Breaking News: New EU Olympic Flag

The Council of Europe has today issued an emergency executive order to all member States concerning the use of national flags in association with the 2012 London Olympics.

Teams, contestants and sponsors must choose one of the three designs below, in lieu of the nationalistic devices displayed at previous Games. (The third option may be adapted according to the two- or three- letter designation of the member State concerned.) The new range of banners serve to remind onlookers of the unity and competitive strength of the European Union.

Spectators may on no account display flags, emblems or symbols of any EU member State, inside the grounds or buildings of official Olympic venues, or within 100 metres of such locations.

The UK is instructed to enforce the order with effect no later than 23:59 on Thursday 26th July 2012.

Financial losses on the recall of outdated items, if strictly necessary to comply with this executive order, may be reimbursed by EU central funds (details to be advised in due course).

Seven types of fart

A bit of social history. My late father-in-law and his brothers used to have a list of flatulence categories and it seems to date from the 1930s/40s if not earlier - I wonder if anyone has heard of these elsewhere, or anything similar?

Here they are, in ascending order of noise and destructive power:

1. The Fizz
2. The Fuzz
3. The Fizzy Fuzz
4. The Poop
5. The Anti-Poop
6. The Tear-arse
7. The Rattler

How The System enslaves you - libertarians take note

How fast we agree to become laboratory rats. And note how the exultation and applause increases as you have to work harder to get the same reward.

In our Age of Abundance, is the liberty issue about self-denial? Are we enslaved as much by appetite as by force?

Extreme blogging, extreme TV

I'm reading an Andy McNab yarn ("Exit Wound") and halfway through his protagonist (Nick Stone) says that Iranian President Ahmedinajad has his own blog (dormant since 2007). I don't know why it should surprise me, but it turns out to be true - and on blogspot, to boot. Here it is.

Any others? Did Bin Laden have one?

Mind you, I'm getting to the point where I watch Russian TV (RT) to get something like the truth about stuff that is scarcely covered on BBC et al. (Max Keiser is gonzo in style but revelatory in content) - and even Al-Jazeera, for goodness' sake. It's a reversal of the days when Germans listened to the BBC during WWII etc.

Speaking of Max Keiser, he interviewed Brit econ commentator Ian Fraser (from minute 12 onwards) a day or two ago, who revealed that following the Blue Arrow debacle in 1992 the message had come down from on high (see 15:15) that no senior banker or institution would ever again be prosecuted; and (see 16:00) that the Financial Services and Markets Act 2000 included a crippling clause that said the FSA had to consider the international mobility and competitiveness of our financial sector when deciding how to proceed against our red-braced Bolly-swigging crooks.

Where was either of those messages in the papers?

US financial system has now been reset

For the first time in 40-plus years, the ratio of monetary base to credit in America has returned to 5%.
(If you want to check the data, see here and here.)

INVESTMENT DISCLOSURE: Mostly in cash (and index-linked National Savings Certificates), but now planning to build up some reserves of physical gold via regular saving.

DISCLAIMER: Nothing here should be taken as personal advice, financial or otherwise. No liability is accepted for third-party content.

US Financial System has now been reset

For the first time in 40-plus years, the ratio of monetary base to credit in America has returned to 5%.
(If you want to check the data, see here and here.)

Is gold still fairly priced?

The nominal price of gold has soared over the last decade, prompting some to worry that it may be something of a bubble. And ceratinly its price path is erratic, reflecting sentiment more than monetary fundamentals.

But whether you look at the US monetary base, or alternatively at the growth of total credit market debt, gold is slightly below its 42-year average in relation to these benchmarks:

I didn't have the money in 2005 to pile in as I wanted to; but I'm starting to buy small amounts of physical gold now - no longer to make a killing in real terms, but as a hedge against inflation.

Why? A number of reasons:

• the British Government is still not offering index-linked National Savings Certificates (I've written about this to my MP, who has written to the Chancellor, who has not replied so far);
• the high streets around my area are still boasting a number of shops buying gold, not selling it;
• China has (some time ago) announced its determination to build up a stock of 10,000 tonnes;
• other central banks are buying;
• you can still purchase gold in the UK without VAT.

There are so many prophets around, but which one of them will turn out to be correct? My feeling is that we face a deflationary/stagnatory phase, which will become so painful and (in a sort-of democracy) unsustainable that somehow or other, the monetary floodgates will open.

In the medium term, I kind of expect UK housing (ex-London and some other chi-chi areas) to cheapen as unemployment, uncertainty and bank crises continue; by the time we get to sub-Weimar I hope to have moved house (using much of our spare cash) and then with what's left I'll hope to be in fairly defensive stocks (utility companies etc), gold and maybe Marc Faber's beloved emerging markets.

For now it's cash, plus gold plus anything officially guaranteed to hold its value.

INVESTMENT DISCLOSURE: Mostly in cash (and index-linked National Savings Certificates), but now planning to build up some reserves of physical gold via regular saving.

DISCLAIMER: Nothing here should be taken as personal advice, financial or otherwise. No liability is accepted for third-party content.