a fool and his money are soon parted
If you want to lose money really fast, or just guarantee that you will go broke eventually, then here are some brilliant ideas for you;
- Online Gambling. Gambling in any form ~ from playing the slots in Las Vegas, to betting on horse racing at a high-street bookmaker in England ~ is guaranteed to lose you as much money as you like. All those attractive online gambling sites just allow you to lose your money with 24/7 dedication from the comfort of your own home / office / car… Online Forex Trading is just another form of gambling ~ you will lose loads of money.
- Forex Trading. The foreign exchange market exists for some very sensible reasons ~ it allows me to pay for a hotel stay in Wyoming, (priced in $), on my English credit card, (denominated in £). Unecessary trading on the the Forex Market also allows idiots to risk vast amounts of money, and then inevitably lose it. I’m an expert in all this stuff, and it would take me a week to teach you the basics, so just trust me, you will lose if you go online trading. Even companies like Rolls Royce get burned, (lately to the tune of £4 billion), due to unecessarily hedging the Forex Market.
- Expensive New Cars. A hot set of wheels might boost your ego, get you a hot date, and it will also lose you a fortune. Almost all cars depreciate over time, and some high-status cars depreciate at an horrific rate. Add in the high cost on insuring your new car, and the good chance that you’ll crash the thing if you ever drive it hard, and an expensive new car can be a real money pit. Best of all, get drunk, drive really fast, and then roll your car down a freeway embankment. By the way, never believe a car salesperson, all sales people are professional liars, and I should know because I used to be one.
- Online Dating. If your expensive new car hasn’t got you a real date, you could be a totally insane pathetic loser and try online dating as well. Online dating isn’t cheap, both in terms of money and time. And, it’s one of most dangerous things you can do, for example both human and robot scammers target the sad people who use online dating sites. Or, you could get used, abused, robbed, raped, or dead. If you just want to ruin your life, the get yourself addicted to paid online porn.
- Dangerous Drugs. I include here; street drugs including marijuana, prescription drugs, party drugs, legal highs, tobacco, and booze. To really waste a great deal of money while ruining your health and your life along the way, then get into everything at once. Best of all get buzzed and go on the internet with your credit cards to hand. Do not go near 12 step groups like Alcoholics Anonymous.
There are some other brilliant ways to go broke fast; trophy wife, mistress, toyboy, high-class hookers, marrying a foreigner, getting sick abroad without proper insurance, buying a home without having a full survey, signing things you don’t understand, and perhaps best of all guaranteed get rich quick schemes.
If you really throw yourself into the above activities, not only could you lose all the money you have, you could also get yourself heavily into debt with some nasty people. Along the way you are very likely to lose your self-respect, job, real friends, home, family, health, and maybe your life. If you want to go downhill really, really fast, then I recommend you start at #5 and work your way upwards.
Most of you will never get as far as #1 because you’ll be on the streets, in jail, or dead long before that. If you work diligently at #5 you could be dead broke and dead in a couple of years.
Good luck with totally ruining your life by getting heavily into any of the above financially stupid moves.
these thoughts are mine, and mine alone
Most of the news media has confidently predicted that Hillary Clinton will be the next President of the United States.
Most of the news media confidently predicted that the United Kingdom would vote to remain in the European Union in our referendum of 23rd of June 2016.
In the event England decisively voted to leave the European Union, and a new word entered the language; Brexit.
Leave aside the political rights and wrongs, and instead look at the effect that politics has on the Pound or Dollar in your pocket.
The immediate impact of Brexit has been twofold.
- The value of the pound fell dramatically on the foreign exchange markets, (FOREX). There was no good reason for this other than the Political Establishment creating alarm and despondency in Project Fear, in an effort to persuade voters to opt to remain in the hated European Union.
- The price to the consumer of all kinds of goods and services has been increased by mostly unscrupulous suppliers and retailers off the back of Brexit and the fall in the value of the pound. Some of these price increases are fairly justifiable, for example the UK price of petrol, (gasoline), has soared. But then oil is priced and traded in US Dollars. Some price increases blamed on Brexit are just fatuous, for example Walkers Crisps, (chips), have increased their prices by 10% and blamed it on Brexit. Walkers crisps are made in Britain from British potatoes.
There is one lesson to be learned from this. Markets, manufacturers, retailers, service companies, and politicians will use any change in the world order to justify price rises / tax increases / rapid falls in the financial markets. What they are saying to the man in the street is; ‘don’t blame us, it’s all your own fault for voting for the wrong result’.
What you didn’t know is that the major players in any market; banks, brokers, governments, insurance companies, speculators and the like, can all make money in a falling market, (aka a bear market). Principally they do this by ‘selling short‘, that is they sell stocks, commodities, foreign exchange that they don’t actually own for delivery at a future date. Then, when the market concerned falls, they buy the stocks, shares, commodities, foreign exchange they need to complete the contract ~ but here’s the thing, they buy at a lower price because the market has fallen.
Now, you or I can potentially make money in a falling market by selling short through our broker, but this is a very bad idea, because what you are doing is creating a risk where none exists, and that’s just gambling. Entering into this kind of deal is a very fast way to go broke.
However, it benefits the major players in any market to create uncertainty, because where there is uncertainty and chaos there is profit for them. And, where does this profit come from? Actually it comes from you and I, the average man in the street. Because of political uncertainties the cost of just about everything I buy, including my overseas road trips, has gone up. The value of almost everything I own has fallen, including stocks, bonds, and hard cash.
Should Donald Trump be elected President it is likely that chaos will hit the US financial markets. You can even take a bet on what will happen to Wall Street after the election. I can firmly predict that if Clinton loses the value of the US Dollar will fall, as will the Dow Jones Industrial Average. And why is that? Because it suits the speculators to make it so.
As it happens, nobody yet knows what will happen to the UK economy now that we are committed to leaving the European Union. Nobody yet knows what kind of President Mr Trump will make, nor what kind of handle on the US Economy Mrs Clinton has either. Most of the short-term economic impact of politics is down to speculation and not fact.
Personally, I disagree with just about everyone in that I believe Trump will make a better president than Clinton, (as far as the US Economy is concerned), and that Brexit is better for the UK Economy than staying in the European Union and Single Market could ever have been.
But then, I’ve never been one to have fashionable views.
these opinions are mine, and mine alone
There has been much talk about the fall in the value of the Pound Sterling against the United States Dollar and the bastard Euro since Britain voted to leave the European Union. Without getting into the politics of it, what’s all this about, and what does it all mean?
To start with; the exchange rate, or foreign currency exchange rate, or Forex rate, measures the value of a base currency, (your own currency usually), against a foreign currency. Thus the $ / £ rate is currently about 1.22, which means one pound sterling gets you one dollar and twenty-two cents. The exchange rate is the price of one currency against another. Some people also use movements in exchange rates to measure the strength of a currency’s underlying economy. This is like measuring global warming by looking out of window at today’s weather. It’s a
piss very poor gauge.
However, long-term trends do tell you something ~ like the recent fall in the value of the pound could have been predicted years ago because of the amount of UK debt sloshing around. The fall in the value of the pound has very little to do with Brexit, and a lot to do with the UK government printing too much money for years, and years, and years…
A weak economy is the sign of a weak economy, and a weak economy is the sign of a weak nation. ~ Ross Perot
Ross Perot doesn’t know much about Forex either.
What does this mean to you and me? Well, for a start, the exchange rate tells you very little about how much your savings / salary / holiday money is worth in your preferred destination. For that you need to know about purchasing power parity. What this theory says is that my money still goes a hell of a long way in Orange County, California, USA. As an example, car rental and the price of petrol / gasoline, is still cheaper for me in the USA than it is in England. So is the cost hotels, eating out, and etc. I have suffered a potential windfall loss in the change in the price of the USD against GBP, but on the scale of things does that worry me? Nope.
Worrying about movements in currency exchange rates is a lot like worrying about what the weather is going to be like next week. It’s interesting, but pointless.
Forex rates do have an effect on people, but not in the way you’d think. Forex rates, interest rates, purchasing power, inflation, government fiscal policy, all these factors kind of mush together to create an amorphous mess that hardly anybody understands. So let me break it down for you.
- The man in the street and small businesses. Forex rates hardly affect you at all, in relative terms. When it comes to the cost of your vacation abroad the movement in exchange rates is a tiny proportion of your overall spend. Here in England stuff you buy at home may get slightly more expensive, but that’s really down to lying politicians and the bosses of big businesses using exchange rate movements as an excuse for price hikes. If exchange rates had gone the other way do you think things at home would get cheaper? Of course not.
- Businesses buying and selling overseas. Here the sterling / dollar / euro / yuan exchange rates actually mean something. It means stuff you sell in pounds sterling has become better value abroad, while product you buy abroad in foreign currency has become more expensive. So what? That’s what management is all about, and if you don’t understand Forex, why are you dealing in foreign currencies anyway?
- Multi-national companies. Forex rates affect the big multinationals not at all, it’s merely another variable in their international treasury management operations. When a multinational like Unilever says they have to increase their prices to UK supermarkets because of the fall in the value of the pound, they’re lying.
What really impacts on everyone is this purchasing power parity thing, and that’s a lot more complicated than just exchange rates. For example, the national minimum wage and cost of health care has a lot to do with purchasing power parity.
As far as governments, central banks, and politicians are concerned, they could care less about Forex rates. They may talk a good talk, and wring their hands from time to time, but they really, really don’t care.
What should you do about movements in foreign currency exchange rates?
- Don’t worry about it, because it’s as pointless as worrying about the weather.
- Don’t create translation exposure. Pay for stuff in your own currency, and if you’re selling abroad, then sell in your own currency ~ (if you can, if not consider forward currency cover). Don’t ever borrow money in a currency you don’t earn. Also, don’t save in a currency you don’t want to spend.
- Don’t buy complicated Forex products, (if you don’t understand it, don’t buy it), or pay for advice on exchange rates. In fact never, ever, pay for financial advice of any kind.
- Shop around. Buying or selling foreign currency is the same as buying and selling anything else. Spend a little while looking for the best deal. But beware, there are more crooks in this market than there are in the used car business.
- Forget exchange rates and look instead at purchasing power. If I can buy the exact same thing on Amazon.com in $ as I can on Amazon.co.uk in £ which is going to be the better deal? You know what? 99% of the time it depends on where I want it shipped to.
The true currency of life is time, not money, and we’ve all got a limited stock of that. ~ Robert Harris
Mostly, movements in foreign currency exchange rates are simple ~ they will affect you in ways you cannot understand, cannot predict, and can do nothing about, so forget it. For some people, foreign currency exchange rates are frighteningly complicated and dangerous animals, but given that these people usually work deep in the research engine rooms of the world’s biggest banks, it’s safe to let them get on with whatever it is they do, which is not a lot.