Everyone who invests, saves, manages money or is in some way affected by the markets should watch this video clip and garner solid insights from one of the best in the business. Jimmy is great. Colourful, sharp and a sparkling character that you would just love to take home forever - a cuddly puppy dog.
But be careful. Remember Rogers, Buffet, Bogle, Soros and all the rest made their money and wealth in the very best of economic times. It was comparable to shooting fish in a barrel when measured against present investment, market and economic circumstances. Those days are long gone. Long gone.
Why? When these guys made their fortunes the world population stood around two billion, while today it stands at over seven billion, adding another one billion every ten years. This spells disaster ahead in a few short years as the real wealth generating capacity of the planet collapses under the weight of the resource demands of this untenable population load. A major war can be expected as history proves itself again.
Moreover, this exploding population is drying up all the critical resources needed to drive the consumer-industrial-military complex including arable farmlands. Climate chaos is also expected to affect most of the US bread basket in the next twenty-five years according to official US agricultural agencies. Add to this the fact most non-renewables will be economically depleted in less than fifty years - the outlook spells out a collapse in the "Real Economy" by mid-century, if not much sooner.
Why much sooner? Well remember currencies are abstracts - merely symbols that convey the idea that a some point they may be converted into a real usable object. Also remember that conventional economics is an utter farce and fraud, that promotes a ponzi scheme creating these abstracts or fiats exponentially without any regard or relationship to the underlying "Real Economy". When the planet can no longer produce real usable objects because all it resources are exhausted these currencies, abstracts and fiats become absolutely useless and meaningless.
And there's more. The ponzi schemer's greed has created a valuation trap, whereby they cannot raise global interest rates. Because if they do asset valuations will collapse by 50% or more across the board sending the global economy into its final "Dark Ages" prior to the outbreak of hostilities. The point here is interest rates will rise at some point soon because hyper-inflation is guaranteed, inevitable, unavoidable and inescapable when you have more and more people and declining resources and food stocks created by flawed economic beliefs perpetrating a ponzi scheme.
A scheme premised on the infinite creation of abstract and fiat currencies with an exponential weight of false promises that will collapse the global financial system faster than the wildest of predictions of any of the doom and gloom gurus. In the end - its just the MATH of it all.
NOTHING WILL ADD UP!
So buy Jimmy's book as a keepsake, highlighting the beginnings of the great economic fraud, of times when clever game players could exploit the weaker, when abstractions and fiats were the operative reality, when Mother Earth didn't matter, but did. And in the end, we will learn that we ultimately had to play by her rules - and for so many; it will be all too late. Indeed quite sadly, all too late.
Better yet, buy a cute cuddly puppy and take him home forever...
Dr Peter G Kinesa
February 12, 2013