February 11th, 2009

In my first post I would like to try to make my position clear about economics, investing and all that is related. I wouldn't want to put myself in any category of economic viewpoint, but I guess that I come fairly close to the Austrian school. How a person like Keynes can be the most famous economist, or even known is beyond me. But I guess it's no big mystery since most people of the world or the west don't even have a clue about how our monetary system works or that there are any alternatives. People in general seem not to be aware that we have money that is based on debt or that the constant manipulation of interest-rates of a central bank creates these unnecessary swings/malinvestments in the economy and all the distress it brings with it. This does not mean I favour precious metals although I must admit that this is probably the best place to be invested right now and for some time looking forward. The issue of monetary policy is one of my main interests since it has such important consequences and as it is also the main cause for the current economic crisis. For those who are not well-acquainted with a sober viewpoint of economics (or the political side of it) should go to youtube and watch some videos of Ron Paul, Marc Faber or Peter Schiff.

As far as investments (mostly stocks) are concerned I usually just focus on whether the economic climate favours this company, if it is valued too high, if its financial balance is good and its ability to earn money or make me money by being bought out... In the past greed has made me disregard these very common-sensical considerations, especially when it comes to junior-mining or it-stocks ... some say the trend is your friend... Well, as I've learned from my former mistakes, I'd say if the trend is mostly based on greed - then get out.