PLATINUM WEALTH PARTNERS: Paul #Krugman, #JimRogers, #MarcFaber

PLATINUM WEALTH PARTNERS:

Week Ended July 28, 2013

 DR. PETER G. KINESA'S 
INTERNATIONAL INSIGHTS

"PLATINUM WEALTH PARTNERS"

VISIT OUR WEBSITE 

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The Marc Faber Blog (Video): “It’s Gonna End One Day… Through War Or Financial Collapse”

(Read and View More)

No kidding, we guess Marc's finally starting to figure out what we have been saying for years. Sooner or later the abstract economy's - positive-sum game - is going to have to reconcile with the physical economy - a negative-sum game. The outcome of the imbalance correction will be brutal.

Or perhaps Marc picked up a copy of The Limits to Growth and discovered a practical application - Oprah calls it an "ah ha" moment when the penny finally drops.

INVESTORS' INSIGHTS

First Financial Insights

July 27, 2013

When the penny drops...









Some folks take a little longer to get it. But when they finally do, it is like it was their idea in the first place. Sound Familiar?

Dr Peter G Kinesa

July 27, 2013





The Paul Krugman Blog - Detroit, the New Greece (Read More)

Streets of Athens, Remember? Circa 1967???

As Dr Kinesa points out in his recent article, there is a lot of analysis and navel-gazing required to sort out the problems of both Greece and Detroit, who share many similarities. By the way, a better title may be "Greece, the New Detroit?"

Why don't we just state the obvious here? That is about the differences between recent economic successes of China and for some time Japan, and failures of centres; such as Detroit, Greece, Portugal and others. Imagine over the years, that the winners actually have had a "economic business plan" that they execute to, by using both free and centralised policies and tactics. ( seems they also better learn and apply MBA thinking?) Meaning that over reliance on "invisible market forces" to attain the optimal economic state is not a panacea, in fact, it is plain foolhardy - results speak for themselves.

Anyway, when a National Business Strategy is employed, it creates a different outcome because it focuses the nation or centre on simple stuff like; What can we do better then others? Where can we build long-term sustainable comparative advantages? And that's where all that weaknesses, strengths, opportunities and threats thinking occurs, breeding realistic paths forward.

Bottom line; we see that the winners are executing successful National Business Strategies that have little to do with whatever is trending in the Schools of Economics. Imagine!

That's our short take on it - but never forget what you paid for free advice.

PLATINUM WEALTH PARTNERS

July 25, 2013

Hard to believe that is was almost fifty years ago that the streets of Detroit were the centre of civil rights riots in America. Even then, the city was gasping to survive as an exodus of people, industry and jobs was well underway. Nothing was done back then, or since, to turn the tide, so Detroit simply continued to crumble into the destitute urban wasteland pictured today.

Other countries and cities should pay close attention to what happened here - and why comparisons to Nauru and Easter Island are really not that far-fetched. The question becomes when will we ever wake up?

Dr. Peter G Kinesa

July 25, 2013 

Streets of Detroit - 2012

When did it really go Bankrupt???



The Jim Rogers Blog : I would rather be a Creditor than Debtor (read more)

Lets see if we can make sense of this. Now let's say China holds 1trillion in 10 year bonds and decides to cash or redeem their whole position. What could possibly happen? The Fed wires a one trillion freshly printed electronic dollars to China and takes back the bonds. So instead of holding an IOU due in ten years it now holds an IUO that is due on demand - albeit it is less than 10% of  US's GDP or in other words all the goods and services output of the US economy for one month. Not much by some measures.

Anyway, now if China decides to convert these dollars immediately to other currencies it actually shoots itself in the foot because by depressing the US dollar they make their exports substantially more expensive to American consumers. Demand for Chinese goods would collapse in the US, that could shut down China's domestic manufacturing causing massive unemployment, and in turn social unrest followed by political change. Somehow it is hard to find a winner in such drama and both sides are thus inter-dependent - strange bedfellows indeed! .

There is a lesson - the best credit terms maybe negotiated by the creditor's biggest debtor - so borrow a lot! But somehow, Ben Franklin and Shakespeare's  wisdom also seems to ring true: neither a borrower nor lender be...

PLATINUM WEALTH PARTNERS
July 22,2013

Or, just tell them to go fly a kite

In the end, this a funny money game where the on-going idea is to keep the process going, regardless of the final outcomes. The outcome is the same as anyone playing musical chairs - when the music stops someone gets left holding the bag. This is obvious as when resources are depleted money in  all forms won't buy much.

Dr Peter G Kinesa
July 22 ,2013   

ALJAZEERA (Video) - EGYPT IS HOT SPOT PUSHING OIL PRICES HIGHER?

ALJAZEERA (Video) - EGYPT IS HOT SPOT PUSHING OIL PRICES HIGHER?

Economics, Theology, Politics or EXISTENTIAL PHYSICS?

More and more, we are keeping an eye on these powder kegs around the world, as the potential for physical disruptions in oil supplies or critical raw materials grows with each new revolution or social disruption. Sure shootings and violence will bring the interested parties to the table, seeking diplomatic solutions, but we fear that they are short lived. Why? Because what is really needed are economic solutions that grow ever so much more impossible to effect, as these countries have overshot the physical capacities of their geographies. Too many people and too little resources.

There are two clear actions countries such as Cyprus, Greece, Spain, Japan, Egypt and the rest need to do - first,  effect civil policy measures  to reduce populations levels in the years ahead, as they can no longer draw blood from a stone. It is time to face the reality that certain geographies will only be able to sustain their population levels for so many years, before completely collapsing. And certainly, infinite sustainability is absurd. Secondly, develop and implement a  "National Business Strategy" - that may also mean opting-out of global or regional institutions (EU, IMF,WTO, etc.) that largely  restrict emerging foreign competition through trade agreements providing short-term benefits, but working to the long-term and over-weighted benefits of bigger players. In other words, denying or retracting their ability to develop sustainable "comparative advantages" through protective measures that allow industries to develop and grow over time.

Some tough medicine here, in very general terms, however if measures are not soon taken to re-balance a nation's physical economy's limits with the number of people it can optimally and sustainably serve; then the political situations in many nations will simply spin out of control. Not good for oil! markets! consumers!- and just about anything you can think of.


Dr Peter G Kinesa
July 9 2013     

Blood From an Existential Stone?

PLATINUM WEALTH PARTNERS - Paul Krugman, Jim Rogers, Peter Kinesa

PLATINUM WEALTH PARTNERS:

Week Ended July 7, 2013

 DR. PETER G. KINESA'S 
INTERNATIONAL INSIGHTS

"PLATINUM WEALTH PARTNERS"

VISIT OUR WEBSITE 

PLATINUM WEALTH PARTNERS

www.pwa2100.blogspot.com

The Paul Krugman Blog - Rationality of the Euro

(Click Below)

The Paul Krugman Blog - Rationality of the Euro

These comments reflect more on economics and thought-process rather than  markets, however that is what defines the markets when all is said and done.

Britain was certainly on the right track when it decided not to participate in the European experiment. And it remains shocking that Poland is seeking membership in this club, given the mess and clear failure of this project. What is it about Polish people? There is something that we just do not understand. All we can say, is that too often we give up long-term advantages, in order to remedy a short-term problem.

Why did the Brits decide not to join the club - by gosh, as Paul sarcastically notes in his New York tone, they did some "analysis." No one else apparently does? This point, in itself, raises some fascinating considerations when in comes to expressions such as: "they did their homework," "paralysis through analysis" analysed to death" and so on, and so forth. In fact, just writing about it makes one wonder and come to believe that analysis is much more perpetual in motion than stoic; as new ideas, devices, facts and knowledge is brought to the awareness of our cognitive processes. Particularly, for complex situations where the deterministic and subjective variables are always in a dynamic state of change, with the possibility of even  two opposites co-existing as truths at the same or different times. Go figure - the movie never ends !

So you see there is enough material here to write at least ten, five hundred page, books about the analysis of analysis. What is the right amount? the right tools? the right perspective? Or how about  analyzing the initial diagnostics and its tools - if its wrong, then so should be the supporting analysis. Then, there are the assumptions and we can assume that most people have different ones - or can we? The point being, do we ever really know if we are doing the most relevant  diagnosis, analysis and evaluation of goal, facts and constraints leading to the optimal solution for a moment or forever? I have a funny feeling that such knowledge is impossible to attain, except for those who command the arrogance to think otherwise.Why? Because they know, they know everything. 

In the end, this is a "very serious" topic and process, as it defines the fate of individuals, economies, businesses and our species in so many other ways. The case of Britain, supposedly doing the right analysis once, contrasts with years of bad analysis, that saw their Empire rise and fall, from being a political, economic and military powerhouse, to what it is today, and the tomorrows to come. Should we blame it on the analysis?

 Probably, but you may never know for sure!

First Financial Insights 
July 6, 2012

New Yorkers, eh!

ANALYZE THIS BUDDY !

The Dr Peter G Kinesa Blog : ALL ECONOMISTS ARE WRONG - DEAD WRONG: Captain, My Captain... ALL  ECONOMISTS ARE WRONG – DEAD WRONG! Why we are in this mess: Where did it all begin? Why? ..

Good  time to do a little report and see if there is any evidence that would suggest that Economists are right, and perhaps this conclusion is wrong. Let's see there's Europe, Cyprus, Egypt, Brazil, China, Japan, Greece, and, and, and...

Then of course there's the Fed and the interest rate trap ready to launch us into an asset deflation spiral.  As well as, overpopulation, unbridled growth, biosphere devastation and  exponential resource exhaustion. Hmm. Not much has changed, so....

ALL ECONOMISTS ARE STILL WRONG!

First Financial Insights
July 5, 2013 

Not that way- your other RIGHT!

The Dr Peter G Kinesa Blog : Human Longevity OR Unbridled Growth??: WHAT IS OUR GOAL: HUMAN LONGEVITY OR UNBRIDLED GROWTH? 

Stars of what we are...bringing them back into our arms -

Every now and then it is a good idea to return to a prior article and look at it with a older set of eyes to discover if your thoughts and ideas have been changed, modified or turned upside down in some strange way. In this case, very little has changed and there is a strong belief that to have a shot at the universe -  the orientation of humanity's goals must be towards its longevity; not just the absurdity of growth for the sake of growth.

Again, the mathematics speaks in a way that words cannot convey, insofar as the algebra of population and resources can define our visitig rights on this planet. Obviously, the lower the population levels, the greater the time we should have as a species, with all other things remaining equal. Then! And only then, could we come to know what is unknown, a path less chosen and yet to be discovered.

Why not? For that is what makes all the difference.

First Financial Insights  
July 4, 2013

Moving hearts is like trying to catch a star - bringing their minds into its heart; back where it belongs...

The Marc Faber Blog: Low Rates FREEZE markets - Mr. Bernanke is most likely to retire and unlimited QEs forever will continue

There is no doubt that Central Banks painted themselves into a corner - they have made it impossible to raise interest rates, regardless of inflation. Why? Because if they do, it will cause an unprecedented deflation in asset prices and bring consumer spending to its knees, as disposable income is siphoned away to service debt service costs that could double or worse. It would cripple consumer demand and confidence, in a horrifying way with these double knock-out financial blows, triggering a deep prolonged depression. Moreover, obliterating the balance sheets and capital boxes of  the world's biggest commercial and investment Banks, with the mere stroke of a pen.

What this also means is that governments will do all they can do to manipulate inflation numbers to fool consumers, investors and savers. Time will tell if this form of quiet debasement, confiscation and taxation will work. Probably, because all Central Banks are moving in a similar co-ordinated step - and there are no other planets offering better rates and liquidity. So far!

The big point being - is how did everyone manage to get into the same no-escape situation that Japan has been in for the past two and a half decades? We have some answers, but we will leave them for another time. Meanwhile, we concur with Marc insofar as we should get use to the QEs for a long, long time.  Pretty boring stuff.

First Financial Insights
July 2, 2013

Intergalatic Bankers Now Preside Over More Years of QE

BBC News - Canadian Glaciers Face "Big Losses"

BBC News - Canadian Glaciers Face "Big Losses"

click here

Once , a long  time ago, the Artic was as warm as the Everglades; ask any geologist. By all accounts, we are prematurely heading back that way at a rapid rate. Climate denial will not stop the existential feedback systems that warm the planet taking human enterprise to its knees. We cannot just click our heels and return back to Kansas.  The neo-classic economic fairy tale is coming to a very dreadful end. We are melting under its growth mantra.

Dr Peter G  Kinesa

April 8, 2013

"Look what you've done, I'm melting, melting..."

If only the planet could talk -

Marc Faber: Invest Overseas, The Fed Party Is Over

Marc Faber: Invest Overseas, The Fed Party Is Over

What's in a number anyway? Faber says the FED balance sheet is over $3 trillion. However, the US government owes about $14 trillion, thusly, putting the total US government balance sheet at $14 trillion number. Does it include the FED's balance sheet? Actually, I don't know right now.

But, I can report what the legendary fixed income guru - Bill Gross; PIMCO, estimates. He puts total US government debt at a figure of  over $100 trillion. His number also includes all future payments and contingencies on a present value basis. Put another way, this is the value of all known oil reserves that are set to exhaust in about 40 years.

Ever wonder if this debt can ever be repaid ? Do not spend a lot of time thinking about it.

Dr Peter G Kinesa
February 20, 2013

What do you mean we're broke?  

#NAURU - MY 2013 VACATION PICTURES

#NAURU - MY 2013 VACATION PICTURES

Dearest Friends,

In early February, I finally got a week off and had the opportunity to fly back to visit my old Alma mater, the world famous Nauru School of Keynesian Economics. Named, of course, after one of its most famous students and, founded by Adam Smith, long before his tenure in Scotland. Many of the world's leading Keynesian Economists, and Economic Nobel Prize Winners, have passed through its arches of higher(sic) learning

Anyway, here's me on the beach with a few of my co-ed friends and colleagues, enjoying the refreshing weather and tropical views. Also, there is a photo shot of my good friend from school, Dr Nigel Tapatughamans, fishing on the beach  - who for years was the country's leading Keynesian Economist; and was also once considered for a Nobel Prize, when Nauru was a working miracle. Indeed, not so long ago, Nauru had the highest income and wealth per capita in the world.

Seriously, there is a very important message here that should not escape raw wisdoms.The economic history of Nauru is a lesson of utmost meaning, for it foreshadows the fate of the larger planet that continues to apply insane Keynesian Economic ideas, despite real physical and mathematical constraints. Just Nuts -   

Watch some of these videos below, they should be a mandatory part of  curriculum's in all schools of business and economics. Better yet; all schools. As it demonstrates, in no uncertain terms, where the human enterprise is headed globally, should it continue along the conventional economic path. However, in all likelihood it may not even attain the simple paradise of Nauru; as geo-political tensions could interrupt even this tranquil destination.

So please, please take the time to view one or more of these videos and explore further how one small nation magnifies the trajectory of the human condition  should we continue to foolishly believe and practice the same old theories that many of us learned at Nauru's World-Famous "School of Keynesian Economics" 

BUT MORE IMPORTANTLY,  pass, tweet, share, post and show this video archive to as many friends, families, colleagues, strangers and foes as you can. So that they too, may join a larger awakening and understanding, of where all this Keynesian economics and unbridled consumptive growth leads us. 

For these are certainly not the stairways to heaven that we have all bought into...

All the Very Best,

Dr. Peter G Kinesa

February 17, 2013 

P.S. This histroric post was actually the first ever blogged by First Financial Insights,(May 27, 2011) defining a theme that focuses on an economic reality inclusive of physics and exponential mathematics: not hypothetical abstractions built within subjective contexts - with the clear view of avoiding the outcomes of Nauru and Easter Island - with the clear view of sustaining the human enterprise for as long as possible - with the clear view of avoiding the premature human extinction, that Keynesian Economics will ultimately lead us to. 

And then you judge, as we let the facts and numbers speak for themselves. 

Mother Earth asks us one simple thing:

PLEASE STAND BY ME...  

Beautiful Vacation

 Spot

Great Tropical 

             

   Beaches    

  Nauru 

      
    When we run out of….OIL?

  there’s Tourism and Fishing

                 

And       

    VISIT NAURU TODAY

     EXPERIENCE LIFE WITHOUT RESOURCES

   REMEMBER WHEN!

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Ó Materials subject to copyright First Financial Insights Inc, 2011

WATCH THESE VIDEOS AND PASS IT ALONG...LET THEM KNOW!