Brahmason's Blog

The excuse , the wedding between two maravellous persons .

But it turned out to be more than that .

Dozens of people attending , prominently young , People from different countries .

Have you seen these terrestrials smile ? Have you seen these terrestrials enjoy and make people around enjoy each one caring for the others ?

The capacities of human beings are unlimited , their charm has no boundaries . It is their spirit more than the languages that makes them understand each other and participate of the common goal of happiness .

Emotions will make you grow beyond emotions . This wedding might open the third gate for me .

This wedding not only joined two people , it also joined further dozens from different countries .

Brahmason

Gallup has just come out with a poll that shows that real unemployment in the U.S.A. is 10.2 % .

As you try to recover from a big bubble , what really matters is stangflation .

The bubbles occur out of speculation and speculation causes among other things a strong loss in added value of the GDP .

That causes in turn a very important loss of purchase power and unemployment that sends demand down beyond the already weak level caused by the bubble ( bubbles basically mean the rise of a tremendous gap between prices and purchase power ) .

Those circumstances cause a weakeness of the currency and consequently a costs inflation that adds to further weakeness of the demand . That is stangflation . Costs inflation with reduced demand .

Trying to solve the situation by easing lending is the worst you can do because it will just inflate the already existing problems .

The only way to overcome a bubble is austerity together with a strong effort in increasing the added value of the GDP by means of incentivated investments in areas with reduced energy and raw materials consumption which through latest technologies produce services and products very competitive with high added value .

In other words nothing of what republicans or democrat are trying yo sell and regretfully nothing of what is nowadays taught at most universities .

The solution is therefore new to what history tells .

Brahmason

As papers both in english and spanish publish today , spanish banks have apparently managed to hide 80.000.000.000 € in credits to real estate promotors .

Spain ( polititians , economists , banks and investors ) continue to believe that the only way to recovery lays in distorting reality .

Through all this turmoil on accounting both the government and the oposition forget what is more important to the country’s economy , which is the impossibility to recover growth unless the old saturated economic model based on housing speculation with very cheap labour mainly imported , will be changed by a modern model based in industry and services incorporating high added value solutions with low raw material and energy consumption .

This is the real problem because a new generation of polititians , economists and enterprisers are necessary for such a project , which inevitably would require a tax system scheme totally different than what we have .

The absence of such a model is forcing all engineers in new technologies with good professional bacground to fleed Spain in search for jobs in Europe and the USA more in accordance whith what they are prepared to perform .

Thi is paving the way for a society with yet a lower purchase power ( already 60 % are on salaries below 1000 € ) which will need many years before it justifies important foreign investments in the country .

If Spain tries to grow at a speed of 2 % the stangflationist model of the economy will need an inflation of around 5.5 % which of course is impossible to accept by european parteners because it would take us back to a never stop growing debt and deficits .

Brahmason

Highly recommended for anybody who wants to grow .

New TV Series with Peter Russell and Duane Elgin

Duane Elgin and I have created a TV series for Marin TV, entitled "Pete And Duane’s WIndow". The first six programs aired at the end of 2010, and the series is now up on the web. See: PeteAndDuane.com

Our intent has been to discuss issues of interest to us both, taking the discussion deeper than normal on television. Topics we have covered so far are:

The Awakening Earth
Our World in Transition
The Roots of our Crisis
Take Back the Airwaves
The Mind of the Dolphin
Science and Spirituality

More will follow soon..

If you like them, please let your friends know and mention the series on your social networks.

Thanks, Peter

Increasing lending interests alone will not ward off housing bubble . At least not fast enough to prevent bubble from reaching peaks impossible to deal with .

Chinese authorities will need no less than four more moves of this kind during the current year without substantial results and in addition they may find that with rates around 8 % the whole dynamics of global growth may be drastically affected .

What the chinese authorities should do is impose a substantial tax on the difference between purchase and selling prices tied to the period of possession time and fix a rigid evaluation policy of property by lenders .

On the other hand the gap between deposit and lending rates must be narrowed , because saving is strongly discouraged by the present difference which leaves savers with un interest below inflation and convinced that he looses more saving than assuming a mortage that they expect to be clearly compensated by the continuously rising prices .

Brahmason

Housing bubble in China will inevitably pop during next few years causing a very strong surplus of home appliances which should strongly press prices of home appliances down during the coming years . ( Among other consequences )

In fact , that will only be one more example of the excess of liquidity in the world , which seems unable to understand that the only way to grow steadily and without tensions , is to take measures to avoid bubbles of all kinds .

In this respect investors and worldwide monetary authorities should begin to appreciate gold as a relief valve that absorbs much of these tensions by leaking or entertaining part of the excess in liquidity .

In other words investing in gold is better for world economy than investing in real estate .

Brahmason