Marc Faber's Highly-Unprofessional Know-It-All Interview

Marc Faber's Highly- Unprofessional Know-It-All Interview 

  Thai TV, September 20, 2013

Their Business Greats Tiger Team

There is little doubt the Marc has a fairly good grasp of the technical issues related to the global financial situatIon. Whether he is right or wrong is another matter. He conveys a strong sense of certitude with regard to his thoughts and opinions. Such an attitude should be expected from an investment promoter. 

The Fed is in a bind and there are signs that the QE program is faltering. As he points out, the ten year treasuries have risen from a low of about 1.5% a year ago, to almost to 3% today. As he says, "that's a 100% increase." Marc believes that the Fed will continue with its QE program with little; if any, tapering for some time, in an meager effort to hold down  low long-bond rates. By now, everyone is aware that a surge in these rates would be devastating to the global financial system and the overbought stock markets. We go along with his view.

He also makes reference to the absurdity of Keynesian and Neo-Keynesian (Turbocharged) economists - the latter apparently proposes fiscal deficits of $5 Trillion to resolve the US's economic problems. While we agree that such a move is unconscionable, Dr. Doom provides us with little insight into what remedies he would alternatively propose.

This lack of a deep understanding of the physical existential forces driving the world's economy is apparent in most of this interview. The very fact that Marc entirely discounts, any and all, participation or insights from academia, and concurrently holds business opinions and views, as the ultimate source of a monopolistic truth, speaks volumes as to the depth and objective quality of Marc's thinking, information, sources and analysis. This negativity further suggests a"know-it-all" attitude bias that tears apart the speaker's credibility, leading us to distrust the balance, integrity and substance of all else that was asserted. To be short, we were taken aback by the utter short-sightedness and arrogance of this remark and related thoughts.

This, of course, deepens our concern and skepticism about such pundits who operate with multiple narrow-minded agendas.  We would prefer a more open, professional approach to information, sources and thinking. Similar to the philosophical thoughts of Socrates: "the only true wisdom is in knowing that you know nothing." And maybe Abraham Lincoln's approach would also be useful to opening a wider discourse of opposing or alternative views for better decisions. Lincoln recognized that all of us have our limitations; so he sought the insights, company and advice of seven or eight folks smarter than himself. Hmm. Maybe even an academic or two?

Marc, we fully recognize and believe that you are entitled to your opinions regarding all these useless academics  - but then again, what do we know?

Dr Peter G Kinesa
September 26, 2013  

Our Humble Academic Bonehead Team   

              

  

The Marc Faber Blog Childish Remarks: "The FED Asset Purchase Disaster?"

The Marc Faber Blog : Childish Remarks -The Asset Purchase programme of the Fed has been a complete Disaster

Doctor Faber's conclusions are first premature and more than likely wrong. 

In fact, it will be difficult to measure how effective Fed policy has been or will be as history has yet to unfold. Had Uncle Ben not implemented this program, then interest rates no doubt would be much higher than they are today. There are a lot of very nervous long-bond holders who were obviously more than happy to pass their holdings back to the Fed. Everyone is living in fear of a sharp spike in the long rates that would absolutely clobber the principal market value of these bonds.

But QE is not just about keeping rates low, it is also a crafty way to hold asset values in place, including the equity market. This may actually be its main purpose. The last thing the Fed and Obama needs is to have huge bond losses realized and recorded by banks, portfolios, and other financial intermediaries.

Such losses would vacuum up all the liquidity in the repo, bond and money markets faster than Lehman's 2008 debacle, as well as knocking the proverbial crap out of their respective equity boxes. Think about it - this prevention is moping up about 40 billion (possibly more) monthly in marked-to-market accounting losses that would be caused by sharp rate  increases.

Like the Fed we are holding back a few cards here, but in all likelihood, there is more to the Fed's QE policy actions than meets the eye - and Marc should be a little more careful with his remarks - they come across as premature and childish! 

And that's being kind.

Dr Peter G Kinesa 
August 28, 2013 

Marked to QE Market

Uncle Ben's Converted Losses 

                

PLATINUM WEALTH PARTNERS -Jim Rogers #Gold #Commodities #USDollar

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Week Ended, August 25, 2013

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The Jim Rogers Blog 

 War in Syria Commodity Prices go to Moon? 

Does this mean we should land on the moon again for bargains? Folks could be waiting there right now looking for our business. Who, we wonder?

Commodity prices are ready to shoot upwards whether there is a war in Syria or any big event somewhere else on the planet. Syria is somewhat irrelevant in this regard as markets are poised more on fundamentals to lift skyward.

The world is more fragile today than it was twenty years ago for obvious reasons. More people, fewer resources and wider geo-political tensions and instability. For more worries you may add in climate change, wildfires, water supplies and worst - fewer and fewer pollinating bugs. And that's the war we are really losing sleep over.

Bottom Line: Anyday, anything, or anytime - LIFT OFF ALICE!

PLATINUM WEALTH PARTNERS

First Financial Insights

August 24, 2013

To the Moon...

The Jim Rogers Blog

Financial Calamity - US Dollar Collapse? 
(Read and Hear More)

Just cannot see eye to eye with Jim on the collapse of the US dollar, albeit the financial calamity is more or less a hangover from the 2008 Meltdown and remains plausible. Indeed we had  forecasted such a collapse two years back, by 2020. Bonds yes; but a currency short is fraught with too many pitfalls.

There are many reasons behind the likely stability embedded in the US dollar in such times. Two are big ones. One,  it will simply win by default because other currencies that are competitive, in any significant way, should be that much worse off in the turbulent economic times ahead. Remember, the US is a Hegemony with about 60 -70% of the world's resources and economies within its influences and/or control. There is little else in terms of a viable surrogate exchange media that could handle the global financial volume and liquidity needs as well. Former communist countries have huge credibility issues to overcome to garner any trust for this role.

But most importantly - they have bigger GUNS! In the end, that may be all that matters. 

PLATINUM WEALTH PARTNERS

First Financial Insights

August 22, 2013 

Pentagon 2020 Outlook:

 Continues to See Strong US Dollar

Faber Buys #Sprott - Is On-Going Disclosure Required? 

(Read More)

"BUY GOLD???"

While we have long held a position that in the long-run there is no legitimate or logical reason based on sequential forward events, and both historical asset-class performance and purchasing power losses over the past thirty-three years to own this object, yet this psychotic placebo continues to attract the attention of speculators.  Nouriel Roubini had candidly referred to it as a "barbaric relic" - his kind diplomacy is respected. 

So why do promoters such as Dr Doom continue with there promotions despite all this? We can presume that they understand the psychosis of small investors attracted to such a cure all placebo and operate to take advantage of their fantasy. The above purchase of Sprott affirms the possibility of such a tactic by promoters. 

But the most important issue is not whether to buy or sell this object - the real issue is disclosure. That is will the promoters advise the public of subsequent sales before they are effected or will they cleverly front-run them in various de facto forms ahead of small investors, underneath the radar of a complex myriad of international rules, laws and regulations?

Funny thing, we really don't expect  answers to these questions any time soon.

PLATINUM WEALTH PARTNERS

First Financial Insights 

August 20, 2013  

Just Keeping them ... 

 

The Marc Faber Blog: Recommends these Gold Mining Stocks : Newmont Mining, Barrick Gold and IAMGOLD

The Marc Faber Blog: Recommends these Gold Mining Stocks : Newmont Mining, Barrick Gold and IAMGOLD

(more video)

Remind me, why we are doing this, again?

Oh, to store it back underground???

These stocks are all on my top short sells  for 2013-14 list. Gold should collapse well below 1000 per ounce as Central Banks keep dumping reserves to preserve whatever political and economic stability remains before the lights go out. Cash costs of producing gold will make less and less sense, particularly as energy prices continue to rise. The choice between gold and food is obvious - thus making these puppies long-term residents of the dog house.

Anyway we find these recommendations a little contradictory when Mr Faber touts the collapse of markets, but these stocks are magically sheltered from this, thereby defying the "laws of systemic market risk" . Sorry, but we are not going to bank on that when an offer to buy the Brooklyn Bridge  is still on the table.

Folks we could go on and on about this, but I think the message is clear, do not invest based on promotional pieces; remember too, the connected interest and 25% personal portfolio position. Now, about that bridge...  

And by the way, even if we are right this time, it does not mean we will be right the next time. Or trust me, for that matter ever again - as every bet has its own probabilities. 

Dr Peter G Kinesa

August 9,  2013 

Now, about that bridge...