Friday, October 23, 2009

Windows 7 - last step into the hell Gates.

Windows 7 is on the market now. Finally the monopoly is about to reign the world. Microsoft is starting the creation of embodiment of the new Widows Sin era exposing the 7 sins in their latest product. Based on Islam - the number of doors to hell is seven. The well-known Islamic leader cannot sit still…the former CIA agent, he sponsored the new Windows based on the Islamic believes, putting the hidden message in the name of the operational system…get access to the 7 Windows to Hell! The nick names of the Microsoft operational systems are all screaming out about that they go along well with Islamic ways. The notorious Windows “Longhorn” is the sad depiction of this theory…anyways, it is not a strange fact that the official OS in Iran is Windows 7…We see the well hidden development of further progress of Microsoft.


Our friend Bill Gates is not real…his name is an enciphered prophecy for paying the Bill for Microsoft products to get access to the 7 Gates of Hell! The guy you all know (with the cake on his face) is an innocent actor, hired to represent the biggest commercial campaign ever created in the world…to lead you to the 7 sins.


Let’s see why:
Microsoft was built one day to give the world the resource to multiply the level of their sins, it was the open door to spread the wickedest and ugliest signs of the human nature together with the creation of the Internet and at the same staying unnoticed to the real world…U can see a beautiful mom of three kids and the beloved wife searching for the sex parties over the net via her laptop with Windows OS on it…perfect tool to enhance your Lust…Do you work at home? Brilliant! Especially if you have a good job and you constantly order junk Chinese food and hamburgers and one day you realize that you cannot get up from your armchair…Gluttony…add some major resources like Youtube channels to make your brain rot…Sloth is slowly crawling in your soul and you forget that there is an outer world except your flat, your laptop and internet…you become useless to society even though you spend days logged in the countless community pages…Being a human you start to feel disturbed because of your useless existence and you become greedy and grumpy as your cholesterol level becomes high. The Windows OS platform is like the flag of stagnation hovers above your head. Internet Explorer is your life guide to Hell. After some time the only thing that you start to see in the Internet via your Microsoft Hell-viewer IE8 are the ads about loosing weight and weight control diets and books on Amazon for 99$ “How to loose 1000000000 pounds in 5 days”…You, fat college student filled with Envy to the thin and well fit models on the covers of those books, ads and videos…as Sloth is deep in your soul, instead of going to the gym you order some noodles with pizza…and a couple of litters of DIET coke…Windows is still with you, you like its glittering and flash design and you like to see the countdown on the ordering site and you count the seconds before you can grind the food with your half rotten teeth and feel yourself proud of yourself. The food is pressing on the walls of your stomach and you feel relief and achievement…
Windows 7 states:
superbia, avaritia, luxuria, invidia, gula, ira, acedia

Follow the leader, baby! Become the disciple of the horsemen of Apocalypse! Buy Windows Seven!


Meet the future:



Tuesday, March 4, 2008

Warren Buffet letter to shareholders and Dollar Collapse

An annual letter from Warren Buffet to shareholders has been published recently, a document value investors eagerly await each year. As always, it features Buffett‘s thoughts on investing, market, and life and it is a great reading, here are some quotes from it and the link to the full document is below:

Some major financial institutions have, however, experienced staggering problems because they engaged in the “weakened lending practices” I described in last year’s letter. John Stumpf, CEO of Wells Fargo, aptly dissected the recent behavior of many lenders: “It is interesting that the industry has invented new ways to lose money when the old ways seemed to work just fine.”

You may recall a 2003 Silicon Valley bumper sticker that implored, “Please, God, Just One More Bubble.” Unfortunately, this wish was promptly granted, as just about all Americans came to believe that house prices would forever rise. That conviction made a borrower’s income and cash equity seem unimportant to lenders, who shoveled out money, confident that HPA – house price appreciation – would cure all problems. Today, our country is experiencing widespread pain because of that erroneous belief.

As house prices fall, a huge amount of financial folly is being exposed. You only learn who has been swimming naked when the tide goes out – and what we are witnessing at some of our largest financial institutions is an ugly sight.


...

When the dollar falls, it both makes our products cheaper for foreigners to buy and their products more expensive for U.S. citizens. That’s why a falling currency is supposed to cure a trade deficit. Indeed, the U.S. deficit has undoubtedly been tempered by the large drop in the dollar. But ponder this: In 2002 when the Euro averaged 94.6¢, our trade deficit with Germany (the fifth largest of our trading partners) was $36 billion, whereas in 2007, with the Euro averaging $1.37, our deficit with Germany was up to $45 billion. Similarly, the Canadian dollar averaged 64¢ in 2002 and 93¢ in 2007. Yet our trade deficit with Canada rose as well, from $50 billion in 2002 to $64 billion in 2007. So far, at least, a plunging dollar has
not done much to bring our trade activity into balance.

There’s been much talk recently of sovereign wealth funds and how they are buying large pieces of American businesses. This is our doing, not some nefarious plot by foreign governments. Our trade equation guarantees massive foreign investment in the U.S. When we force-feed $2 billion daily to the rest of the world, they must invest in something here. Why should we complain when they choose stocks over bonds?

Our country’s weakening currency is not the fault of OPEC, China, etc. Other developed countries rely on imported oil and compete against Chinese imports just as we do. In developing a sensible trade policy, the U.S. should not single out countries to punish or industries to protect. Nor should we take actions likely to evoke retaliatory behavior that will reduce America’s exports, true trade that benefits both our country and the rest of the world.

Our legislators should recognize, however, that the current imbalances are unsustainable and should therefore adopt policies that will materially reduce them sooner rather than later. Otherwise our $2 billion daily of force-fed dollars to the rest of the world may produce global indigestion of an unpleasant sort. (For other comments about the unsustainability of our trade deficits, see Alan Greenspan’s comments on November 19, 2004, the Federal Open Market Committee’s minutes of June 29, 2004, and Ben Bernanke’s statement on September 11, 2007.)


...

A moment of truth had now arrived for America’s CEOs, and their reaction was not a pretty sight. During the next six years, exactly two of the 500 companies in the S&P chose the preferred route. CEOs of the rest opted for the low road, thereby ignoring a large and obvious expense in order to report higher “earnings.” I’m sure some of them also felt that if they opted for expensing, their directors might in future
years think twice before approving the mega-grants the managers longed for.

It turned out that for many CEOs even the low road wasn’t good enough. Under the weakened rule, there remained earnings consequences if options were issued with a strike price below market value.

No problem. To avoid that bothersome rule, a number of companies surreptitiously backdated options to falsely indicate that they were granted at current market prices, when in fact they were dished out at prices well below market.

Decades of option-accounting nonsense have now been put to rest, but other accounting choices remain – important among these the investment-return assumption a company uses in calculating pension expense. It will come as no surprise that many companies continue to choose an assumption that allows them to report less-than-solid “earnings.” For the 363 companies in the S&P that have pension plans, this
assumption in 2006 averaged 8%. Let’s look at the chances of that being achieved.

The average holdings of bonds and cash for all pension funds is about 28%, and on these assets returns can be expected to be no more than 5%. Higher yields, of course, are obtainable but they carry with them a risk of commensurate (or greater) loss.

This means that the remaining 72% of assets – which are mostly in equities, either held directly or through vehicles such as hedge funds or private-equity investments – must earn 9.2% in order for the fund overall to achieve the postulated 8%. And that return must be delivered after all fees, which are now far higher than they have ever been.

How realistic is this expectation? Let’s revisit some data I mentioned two years ago: During the 20th Century, the Dow advanced from 66 to 11,497. This gain, though it appears huge, shrinks to 5.3% when compounded annually. An investor who owned the Dow throughout the century would also have received generous dividends for much of the period, but only about 2% or so in the final years. It was a wonderful century.

Think now about this century. For investors to merely match that 5.3% market-value gain, the Dow – recently below 13,000 – would need to close at about 2,000,000 on December 31, 2099. We are now eight years into this century, and we have racked up less than 2,000 of the 1,988,000 Dow points the market needed to travel in this hundred years to equal the 5.3% of the last.

It’s amusing that commentators regularly hyperventilate at the prospect of the Dow crossing an even number of thousands, such as 14,000 or 15,000. If they keep reacting that way, a 5.3% annual gain for the century will mean they experience at least 1,986 seizures during the next 92 years. While anything is possible, does anyone really believe this is the most likely outcome?

Dividends continue to run about 2%. Even if stocks were to average the 5.3% annual appreciation of the 1900s, the equity portion of plan assets – allowing for expenses of .5% – would produce no more than 7% or so. And .5% may well understate costs, given the presence of layers of consultants and highpriced managers (“helpers”).

Naturally, everyone expects to be above average. And those helpers – bless their hearts – will certainly encourage their clients in this belief. But, as a class, the helper-aided group must be below average. The reason is simple: 1) Investors, overall, will necessarily earn an average return, minus costs they incur; 2) Passive and index investors, through their very inactivity, will earn that average minus costs that are very low; 3) With that group earning average returns, so must the remaining group – the active investors. But this group will incur high transaction, management, and advisory costs. Therefore, the active investors will have their returns diminished by a far greater percentage than will their inactive
brethren. That means that the passive group – the “know-nothings” – must win.
I should mention that people who expect to earn 10% annually from equities during this century – envisioning that 2% of that will come from dividends and 8% from price appreciation – are implicitly forecasting a level of about 24,000,000 on the Dow by 2100. If your adviser talks to you about doubledigit returns from equities, explain this math to him – not that it will faze him. Many helpers are apparently
direct descendants of the queen in Alice in Wonderland, who said: “Why, sometimes I’ve believed as many as six impossible things before breakfast.” Beware the glib helper who fills your head with fantasies while he fills his pockets with fees.

Some companies have pension plans in Europe as well as in the U.S. and, in their accounting, almost all assume that the U.S. plans will earn more than the non-U.S. plans. This discrepancy is puzzling: Why should these companies not put their U.S. managers in charge of the non-U.S. pension assets and let them work their magic on these assets as well? I’ve never seen this puzzle explained. But the auditors and
actuaries who are charged with vetting the return assumptions seem to have no problem with it.

What is no puzzle, however, is why CEOs opt for a high investment assumption: It lets them report higher earnings. And if they are wrong, as I believe they are, the chickens won’t come home to roost until long after they retire.

After decades of pushing the envelope – or worse – in its attempt to report the highest number possible for current earnings, Corporate America should ease up. It should listen to my partner, Charlie: “If you’ve hit three balls out of bounds to the left, aim a little to the right on the next swing.”


Warren Buffet Letter to Berkshire Hathaway Shareholders

Why Will US Dollar Collapse?

3 best ways to profit from coming US Dollar Collapse

The Demise of the Dollar... and Why It's Great For Your Investments

The Dollar Crisis: Causes, Consequences, Cures

InvesTable:


25 Feb 2008 4 Mar 2008 $1000 Value Change % My Money
EUR 1.4832 1.5200 1024.81 2.48%
XAU Gold 945.1000 969.2000 1025.5 2.55% 512.75
VGTSX 18.4700 18.2100 985.92 -1.41% 492.96





1005.71

Monday, February 25, 2008

3 best ways to profit from coming US Dollar Collapse

Today David Walker, comptroller general of the Government Accountability Office (GAO), a person who had openly informed us about situation of America's balance sheet, has resigned from his post. This fact is already called “The ultimate sell signal” and for those of us having savings in US Dollars a question arises: What should I do to minimize the losses? I've tried to put some short info on 3 best ways to come out with profit from coming disaster.


Invest in Euro

5 years ago you would get 925 Euro for $1000, Today this amount went down to 675 EUR only, so if you would convert $1000 to Euro 5 years ago, you would get $1370 today, a 37% profit. This can sound moderate, but much more than you would get just keeping your money in the bank. The downside of it is that fact, that Europe is being weakened by US politics and this can cause a domino effect in most world currencies after dollar collapse, as the US economy is still the biggest and other countries heavily rely on it.


Invest in Gold

Once again, let's stay at 5 years frame. In 2003 for $1000 You could by 2.79 ounces of Gold at 358 USD/oz. Today you would sell it for $2639. This would give you 164% profit over the last 5 years. What will happen with Gold if Dollar collapses? Will it maintain it's value?

Here is a link to a video with good overview of Gold benefits.

Invest in International Stock Markets

I will take Vanguard Total International Stock Index Fund (VGTSX) as reference and same dates: 25th Feb 2003 and 25th Feb 2008. In 2003 the price was 7.17 and today is 18.47, so for $1000 invested 5 years ago you would get $2576 today. This would give us 157% profit and diversification of investment, as the fund consists of 3 following funds: Vanguard European Stock Index Fund (55.2%) Vanguard Pacific Stock Index Fund (24.7%) and Vanguard Emerging Markets Stock Index Fund (20.1%). As you can see, your money would be distributed around the globe, but again: in case of dollar collapse what will happen with other economies? Same question arises as with Euro.

Here is a great video on how to invest. Careful! It's about 60 minutes, but is a great piece.

As for me personally, at this moment I would go for 50% into Gold (for securty reasons) and 50% into Intl. Stock markets (hoping it will grow) and see how they will perform. And what would be your choice?



The Smartest Investment Book You'll Ever Read

Why Will US Dollar Collapse?

The Collapse of the Dollar and How to Profit from It

The Demise of the Dollar... and Why It's Great For Your Investments

The Dollar Crisis: Causes, Consequences, Cures

Saturday, February 23, 2008

Why will Dollar collapse?

A lot of news sources are predicting the very bad for US currency: the collapse of US Dollar. In this blog I will try to find all the points of view to this problem and to dig the best practices to avoid or minimize financial loss caused by collapse to an individual, but the first question which arises is why should US dollar - de facto world standard currency for decades would suddenly drop dead?

53 trillion direct and indirect debt obligations of the US Government. It's a big number! let's put it this way: 53,000,000,000,000! Get it? And it is growing every second, even when you sleep! Want to know more? Here is some info.

And here is the video interview with Comptroller General of the United States:



The Collapse of the Dollar and How to Profit from It

Crash Proof: How to Profit From the Coming Economic Collapse

The Demise of the Dollar... and Why It's Great For Your Investments

How to Survive the Dollar Collapse

The Dollar Crisis: Causes, Consequences, Cures