Thomas Greco News, Jan. 2011
Excerpts from world money-man guru's latest take
Thomas Greco
Another installment from the eminent Thomas Greco, proprietor of Reinventing Money and author of the End of Money. I always find his analyses enjoyable, set in the context of a world travelogue. But his economic advice is sterling because he so totally gets it insofar as the overarching need to separate the state and money. This from a man who probably would not consider himself a libertarian... though certainly the quintessential humanist. Take it away, Tom...
Much has transpired since I sent out my last newsletter early in December. I've spent time in
Phuket and Krabi (Thailand), Penang, Kuala Lumpur, and Port Dickson (Malaysia), Sulawesi
and Bali (both in Indonesia), then back to Bangkok and Chiang Mai (Thailand). I'll not try to
recount all of the significant events, experiences and achievements in these places, I'll just say
that I live a very blessed and interesting life. If you'd like to see pictures, you can visit my Photo
Gallery here.
Chiang Mai
Chiang Mai is still one of my favorite places. I've been here several times over the past three
years, staying for varying lengths of time. This time I will be here for a month, after which
I'll return to North America for a planned stay of four months. The universe will decide what
happens after that, but I have it in my mind to return to Thailand having already booked a return
flight from Bangkok to LA and back.
What's the attraction here? There are several... [full newsletter]
Thai Entrepreneurs
In Thailand, there is no such thing as unemployment insurance, and old age benefits provided by
the government are so tiny as to be insignificant. That means that Thais need to be enterprising
and supportive of one another to a greater extent than westerners. Besides that, Thais seem
to have a greater connection to family and friends in the countryside who still have access to
land, which makes me think that they will have an easier time adapting to the adverse economic
conditions that appear to be on the horizon.
Pa is an entrepreneur. She has a juice stand which she sets up amongst a score of other food
vendors every afternoon for the night market. Many of her customers are regulars. Split about
half and half between Thai and farang (foreigner), they come back to her again and again, not
only because she makes the best smoothies and shakes, but because she is a bright spirit, happy
and congenial. She truly enjoys her work, and that draws people like a magnet.
There is a kind of community amongst the vendors who operate there just outside the gate to the
old city... [full newsletter]
Bali-The myth and the Reality
The myth of Bali probably far exceeds the reality. That is not to say
that it's not worth the visit, it is, but if one is envisioning scenes from
the movie South Pacific, they are likely to be disappointed. On my
two visits, which were three years apart, I've spent most of my time
in Ubud, so my observations are extremely limited. There are
probably some more remote areas that can provide a different
experience, but my impression of Bali is that it has become too
dependent upon tourism and is rapidly losing its authenticity....
2011 to Bring Serious Challenges to Middle-Class
I've presented strong evidence in some of my recent blog posts (Inflation Will Destroy the
Dollar) that we are on the verge of large price increases resulting from the US government
fiscal crisis and massive inflation of the dollar (euphemistically referred to as "quantitative
easing"). The last two years have already brought significant increases in the cost of living,
despite government pronouncements to the contrary (Chris Martenson: Inflation Is So Much
Worse Than We're Told). Ordinary working people and retirees are being hit with a "double
whammy" of stagnant or falling incomes along with an increased cost of living. In their
phony political charade, the Republicans are pushing to give us more of the former, while the
Democrats want to give us more of the latter-either way, the people lose, and ultimately we will
get an increasing measure of BOTH.
As the economic and financial picture worsens, people are getting more worried and looking
for answers. I'm often asked for advice about how to invest and protect one's savings. Financial
advice is not my main interest but I can read the writing on the wall, and it seems certain that
those who have any savings at all will see the purchasing power of their nest egg shrink badly
over the next couple years. Investment advisors typically advise clients to choose amongst three
basic investment objectives-income, growth, and capital preservation. In a depression, "cash
is king," but in an inflationary scenario, capital preservation becomes the be all and end all and
holding dollar denominated securities, including bank balances and CDs, will not cut it. [full newsletter]
Investing in the Common Good
As I wrote in my latest book, The End of Money., I think civilization is going through a
metamorphic change. Making the shift away from the debt-based financial system and the
growth imperative and to a sustainable, more equitable society requires that we learn radical
sharing, cooperation, and organization. I have for a long time been arguing that we need to
reorganize the exchange function to be decentralized and interest-free, and that we also need to
reorganize the finance function. That means shifting our financial investments from Wall Street
to Main Street and applying them to support community vitality, self-reliance, and the common
good.
In that vein it is remarkable to observe the emergent phenomenon known as "crowd sourcing...."
A more recent development that I am enthusiastic about goes even further in helping to organize
support for emergent projects on an ongoing basis. It's called CREW (Connect to Resources
that Expand your World), and it's avowed purpose is to "connect people to fund small business
for the common good...." [full newsletter]
Here's wishing you all a happy and fulfilling year, and may 2011 bring greater peace, justice,
and harmony to our world.
Tom Greco
Reinventing Money
thg@mindspring.com
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2011 February 07
Posted by The Coffee Coaster™ w/ permission of
Thomas Greco| Reinventing Money | The Fed | Inflation and Deflation
|
