Array ( [0] => WP_Post Object ( [ID] => 22850 [post_author] => 14 [post_date] => 2020-09-17 17:20:35 [post_date_gmt] => 2020-09-17 16:20:35 [post_content] => One of the most important things for all of us to learn is that we are social creatures. This socialisation – internalising the norms and values of our society – is the key to being able to grow into a mature and balanced adult. Without proper socialisation you could end up being introverted and shy – at worst you might find yourself being seen as a psychopath, and the world has enough of those right now, not least in positions of political authority. We can all think of encounters we have had with people who have never learned proper socialisation. It's a horrible experience. So I spend a lot of time with my children encouraging them to engage with others, to take the wishes and needs of others into consideration. Don't offend or hurt the feelings of others, and do think about what they want. Putting it simply, try not to be selfish – try to share. Share your toys, share your snacks, share your most precious possessions. It's not just about being fair – it also makes them/you feel good. Sharing more is one way we can help everyone to overcome the stresses resulting from this long period of social isolation. After all, it's not normal to live in 'bubbles'. We were built for others. Acts of kindness and generosity have long been understood as promoting long-term well-being, which is surely what we are all after. Glint it! enables us to instantly share. To give and receive currencies and real gold. It's very easy and has lots of applications. Share the cost of a meal with a friend – Glint It! Send some gold or other currency to a student at university – Glint It! People who habitually share good things that make them feel happy tend to feel more satisfied with their life. Now we have made it simplicity itself to share money, instantly with others. Glint it! share money, quickly and safely. Simple as that. Available in your Glint app now. Until next week, Jason [post_title] => Around the campfire: Get Social, Get Sharing. Glint it! [post_excerpt] => [post_status] => publish [comment_status] => open [ping_status] => open [post_password] => [post_name] => around-campfire-get-social-get-sharing-glint [to_ping] => [pinged] => [post_modified] => 2020-09-17 17:20:35 [post_modified_gmt] => 2020-09-17 16:20:35 [post_content_filtered] => [post_parent] => 0 [guid] => https://glintpay.com/?p=22850 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw ) [1] => WP_Post Object ( [ID] => 22844 [post_author] => 62 [post_date] => 2020-09-17 16:01:44 [post_date_gmt] => 2020-09-17 15:01:44 [post_content] => It's been 12 years almost to the day since the collapse of the global financial services' firm Lehman Brothers, which had a market capitalisation close to $60 billion at its peak. That collapse is widely seen as marking the moment when the world economy started its slide into the great financial crash of 2008-09. Lehman's key problem was its massive exposure to the US sub-prime (aka rotten) mortgage lending market, in which basically anyone who could sign a form was offered a mortgage. This in turn was facilitated by the Gramm-Leach-Bliley Act in 1999, which repealed the Glass-Steagall Act of 1933; Glass-Steagall had separated investment banking from retail banking. After 1999, banks re-discovered the joys of gambling with depositors' money – only to be reminded of the pains once the real estate bubble burst. Lehman at the time of its collapse was the world's 4th biggest investment bank, with 25,000 employees worldwide. These people were largely scattered to the wind, which is now presumably happening to the 695,000 people in the UK who have lost their jobs since March this year. Many of those – 146,000 – are young people, aged 18 to 24. They typically work in the sectors most hit by the recession – hospitality and retail. These jobs may never return. The number claiming unemployment benefits in the UK has reached 2.7 million, up by 121% compared to March. In the 37 countries of the Organisation for Economic Co-operation and Development (OECD) unemployment is projected to reach nearly 10% by the end of 2020 and could go to almost 13% if further lockdowns are imposed. A jobs recovery is not expected to start before 2022. In the US, the unemployment rate rose from a 50-year low of 3.5% in February to 14.7% in April, the highest since 1948. We are living through a time of massive instability, when many people are looking for protection against the coming harsh winter winds. People need certainty Besides the loss of income, unemployment can create a wide range of mental health problems. The responses to the Covid-19 virus have worsened care for non-Covid patients according to a poll of 16,000 doctors by the British Medical Association. Given that Prime Minister Boris Johnson has ruled out extending the country's job support (furlough) scheme when it ends in October, many more could join the unemployed queue in the coming weeks. The UK could soon be uncomfortably reminded of the famous 1979 Conservative poster: except that this time it could be re-titled 'Conservative isn't working'. Under the headline unemployment figures is the huge amount of borrowed money which the UK, the US, and other governments have ploughed into the monetary system since March this year. Around the world, governments have been throwing money at the economic crisis, totalling around $20 trillion – this completely overshadows the cost of clearing up the mess caused by the 2008 crash, which was put by the International Monetary Fund at $11.9 trillion. While these fiscal and monetary measures have no doubt helped stave off the extremities of job losses and consequent anxiety, they have come at a cost. Sustainable borrowing? The decline in tax revenues due to lower economic activity and greater unemployment could lead to a multi-national sovereign debt crisis, in which several countries find themselves unable to pay their bills or service the interest payments on their debt. The UK is headed for a massive fiscal deficit – government spending more than its revenues from taxes – in 2020/21; public sector net debt crossed £2 trillion (100.5% of GDP) for the first time in July, a record since the Second World War. US debt will rise to 140% of gross domestic product this year, according to the International Monetary Fund (IMF). Is such a situation sustainable? The Tokyo Bureau chief of the Financial Times certainly thinks so – he wrote on 25 August a piece entitled Leave public debt worries for another day. He argued that in the context of the need to respond to Covid-19 (in reality, in response to government lockdowns imposed in an effort to eliminate the spread of the virus) and rock-bottom interest rates they can "leave worries about public debt for another day". There are only three ways a government can finance higher spending – by more borrowing (selling government bonds), printing money, or higher taxes and/or spending cuts. The last option is most unlikely in the UK and the US, as either higher taxes or spending cuts could snuff out any economic recovery. Governments can borrow right now with ease, as interest rates are so low. They can borrow all the time lenders have confidence in their ability to pay. Demands for more economic 'stimulus' – more money – are coming thick and fast in the UK, where every sector that has seen its revenues slump, from the arts to airlines, is still clamouring for government (taxpayer) aid. The same is true of the US, where siren voices are now warning that without a further $1 trillion support package (on top of the $3 trillion handed out at the start of this crisis) that large sections of the US economy will become a "wasteland". It's not beyond thinking that the kind of welfare provisions that the UK has, may become unaffordable – yet will remain politically necessary. The UK and the US face unpalatable choices – either draw an end to the stimulus measures and risk that the economic recovery is half-hearted and millions of people face continued anxiety, or carry on borrowing in the effort to inject more money into the system and hope that eventually things return to near normal. Either way, more instability seems baked into the cake. We should all remember the fall-out from the collapse of Lehman Brothers and how much global effort it took to rectify what was a blunder, created by supposedly clever politicians, central and private bankers. Getting some stability in one's life means, in part, taking more control over those parts of life where you can build greater independence, greater self-reliance. In no-where else is that more important than in finances. That's the fundamental reason why Glint – with the ability it gives to buy, save, spend and now, share gold, a currency beyond the control of government – should be so important to us all. [post_title] => Soapbox: Yearning for Stability [post_excerpt] => [post_status] => publish [comment_status] => open [ping_status] => open [post_password] => [post_name] => soapbox-yearning-stability [to_ping] => [pinged] => [post_modified] => 2020-09-17 16:01:44 [post_modified_gmt] => 2020-09-17 15:01:44 [post_content_filtered] => [post_parent] => 0 [guid] => https://glintpay.com/?p=22844 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw ) [2] => WP_Post Object ( [ID] => 22729 [post_author] => 62 [post_date] => 2020-09-10 17:30:45 [post_date_gmt] => 2020-09-10 16:30:45 [post_content] => Is the US stock market in bubble territory? Opinion is divided but it is starting to feel that way. Valuations of some US companies have soared, and seem to be based more on promises of future profitability than anything else. The electric car company Tesla, whose shares are traded on Nasdaq, now has a market capitalisation of about $400 billion – ten times what it was a year ago. Tesla's share price has gone up by almost 500% between 1 January and the end of August. This is staggering for a company that has never had a profitable year and last year had a loss of $862 million. The electric vehicle (EV) revolution is gaining traction but even 10 years from now they will still represent a small minority – about 7% of the 259 million vehicles expected to be on US roads by 2030. Some of the so-called 'FAANGS' (Facebook, Apple, Amazon, Netflix and Google) have had an astonishingly good year – Apple's share price has gone up almost 65% - it first listed in December 1980 and has split its stock five times since then. Amazon has gone up this year by more than 78%, Facebook by more than 37%, Netflix by almost 60%. Apple's market capitalisation recently peaked at more than $2 trillion. But in the context of the financial stimulus – reckoned by some to be in the order of $20 trillion, which is new money added by governments to the global paper money supply – these sky-high valuations are to be expected. When interest rates are at rock-bottom and bond yields are dismal, where else are people going to put any spare money but into stocks? Nor is it just US stocks that investors are piling into. In Hong Kong this week a bottled water company, Nongfu Spring, floated on the Hong Kong exchange; on its first day of trading it closed 54% above the issue price. Demand for shares in the company outstripped supply by more than 1,000 times. Many of those who bought shares were not professional asset managers: "demand from mom-and pop investors prompted investment bankers to increase the offering's retail tranche from 7% to 37%” reported the Financial Times. The paper quoted a Hong Kong-based stock broker as saying "When you're getting no interest at the bank you might as well have a punt at it". Punt at your peril Share trading fever is spreading around the globe. In India the securities depositary CDSL, which crunches local stock market data, reported this week that the number of individual investor accounts since the start of the year has gone up by 20% to 24 million. India's Zerodha, a discount brokerage platform, says it is daily processing five to seven million transactions. It claims to have three million customers with an average age of 28. Nithin Kamath, Zeroda's CEO, says that stock markets "had this whole 'Fomo' feeling" – fear of missing out. Like the US's 'commission-free' trading platform Robinhood Zerodha has this year had a boom in retail (i.e. individual) investing. Lemmings and tulips At the height of the 17th century's tulip mania the price of a single tulip would have bought a mansion in Amsterdam. In the 18th century the UK parliament of the day authorised the South Sea company to assume a portion of the national debt. Directors of the company talked up the prospect of future riches and the share price rose from £128 in January 1720 to a peak of £1,050 by the end of June that year, only to collapse to £175 by September. There is a theory to explain such bubbles – the 'greater fool' theory. This says that buying something that intrinsically has little or no value is only sensible if you can hope to sell it on to someone for a profit. That works well until it doesn't. Not that I am arguing that Tesla or other 'FAANG' or high-tech stocks are worthless, simply that some seem to be priced far beyond their future prospective profitability. There is a lemming-like feel to markets right now. That 'FOMO' factor is what has helped to drive stock prices so high, and is aided and abetted by the $20 trillion cash pumped into people's pockets. If you do not intend to participate in the 'greater fool' merry-go-round and understand that the creation of this new feeling of wealth is all based on the artificially created extra paper money supply, then you should join Glint, and use its services to save, spend and share stable money, which is gold. [post_title] => Soapbox: The bubble of all bubbles [post_excerpt] => [post_status] => publish [comment_status] => open [ping_status] => open [post_password] => [post_name] => soapbox-bubble-bubbles [to_ping] => [pinged] => [post_modified] => 2020-09-10 17:30:45 [post_modified_gmt] => 2020-09-10 16:30:45 [post_content_filtered] => [post_parent] => 0 [guid] => https://glintpay.com/?p=22729 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw ) [3] => WP_Post Object ( [ID] => 22732 [post_author] => 14 [post_date] => 2020-09-10 17:29:18 [post_date_gmt] => 2020-09-10 16:29:18 [post_content] => Have you spent less money during lockdown? Apparently 85% of adults in the UK – at least, those lucky ones still on full income – have seen their spending reduced by an average £617 per month. Obviously, a lot of that money has been saved by not having the daily commute to work, but all the little extras – such as buying coffee and snacks – mount up. In the US, there's a similar pattern. Disposable personal income (of those fortunate enough to have incomes) rose by 44.4% in the second quarter against 3.9% in the first. This kind of saving sounds good on a personal level but actually is very damaging for the overall economy. Consumer spending accounts for a staggering 70% of the US economy; government spending is just 17%. The ways we spend money have changed, some perhaps permanently. Grocery sales have gone up as more people cook at home but the travel, restaurant and out-of-home entertainment industries have been slaughtered. A lot of this saved income is just recycled taxpayer cash, both in the US and the UK. What will happen to all this freshly-available paper money? Bank deposits are paying virtually nothing; people may be hoarding cash out of fear they’ll have less income, perhaps no income, in the future. In other words, people are worrying about their future budgets. How do we learn to manage money? Mostly, I suspect, it’s a matter of learning by painful experience. When you think about it, this is one of Life’s most important lessons – how to avoid debt, how to manage credit cards, how to save wisely. How to balance our own books; how to manage money. Yet it’s a lesson that kids generally are not taught at school. We leave them to make their own mistakes – and that’s a mistake. Watching one of my own children make their return to school in these uncertain, fast-evolving times, I thought how desperately alone all children are when it comes to this biggest lesson of all. Like all of you with children, I do my best to explain but I often sound like Charles Dickens’ Wilkins Micawber, who said in David Copperfield: “Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.” Above all, I try to educate my children about sound money – which is gold, and its safe, instant and easy access – which is Glint. Until next week, Jason [post_title] => Around the campfire: Back to school - Kids need educating about money [post_excerpt] => [post_status] => publish [comment_status] => open [ping_status] => open [post_password] => [post_name] => around-campfire-back-school-kids-need-educating-money [to_ping] => [pinged] => [post_modified] => 2020-09-10 17:29:18 [post_modified_gmt] => 2020-09-10 16:29:18 [post_content_filtered] => [post_parent] => 0 [guid] => https://glintpay.com/?p=22732 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw ) [4] => WP_Post Object ( [ID] => 22735 [post_author] => 68 [post_date] => 2020-09-10 17:28:08 [post_date_gmt] => 2020-09-10 16:28:08 [post_content] => P atrik Schumacher is the principal architect with Zaha Hadid Architects, which he joined in 1988. After high school in Gerlingen, Germany, Schumacher studied Philosophy and Mathematics at the Friedrich Wilhelm University in Bonn in the early 1980s. In the mid-eighties, Schumacher studied architecture in Stuttgart and in 1987 continued his studies at London Southbank University. In 1990, he returned to University of Stuttgart to complete his Diploma in Architecture and then re-joined Hadid. In 1999, he completed his PhD at the Institute of Cultural Science, Klagenfurt University. Since Hadid's death in April 2016, he has been leading the firm as its sole remaining partner. "Ever since the 2008 meltdown I have been suspicious about politically managed fiat money. Such money not only implies permanent creeping inflation, but also the risk of a more precipitous erosion of its value. It's neither sound, nor safe. Given steady productivity gains via technological progress prices should fall, not rise. Therefore money should not only be safe and solid, but it should appreciate, not depreciate. Gold is a solid, safe and continuously appreciating money. Such money allows us to participate in global societal progress, offering a true social dividend to all citizens of the world. That's why I like to hold my cash in gold. Glint is the first product and enterprise that allows me to keep my cash ready in the form of gold, and I can do this in the most easy going and elegant way possible. My gold is always ready to hand via my Glint card and app. I love it". [post_title] => What’s your gold story: Patrik Schumacher [post_excerpt] => [post_status] => publish [comment_status] => open [ping_status] => open [post_password] => [post_name] => whats-gold-story-patrik-schumacher [to_ping] => [pinged] => [post_modified] => 2020-09-10 17:28:08 [post_modified_gmt] => 2020-09-10 16:28:08 [post_content_filtered] => [post_parent] => 0 [guid] => https://glintpay.com/?p=22735 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw ) ) total posts1Array ( [0] => WP_Post Object ( [ID] => 22850 [post_author] => 14 [post_date] => 2020-09-17 17:20:35 [post_date_gmt] => 2020-09-17 16:20:35 [post_content] => One of the most important things for all of us to learn is that we are social creatures. This socialisation – internalising the norms and values of our society – is the key to being able to grow into a mature and balanced adult. Without proper socialisation you could end up being introverted and shy – at worst you might find yourself being seen as a psychopath, and the world has enough of those right now, not least in positions of political authority. We can all think of encounters we have had with people who have never learned proper socialisation. It's a horrible experience. So I spend a lot of time with my children encouraging them to engage with others, to take the wishes and needs of others into consideration. Don't offend or hurt the feelings of others, and do think about what they want. Putting it simply, try not to be selfish – try to share. Share your toys, share your snacks, share your most precious possessions. It's not just about being fair – it also makes them/you feel good. Sharing more is one way we can help everyone to overcome the stresses resulting from this long period of social isolation. After all, it's not normal to live in 'bubbles'. We were built for others. Acts of kindness and generosity have long been understood as promoting long-term well-being, which is surely what we are all after. Glint it! enables us to instantly share. To give and receive currencies and real gold. It's very easy and has lots of applications. Share the cost of a meal with a friend – Glint It! Send some gold or other currency to a student at university – Glint It! People who habitually share good things that make them feel happy tend to feel more satisfied with their life. Now we have made it simplicity itself to share money, instantly with others. Glint it! share money, quickly and safely. Simple as that. Available in your Glint app now. Until next week, Jason [post_title] => Around the campfire: Get Social, Get Sharing. Glint it! [post_excerpt] => [post_status] => publish [comment_status] => open [ping_status] => open [post_password] => [post_name] => around-campfire-get-social-get-sharing-glint [to_ping] => [pinged] => [post_modified] => 2020-09-17 17:20:35 [post_modified_gmt] => 2020-09-17 16:20:35 [post_content_filtered] => [post_parent] => 0 [guid] => https://glintpay.com/?p=22850 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw ) [1] => WP_Post Object ( [ID] => 22844 [post_author] => 62 [post_date] => 2020-09-17 16:01:44 [post_date_gmt] => 2020-09-17 15:01:44 [post_content] => It's been 12 years almost to the day since the collapse of the global financial services' firm Lehman Brothers, which had a market capitalisation close to $60 billion at its peak. That collapse is widely seen as marking the moment when the world economy started its slide into the great financial crash of 2008-09. Lehman's key problem was its massive exposure to the US sub-prime (aka rotten) mortgage lending market, in which basically anyone who could sign a form was offered a mortgage. This in turn was facilitated by the Gramm-Leach-Bliley Act in 1999, which repealed the Glass-Steagall Act of 1933; Glass-Steagall had separated investment banking from retail banking. After 1999, banks re-discovered the joys of gambling with depositors' money – only to be reminded of the pains once the real estate bubble burst. Lehman at the time of its collapse was the world's 4th biggest investment bank, with 25,000 employees worldwide. These people were largely scattered to the wind, which is now presumably happening to the 695,000 people in the UK who have lost their jobs since March this year. Many of those – 146,000 – are young people, aged 18 to 24. They typically work in the sectors most hit by the recession – hospitality and retail. These jobs may never return. The number claiming unemployment benefits in the UK has reached 2.7 million, up by 121% compared to March. In the 37 countries of the Organisation for Economic Co-operation and Development (OECD) unemployment is projected to reach nearly 10% by the end of 2020 and could go to almost 13% if further lockdowns are imposed. A jobs recovery is not expected to start before 2022. In the US, the unemployment rate rose from a 50-year low of 3.5% in February to 14.7% in April, the highest since 1948. We are living through a time of massive instability, when many people are looking for protection against the coming harsh winter winds. People need certainty Besides the loss of income, unemployment can create a wide range of mental health problems. The responses to the Covid-19 virus have worsened care for non-Covid patients according to a poll of 16,000 doctors by the British Medical Association. Given that Prime Minister Boris Johnson has ruled out extending the country's job support (furlough) scheme when it ends in October, many more could join the unemployed queue in the coming weeks. The UK could soon be uncomfortably reminded of the famous 1979 Conservative poster: except that this time it could be re-titled 'Conservative isn't working'. Under the headline unemployment figures is the huge amount of borrowed money which the UK, the US, and other governments have ploughed into the monetary system since March this year. Around the world, governments have been throwing money at the economic crisis, totalling around $20 trillion – this completely overshadows the cost of clearing up the mess caused by the 2008 crash, which was put by the International Monetary Fund at $11.9 trillion. While these fiscal and monetary measures have no doubt helped stave off the extremities of job losses and consequent anxiety, they have come at a cost. Sustainable borrowing? The decline in tax revenues due to lower economic activity and greater unemployment could lead to a multi-national sovereign debt crisis, in which several countries find themselves unable to pay their bills or service the interest payments on their debt. The UK is headed for a massive fiscal deficit – government spending more than its revenues from taxes – in 2020/21; public sector net debt crossed £2 trillion (100.5% of GDP) for the first time in July, a record since the Second World War. US debt will rise to 140% of gross domestic product this year, according to the International Monetary Fund (IMF). Is such a situation sustainable? The Tokyo Bureau chief of the Financial Times certainly thinks so – he wrote on 25 August a piece entitled Leave public debt worries for another day. He argued that in the context of the need to respond to Covid-19 (in reality, in response to government lockdowns imposed in an effort to eliminate the spread of the virus) and rock-bottom interest rates they can "leave worries about public debt for another day". There are only three ways a government can finance higher spending – by more borrowing (selling government bonds), printing money, or higher taxes and/or spending cuts. The last option is most unlikely in the UK and the US, as either higher taxes or spending cuts could snuff out any economic recovery. Governments can borrow right now with ease, as interest rates are so low. They can borrow all the time lenders have confidence in their ability to pay. Demands for more economic 'stimulus' – more money – are coming thick and fast in the UK, where every sector that has seen its revenues slump, from the arts to airlines, is still clamouring for government (taxpayer) aid. The same is true of the US, where siren voices are now warning that without a further $1 trillion support package (on top of the $3 trillion handed out at the start of this crisis) that large sections of the US economy will become a "wasteland". It's not beyond thinking that the kind of welfare provisions that the UK has, may become unaffordable – yet will remain politically necessary. The UK and the US face unpalatable choices – either draw an end to the stimulus measures and risk that the economic recovery is half-hearted and millions of people face continued anxiety, or carry on borrowing in the effort to inject more money into the system and hope that eventually things return to near normal. Either way, more instability seems baked into the cake. We should all remember the fall-out from the collapse of Lehman Brothers and how much global effort it took to rectify what was a blunder, created by supposedly clever politicians, central and private bankers. Getting some stability in one's life means, in part, taking more control over those parts of life where you can build greater independence, greater self-reliance. In no-where else is that more important than in finances. That's the fundamental reason why Glint – with the ability it gives to buy, save, spend and now, share gold, a currency beyond the control of government – should be so important to us all. [post_title] => Soapbox: Yearning for Stability [post_excerpt] => [post_status] => publish [comment_status] => open [ping_status] => open [post_password] => [post_name] => soapbox-yearning-stability [to_ping] => [pinged] => [post_modified] => 2020-09-17 16:01:44 [post_modified_gmt] => 2020-09-17 15:01:44 [post_content_filtered] => [post_parent] => 0 [guid] => https://glintpay.com/?p=22844 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw ) [2] => WP_Post Object ( [ID] => 22729 [post_author] => 62 [post_date] => 2020-09-10 17:30:45 [post_date_gmt] => 2020-09-10 16:30:45 [post_content] => Is the US stock market in bubble territory? Opinion is divided but it is starting to feel that way. Valuations of some US companies have soared, and seem to be based more on promises of future profitability than anything else. The electric car company Tesla, whose shares are traded on Nasdaq, now has a market capitalisation of about $400 billion – ten times what it was a year ago. Tesla's share price has gone up by almost 500% between 1 January and the end of August. This is staggering for a company that has never had a profitable year and last year had a loss of $862 million. The electric vehicle (EV) revolution is gaining traction but even 10 years from now they will still represent a small minority – about 7% of the 259 million vehicles expected to be on US roads by 2030. Some of the so-called 'FAANGS' (Facebook, Apple, Amazon, Netflix and Google) have had an astonishingly good year – Apple's share price has gone up almost 65% - it first listed in December 1980 and has split its stock five times since then. Amazon has gone up this year by more than 78%, Facebook by more than 37%, Netflix by almost 60%. Apple's market capitalisation recently peaked at more than $2 trillion. But in the context of the financial stimulus – reckoned by some to be in the order of $20 trillion, which is new money added by governments to the global paper money supply – these sky-high valuations are to be expected. When interest rates are at rock-bottom and bond yields are dismal, where else are people going to put any spare money but into stocks? Nor is it just US stocks that investors are piling into. In Hong Kong this week a bottled water company, Nongfu Spring, floated on the Hong Kong exchange; on its first day of trading it closed 54% above the issue price. Demand for shares in the company outstripped supply by more than 1,000 times. Many of those who bought shares were not professional asset managers: "demand from mom-and pop investors prompted investment bankers to increase the offering's retail tranche from 7% to 37%” reported the Financial Times. The paper quoted a Hong Kong-based stock broker as saying "When you're getting no interest at the bank you might as well have a punt at it". Punt at your peril Share trading fever is spreading around the globe. In India the securities depositary CDSL, which crunches local stock market data, reported this week that the number of individual investor accounts since the start of the year has gone up by 20% to 24 million. India's Zerodha, a discount brokerage platform, says it is daily processing five to seven million transactions. It claims to have three million customers with an average age of 28. Nithin Kamath, Zeroda's CEO, says that stock markets "had this whole 'Fomo' feeling" – fear of missing out. Like the US's 'commission-free' trading platform Robinhood Zerodha has this year had a boom in retail (i.e. individual) investing. Lemmings and tulips At the height of the 17th century's tulip mania the price of a single tulip would have bought a mansion in Amsterdam. In the 18th century the UK parliament of the day authorised the South Sea company to assume a portion of the national debt. Directors of the company talked up the prospect of future riches and the share price rose from £128 in January 1720 to a peak of £1,050 by the end of June that year, only to collapse to £175 by September. There is a theory to explain such bubbles – the 'greater fool' theory. This says that buying something that intrinsically has little or no value is only sensible if you can hope to sell it on to someone for a profit. That works well until it doesn't. Not that I am arguing that Tesla or other 'FAANG' or high-tech stocks are worthless, simply that some seem to be priced far beyond their future prospective profitability. There is a lemming-like feel to markets right now. That 'FOMO' factor is what has helped to drive stock prices so high, and is aided and abetted by the $20 trillion cash pumped into people's pockets. If you do not intend to participate in the 'greater fool' merry-go-round and understand that the creation of this new feeling of wealth is all based on the artificially created extra paper money supply, then you should join Glint, and use its services to save, spend and share stable money, which is gold. [post_title] => Soapbox: The bubble of all bubbles [post_excerpt] => [post_status] => publish [comment_status] => open [ping_status] => open [post_password] => [post_name] => soapbox-bubble-bubbles [to_ping] => [pinged] => [post_modified] => 2020-09-10 17:30:45 [post_modified_gmt] => 2020-09-10 16:30:45 [post_content_filtered] => [post_parent] => 0 [guid] => https://glintpay.com/?p=22729 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw ) [3] => WP_Post Object ( [ID] => 22732 [post_author] => 14 [post_date] => 2020-09-10 17:29:18 [post_date_gmt] => 2020-09-10 16:29:18 [post_content] => Have you spent less money during lockdown? Apparently 85% of adults in the UK – at least, those lucky ones still on full income – have seen their spending reduced by an average £617 per month. Obviously, a lot of that money has been saved by not having the daily commute to work, but all the little extras – such as buying coffee and snacks – mount up. In the US, there's a similar pattern. Disposable personal income (of those fortunate enough to have incomes) rose by 44.4% in the second quarter against 3.9% in the first. This kind of saving sounds good on a personal level but actually is very damaging for the overall economy. Consumer spending accounts for a staggering 70% of the US economy; government spending is just 17%. The ways we spend money have changed, some perhaps permanently. Grocery sales have gone up as more people cook at home but the travel, restaurant and out-of-home entertainment industries have been slaughtered. A lot of this saved income is just recycled taxpayer cash, both in the US and the UK. What will happen to all this freshly-available paper money? Bank deposits are paying virtually nothing; people may be hoarding cash out of fear they’ll have less income, perhaps no income, in the future. In other words, people are worrying about their future budgets. How do we learn to manage money? Mostly, I suspect, it’s a matter of learning by painful experience. When you think about it, this is one of Life’s most important lessons – how to avoid debt, how to manage credit cards, how to save wisely. How to balance our own books; how to manage money. Yet it’s a lesson that kids generally are not taught at school. We leave them to make their own mistakes – and that’s a mistake. Watching one of my own children make their return to school in these uncertain, fast-evolving times, I thought how desperately alone all children are when it comes to this biggest lesson of all. Like all of you with children, I do my best to explain but I often sound like Charles Dickens’ Wilkins Micawber, who said in David Copperfield: “Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.” Above all, I try to educate my children about sound money – which is gold, and its safe, instant and easy access – which is Glint. Until next week, Jason [post_title] => Around the campfire: Back to school - Kids need educating about money [post_excerpt] => [post_status] => publish [comment_status] => open [ping_status] => open [post_password] => [post_name] => around-campfire-back-school-kids-need-educating-money [to_ping] => [pinged] => [post_modified] => 2020-09-10 17:29:18 [post_modified_gmt] => 2020-09-10 16:29:18 [post_content_filtered] => [post_parent] => 0 [guid] => https://glintpay.com/?p=22732 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw ) [4] => WP_Post Object ( [ID] => 22735 [post_author] => 68 [post_date] => 2020-09-10 17:28:08 [post_date_gmt] => 2020-09-10 16:28:08 [post_content] => P atrik Schumacher is the principal architect with Zaha Hadid Architects, which he joined in 1988. After high school in Gerlingen, Germany, Schumacher studied Philosophy and Mathematics at the Friedrich Wilhelm University in Bonn in the early 1980s. In the mid-eighties, Schumacher studied architecture in Stuttgart and in 1987 continued his studies at London Southbank University. In 1990, he returned to University of Stuttgart to complete his Diploma in Architecture and then re-joined Hadid. In 1999, he completed his PhD at the Institute of Cultural Science, Klagenfurt University. Since Hadid's death in April 2016, he has been leading the firm as its sole remaining partner. "Ever since the 2008 meltdown I have been suspicious about politically managed fiat money. Such money not only implies permanent creeping inflation, but also the risk of a more precipitous erosion of its value. It's neither sound, nor safe. Given steady productivity gains via technological progress prices should fall, not rise. Therefore money should not only be safe and solid, but it should appreciate, not depreciate. Gold is a solid, safe and continuously appreciating money. Such money allows us to participate in global societal progress, offering a true social dividend to all citizens of the world. That's why I like to hold my cash in gold. Glint is the first product and enterprise that allows me to keep my cash ready in the form of gold, and I can do this in the most easy going and elegant way possible. My gold is always ready to hand via my Glint card and app. I love it". [post_title] => What’s your gold story: Patrik Schumacher [post_excerpt] => [post_status] => publish [comment_status] => open [ping_status] => open [post_password] => [post_name] => whats-gold-story-patrik-schumacher [to_ping] => [pinged] => [post_modified] => 2020-09-10 17:28:08 [post_modified_gmt] => 2020-09-10 16:28:08 [post_content_filtered] => [post_parent] => 0 [guid] => https://glintpay.com/?p=22735 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw ) )