I read a few precious metals forums on the internet and I'm always surprised by how many investors lack a sound investment strategy.
As a student of history I begin to suspect that uninterrupted peace and prosperity, generation after generation, leave men vulnerable to a specific set of evils. The human intellect weakens during times of prolonged peace and prosperity.
What motivates a terrorist, an anti-Western dictator or a communist revolutionary? What motivates someone like Venezuelan President Hugo Chavez or Fidel Castro or Kim Jong Il or the Iranian Mullahs? Look at their anti-Americanism.
Ancient pagans looked to the supernatural for answers. Today the Russian, Chinese and American militaries rely on "remote viewing" as well as psychics. A KGB defector from the 1950s confided that Russia was then experimenting with the occult.
Jim outlines how a leveraged carry trade, growing trade deficits, US consumer debt, a potential banking crisis, and reliance on foreign investment are like dominos precariously awaiting a sudden fall.
Last month, Paul Volcker wrote an article for the Washington Post entitled "An Economy on Thin Ice."
Currency crisis have occurred throughout economic history. Few admit the possibility of a US dollar meltdown. This article uses "future history" to show what a currency crisis in America might be like.
Richard A. Posner has written a book titled Preventing Surprise Attacks. Why do surprise attacks succeed? "When a satisfactory response to a threat is difficult to devise, the tendency is, ostrich-like, to deny the threat."
Long ago I picked up an idea from the British historian Thomas Macaulay that can also be found in Adam Smith's Theory of Moral Sentiments. These authors put forward the suggestion that people are disposed to be sensitive to the suffering of others depending on their own degree of comfort.
The universe is made up of a finite number of particles, and the brain of a simple-minded person is more finite still. What has happened before will happen again. The foolishness that preceded the last world war is already far advanced before the next.