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Thursday, March 27, 2014

The Bank of England - Begins Economic's Renaissance??



The Bank of England Lights A Fuse Under the Field of Economics  

"No fears folks,  we have been onto these guys for some time now" - First Financial Insights

 The High Priests of Dark Linguistic Arts and Evil

Since well beyond the conception of this site, we have been crusading against the clear and obvious shortcomings of  neoclassical economics and their High Priests - Economists. The eye-opener coming with the 2008 Meltdown Revealing  that there was a very serious undetected aliment at works.  Economists were largely blind-sided by these and subsequent events; that we foresaw over a year beforehand, despite all preceding assurances and declarations that they were self-professed - "Masters of the Universe".    

Except they missed one important point - forgetting to tell the universe. Why?

Typically, economists are people who do not endear themselves to the virtues of good sense, but rather they prefer the comforts of group-think, fairy tales and fabrications beyond the sanity of reason. Sure in these 

contexts they have demonstrated remarkable skills - slippery sales and wordmanship that win honours in The Snake Oil Hall of  Fame. For instance, try explain to an economist that the doctrine and dogma of infinite growth within a finite construct is not possible. Good  lock, because they have a crafty word repertoire used to prove how ideas alone can override all universal laws and constraints of physics and their related mathematics.

Anyway, here is what The Bank of England said, and you may compare their noted  highlights  to many of our preceding articles over the years, listed below. The similarities are apparent - but the most important point is that more and more people, groups and organizations are tuning in and waking up to the absurd abstractions that this so-called field of study or social science has promoted to the detriment of greater human interests, and particularly its longevity. Rather as we all now know - they served the dishonest and limited vested interests of a few self-concerned entities. Their masters. 

The Bank of England Highlights:

Discredited, just at first count, 1) the majority of economics textbooks, 

2) vast swaths of the entire field of economics, run as it is by economists educated by those same textbooks, 

3) most governments’ economic policies, designed by these economists, 

4) much of its own work, also designed by the same economists, 

5) Paul Krugman and 

6) the “committee” that hands Krugman and his ilk their Not-So-Nobel Prizes.

Indeed, the message the Bank’s people send is so devastating to economics as it is taught today that their document will most likely simply be ignored, even though that probably shouldn't really be possible with an official central bank report. 

Read More

What we have also said:

ECONOMISTS: High Priests of Another Permian Extinction 

Invisible Genocide; Fallacy of Economic Growth

The Wealth of Planets

WRONG AGAIN! real economics:USA industrial muscle

All Economists Are Wrong - Dead Wrong 

As it was once said, "you can fool some of the people, some of the time... but not all of the people all of the time" The Bank is indeed getting closer to aligning economics with the constraints and limits of the finite context of our world, however there is still much more progress that needs to be made  - a conceptual progress that better aligns metrics and theories of economics with our species most critical and primary goal - "Longevity" 

With this we say,

First Financial Insights 
Toronto, ON
March 27 2014

Wednesday, March 19, 2014

MARKET ALERT - #China in Trouble - Platinum Wealth Partners

Thanks to our Affiliate - Platinum Wealth Partners

Default of a Chinese Bond: Isolated event or the beginning of something bigger?

It finally happened. A Chinese domestic bond has defaulted. It was the first default since the Chinese central bank (PBOC) started regulating the market in 1997. The unlucky company was Shanghai Chaori Solar Energy Science and Technology (Chaori). The major question though is this a sign of healthy maturing market or the beginning of a major problem?

If you had to choose allow a bond to default, Chaori was certainly a prime candidate. First it is small. It has only 1,500 employees. Second it is a private company, not a large state owned firm. Third, it is in the struggling solar industry with substantial over capacity. Fourth, its issues were well known. Some sort of default was expected. Trading in the bonds was suspended last June. At that time they were trading at only 50% of their face value. The total issue is $160 million and the missed payment was only $15 million.

China’s premier Li Kequiang warned that Chaori was not the last. He said on 12th March last week that future defaults of financial products are “unavoidable”. He pointed out that allowing defaults was a natural part of the financial deregulation process. There is also the issue of moral hazard, which the authorities are trying to address. In essence if you don’t allow companies to default, the markets assumes that they will never take place. With the certainty that companies cannot go under, investors will continue to pour money into risky assets.

   What Me Worry?


Our bets are that this is just the beginning, as it was long overdue. There

are so many cracks in the portfolio that it can only get worse. Recently we observed the fall in copper price, a BIG signal that the real economy is suffering. As  goes China - so goes the global economy. Put this at the top of your watch-list - as the walls come tumbling down

Platinum Wealth Partners

March 19, 2014 

Sunday, March 16, 2014

ECONOMISTS - High Priests of Another Permian Extinction?

 High Priests of Another Permian Extinction?


 "When it's over - it's simply over"

Here is a brief commentary regarding "The State of (Physical) Economics"posted to an Austrian Economics Forum today. There is no denying that the Accepted Economic  Thesis played a leading role in bringing us to the current stage of these times and conditions. A performance  that may now be beyond the reach  of any form of human mitigation.   

While ultimate extinction is an obvious functional outcome of combined mathematical and physical rules and constraints,  there was no need , as scientific evidence indicates, to push us rapidly towards the time where we might confront the analogous events that triggered the historical Permian  extinction, of a mere 250 million years ago, just because the so-called High-Economic Priests decided  to arbitrarily ignore these existential laws. So the accelerating  inertia that was thus set , by them , pervasively guides our travels prematurely to the hands of eternity's abyss. Now who faces the outcomes and experiences of its "invisible genocide," created by such a self-inflicted cognitive  dissonance? Well, by certain scientific  accounts,this "who" may irreversibly and actually be occurring sooner; rather than later, as is generally expected by many.


And yet, still even today our brightest and best minds ignore or fight these combining facts and laws of climate, natural and physical science,  whose related mathematics all act to form clear limits and logical results for physical economics. But rather, they choose the road of insane abstractions  and assertions regarding some infinite positive-sum-game of metrics and activity that "only exists" in the stories that they collectively tell in what are supposedly our hallowed halls of highest thought and education. Is all this again some sort of fog  - The Fog of Economics? .

So if  just a handful  of  simple words;  in a few humble sentences ,can understand  this complex predicament that we face together  - then why can't they?  Or perhaps, better yet - why can't we? 

In the end; no matter what ,we should vigilantly remember that: reality bats last - and there will be NO EXTRA innings. Because Yogi ..."when it's over - it's simply over!"

First Financial Insights
March 16 2014
Toronto ON

250 Million Year Old Existential Reality

And if you have the time....