How the markets really work…

Transcript

Speaker 1:

The reason why we like gold here at The Daily Reckoning Australia is because it’s sound money. It cannot be manipulated. An ounce of gold is an ounce of gold. Unlike $100, which its value goes up and down depending on central bank and government policies.

Speaker 1:

The reason why we here at The Daily Reckoning don’t agree with the central banks being able to steer the markets is because, at the end of the day, we believe in free markets and that markets should be able to stabilise themselves. This idea of central banks creating inflation to create a wealth effect so people feel richer. Well no, that’s just distorting what actual wealth is.

Speaker 1:     

Now, one of the reasons why I’m naturally sceptical of central banks and economists and governments when it comes to their ability to control the market is that they run on outdated models and they use statistics to tell us what’s happening. The problem is these statistics are historical. They’ve passed. They’ve told us what’s happened then. But not only that, those statistics are often manipulated to suit an agenda. Often, we’ll find that we say the cost of living is rising, or we feel the cost of living is rising, but the CPI, the official CPI data, doesn’t actually reflect our increasing costs.

Speaker 1: 

Now, there’s a whole bunch of reasons why governments alter statistics to suit themselves, and that’s one of the topics we do explore here at The Daily Reckoning Australia.

Speaker 1:       

We have the RBA with the lowest interest rates we’ve ever seen in this country. We’ve got a crisis in the Eurozone at the moment. We’ve also got the US/China trade wars, which we still don’t fully understand the implications of.

Speaker 1: 

Our job here at The Daily Reckoning Australia is to break down what those events mean for you and how it affects you as the individual investor. And we do these step-by-step on a day-to-day basis.