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Friday, April 26, 2013



"journeying to co-existing realities"

Less than two years ago we started this blog with the view to bringing forward a new economic thesis based on the existential realities of human enterprise.  This thesis, put simply, declares that economics  must embrace science; and most particularly the hard constraints of physics and exponential mathematics, if  it is to be useful to serving  purposes related  to human-existence's  longevity on this planet. Moreover, that the operative neo-classical thesis with its pervasive bias towards unbridled growth, is not only physically and mathematically insane - it leads and promotes the premature extinction of our species.  

From a trickle of a just few hundred page-views a month, we have grown to thousands of visitors monthly from all parts of the world. Our reach has been diverse and popular in countries such as; Russia, India, Germany, Sweden, Netherlands, Israel, Switzerland, France, United Kingdom and many more. Why? First, around the world there is an intuitive concern that the growing economic maladies are no longer possible to resolve using the beliefs and devices of conventional economics. Our global systems are stressed by overpopulation, climatic chaos, bio-diversity abuses, and looming shortages of the elements critical to on-going human enterprise. For the most part, conventional economics ignores these concerns and waits for an "invisible hand" to provide its mystical cures. We believe this approach is foolish and utter nonsense.

Second, we have integrated and included the thoughts and works of others who also recognize  and  deeply understand the critical nature of the crossroad that we now face. Special thanks goes to Al Bartlett, Chris Clugston, Dave Gardner, Tim Miller, Fred Palme, Steve Salmony, Jack Albert and Brian Bloom, who amoung many others, have made contributions to these efforts in a variety of ways. To all, we express our warmest gratitude. 

Thirdly, we aimed to use as many technically available ways and means of communicating to readers, viewers and listeners, in order to provide a richer and more credible experience. Study regarding Nauru, is a good example of going beyond the written word,  with actual photography and videos to substantiate facts, analysis, reasoning and conclusions. Through-out light touches of humour and juxtaposition were added for perspective, fun and entertainment  .  

To-date we have published nearly two hundred posts on both of our sites. Some have been popular for their content, others for their investment views, and still others for their  entertainment value. At times, posts generate surprising traffic volumes. 

We recognize that when you arrive at a site, you don't have the time to run through its archives to find the best or relevant pieces. So, to help in this regard, we put together this list of top posts from the past two years, based on content, theme and popularity. This was actually a much more difficult task than expected, as a number of our favourite posts are not included. Oh well, perhaps next year.

Without further dithering here's our list. Hoping you find it helpful and a valauble basis for considering this final thought about overpopulation, unbridled economic growth, and its consequences. "All other things being equal, if we reduce  our human population from seven to one billion, we would then in theory, mathematically extend its expected existence or longevity by seven fold. 

What should we do? What would the Doctor order? 

First Financial Insights
March 15, 2013



Saturday, April 6, 2013

Nouriel Roubini, Jim Rogers, Niall Ferguson, #Eurocrisis

Investors' Insights:
Week Ended April 6, 2013

"Investors' Insights"

Nouriel Roubini Blog: Video: Market OutlookTHU 04 APR 13 | 03:45 PM ET: Nouriel Roubini, Roubini Global Economics, discusses China and Japan, and explains whether he sti...

After a while these television economists start to sound so programmed with their rhetoric the words start to blend together and sound phonetically like blah, blah, blah. The accent does spice it a bit though. And most of what is being said is trade oriented and short-term focused - less than two years. Not surprisingly, there is little reference to Cyprus and the complete boon-dongle this was for the EU. No mention made of what could happen to EU bond markets and how that could spread to equities and bond markets around the world.That's shocking, as there is still global contagion potential here.

To be short, Nouriel's TV shows has entertainment value but offers very little to the serious long-term investor. If he could, or did offer such value; then he would not an economist. That's our read on it.

First Financial Insights

April 5, 2013



Thanks Folks...

Jim it is not about the bank accounts, that's the easy one to figure out. You cannot short bank accounts. But, you can short currencies, bonds and a variety of financial intermediaries and their related securities. You got to have a sneaking suspicion that is where the bucks can be made. Maybe Jim will say something once he has his positions in place?

Where should we do our homework, anyways? Let me see there's the EU, Banks, Insurers, Italy, Spain, Portugal, etc, etc,

First Financial Insights
April 3, 2013

"and that's the long and short of it"

Who knows? First, it is difficult to make any sort of comparison to the Roman Empire for a thousand reasons. Niall is right in stating, that it basically launched Europe into the Dark Ages with little impact on the rest of the planet. The British Empire has fallen with little impact on the state of global society, as there were others there to pick up the ball. So even, a substantive decline or fall of the American Empire is not of great concern to global society, as there are many in the wings ready to step in and provide a leading role on a combined or singular basis. The world will go on.

The bigger concern is the fall of the "global industrial-financial complex" that is not run by geographic political states, but a collection of multi-national entities operating without borders. It is an invisible political state that operates organically without the protocols that have defined geographic political states. It is the collective inertia, infrastructures and outputs of the business and economic community for our global village. It is a ghostly enigma, but nonetheless exists by virtue of long-standing practises and inter-connections that are entrenched among nations around the planet.

It has no flag, no symbols, no constitution, no formal codes and no figurehead as leader. It cannot  be attacked geographically or otherwise.Yet, as world leaders certainly come to understand, it is an entity that must be recognized and dealt with using practical diplomacy. It is topic reaching far beyond these comments.

The point being, it is when this "Invisible Empire" falls, then humanity as a whole would enters a Dark Age similar to regional historic periods. Triggers for this collapse, could come from breakdowns in global finance, international trade, bio-sphere devastation or the shortages of the physical ingredients required to keep a "global industrial-financial complex" running. Most likely, any of these cases or combinations, would lead to horrific global hostilities.

The next dark age may occur sooner than any of us expect, lasting longer than can be imagined. This planet is a small island in the universe, isolated from neighboring entities offering alternative possibilities for existence. And we have seen what happens to small isolated islands. 

Through-out  history empires rise and fall, there is little to believe that this one is any different - a sobering thought.

First Financial Insights

April 3, 2013

The  Invisible Empire?

Monarchs did this many times through-out history - not a new story really. What Jim did not emphasise is that Central Banks who can print their own fiat currencies are taxing away our savings, investments and wealth through this method of debasing indirect taxation. There are quietly confiscating your assets to bailout banks, pay excessive bonuses and cover-up many other misdeeds - none of us are the wiser.

Cyprus would have also taken this much quieter, sneakier path of stealing savings and wealth confiscation, but they had one problem. They were part of the EU - meaning they could not print their own currency. They were hence forced to directly tax deposits, which is more apparent and above-board. 

International Banks should learn from Canadian banks, who every year invent new programs and fees to tax and confiscate more of their depositors funds. Masters of semantics. linguistics and legalese, they have fooled everyone into believing in these disciplined annual thefts are legitimate. So far!  When the presidents of banks earn 50 times more than the country 's leader - you know where the crooks are working. Now we need police. 

Returning to Cyprus, EU and banks, these events are creating a global gloss of confidence and trust in the financial system that is justified - all these poor judgements will ultimately lead to global financial Bubblegeddon and then political upheaval. The Bond Vigilantes are going to get very rich, while the New York Times will be looking for a new OP-ED columnists. Say Jimmy, are you busy? 

First Financial Insights

April 2, 2013 


Friday, April 5, 2013

The New York Times; Paul Krugman - DEPRESSION, NOT ENDED


Little doubt that this depression is not over, but a debatable point is when did it actually start? Second, when did it start for the average American worker? In other words, are there actually multiple economic cycles concurrently occurring in an economy, thus the general economic cycle and numbers may be meaningless to the vast majority of citizens. Possibly? Hmm.

For instance, arguments could be made that the average American has lived under depressed economic conditions since 1982. No way! Well, this is when the "real hourly wages" got stuck at $16 (St Louis FED); close to when the overseas jobs exodus also began. A strong case thus could be made that a large segment (a.k.a. Middle Class) of American Society has been living in a depression for more than 30 years. How did we miss this? Are we fooled by aggregate GDP numbers for the overall economy?

There's more. Using the price of oil and average hourly wages in 1971, (St. Louis FED), the nominal wage rose from $4 per to $20 today; a modest 5 fold increase. Meanwhile, oil prices have surged from $2, to close to $100 a barrel; a 50 fold increase - meaning that in 1971 an hour of work earned two barrels of oil. Today, workers have to work ten hours for these two barrels. Hence, both observations arguably support that the depression is not over - but when did it start? And when did it start, for whom?

Maybe this is why folks feel they are working harder and harder - For So Much Less!

First Financial Insights
April 5 , 2013

When did it start?