Trap for Investor (9) - Awareness of the Dark Pools in the US Market that Distort the Accuracy of Tape Reading

For those well trained traders and trading professional, they know that trading volume is a very important indicator to judge the state of the trend for the stocks - as it is a measure of money flow.

And, the classical books on Jesse Livermore and Richard D. Wyckoff emphasis on the importance of volume through Tape Reading....

Now here is a video clip from CNN showing that the trading volume of the Dark Pool is up to 40% of the total trading... Which means that there is a Change in Rule on Technical Analysis as on How to Interpret the Volume.  Be aware!

.

So, what’s the Impact???

Though the above video trying to project an idea that these activities does not affect the public...Yes, it is true for the untrained traders that don't use volume indicators and mass public who don' trade.
Actually, it shows that “Volume” information is distorted (US Market).  So, even if the historical speculation king like Jesse Livermore and Wyckoff methodology would lose their accuracy in selecting stocks if they were re-incarnated with full knowledge of their past live, as their method is heavily based on price-volume relationship (money flow direction) – The Fundamental Rule had Changed.   So... Higher weightage in judging the trade should be based on Price dynamic, and that is the Multiple-Time-Frame Relative Price Strength.

.


Here is another excellent short video illustrate how the dark pools work in more detail:-

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HOME

Games that People Play (5) - Fueling a Giant Stock Market Bubble

This post is self-explanatory...
Click on the link for more details...

Deutsche Bank "Raises The Warning Flag": 
What The Most Important Chart For The Market Reveals

Entire five year market rally has been due to the Fed

Is the Fed Fueling a Giant Stock Market Bubble?
(Yes, of course)


.



Other Games that People Play


HOME

Trap for Investor (8) - The Most Popular Trading Indicators in the World

I remember...

While I was working in the corporation more than a decade ago, I started some investment through hearsay, then studied some fundamental analysis on companies...  It just did not workout.

Then, I studied some Technical Analysis and learn some technique on trend line, resistance, and support with some Moving Averages...  It did not help much.

Then, someone told me that I needed to attend some professional course... And, I said Yes.

I happened to come across a course advertised by "Business Wxxk" for about USD3000 for a day course that come with internet-based Technical Analysis Tools Box with annual subscription of USD600.  It promised (or I should use the word advertise, and reader perceive as promise) that after the training, the student would only need 5 minutes a day to successfully manage his portfolio for success!

What's made me more convincing was that, IF I don't satisfy with the course after the day, I can get my full refund!  

The set up was great... More than 300 participants...  At the end of the day, I didn't see anyone ask for refund!  That's was a very positive sign (my thought at that time...)

So, what did I got to learn from the course in one day?

1.  Some Fundamental Analysis Skill...  Such as P/E, PEG, etc... (Things that you can find in Yahoo, and countless trading sites for free.)

2. Basic Technical Analysis - Trend line, Resistance Line, Support Line, etc.. (Any basic Technical Analysis books or website has this.)

3.  MACD Indicator - Moving Average Convergence/Divergence with arrows firing at the crossing points telling people when to buy and sell...  (Any first timer to come across this would be impress with it.  And, it indicator is SO POPULAR that it is freely available in any trading website.)

4. Stochstics Indicator - A kind of momentum indicator that with arrows firing at some boundary saying buy on oversold and sell on overbought.. (Available in any trading website.)

  

And... The course comes with Video CDs for revision, and Self Study Course that cover Options.

That was basically ALL!

And, more importantly...  It does not produce Result as stated...  At least to far far majority of them...

Now. Looking back...

That's funny, but to any person who don't have any background or know someone who can share the knowledge, that's probably the path he needs to go through and price to pay.

----------------------------------------------------------------------------------------------------------

Recently, I come across a new book - New Frontiers in Technical Analysis.  It is a compilation book with many authors with each author wrote a chapter.

What's interesting is that... In Chapter one, the author provide a statistics on what's the most popular indicators, charts, tools that used by the trader across the global at different regions from East to West.

And, I find the attached information worth THINKING!!!

Anyone who do some research know that, in long run, at least more than 95% of the public lost money in the stock market.  YET, those trading courses out there are mainly consist of these few indicators for the beginners... Doesn't it sound more than Interesting???

Nevertheless, these indicators - as already learnt, believed, and practiced by a mass of traders - do have value and that's called the "Self Fulfilling Prophecy".  I read a book quite sometime ago by Joe Ross (Professional Trader).  Although he created his own indicators, he would also learn some popular indicators - for the reason of knowing what the Public probable Entry and Exit points in order to take advantage of it...  So, knowing is good, but use it Creatively is the Point!

..

.

 "It Ain't the Things You Don't Know That Hurt You, 

It's the Things You Know That Ain't So."

- Mark Twain

HOME 

Games that People Play (4): Push "RESET" Button on World

Good day,

I came across this very strange news about few weeks ago...
It was talking about Pushing the Reset Button or World Economy!

And here are the sources:
1)  World Economic Forum website: IMF Director, Christine Lagarde, Publicly Talks About Global Financial Reset and Recovery

2)  USA Today

.

..

..

So, what does it mean by the term RESET when these people discussing about it?!

In the first link above, World Economic Forum Website:

In the video, 05:40min to 11:15min

Chirstine Lagarde, Managing Director of International Money Fund, was talking about the 3 Rs of global economy, which stands for  1) RISK,  2)RECOVERY & 3) RESET.

And, she further described there are three aspects of RESET:

A) Monetary Policy need to be reformulated

B) Financial Sector Reform 

C) Global Structure Reform 

In the second link above, USA Today Link:

-------------------------------------------  Cut and Paste  ---------------------------------------------------

Klaus Schwab (Founder of World Economic Forum) said: "We need to push the reset button. The world is still much too much caught in a crisis-management mode. We should look at our future in a much more constructive and strategic way. That is what Davos is about."

------------------------------------------  Cut and Paste  ----------------------------------------------------

As usual, these people in the financial world always creates term that the meaning are so confusing to the public, such as Subprime Mortgage for substandard investment fund, and Quantitative Easing for "printing more fiat US Dollar", etc...

As I did more research... I found that these documentaries, "Hidden Secrets of Money Episode 1 to 5"  by Mike Maloney,  seem to bridge the gap and explain what the term RESET is...

Hidden Secret of Money Ep 1 - Currency vs Money

Here are the links for the 4 sub-sequence Episodes:

Hidden Secret of Money Ep2 - Seven Stages of Empire

Hidden Secrets of Money Ep3 - Death of the US Dollar

Hidden Secrets of Money Ep4 - The Biggest Scam In The History of Mankind

Hidden Secrets of Money Ep5 - When Money is Corrupted

Well, though these videos do contain some sale speech (you may ignore that), the contains of the video are very educational!

...


--------------------------------------- Added on 24 Mar 2014 -------------------------------------------------

In fact, there are some reset activities going on.

Venezuela sharply devalues its currency...  start with 50%.  and now... 88% as shown:

Relevant Info:

Site:
There is a interesting site,   GLOBAL CURRENCY RESET.NET  , that put these information together.

Books:

Code Red: How to Protect Your Savings From the Coming Crisis

The Big Reset: War on Gold and the Financial Endgame

The Money Bubble

The Death of Money: The Coming Collapse of the International Monetary System



Well, it is 100% sure all currencies will be reset like the kingdoms and dynasties changes in the history... Just that NO ONE would be able to predict EXACTLY WHEN.  So, it give the Gurus a chance to continue to predict until it comes. :-)

Nevertheless, awareness is good.

-----------------------------------------  Added on 19 Apr 2014 ----------------------------------------
Some relevant books on this topic:

---------------------------------       Add on 16 May 2014        --------------------------
Yet another perspective:

Home

Trap for Investors (7) - Bitcoin - modern Tulip

Source:   https://blockchain.info/charts/market-cap  (Click here for latest price update)


Market Capitalization of Bitcoin as of 1 Feb 2014.

http://en.wikipedia.org/wiki/File:Tulip_price_index1.svg

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Isaac Newton Loses A Big Fortune in the South Sea Bubble:

Even Sir Isaac Newton (4 Jan 1643 - 31 Mar 1727), the well known English physicist, mathematician, astronomer, natural philosopher, and theologian, got caught up in the South Sea mania and invested a big chunk of his fortune. Interestingly, he pulled out early (after making a respectable 7,000 pounds) then went back in after the bubble continued to inflate. The inevitable bust happened and he lost 20,000 pounds - a considerable sum at the time.

As a result of this crisis, he stated "I can calculate the motions of heavenly bodies, but not the madness of people".

-----------------------------------------------------------------------------------------------------------------------------

-----------------  Follow Up: Bitcoin Price Chart as of 24 Apr 2014  -------------------

--------------- Follow Up: Bitcoin Price Chart as of 06 Oct 2014 ----------------------

Personal Finance (13): A Confession of a Public Fund Manager In China

Good day,

Attached, ---8<  Cut and Paste >8---- , is the last portion of an article by a public fund manager in China confessing why he can never beat he "super wealth transfer machine"(stock market system) and decided to quit his job.  And, after all, in his 10 years of career as fund manager, he already made more than 10million RMB as a salary despite losing money for his clients...  

The full article, in Chinese, can be read from the link attached:

---------------------------------------Cut and Paste---------------------------------------------
一个公募基金经理的忏悔书
我无法对抗这个制度、我彻底投降、我准备辞职，我对我管理的基金的投资者表示深深的忏悔!我真的无能为力在这个市场中帮助你们赚钱！
　　中国XX基金管理公司 XXX基金经理
　　（恕我在此不公布老东家的名字，毕竟服务多年，领取了千万元的薪水！）
--------------------------------End of Cut and Pate ---------------------------------------------
http://bbs.hexun.com/stock/post_5_5961685_1_d.html

Any way, here is a very very brief summary with the KEY FACTOR of why he can't win:

"The author, 10 years fund manager in China, described that the stock market is a wealth transfer machine.... Due to the fact that the fund managers, by Law and software system, must keep at least 60% of the money in the market. Even if the fund manager want to get out of the stock and keep cash when the market is clearly in down trend or even crashing, the software would not allow them to sell...."

Here are some points of ponder:

* FACT
Now, the above chart showng the China Shanghai and ShenZhen 300 index (SSE300).  There is clearly more down trend than up trend for the past 5 over years.  And, if one were not only can't short the market, but also must spend at least 60% of the fund to purchase stocks at any point of the time.  As a Public Fund Manager, how can they make money as the calculated probability seriously against them?

Anyway, this is  the rules and regultion for fund managers world-wide.  Imagine IF there is no such rule, what would happen, if most fund managers try to find exits for cash?


* OPPORTUNITY
Now, what would you do IF you are a fund manager under such rule?
The manager would at least want to beat the overall market index by selling the worse sectors/stocks and get a ride on the better sectors/stocks.

So, in order to sell 10% worth of weak stocks in his portfolio, the fund manager MUST FIRST purchase at least 10% of the equal value of stronger stocks before the software system allow him to sell the weak one.

This would result in lot of money rushing into relatively handful of sectors/stocks and result in sharp rally!

For Example:  Some Internet/Games companies are the current percieved "safe harbour" and the money is rushing in at this point of time:(QIHU,DATE,GAME,YY)

..the above are just a few, can include the famous BIDU (but the up side is may not be that great as high price stock generally move slower... but safer).


*CONCLUSION:
It is better off spend your resources (time and money) to learn and DIY.  The chances is very much higher. 

AND, off course... don't do this:  Dash into the market without going throuh a proper stock market training, withot going through adequate paper practice, and without a reliable trading system.  It is like the message from the following cartoon I found in facebook. :-)

Thank you for your time, and

Bless You
KH Tang


NOTE: THIS ARTICLE IS MERELY FOR AWARENESS ONLY!

The Man with the Mission of "Making You Rich"!? - Robert Kiyosaki

Robert Kiyosaki has been well known since his first best selling book "Rich Dad, Poor Dad", which
was published in 2001 (10 years ago). Yes, if you have not read the book, it is strongly recommended
to do so as it is really an inspiring book on personal finance.

Following by this inspirational "Get Rich" concept, multiple books had been published and become
best seller of the time. Especially on the Real Estate Investment Topics during the last US market
Housing Boom since 2003.

Click on the Chart to Zoom in for detail view of time frame

The above stock chart illustrates the Real Estate market in US since 2001 till now. Did he help to fuel 
the last Housing Bubble in the US and cause many investors run into heavy debt eventually, I don't 
know.  But, it just prove few simple facts.

1) Which is with the current society system setup, "NOT ALL PEOPLE CAN BE RICH ALL 
AT ONE TIME." This is true even no matter how hard that everyone is trying their best to read, to 
learn, and to work. See... What happen if all people getting rich and all want to get retire early? Who 
is going to drive the public transportation, who is going to clean the shopping mall, and so on...

2) Getting Rich requires a person to have a long term persistent effort and development on some 
Specialize Knowledges and Wisdoms, which can not be Duplicated like copy a file from one 
computer to another, by simply reading a book or attending a seminar would not get there immediately. 
Similarly, simply by working on a job created by someone else for you (unless you are top executives 
in big corporations which is rare) will not get you rich, nor get you to retirement comfortably in early
age.

Attached are few video clips that take the view from another angle of Robert Kiyosaki teaching. That 
is by holding few days workshop with large group of participants at 45,000 Canadian Dollar per 
person... 

Did you ask the Questions:
"WHO REALLY MAKES WHO RICH?"
"IS THE INTENTION ONLY TO HELP THE RICH TO GET RICHER?"








If you have trouble to see the video clips above, here are the link to youtube.

http://www.youtube.com/watch?v=HE6nT0oyPt8

http://www.youtube.com/watch?v=dv6feHB0AE4&NR=1
http://www.youtube.com/watch?v=9iimvyVCEGA&NR=1

Historically, getting less in number nowadays despite it has more population on earth ever, there are 

great teachers in many fields, such as spiritual, philosophy, medicine, etc... helping others to have a 

better live. I never heard that they went around helping other by charging them with big lump sum of 

money first. So, what lead human to behave as today? And, more importantly, with the trend going, 

what would be the future look like??? 

No man has a chance to enjoy permanent success

until he begins to look in a mirror for the

real cause of all his mistakes.

- Napoleon Hill

---------------------------------------- Added on Mar 2014 ---------------------------------

This man is REALLY RICH!!!

When it comes to patent on the vaccine he discovered, his replied was: - "Can you patent the Sun?"

Trap for Investors (6) - The Best Trading System in the World for Sales

For anyone who has spent some time in the stock market, he/she must has come across some advertisements on selling of outstanding profitable trading system, courses, stock pick, etc. that promise to have your return of investment multiplied a couple of times in short period of time.

Now before we discuss on such advertisements, let me bring out a true story that happened in Niagara Falls:-

-------------------------------------------8<---------------------------------------------------

Back on June 30, 1859, a man by the name of Charles Blondin accomplished an amazing feat. He crossed Niagara Falls on a tightrope. About 5,000 people had turned out to see his performance as he had ran an ad in the New York Times earlier on.

The rope stretched 1,100 feet (nearly the length of 4 football fields) across the falls at a height of 160 feet (about 16 stories high).

Before Charles began his first attempt to cross the falls, he asked the crowd a question. “How many of you believe I can cross the falls on that tightrope?” The crowd just applauded and cheered to encourage him to start the performance. Charles not only safely made across and back on the tightrope, but also increased the difficult of the performance each time by pushing a wheelbarrow, on stilts and blindfolded.

As the crowd was so amazed with his skill, he then asked “How many of you believe that I can cross the Falls with somebody on my back?” The crowd applauded and cheered this man that they now believe in his ability to do so. Then Charles asked for a volunteer, “Who will volunteer?” The crowd was silent. He then pointed out one man standing nearby, “How about you?” The man replied, ”Hardly, you don’t think I am going to risk my life like that, do you?” and he turn away.

Next Charles pointed out another man, “And what about you?” The man replied, “I believe. In fact, I have no doubt at all.” The man then proceeded to climb on the back of Charles Blondin and they headed across the falls. The crowd waited breathlessly while they crossed and roared their approval once they completed the crossing. What they didn't know was that the man who crossed on Blondin's back was Harry Colcord, his manager.

You see Harry Colcord knew how good Charles Blondin was and fully trusted him. His faith was secure, as the object of his faith, Charles Blondin, was trustworthy and had proven himself so over the years.

Reference: An Illustration of Faith

-------------------------------------------8<---------------------------------------------------

Yes. This story is about the "Faith" that we have on "some one" or "some thing". And, let come back to think about "The Best Trading System in the World for Sales"...

If those people, who are selling their Best Trading System, have Faith in their own system that can Multiply on the users' investment in short period of time, why do they just want to sell it for a couple of hundreds or thousands dollar????

One should be aware that for any good system, when it become public, it loses its effectiveness.(<- click here for some back testing results for many popular indicators that are used by the public.) The profits from the stock market are not unlimited. The profits have to tie to the transacted volume. Take for example, some penny stocks can get double, triple or even more in a short time. But if one take into the consideration of actual transacted volume.... He will see that it is only able to feed some speculators, not the major public. That is when a big pool of people want to take the profits, they have to sell the stocks, which would lead to excess supply... and the profits may suddenly vanish if not become negative. :-)

So, are you going to be the volunteer to use the system that the designers themselves do not have the full faith on it?

Well, one will never find peace of mind by letting the financial market to erode their hard-earned money, nor allowing others to determine their job stability in a compnay. And yet one can not simply buy a good trading system to depend on... So, is there any solution to escape the rat race? What about develop your own? If it is to big of a task for one person, why not workout a Master Mind Team to handle a bigger task?

"Whatever the mind of man can conceive and believe,

the mind of man can achieve."

- Napoleon Hill

Trap for Investors (4) - Ponzi Scheme and it's Derivatives

Below is a good video clip that explains what is a Ponzi Scheme.











* Why some insurance company policies will eventually ended up like a Ponzi Scheme.


There were many insurance policies that promise certain amount of annual return at the policy mature date, usually a few tens of year from the beginning of the policy. In order to attract the customers, the return has to be attractive enough. Also to minus of all those big bonus for the executives and commission of the salesman, plus the tough economy time to make profits from the market. One of the KEY SOURCE of income would be the new comers to the pool.


To see how this kind of system would fail, one would need to examine the Population Pyramid attached below. (Click to Enlarge)

Population Pyramid (Click on the Chart to Enlarge)

Take for example, many well developed countries are now in the Stage 3 of the pyramid (Stationary) and in the progress of moving towards Stage 4 (Contracting). And, some countries are trying to solve the problem by importing younger workers through immigration policy. But, this could ended up worse when the world economy is not growing.


Therefore, there are many Ponzi Scheme Derivatives such as certain type of Life Insurance Policies, which include the US Social Security System.


The following are good video clips that explain the problem with the Population Pyramids in most developed countries.









* Why inflation is a MUST, in order to keep the current system running.


Around the world, there are many countries, including China, at this point are suffering pain for the Pension Scheme for the retired workforce. In general, a pension is an arrangement that provide the people with an income when they retire from their job till the day he/she leave this planet. Of course, we don't get to see this kind of offer nowadays, but it was popular, especially for civil servant, just about 40-50 years back ...


During that time, the medical is not so advanced and average life expectancy was around 65-70. While just after the WWII for not long, everywhere is booming, the economy grow rate was just taking off. And, currently, the average life expectancy has been increase to about 80 and still seems to moving up. Attached is a typical chart on life expectancy chart found from the web...

On the other hand, the growth of the economy in most developed countries are saturated. As also shown in the population pyramid chart, while more and more people are retiring, there is less and less new work force competing more and more aggressively in the competitive global market.


While the politicians want to be elected or re-elected, they must keep the promise on the Pension Scheme. Naturally, they would keep their promise to pay the retirees, but they would pay more to the workers who are still working on the jobs. While the economy is not growing, the only way is to Increase the Money Supply or so call Print More Money... When more money is flowing into the society while the productivity remain the same... It basically dilute the previous-earned money that keep in the bank.


So, eventually, those people depend on pension system on their retirement will find that their buying power are reducing year by year with respect to the inflation.




After all, keeping cash in the bank has many risk nowadays....
Such as bank go bankrupt or value of money get diluted for sure.
Therefore, learning how to grow the money is a wise thing to do.

If you don't see the document attached below, click on the link:->

The Future Can Be Predicted with Data...

"Wealth is the product of man's ability to think."

-Ayn Rand

Relevant Article:- On Population Pyramid

<<<<<<<<<<<<<<<<<<  NOTE ADDED ON 10 OCT 2012  >>>>>>>>>>>>>>>>>>>>>

The above article was posted immediately after I heard of GENNEVA GOLD investment scheme that can give 24% annual return on Capital.  

Now, it has became history.

 

 

Trap for Investors (3) - Too Big To Fail: Foreign Exchange (Forex) Market

Data from: http://www.mrainvestmentsllc.com/home/

Well, this is a known fact. Isn't it?

After the Nasdaq bubble, then by the Housing Bubble, followed by the Subprime Mortgage Crisis... What all US had done, and still doing it now, is to continue printing more money, and they call it stimulus and bailout.

So, we need not to be an economist to deduce that US Dollar is getting weaker and would continue so unless there is a change in the course of action.

Meanwhile, the people who hold on to cash in term of US Dollar would naturally doing their best to protect the value of their money by converting it into other "safer currency". Adding those traders and speculators encouraged by the financial houses... It is leading to another BIG BUBBLE, and it is already FORMED! That's hidden inside the Forex Market.

So, how Big is this Forex Market actually? Any idea?

Well...

Let's look that the short clip from his documentary,"Debt as Money II", Paul Grignon had a summary on that: " The transactions taken place in the Foreign Exchange Market in one week EXCEED the total value of the World Trade for Real Good & Services in the entire year."

(start from 3:11 -> 3:50)

While Forex is a HIGH LEVERAGE vehicle, some brokerage houses margin offer up to "400-to-1" or "100 to 1"!

When the public been seeing the trend of US Dollar continue for years to become weaken, they would want move their US Dollar to something else. EURO seems to be an Excellent choice, as it be trending up and up for years.

Did you ever ask that IF the Public is Right that the US Dollar is continuing to get weaker week by week, and month by month for another sure period of time, let say one year or two as suggested by some Gurus who sold newsletters...

Where are they got to claim their profit from???

So, when it come to a time that the statistics indicate most of the public money had already been sucked into Forex Market and BET on the EURO Win Over US Dollar... Something MUST HAPPEN...

So, now we have Greece Financial Crisis surface up....

Possibly follow by Portugal, and even possibly follow by Spain...

This would Create a FEAR for people to hold onto the EURO.

It will come to a point, like a crowd in a building that suddenly caught big fire everywhere, all people want to rush for the small exit all at one time, many would be burned.  And, it could collapse the EURO in a very short period of time.

Is this yet another unpredicted event?

Actually, we are all co-creating the event.

We can choose to follow or not to follow.

"When masses of people succumb to an idea, they often

run off at a tangent because of their emotion."

- Humphrey B. Neill

(The art of Contrary Thinking)

The New Economy

Someone had forwarded me a hilarious story to illustrate how the US Economy works today:-

--------------------------------------------8<-------------------------------------

It is a slow day in the east Texas town of Longview. It is raining, and the little town looks totally deserted.

Times are tough, everybody is in debt and everybody lives on credit.

On this particular day, a rich tourist from the East is driving through town.

He enters the only hotel in the sleepy town and lays a hundred dollar bill on the desk stating he wants to inspect the rooms upstairs in order to pick one to spend the night.

As soon as the man walks up the stairs, the hotel proprietor takes the hundred dollar bill and runs next door to pay his debt to the butcher.

The butcher takes the $100 and runs down the street to pay his debt to the pig farmer.

The pig farmer then takes the $100 and heads off to pay his debt to the supplier of feed and fuel.

The guy at the farmer's co-op takes the $100 and runs to pay his debt to the local prostitute, who has also been facing hard times and has lately had to offer her "services" on credit.

The hooker runs to the hotel and pays off her debt with the $100 to the hotel proprietor, paying for the rooms that she had rented when she brought clients to that establishment. The hotel proprietor then lays the $100 bill back on the counter so the rich traveler will not suspect anything.

At that moment, the traveler from the East walks back down the stairs after inspecting the rooms.

He picks up the $100 bill and states that the rooms are not satisfactory, pockets the money and walks out the door and leaves town.

No one earned anything. However the whole town is now out of debt and looks to the future with a lot of optimism.

That, ladies and gentlemen, is how the United States Government is conducting business today.

What do you think....

(Author Unknown)

---------------------------------------8<-------------------------------------

Now...

One might think that though the story is interesting, but how does it related to the real world?

See...

The rich tourist is the FED, it printed the money and circulate it around and eventually goes back to him through various methods... Such as all kind of taxes that you already known, plus the invisible one-->the inflation. “Inflation is taxation without legislation.”--Milton Friedman.

And after that what happen?

There will be $100 more in the Money System.

When the FED keep doing this, they will be more and more money in the system.

(As show in Picture one... Money Supply Keep Increasing in an exponential rate!)

While the products or services can not keep up with the rate of increase...

(As show in Picture two... Depletion of finite Natural Resources, such as energy, clean water, farm land,etc., keep reducing.)

=> The Buying Power of Money keep reducing or so called Hyper Inflation.

(As show in Picture tree... Relationship of Value of Dollar Vs Money Supply.)

In the attached videos, it explains clearing how this hyperinflation can and will happen, and using the Zimbabwe case as an example. It also provides some suggestion as a solution for individual in how to deal with it... Must Watch...

By the way, the rich tourist here can be your government too. :-)

Why not take a minute to google and find out how much "Money Supply" is produce by your rich tourist last quarter?

Bless You.

KH Tang

"Inflation is always and everywhere a monetary phenomenon.

To control inflation, you need to control

the money supply."

Milton Friedman,

Nobel Laureate in Economics.