Gold etc etc etc - Safe Havens for Troubled Times

The FTA has solicited views on what might be a safe haven for such assets as you have left. Sitting back and watching gold contemptuously dismiss the American 'compromise', as a service to our readers here's a summary of the answers, clustered for ease of review. Never say we don't look after you.

Philosophical

- just about any asset not US based will do - the safest thing in the entire world is surely a bouncy castle (nice one, Izzy !) - education/schools in developing nations - family - invest in human capital: invest in your children - secure white-collar private sector employment with annual pay rises that outpace inflation - the most effective flight to safety is the one picked as consensus

Financials

- cash - japanese government bonds "but FX hedge is needed!" - Bitcoin - Singapore Dollar - Australian Dollar - US dollar - SEK - Renminbi savings account - New Reichsmark - Swiss Franc - Terra Trade Reference Currency - gilts - SDR version 2 - New Currency (could even be a parallel currency to say the SFr) managed by responsible people [sic]

Equities etc

- global mega caps Microsoft, P&G, Philip Morris, etc - Moody’s 20 Cash Kings - Mongolian mining stocks - Sturm Ruger & Co - The Ocado business model - poundshops

Physicals

- silver - gold - basic products like food, and drink, internet services - energy - turnips - coffee - chocolate - rare earth minerals - copper - oil & gas - Dominos Pizzas - Apple iphones - prime London real estate - land

Survivalist

- farmland - cows - mixture of deciduous and coniferous woodland - mixed use agricultural land - assault weapons - tinned beans and digging a deep bunker - safe houses - solar - literally bunkers - food stores - small farm in Canada with (golden) cows - a croft in Sutherland, Scotland with it's own Irn-Bru still and water rights

Broader perspectives, *ahem*

- inflation adjusted stupid-government-insured CDS, with also synthetics and squareds available - human urine - whiskey - Hermes ties - Irn-Bru - dope - grade 1 opiates - Hershey's Nuggets - constant maturity put options on Bove's strong buy calls - doughnuts - beer - booze and wine - creme eggs - teenager-backed bonds - a giant floating mattress in the Atlantic

= = = = =

Well, there you go. No financial advice here, of course ...

ND

Government Spending meltdwon: IMF beckons

Just for the avoidance of any doubt, check out this short BBC article. The Government has borrowed £13 billion in June, up from £7.5 billion in June last year.

So borrowing is more or less doubling. At the same time tax revenues have fallen £32 billion.

So, bag of fag packet exercise:

Total tax take likely to fall about £40 billion after adjustments to end of this year.
total government borrowing to double to £150 billion (minus the £70 'expected').

Structural deficit (this is the money being spent for which there is no income, equivalent to the spend over your monthly salary payments) - c. £120 billion.

So whoever gets in Government are going to have to slash that much public spending, for the record that is nearer 20% than 10%. My bet is still that the IMF will have to do this when our politicians bottle it.

Surely after this, Labour can never win power again?