One big point in all this is that we simply do not have the diagnostic measures to advise us when the economy, markets and banks are headed for big troubles. This case is somewhat different in that the mathematics of financial valuations is just lurking out there, ready to pounce asset values downwards. It also makes sense from a physical economic view to see values decline, as we exponentially use the planet's resources, while printing buckets of money. No matter what markets, economics and governments cannot win the fight against physics and mathematics - it is hence only a matter of time.
Dr. Peter G Kinesa
August 2, 2013
We are right behind Jim on this issue and recommend reminding yourself often and keeping an eye the ball, not getting caught when the trap collapses.
This is beginning to sound like a chorus line with a song that sings about the coming collapse of almost every kind of asset value. We recently commented in The New York Times that values could collapse by as much as 50% should long rates rise by 2% or more. Readers got mad at us, but it's not our fault, because we did not invent financial mathematics - someone else did! Nor we do believe that these rules are open to negotiation, legislation or persuasion of any kind. They are absolute.
So how did we ever get backed into this corner? Well. you can blame the usual suspects, who lost sight of common sense and were "influenced by the political immediacy of their times." Now there is no where to run or hide.
PLATINUM WEALTH PARTNERS
I truly wonder some times...
Dr Peter G Kinesa
August 1, 2013