"BOILING THE FROG ALIVE"

"Friday 8th December. AD2006

What was 2006 really all about? Listen to our wrap up on this last year and our take on the world we are facing heading into 2007 in our last Teleconference for this year. 

"What I think we are heading for in the longer-term is hyper-inflation" comments this weeks special guest, Jim Puplava. 

"All currencies are devaluing", continues Jim. Regular Daily Dig readers know this is a view that I strongly hold; we have often said, we don't believe in a US dollar crash, we believe in a global currency crash.

Our guest takes this position a step further; "Everyone is talking about the credit bubble here is the United States, BUT if you are looking globally, you also have to look at the credit bubble in the Chinese banking system. And then take for example money growth even in Europe; European 
Central Bank assets have grown by almost 12% in the last 12 months. Then, foreign Central Bank holdings of foreign reserves have grown by 15%. Commercial bank loans have grown by 14.5%. So this is a global phenomena." 

Jim is correct; we are living in a world awash with inflation. "Its like boiling the frog alive, he just doesn't know it and that is how the world is" adds Simon Heapes. So how do we protect ourselves? "The only protection is tangible assets," summarizes Puplava. Again, no argument from me on that point also. 

What are the life keys to the value questioning? We briefly outline the list that we will deal with in more detail next year; a list that applies to our entire lives. 

On the investment front, how does a board of a public company build true value into their asset portfolio? What is the difference between value companies and 'pump and bump' companies, and how can you recognize them?

Sincerely - Philip Judge pjudge@anglofareast.com