The balance of power


“The balance of power around the world is changing.” He says.

“Em…”I murmur.

“Ancient people would reason the serious natural disasters that there must be changes of sovereignty or political power.” He continues.

“Really?”

“Like in the bible, the birth of Jesus.”

“There was a very bright star, not a disaster.”

“Like the death of Jesus.” He changes.

“Yup, and whatelase?” I ask.

He is silent.

“Are you talking about the great Earthquake in China and the birth of new China.” I ask and give him some examples.

“Do you also mean the Hurricane Katrina and the presidency of George Bush?” I wonder.

“Also the famine in Japan during world war II?”

“Do you believe that history will repeat itself? It will repeats in such cunning disguise that we never detect the resemblance until the damage is done.” He worrys.

And I am silent.

The design for American Eagle Gold Coin – in God we trust. And in Gold we trust

The American Eagle Gold Coin is an officeal gold bullion coins of United States starting from 1986. It was produced by United States Mint. The composition of the gold coins included 91.67% gold, 3% silver and 5.33% Copper. Therefore, the fineness of this gold coin is just 22K.

The obverse of the gold coin depicts the figure of Lady Liberty. And the reverse design features a male eagle carrying an olive branch flying above a female eagle and her baby.

Let me tell you something special about American Eagle Gold Coins.

For the Eagle minted in 1986-1991, they are dated with Roman Numerals. And starting from 1992, US mint changed to use Arabic numerals for dating Gold American Eagle Coins. 

Here is the gold coin in 1990 with dated with Roman Numerals “MCMXC”.

And starting mid 2021, the reserve design of American Eagle Gold Coin changes again! It features a side profile of a Bald ealge.

The new design is stunning!                    

As the the new design is launching in mid of 2021, the collectors around the world will definitely collect the old designs of American Eagle Gold Coins especially the old design dated year 2021 and the those dated with Roman Numerals.

War does not determine who is right, only who is left.

I am sorry that I didn’t update my stories with my boss for this week as I was super busy. The world are debating and concerning the situation in Afghanistian in these few days. And Biden adminstration is busy about blaming everyone but himself for the chaotic withdrawal from there.

“Before the militory withdrawal from Afghanistian, people are concerning about when will the US government withdraw. After the chaotic withdrawal from there, people are concerning about how did the US government withdraw.” My boss rolls his mobile and says.

“Yup, but Mr. Biden has already expained that there is never a good time to withdraw US forces. And people agree to withdraw US troops from there at the very begining.” I say.

“The main concern is Democracy will be a problem sometime.” He explains.

“May I ask why?” I confuse.

“Decision making is too slow. Sometime we need to do it fast.” he emphasises. “Reacting time is the key especially during wars. You cannot wait!” he stresses. 

“No mather how powerful of your armaments, no mather how advanced of your militory technology, if you don’t act fast, you loss.” He affirms.

“So much of our lives is given over to the consideration.” He suppresses his sadness when he sees the images from the social media.

“Maybe this is one of the problems about work from home.” I say.

USD 3.5 trillion budget plan for Americans

Senate Democats just passed a USD 3.5 trillion plan early Wednesday. The bill will spend on the establishment of a Civilian Climate Corps, adds new dental, cision and hearing benefits to medicare coverage and investment in affordable housing.

Even though the GOP (Republican National Committee) voted against, the bill has passed without a Republican vote. Biden Adminstration previously said the US government will have tax increases on corporations and wealthy individuals to pay for the USD 3.5 trilliion plan.

There are many conerens about the 3.5 trillion plan will cause inflation. President Joe Biden hit back against information concern on Wednesday and would like to downplayed concerns about price hikes. and cited that his plans for the American economy are working. The President Joe Biden said that the consumner price inflation slowed in July. But his adminstration will also outline a number of resolutions  to lower the consumer costs.

However, there is one more concern about his 3.5 trillion plan. There is no one can gurantee the US government will have substantial tax incomes from coporations and wealthy people to cover this plan. Tax incomes may get affected by the pandemic.

The Story Behind The 1933 Double Eagle

The 1933 Double Eagle Coin.

Source: https://commons.m.wikimedia.org/wiki/File:NNC-US-1933-G$20-Saint_Gaudens.jpg#mw-jump-to-license


The change of design for American Eagle gold coin triggers me to study the history or development of the American gold coins. And there is a fascinated story about the Amercian gold coins development in 1933 – The most famous gold coin – The 1933 Double Eagle Gold Coin.

I believe that most people will remember that in 1930s, US was in the bank crisis. In 1933, in order to end the 1930s general bank crisis, US president Franklin D. Roosevelt issued an important executive order – Executive Order 6102.

This Executive order 6102 was about:

  • All persons are required to deliver all gold coins and all gold bullion products which owned by them to Federal Reserve Bank.

It made:

The 1933 Double Eagle: America’s last gold coin struck for circulation and the last gold coin that can be legally owned by an individual.

However, a number of 1933 Double Eagle Gold Coins were stolen or rescured before melting and those stolen coins found their way into the hands of collectors before later being recovered. Some of the 1933 Double Eagle Gold Coins were acquired by King Farouk of Egypt who was a professional collector of many things.

In 2002, one of the 1933 Double eagle was sold to an anonymous bidder at a Stacks Bowers action in New York for USD 6.6 million.

In 2021, the coins was sold for more than USD 18 million.

If one day, you discover this 1933 Double Eagle Gold Coin, remember its story behind this gold coin.

Robert Kiyosaki suggested: Buy silver bullion now to prepare for the next decade

Silver Bullions


The famous author of RICH DAD POOR DAD as well as a famous investor indicated the importance of buying silver bullion. In his opinion, silver is the most undervalued, lowest risk, and best investment of all assets classes. He said that he would invest in silver U.S. Eagles today, not tomorrow. However, he would stop accumulating silver when silver spot get over USD 40 per troy ounce.

Robert Kiyosaki believe that globel pensions collapase will be one of the biggest threats that we will see the next 10 years. He does not think the governments and central banks will know a clear perspective to respond to this massive multi-trillion-USD global crisis. 

He suggested that “If you have no gold or Silver, start accumulating today, and do not worry about price.” “I believe that when the panic hits, gold and silver will disappear from markets as prices climb.” He also pointed out.

Physical bullion products like gold and silver are very traditional investment tools and people use it for long long time. Let wait and see whether the wisdom and experience of older people will win the monetary games.

Let me know you thought.

Transitory Inflation Sparks the Fears of Economic Slowdown

The Federal Reserve left interest rate and monetery policy unchanged. This indicates that the US is incomplete economic recovery until now.

Some economic experts believe that Federal Reserve will be wrong on inflation being temporary. From my point of view, it is quite difficult to predict inflation at this moment. Fears about the highly contagious Delta variant of Covid-19 leading to another round of economic slowdown. However, rising infection cases will cause more supply chain interruptions leading to more inflation. 

Meanwhile, some leading companies expressed that they are passing rising costs along to consumers which point out that some inflation will stick around.

As there are industry raw material inflation and higher transportation costs, implementing additional prices increases become necessary.

Another concern is that it is stagflation instead of transitory inflation. That toxic combination of slowing growth and rising prices is a real risk and a dangerous signal of stagflation.

Theoretically, stagflation will trigger bullish markets for commodity and bullions. If there is rising inflation, investors will look at hard assets including bullion markets, like Gold, Silver, Platinum.

Do you believe that bullions prices are starting to rise again?

Let me know your thought.

1 oz gold Canadian Maple Leaf Coin

Safe Heaven – Bullions Markets

When stock markets plunged around the world, buying bullions will be one of the ways to preserve your wealth.

Do you know that the bullions like gold and silver have a significately increase in the past two year? Bullions investments have not been in the spotlight before the pandemic, However, they are rising enormously during the pandemic till now.

Bullions will surely become one of safe heavens during the volatility of the stock markets. Furthermore, some analysts believe that once pandemic is over, ecomony activities will rebounce in the speed that we cannot imagine. They believe there will be a strong demand on Silver, Platinum and Palladium.

No matter you believe or not, buying bullions is a good way to diversify our investment portfolios. Remember the rule that do not put all your eggs in one basket.

Do you share the same idea with me? Let me know your thought.

Influences of Chinese Investors in different Areas

China may become the World’s second-largest economy behind the US.

HSBC

One of the China’s biggest insurers, Ping An Insurance (Group) Co. is the second largest shareholder of HSBC Holdings PLC. Ping An said that the investment won’t influence how the U.K. based bank is run.

 

AMC

One of the largest movie theater chain around the world was bought by Dalian Wanda Group which runs by Chinese business Wan Jianlin for USD 2.6 billion.

 

GE Appliances

A well-known iconic company in US was partly owned by a Chinese Company, Qingdao Haier. And the acquisition deal was USD 5.4 Billion.

 

Motorola

One of the early leader in telecommunications space previously now was owned by one of the famous Chinese enterprise, Lenova. This makes Lenevo become the world’s third-largest smartphone maker around the world.

 

Football

Chinese investors are interested in Football as well. Chinese billionaire Tong Xia owned Aston Villa.

 

Infrastructure Business

Chinese Investors and businessesmans own stakes in key infrastructure businesses in the UK such as Heathrow Airport and UK power Networks. Chinese investors have also bought up stakes in Thames Water which is another key infrastructire firms in the UK.

 

Education

Schools in the UK which owned by Chinabacked enterprises:

  • Bournemouth Collegiate School
  • St Michael’s School in Llanelli, Carmarthanshire
  • Bosworth Independent College in Northampton
  • Bedstone College in Shropshire
  • Ipswich High School
  • Kingsley School in Bideford, Devon,
  • Heathfield Knoll School
  • Thetford Grammar School in Norfolk
  • Wisbech Grammar in Cambridgeshire
  • Riddlesworth Hall Preparatory School in Norfolk
  • Adcote School for Girls near Shrewsbury, Shropshire 
  • Myddelton College in Denbigh, Wales
  • CATS Colleges – Campuses are in London, Cambridge and Canterbury
  • Chase Grammar School
  • Abbotsholme School, Derbyshire
  • St Bees School, Cumbria 

 

Let me know if you know more.

Is stagflation coming?

“Property market is going bananas around the world.” He says after his morning coffee.

It’s always his show time in the morning at his office.

“How come the housing demand is still strong during the pandemic. Property market should start to cool on its own when unemployment rates is going up and ecomony is hit by lockdowns.” I complain.

“It can be a good sign of ecomony is covering or a sign of something bad.” He said

“bad thing? What would that be?” I doubt

“The thing that every government dosen’t want to see it.” he contiues.

“Stagflation.” He states.

I wait for his explanation.

“Stagflation will happen in the situation which the inflation rate is high, the economic growth rate slows and unemployment remains steadily high. As young as you may not know that stagflation is a catastrophic for countries. It happened at U.S. in 1970 before.”

I google it simutaneously while he is talking.

“But not everybody will lose during stagflation. It will further widen intergenrational inequality.” He explains more.

“What can we do now?”I ask.

“Not WE, just YOU.” he laughs.

“Use your creation to generate more income as fast as you could. Within crisis, are the seeds of opportunity.” He shares.

That is the most difficult part. Everything is easier said than done. Wanting something is easy. Saying something is easy. The challenge and the reward are in the doing.