 per cent this year.

The economy of the former British crown colony has felt the effect of collapsing exports to the United States and Europe. Many Hong Kong manufacturing companies have had to shut down because of collapsing sales.

More…

Jim,

Who ever wants to see an example of governments who counterfeited the opponent’s currency in times of war can take a look at the Operation Bernhard performed by the Nazis during WWII. The point was to flood the UK economy with forged Bank of England currency:

http://en.wikipedia.org/wiki/Operation_Bernhard

There is a pretty recent movie about the story called The Counterfeiters

http://en.wikipedia.org/wiki/The_Counterfeiters_(film)

Regards,
CIGA Christopher