SovereignLife Freedom Blog

My dictionary defines “empathy” as: The ability to understand and share the feelings of another.

This is a crucial and important ability for anyone who works with people – like doctors, dentists, psychotherapists, psychiatrists, counsellors and the like. For without empathy such people would be unable to help or understand their patient’s or client’s needs.

A good mediator needs empathy – in assisting opposing parties to negotiate.

Empathy also has a much broader application – in the sense of wanting to understand why other people think what they think and do what they do. And if one values peace amongst people, such empathy is a much-needed and unfortunately in-short-supply commodity.

Empathy could also be defined as “walking in another’s shoes” – or using one’s imagination to put yourself into the life and thinking of another person.

Empathy can also be extended to trying to understand different cultures – that mix of national “habits” that has survived time and become entrenched in the thinking of different ethnic groups.

One of the things that exasperates me, regarding the state of international politics, is the complete lack of empathy in dealing with other nations.

Take this latest round of escalation regarding Iran – and the recent censure by the IAEA and its demand that Iran cease uranium enrichment. This arose from frustration amongst the major powers with Iran’s refusal to agree to the proposal to swap existing enriched uranium stocks for higher enriched uranium.

Iran’s position is that it does not trust the west to honour such an agreement, and counter-suggested that such swaps occur in real-time and that existing stocks of Iran’s own uranium remain on Iranian soil – under guard by the IAEA.

But the major powers are having none of it! No, instead they are escalating the issue by the politically motivated latest censure by the IAEA. Then the Iranian leadership immediately announced they are to build 10 further enrichment plants – an “in your face” response if there ever was one.

However, if you put yourself in Iran’s position for a few minutes, it’s not hard to see why they react this way. And if the west was truly interested in “opening a new door” in relations with Iran, then it would have taken Iran’s concerns about “not trusting the West” seriously, and come to a workable compromise.

The truth is, the major powers want to push Iran into a corner – not have normal relations at all. And lack of empathy is the hallmark of such nation-state behaviour.

Our global political leadership is filled with psychopaths and narcissists – and one common trait of such people is lack of empathy. The whole political class is contaminated by this same lack – and via the media taps into the very real lack of empathy that exists amongst ordinary people.

The end result is the division of the world into “us” and “them” – and never the twain shall meet.

The easiest way the test your own empathy for any situation is to imagine yourself in the other’s shoes – to literally imagine how you would feel and act if you were on the receiving end.

Example: Imagine if Iran were to be demanding that the USA cease all uranium enrichment – and that it hand over its existing stockpile to Pakistan for further enrichment. Then imagine if Iran were to threaten global sanctions on the USA for non-compliance.

I’m sure you can easily the imagine how the US government would react!

Warmongering is the name of the game, and this latest round of escalation is headed straight for war, unless saner minds prevail. But I’m not holding my breath.

Welcome to the endgame of the political nation state – war at home and war abroad!

Perhaps one of the most important fundamental issues facing the global economy is whether the real danger is from deflation or inflation. And depending on how you interpret the data, it makes a huge difference to your asset protection strategy.

A deflation can be defined as a shrinkage of the money supply, leading to falling prices. This is generally assumed to be the primary “marker” of the last Great Depression – where prices fell, unemployment rose and economic activity stalled.

Inflation is defined as a rise in the money supply, thereby devaluing money already in circulation.

Things are a bit different this time around. First because the picture is muddied by a number of factors. First, we know that governments around the world have been inflating the money supply – quantitive easing and the like. In other words, they are throwing new money into the system in the hope of fending off a deflation.

The danger, of course, is that all this extra money will fuel inflation down the track. Now inflation has known consequences – rising prices, both in the consumer and assets markets. If it gets out of hand you can have runaway inflation, or even hyperinflation.

As the USD has been falling in value, gold has been rising. As I write this, gold has hit US$1,167/oz – continuing an upward trend. However, this is based on general perceptions that the dollar is headed lower (inflation) – and gold is seen as a hedge against such inflation.

Then there are those that see a period of deflation, followed by inflation. So how would this affect gold? Traditionally, in periods of deflation, all asset classes will lose value – shares, real estate and even gold.

This gives rise to two possible scenarios. If the world economy plummeted into a severe depression (deflation), then it could be expected that gold would be hit by such a downturn, in the same way real estate and shares would be.

But the market is forever looking to the future. So right now, the market is saying that inflation is the danger – which accounts for gold’s rise.

The challenge, for anyone serious about protecting their wealth, is to get a grip on what is really happening and plan accordingly. But as experts disagree – as to whether deflation or inflation is the ultimate bogeyman, then you and I are left to make up our own minds – based on our own interpretation of what is going on around us.

My own opinion is that the market is saying inflation is the “future”, and hence the rising price in gold. I don’t think one can call this gold market a “bubble” – as that implies a form of mass-hysteria buying, something that is not yet happening.

However, if the gold price continues to move upwards, it will attract more attention, and will bring in more buyers – those who are realising that gold is rising. At some point, a mass buying hysteria (where even your neighbours are buying gold) could signal a “bubble”. But I don’t believe we are at that point yet.

Either way, you are very much alone in deciding what to do. Like I said, even the experts cannot agree – so you have no choice but to think this out clearly for yourself and make your own reasoned decisions.

There is a vital key to living an international lifestyle – and that’s having a source of income which is not locality-dependent. What I mean is, if you have a job, or a business on main street, then you’re pretty much tied down. But if you can take your “income generator” with you, then you have a lot more practical freedom.

There are two primary ways most people can do this, either as professional investors or those whose business can “go with them”.

Of course, in order to generate a sufficient living income from investing you need to have considerable capital to start with. And that’s why I often say that starting an online business is one way to move into this international arena if you don’t have such start-up capital at your disposal.

And to assist those whose goal it is to achieve a truly “portable occupation”, I’ve put together a package deal of my own services which I call my Freedom Business Club.

The essence of the offshore PT strategy is to use multiple “flags” (meaning jurisdictions) in the course of your business and personal life. Having a portable income source makes such a strategy all the more doable.

The final nail in the coffin of “Anthropogenic Global Warming”?

This blog post on the UK Telegraph by James Delingpole, reveals a cover-up by pro-global warming scientists, that if proven true could be the end of this scam – and an end to the global governance/tax proposals that currently have most politicians around the world salivating.

You can be forgiven for thinking the recession is over, or not. You see, even the experts can’t agree. One thing, the stock market has been performing well, and some optimistic souls see this as a sign of recovery.

Trouble is, the stock market is benefiting from all the cheap money washing around the place. And given such money will not achieve much in a USD denominated bank account (virtually zero percent interest), then there is a great incentive to speculate on stocks, in the hope of realising some sort of return.

But when you look at the real world, you’ll notice that things are not getting better – at least not in the USA and most of Europe. Unemployment continues to rise, productivity continues to decline, and household expenditure is stalled.

Who can blame “Joe Average” for being a bit negative? After all, he’s getting mixed messages. On one hand he can see he needs to pay down his personal debt, and constrain his spending. But on the other hand, he can see that the government would like him to spend – in order to keep those goods moving, and preserve those jobs.

But there is a much sounder indicator as to the real health of the economy – and that’s the price of gold. You see, contrary to the rah-rah utterances of politicians regarding the “recovery”, the real world sees a different picture – and is hedging its bets by getting into gold.

For don’t forget, when the going gets tough those with an eye on their future financial well-being move into gold. And not just individuals. There is a lot of underground information to suggest that China is driving the gold price up by aggressive purchasing. Not only that, the Chinese government has embarked on an innovative policy of encouraging all its citizens to invest in gold.

Right now, in China, you will see adverts pushing gold as an alternative to yuan deposits, and banks offering gold deposit accounts (try asking your local bank about those!).

Of course there is a completely rational reason for the Chinese to be buying gold (as are the Indians), and that’s because they see the writing on the wall.

Fact is, this recession is far from over. The worst is yet to come – especially for the USA and other countries that are over-extended debt-wise. And the only way out for such countries is to devalue (via inflation) their currencies.

And when paper currencies devalue – gold rises.

As of writing, gold is around $1,145 per ounce and moving up. Watch out for the next target of $1,300. And following that – $1,500. There is no other conclusion one can make from the current economic situation. Sure, there will be downward corrections in the gold price as it rises, but any look at an historical chart will show that regardless of such corrections, gold is headed up.  And you’d be wise to put at least 50% of your cash savings into that shiny stuff – unless you trust politicians of course!

P.S. One major bank is already telling its clients “how to prepare for potential global economic collapse“.

An amusing report in the New Zealand Herald tells of one very enterprising 17 year old Cambodian student who has been selling fake NZ driving licences for a NZ$100 to other students, who use them to get into pubs and clubs.

Warms my heart to see the younger generation bucking the system! Who said government can mandate who is allowed on to the private premises of pubs and clubs?

Licensing laws and other regulatory nonsense deserve to be snubbed!

I have been to China 6 times – from 2003 through to 2007. I was stunned to discover that this so-called Communist nation actually provides more practical freedom for ordinary individuals, to get on with their lives and make money, than most places on earth.

Sure you can’t stand on street corners and shout “down with the Communist party!” – but most Chinese are not interested in politics, only making money, and that they can do in spades.

If you haven’t visited Beijing or Shanghai, then I’m afraid you aren’t entitled to an opinion. You simply have to go there yourself to get a feel for the positive vibe in the place.

So it’s no surprise to find China lecturing the USA on the finer points of capitalist economics – as Liu Mingkang, chairman of the China Banking Regulator Commission, does HERE.

If you haven’t woken up to it yet, there is a major power shift underway, and this current economic and financial crisis-in-progress is the catalyst.

P.S. The following quote, from this article by Jack D Douglas, reinforces the “about turn” of both China and the USA.

“…So Obama just went to China as a mendicant supplicant – “Bakshish, Saab!” The Chinese have openly upbraided the U.S. for its wildly inflationary, irrational spending PLANS for everything.

Each of them keeps using the original language of their nations many decades ago, but their positions are now reversed. The U.S. is wildly planning everything, spending wildly, inflating, and begging for foreign help. The Chinese have allowed vast freedom of investment and production in much of China, most obviously in Shanghai and the vast Guangdong region outside of Hong Kong, is wildly saving and investing, and upbraiding the U.S. for its Banana Plantation Oligarchic Communism.

Meanwhile, the U.S. Media keep singing the praises of “America’s economic freedom” while marching to the quiet tune of the communist international. Marx’s program is now almost totally adopted in the U.S., except we have Rule by the Oligarchic Party Rich and impoverishment of the proletariat and middle classes. In China the entrepreneurs are getting wildly rich and the industrial proletariat is moving up, while the Communist Party has adopted American Keynesianism as its official practices under the very muted name of Marxism.”

The stats are in. Gold hit a low of $713.50 per troy ounce on November 13, 2008 (London Bullion Market Association PM Fixing) and closed at a 52-week high of $1,115.25 on November 11, 2009, up an astounding 56.31% from its 52-week low.

Did any of your savings or investments perform that well? I consider 56% in one year to be extraordinary for a commodity that is not normally considered as an “investment”.

Gold is a store of value, and given the sinking value of the USD (and other paper currencies) gold is coming into its own as a preferred store of value again.

But where to from here? Is it already too late to benefit from a rising gold price? Not according to a number of serious commentators. In fact, a general consensus is that the next break-out point for gold will be above $1,300 heading for $1,500 during 2010.

If you want to know more about the fundamentals behind this, and how you too can be converting your cash savings into gold “savings” – then I invite you to download my free report: In Gold We Trust.

Whatever you do, do not put your trust in ‘paper’!

No, not the sort of free money that various moochers and looters are after – but money that is free of the government. Money that is not government mandated paper money (fiat money). Money suitable for those who are determined to be free.

Right now, in the USA, you can start experiencing this freedom by ditching your paper money (or at least some of it) in favour of real silver money – as organised by The American Open Currency Standard – and taste the difference!

They offer a real alternative “barter” system that uses variously issued silver coins as money. Thousands of local merchants and tradespeople have signed up and various currency agents are in place. The coins are great too!

Ever since 1998, when I first started a business online, I have asserted that the internet is truly a magnificent freedom tool. Why? Because it literally opens the door to anyone with an internet connection and a good dose of motivation to go out and market to the world.

This is unprecedented. Before the internet you were stuck in your ‘own country’, but now the whole world is your oyster.

For those interested I have written an online business primer which you can get by clicking HERE.