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Gold is the answer to financial crisis

Tuesday 6th of October 2009

This was the message from Louis Boulanger, founder of LB Now, to the CFA Society this week. He believed it was "imprudent" to ignore gold as a currency and said that after years of irresponsible money creation the global financial system is in serious trouble, trouble that "throwing more money at" can ultimately not fix.

Boulanger argued the idea that the gold standard is a "barbarous relic" is a myth that needs debunking and said the world is in serious need of monetary reform. In the meantime, gold has an important role to play in prudent wealth management. "Fiat" money - that declared by a Government to be legal tender - is in crisis and is "dying", with all fiat currencies being devalued because there is "too much of it" being created, he said.

Boulanger described the world as being in "unchartered territory" and disagreed with the idea that the financial crisis - which he described as a monetary crisis - was dissipating.

"I don't believe for a minute the worst is over, because of the nature of this crisis and because of how it's being papered over," he said.

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FMA outlines its latest expectations for advisers
Paul Flood: The danger is that the 'goalposts' (regarding what is acceptable or unacceptable adviser conduct) may be susceptible to change. Our 'Principles based' legal/regulatory environment lends itself to “prevalence-induced concept change” over time, perhaps not so much in the written laws and Code, as in the interpretation of the prescribed principles.
10 hours ago Steve Wright
FMA outlines its latest expectations for advisers
Just a tip, if you use more than six, six letter words in a sentence you lose most Kiwi's. So avoid client/adviser confusion when writing your post or article if you would like it read and understood. Ironically, my last sentence was not likely read.
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FMA outlines its latest expectations for advisers
All things said are great aspirational goals for a great financial advice industry, it mirrors what both the legislation and the code requires. However, like most things discussed it talks about what's expected not how it's done. The hardest aspect of financial advice today isn't what it is, it is how it is done. The how only comes from those that have done it, the how is only provided with examples. Guidance documents that spell out what's required along side how it it done. We’re still dealing with the same issues we started with in 2021, figuring out the how. And figuring out the how in every advice business is consuming resources that could easily be shortcut by the FMA demonstrating what they are expecting. It's not about “do it this way” its about this is the sorts of things we’re looking for. In the absence of standards and expectations, guesswork prevails. That represents significant risk to FAPs and the result is onerous overcooked advice processes for multiple advice operations and undercooked she’ll be right for single operators focused on getting the work done. Both approaches have potential for harm and as its been said earlier, leaves advisers open to explain they haven't been speeding with the authorities have pulled them over. The advice industry needs guidance on the how we know the what already.
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To correct errors in my previous post: "policies, templates, and controls" should read "policies, processes, systems and controls", and "is more conductive" should read "is more conducive".
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