8 Oct 2008

Trading in the Age of Aquarius

A great esoteric scholar and Masonic friend of mine once told me the following...

4000 BC - Age of Taurus - Bull Worship
2000 BC - Age of Aries - Old Testamanet Lamb of God
0 AD - Age of Pisces - New Testament Fishers of Men
2000 AD - Age of Aquarius - Water Bearer, the Great Leveller

Combine this with esoteric scholars who reckon the Mayan calendar had the next age starting in 2012 and we must surely start asking some questions...

Nothing can keep growing or going up forever. Nature teaches us that we are born and we die. The economic cycle has recently become divorced from the cycle of life.

We are told that inflation destroys growth and that therefore things can infact keep going up forever. That was before derivatives and gearing... Derivatives are great when they are used to hedge 1:1 against movements in the underlying. However, human nature being what it is we like to get as much as something for as little as possible and we gear up massively. Trade in financial derivative positions in physical commodities, FX, interest rates, shares etc. vastly outstrips the value of the underlying instruments. We are going to need years and years of massive inflation to pay off all the 'future' value of money that has been wiped out by loss-making derivative positions.

Now would be a great time to invest in something real like bricks and mortar. House prices, fuel prices, bread prices etc. are all going to rise massively over the next few years. Interest rates will stay relatively low to try and kick start the economy again which means any debt burden will quickly be eroded as salaries rise to keep up.

We will start to question what is really important again and we will start to see real things like the environment, family and friends and good old value for money take centre stage again.

My Masonic friend also mused that at the end of every age there is a great battle between those who hang onto the excesses of the previous age and the visionaries of the new age. Which side are you going to be on?

2 comments:

Anonymous said...

Take what Masons say with a pinch of salt and pepper, bunch of greedy men full of pride trying to get power on earth

Mr Jones said...

Hi Francois. I guess you'll have to take my comments with a pinch of salt too then. I'm suprised you think Masons are also only men. Many women are Masons too you know. Perhaps you need to find out a little more to eradicate your preconceptions.