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Saturday, September 17, 2011

In a Nutshell

Keeping it Short

In a Nutshell

Central Bankers must align with science

Published Wall Street Journal, NY Times, The Telegraph, The Globe and Mail, September 17, 2011

Can the dualism that exists between economics and principles of science and mathematics be resolved with approaches similar to “Quantum Realonomics” that work to realign the monetary and economic structures with the physical constraints that pertain to concrete realities?

In a Nutshell.

The economic equation is rather simple in its totality. It simply consists of inputs (resources) and outputs (goods and services). The functionality that exists between the two is called jobs. However, for reasons unknown “surreal abstractions” now rule the day.

Central Bankers are preoccupied with the abstractions related to printing money and propping up a terminally ill banking and monetary system with little regard to the primary equation. Chasing these illusions will fail at every turn to cure this sick patient. The same diagnostic devices and remedies that were used prior to the 2008 meltdown are being used today. Now with common sense prevailing, the patient would never return to such diagnostic quackery from the same doctor. Never. And, yet we do.

In short, all issues point to the growing imbalance between aggregate global supply and demand. As the supply inputs diminish then outputs may not be increased. This means the functionality that correlates with these inputs and outputs should also decline. So the number of jobs will be reducing and improbable to increase, considering the finite constraints imposed by the science of the planet. Often referred to as thermodynamics.

Central Bankers; therefore need to understand that the “surreal abstractions” currently used as diagnostic devices and remedies, belong back in the Emerald City with the Wizard and Invisible Hand. Economics must become conversant with sciences and other foreign languages such as exponential mathematics. Only then, does it have the opportunity to remedy the simple economic equation, create effective diagnostic tools, and can leave its “surreal abstractions” with the Wizard back in Emerald City.

The Wealth of Planets…is such a simple equation.

First Financial Insights Inc.
Toronto, ON
September 17, 2011

That's Central Banking

Monday, September 12, 2011

"Fiat Gold" Worthless?

Glen Beck's Buggy Followers

As “Fiat Gold” approaches all time highs, there are rumblings amoung academia, financiers, economists, scientists, environmentalists and other circles of high influence, as to the sense in wasting critical resources and effort, on a an element that disturbs the rational flows of the global monetary process and creates unneeded environmental havoc. When indeed, no economically logical, statistical or scientific methods may be applied to the hypothesis that “fiat gold” stores value. We are hard pressed to refute such assertions in any way. Very hard pressed…

“Fiat Gold” Worthless?

Gold Bugs Fear Ban by IMF

Global Mining for Symbols of Abstract Value Questioned?

A few final humble observations regarding "fiat gold," a term personally preferred as it drives "gold bugs" - buggy. It too is a fiat. As it is only through the process of history it has been decreed to arbitrarily store value - out of thin air. Sound familiar? Except this "super fiat" - a so-called currency equivalent; is not issued by a state that can deliver goods and services upon presentation, through the agency of entities it governs.

So "fiat gold" in the last analysis must have even less "possible utility" than "fiat money" because it cannot directly access the productions of a state's economy. Indeed, fiat gold largely transforms into usable utility; by ironically, first converting to the fiat money it detests and undermines.

Should “fiat gold” conversions to legitimate currency ever be outlawed by World Governing Authorities (when they ever decide; to decide, to take actions), then its price should revert to the intrinsic utility of pretty trinkets and trash. Gold bugs are well advised to be forearmed with schooling in the Seneca Effect

Bursting the "fiat gold,” bubble should also be a huge positive for the human condition in many ways. For it could possibly divert scarce resources used for the mining of such abstract nonsense, into medical research, education, scientific development, and the arts Such activities have a far better chance of enhancing wonders of the human condition, than mining a stone-aged symbol of abstract value conjured up by buggy imaginations. At the same time important ecological benefits would be achieved with an end to this unnecessary scarring of this planet's gifts.

Ya know, I think there may be a few reasons why they are now called, “fiat gold bugs!” 

Published NY Times: Paul Krugman, Comments; September 12, 2011

First Financial Insights Inc.
Toronto, ON
September 12, 2011


Gold bugs are constantly devising ways to transform “fiat gold” into the legitimate currencies of nations. So they can trade their symbolic abstract for the real labour, resources and capital outputs of unsuspecting countries. This video provides a parody of their convoluted plots and conspiracies. Tricky Bugs...

MORE GOLD or Heed the quiet wisdom of legacies?

Sunday, September 11, 2011

Hey Joe, It's a Depression

How About those Economic Principles?

Hey Joe, It’s A Depression

Policy trap cannot be solved

Reality check: Economics is not a science

Recession? More like a depression as we are firmly caught in the grasp of a policy trap that cannot be cured by the alchemy of macro-policy measures. The reason economics will fail at every turn is because it is not an economic issue. That would be akin to blaming the writer of the journal entry for the write down of bad loans.

The truth lies in the physical realities most of us deny and that are now approaching exponential magnitudes. These stark realities relate to the physical constraints of the planet relative to the people it now carries. The metaphorical pie is shrinking, yet those attending the dinner table grow larger by the day

Let us recognize that economics is not a science, but simply a field of musings and philosophy that has ascribed its own contextual logic as a definitive understanding of human activities. Indeed it is truly an anti-science that conjures up invisible hands, infinite growth and currency devices that purport to store value. When such magic is scientifically, mathematically and logically impossible. Existentialism and science is required, not myths and nefarious economic alchemy.

Otherwise the depression and bear markets are set to possibly last for decades to come. And predicting their consequences reaches far beyond what may be humbly imagined.

The philosophies of economics have run their course. Now science must take the forefront and act to end what could be possibly beyond even a long deep depression, but the start of a dark new age for human existence. Hey Joe, say it ain ’t so … 

First Financial Insights Inc.
Toronto, ON
September 10, 2010


Friday, September 9, 2011

Evildoers to Blame

Night of the Living Journal Entries

Evildoers to Blame…

Invasion of Alien Journal Entries

Cause of financial woes determined

Beware...Journal Entries have invaded and taken control of planet earth. These nasty aliens have seized our banks, governments and economies. We live in fear of where they may strike next.

Will they create more fiat money? Will they write down sovereign debts?   Or worse, eat up the sturdy capital of formidable Banks. Yes, much evil and harm maybe attributed to these creatures of the night. Their off springs are write downs that affect all aspects of commerce and economy. None are spared, crossing through their double entry caverns.

Journal Entries are clearly the perpetrators of the banking crisis, and their elimination warrants serious consideration at all levels, if we are to return to stability.

Or else a brave new super hero with GS tattooed on their chest may save the day? Hmmm... Let's have a look at those entries again! 

First Financial Insights Inc.
Toronto ON
September 9, 2011


Help...Who do I Phone?

Wednesday, September 7, 2011

Gold Prices to Crater; Beware

A House of Cards?

Gold Prices to Crater; Beware…

Was P. T. Barnum Right? Your call…

The price bubble for “fiat gold” ultimately bursts.

The focus of economists on simple micro and macro concerns has left behind a more relevant conceptual framework of planetary economics a.k.a. "Quantum Realonomics". To judge the planetary state of affairs seven key indicators are set out, "Seven Key Diagnostic Measures.” One indicator is the Price of Gold. It concludes there is no evidence whatsoever that gold is a store of value related to usable items. Its real value today, lies in its mythical purpose to act as a "global gauge" of aggregate business, investor and consumer confidence. In the real world, P. T. Barnum perceived it as the "Fools Index" as he knew ticket sales would rise as the gold price climbed.

Here's a simple statistical analysis to consider. Firstly, the hypothesis that gold is the last store of value cannot be proven in any scientific way. However the null hypothesis can be proven, by observing the documented histories of Easter Island, (Nauru?) and other extinct economies. In all cases, gold gravitated towards a value of zero, and in the final days of these economies it could not be exchanged for anything. The statistical inferences are clear; “
gold is a worthless abstraction and the equivalent of fiat currency or worse.” The supply of fools rises geometrically with the initial onset of economic fears, followed by a “Seneca Effect” on price, when reality’s constraints are more evident. During this process, billions of dollars along with much human effort gets wasted digging up our planet for a fiat element with little; if any, redeeming value, save for pretty trinkets and trash.

So when will our foolish obsession with this pretty metal collapse?
There are at least three groups that may have a hand in its demise. First investors like George Soros who have been quietly converting their holdings into farmland. No explanation should be required for this; however, as this asset exchange becomes “general knowledge” the pennies should begin to drop in the minds of investors. Common sense will prevail; more savvy investors will follow the paths of George Soros and Jimmy Rogers, rather than the promotional insights of snake oil huckster Glenn Beck.

Central Banks and governments may also decide enough is enough, for monetary and economic reasons. Fiat gold certainly must be a thorn in the sides of these policy makers as it diverts the rationale flow of international currencies to the fairy tale currency of a planet or state that does not exist. Consider this experiment; fiat gold is actually the currency of a planet light years away; its currency therefore cannot be converted through practical inter-galactic trade and transport. No one in there right minds would object to Central Banks banning forever the conversion of Planet ZenonX23’s currency to any earthly form of currency. The planet’s government is also not likely to object. Central Banks hold the power of the pen to outlaw such conversions any time at their whim.

Environmentalists and others with planetary concerns will have a hand in the collapse of the price of fiat gold too. For this is the most obvious case where the invisible hand does not work; at all. Rightfully, they will point out the stupidity of using more finite non-renewable resources to scar our innocent planet for additional currency that can only be used for trade with the planet ZenonX23. (First we have to find it?). Would we use the last of our remaining essentials to mine for more of this inter-galactic currency as they similarly did on Easter Island? By all accounts, this absurdity should be crystal clear.

With fiat gold hovering near $2,000 per once, its price is certainly propped up by the usual mania, historically associated with bubbles. Bubbles always collapse. And when they do, the slide is fast and dramatic. George and Jimmy are spot on again, and as for Glen Beck? He lives near the Planet ZenonX23, so he says.

Mr Barnum was a smart man…

Tickets anyone?

T A McNeil,
First Financial Insights Inc.
Toronto, ON
September 7, 2011


NOTE: see comments in the article, Seven Key Diagnostic Measures; The Price of Gold.

The Picture Says it All

Saturday, September 3, 2011

Wiki Releases Secret IMF Training Video

G7 Leaders? Agree to No Action...
"we need to review the IMF Training Video"

Wiki Releases Secret IMF Training Video

How bankers learn to multiply? Explains Financial Crisis


"Never in the course of financial conflict have so many, done so little, for the utter misery of so many more” a former Prime Minister

True, austerity is arithmetic; which is the simplest form of mathematics. Still its secrets remain beyond the comprehension of most governments and central banks. The short equation goes like this: austerity plus austerity equals more austerity; until matters are so austere; that there is little left to be austere about. There are so many finance officials who are good students of this formula..

Recently, we were able to acquire a training film for finance ministers and central bankers, which explains the advanced wonders of multiplication. This timely evidence reflects to large measure why nations now face their very grim prospects of circumstance. This training film we understand is used extensively amoung government and elected officials, so that everyone is on the same page and up to speed with these most advanced arithmetical concepts. These were allegedly devised by Wall Street derivative specialists.

So it is with great fortune that we are able to exclusively release this behind the scenes insight into the workings of high government finance. At the same time, we hope all are encouraged by the great strides being made in the field of advanced arithmetic. That these new developments will spur creativity in accounting, finance and economics to new frontiers in the measures of applied austerity.

So in closing we again reflect on Churchill's wise words, “a joke is a very serious thing"

First Financial Insights Inc.
Toronto ON.
September 3, 2011


*Also we suggest listening  to recent remarks from our Chief Economist below.*

 Modern Studies for Advanced Bankers' Arithmetic

Above comments and video published New York Times,September 3,2011

Chief Economist First Insights International Show