PLATINUM WEALTH PARTNERS - Financial Times, The Guardian, Jim Rogers

PLATINUM WEALTH PARTNERS:

Week Ended July 14, 2013

 DR. PETER G. KINESA'S 
INTERNATIONAL INSIGHTS

"PLATINUM WEALTH PARTNERS"

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PLATINUM WEALTH PARTNERS

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MARKET ALERT

Europe shifts back into the spotlight this week, as Euro bond yields could soar higher and then reverberating around the globe as jittery traders push the button. Bond Vigilante's may be in for an early Christmas Bonus - long before the.summer is over. It is unlikely that equity markets can protect themselves if the bonds decide to take cover. Safety first, and every man for himself.

First Financial Insights
July 12, 2013

Financial Times - Portugal's Bonds Soar 7.9% -  MORE Euro Troubles  

Just add another country to the list of European nations that are seeking "national salvation" as 10 year bonds rose to 7.9% this past Friday, settling back to 7.27% - up 53 basis points. Again the neo-classical economists have no solutions and no plan, other than to print money and provide bail-outs. Nor do they even remotely understand that the underlying issues stem from physical economic constraints - too many people and too few resources. So the economic cancer that came to the forefront in Greece, is masticating around the continent, remember Cyprus just a few short months ago . 

Here's the real problem - as Europe falls apart and bond yields move to 10% and higher in these "thinly traded markets," the fears will begin to take hold and grip the global markets as well. At the same time, the European economies are also starting to slip into one of the profoundest depressions ever to be experienced, as asset prices deflate and consumer disposal spending is over-burdened with huge increases in debt service costs. A One - Two body blow.

This could be the snowball that plunges the bond markets into a long bear-cycle. Expect the turmoil in Europe, to test the nerves of jittery bond traders in Asia and North America this week. And this could also trigger long over due downside actions in the equity markets around the world next week.

Seems like there is no where to run; no where to hide.For now.

INVESTORS INSIGHTS

First Financial Insights

July 11, 2013

Who will pull the trigger?

The Marc Faber Blog : Crude Oil is one of the very few Commodities that look attractive

What is it about these guys? One day, Dr.Kinesa, says oil could go to $500 a barrel because the finite physical constraints are going to cause economic problems, resulting in social disruptions, political turmoil and then geo-political upheaval . What can we say? We read the same articles or fools seldom differ...

Platinum Wealth Partners

First Financial Insights

July 11, 2013

Great Minds Think Alike

A few years back a Canadian economist - Jeff Rubin boldly predicted that oil could reach $200 a barrel sending shock waves through-out the financial world. This tells us a number of things: markets have short horizons, human cognition is flawed, and most folks simply do not understand that exponential mathematics and physics impose hard non-negotiable constraints. We do!

Dr Peter G Kinesa

July 11, 2013

THE JIM ROGERS BLOG - Rogers: More Money has been lost in GOLD Mining Shares than any other industry in America 

We agree for the most part, except JIM you forgot one important aspect of mining, that is many mines are polymetallic, so they extract many other minerals including gold in their process. Should gold gravitate to zero, these mines will treat it as a by-product, and thus only assign the incremental costs associated with the ore or even  possibly leave it unprocessed for a period of time. If gold is a by-product then the full weight of production costs will not be attributed.So even at $50 an ounce, some miners may still be able to produce it on a break-even cash basis  because the cost assignments are arbitrary.

Anyway we are happy you enoyed our article - "Gold is a Psychotic Placebo - NOT AN INVESTMENT." And by the way, we confirm that old story about gold mines - 99% of all stock mining ventures end up being worthless. And yes, it will be very hard for these sociopaths to attract capital in the future. That's one good thing for the greater cause - our future generations!

Platinum Wealth Partners

First Financial Insights

July 10, 2013

Faber and Rogers are still building physical gold positions regardless of what is happening - the US dollar is still a powerful medium that can be exchanged for real objects. Moreover, there are strong resource-based currencies offering a greater lon-term mineral diversification. It is still just too easy to get blind-sided by an object that depends upon the bouncing emotional neurons of the collective masses who do not even know how they will think one day to the next. Too buggy for us, when there are just so many better other places to garner safety,income and growth in global purchasing power terms.

Dr Peter G Kinesa
July 10, 2013  

Somewhere Under A Rainbow

The Guardian - SuperFreakonomics is SuperFreakingWrong

The Guardian - SuperFreakonomics is SuperFreakingWrong

 Business Media Protecting our Planet

This article brings out a number of salient points regarding the information propaganda game being played with climate change by the nefarious business press. Never, however, do Canadians forget that "the medium is the massage" - because media has the subtle profound power to define realities that don't actually exist. The list of outright lies built on misinformation with its brutal consequences are endless. Therefore, investors should, as a rule, have little faith in the objectivity of the mainstream business press that is sadly run by so many hidden agendas.  

Climate change as pointed out in this article is being panned or suppressed with the passion of an addict who denies their affliction. The usual media suspects are mentioned, along with other crazies, who are promoting hair-brained schemes* to remedy irreversible damages already facing the bio-sphere. More false PROFITS! 

*(Remember Get Smart? Let's Bring Down the Cone of Silence)

To invest effectively, the planet's hard physical constraints must be considered in any decisions we make. Denial or ignorance could be very costly. Is climate change that serious? The best way to answer the question is with the question: Why is, Mayor Bloomberg, spending $30 Billion on a seawall for New York City? 

That's a serious - REAL Business Agenda...

Platinum Wealth Partners

First Financial Insights

July 9, 2013 

Climate Change - could be bad for Business? 

Reading between  the lines, modern journalism has turned into a propaganda machine. The questions foremost in our minds: is for whom and why? And so, our democracies evaporate and freedoms disappear without a single vote being cast,  nor a voice raised in anger nor a pitchfork held in defiance.  So invisible.

In the end - IKE was Right!

Dr Peter G Kinesa

July 9, 2013 

Jim Rogers : If you haven't already downgraded US ...

Jim Rogers : If you haven't already downgraded US in your mind, do so now

We have. But the question is how far to downgrade the world's reserve currency? Which leads to the bigger question: How long should we consider this as the currency of last resort? Not an easy answer, however when it loses this special status -- Watch Out! That would be the last stand, clearly signalling the fall of the American Hegemony. The implications are immeasurable.

But if you haven't already done so in your own mind, do so now!

First Financial Insights
December 3, 2012

Don't ask... Don't Tell

 

 

 

First of all,  let me say hello to our friends in Germany, Sweden, India, Swizterland, Netherlands and the United Kingdom for their support, comments, insights and questions over the past month. Your thoughts keep us on our toes and provide much valued feedback. Please continue.

 

Here's a post from today's Investors" Insights I enjoyed and received permission to post concurrently.

 

Dr Peter G Kinesa

December 3, 2012 

Jim Rogers - Never Forget

Hmmm...

Jim Rogers: Politicians always look for the easy answer

There is a good reason for this - they are not exactly the sharpest knives in the drawer. In fact there was a village in Texas missing a idiot not so long ago. The consequences are still being fealt today.  

FirstFinancial Insights
November 30, 2012

Sure I can spell it!


 

OUR COMMENTS

 

Too funny, but it was not that long ago. And we should never forget the consequences. Have great weekend!

 

 

Dr Peter G Kinesa

November 30,2012

Marc Faber: The Market is going down because corporate profits will begin to disappoint

Marc Faber: The Market is going down because corporate profits will begin to disappoint

Appreciating that markets are in an unprecedented bear market; the biggest question for investors is what strategy to take? Pending shortages in key raw materials combined with the implications of peak oil, do not provide the footing for sustainable growth of any sort. Our investment strategy is scarcity based. Countries, currencies, populations and hard asset mixes create a new investment calculus; recognizing the existential economic of global decline - the negative sum game that is contrary to the delusional neo-classical economic view.

In the end,  REAL corporate profits can only shrink under the weight pushing national GDPs lower. Such outcomes drive the War of Economic Attrition.

Dr Peter G Kinesa
November 29, 2012 

A Fight to the End

 

 

Marc Faber: The whole Global Financial System will have to be Reset

Marc Faber: The whole Global Financial System will have to be Reset

My god, what next? 

Why will the system collapse? Because it is a system that is flawed in its design, ignoring two constraints of physics regarding finites and chaos theory. These are the hard constraints any economic system must consider or else face a tremendous imbalance leading to its collapse.

The underlying premise of the abstractionist theory is that wealth abstracts can be created forever.Of course, in the abstract world this is possible ( e.g. printing money), and so it can thusly fabricate a positive-sum abstract game. Whereas, in the real physical world, the second law of thermo-dynamics prevails creating a negative-sum real game. There are fewer and fewer raw elements available for use with each passing moment as each transforms into the chaotic or non-usable state.

Neo-classical economics, hence conveys a picture that is contrary to the actual meta-economic version. The Reality. Furthermore, there is a growing imbalance between the stored wealth in the positive-sum abstract game and the remaining inventory of usable elements yet to be transformed under the negative-sum real game. Disaster occurs when the imbalance between the two is breached - causing the systemic collapse of the entire financial system. So no wonder NO ONE UNDERSTANDS RISK!

Hopefully, this sheds further light on Marc's quoted statement and prediction.


Dr Peter G Kinesa
November 28, 2012

Positve-Sum Gamers

FIRST FINANCIAL INSIGHTS: Jim Rogers: Shortages of Raw Materials will lead ...

FIRST FINANCIAL INSIGHTS: Jim Rogers: Shortages of Raw Materials will lead ...: Follow Investors' Insights Regular Updates (Sample Post; November 22, 2012) Jim Rogers: Shortages of Raw Materials will lead to Wars...


Let me add my two cents here. Everyone needs to be more careful when they order lunch.

Dr Peter G Kinesa
November 28, 2012

I won't  forget next time, promise

 

 

 

FIRST FINANCIAL INSIGHTS: Paul Krugman: Franc Thoughts on Bond Vigilantes

FIRST FINANCIAL INSIGHTS: Paul Krugman: Franc Thoughts on Bond Vigilantes:

Paul Krugman: Franc Thoughts on Bond Vigilantes

http://krugman.blogs.nytimes.com/2012/11/23/franc-thoughts-on-bond-vigilantes/


When the statistcal logic is flawed, the evidence is suspect and the comparison is analagous to apples and oranges - thusly lacking relevance; you end up with a pretty meaningless analysis and conclusions. One could also conclude the slide in journalistic standards at the New York Times is self-evident; if we take the same approach saying that an isolated case is representaitive of the attributes of the entire population.

However, no such conclusion is possible because further study is requried


Dr Peter G Kinesa
Novenber 27,2012

Damned Analysis...

Marc Faber : The global economy will hardly grow next year or even contract

Marc Faber : The global economy will hardly grow next year or even contract



Great one year of contraction .However it is much worse then that when you start to measure everything on a real per capita basis. Population alone expands by 1% globally and inflation say runs around 2%. Add it up and it seems like we need about 3% overall nominal growth in order just to keep up. No wonder governments no longer focus on real per capita numbers - otherwise, we would observe and conclude that have been in a global recession for many years.

The other problem with global GDP is what unit of measure provides a standard - is everything being converted to US dollars? Well, the US dollar has been debasing for the past decade. Its real global purchasing power is down by 25 to 30%  the very least. Now, the argument may be made that we have actually been in a global depression for the past decade.

Now this is armchair economics, however one has a certain sense that numbers used by the media, government and other pundits just do not correlate with reality. Lets briefly look at what we face going forward over the next 10 to 25 years.

Minimal global GDP growth in debasing unit(s) of measures

Ever expanding populations growing faster than the nominal GDP

Depletion of raw materials critical to the production of consumable objects

Little in terms of technological breakthroughs expected -  if Apple and Facebook are category leaders- we got problems. 

Climate Change and Geo-Political issues will continue to draw more resources away from consumer production

It therefore looks like the global contraction is running a marathon well beyond the one year predicted by Mr Faber.


Dr Peter G Kinesa
November 26, 2012

Marathon? I'm stuck!

Jim Rogers:Communism and Socialism have failed many, many times

Jim Rogers:Communism and Socialism have failed many, many times

The issue here is not the labels. Free enterprise, democracy, socialism; and even communism, all have their inherent weaknesses and strengths. In the purest sense, the concern is about the degree of centralized (closed system) compared to decentralized (open system) power; at the extremes both are dysfunctional. Thus, it is by default logical, that some mix of the two systems is required. The right mix is subject to the circumstances and time lines involved - and largely an arbitrary and subjective debate for the cocktail crowd's musings.

By the way, unfettered capitalism and democracy also lead to failures.Certainly, the greed and corruption of the past decades has left our beloved systems at the brink. The last chapter has not been written. But one must fear that if we continue to wear rose-coloured glasses regarding unbridled economic and population growth; it is hard to imagine a Happy-Hollywood  ending. Again, just ask those who still live on Nauru what the consequences of this paradigm are.

Mr. Rogers this is not your neighbourhood, so perhaps you should pay a visit to their turf - observing what's left of a society that was, just a few decades back, measured as a leading capitalistic system...


Dr Peter G  Kinesa
November 20, 2012

Visit Nauru Today?



The Daily Bell - Central Banking and 'The Edgy Optimist'

The Daily Bell - Central Banking and 'The Edgy Optimist'

Since the days of Adam Smith, it has been recognized that money is an imaginitive invention. Indeed, Smith himself was less concerned about the medium, rather focusing more on the reasons and logic behind the physical flow of production and consumption; however, failing to realize that both were ultimately constrained because the planet's inputs would ultimately cease existing. Remaining for all time as his one critical faulty assumption that would project our human experiment on a disasterous course.

Today, Central Bankers recklessly create infinite amounts of currency that have inherent obligations to deliver future value - they may be optimists, criminals or utterly insane believing and upholding this money-creating process that possesses no relationship with delivering object goods and services. How can they perpetually create money, when the originating source of value will ultimately be depleted? The answer lends much weight to the conclusion: "not only is this process a criminal ponzi scheme - it is absolutely insane".

And perhaps this is why Central Bankers secretly admire and study the Bernie Madoffs of our times.


Dr. Peter G Kinesa
Novmber 16, 2012

MONEY Creators: Who did it?



Jim Rogers Blog: 2013-14: A Slowdown Is Coming

Jim Rogers Blog: 2013-14: A Slowdown Is Coming: 

America is going to have a slowdown in 2013-14, there will be fewer jobs, more unemployment and turmoil in oil and currency markets. - in Ec...

There is no doubt about it - and, there is very little left in terms of fiscal or monetary tools to fix this mess... essentially the wreckage of the 2008 crisis. Abtractionist economists are finally facing the end game of their alchemist remedies and as we have said: the markets remain in the " The Mother of All Bear Markets" that could last for years...if not. decades.

What we face is the physical realty of drawing blood from a stone, a shrinking pie of resources mixed with a growing number of diners; remains a  hard mathematical constraint to any further growth, particularly on a per capita basis - the only metric that really counts.

Welcome back to Hoover Town.

Dr Peter G Kinesa
November 15, 2012   


Crowd awaiting 2016 "State of the Union Address" - Washington Post,