INVESTORS' INSIGHTS - Peter #Kinesa #JimRogers #EricSprott #FDIC

 

INVESTORS' INSIGHTS:

Week Ended August 4, 2013

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"Investors' Insights"

 

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US BANKS HUGE PROBLEM PERSISTS -Unofficial Problem Banks - FDIC Report

(Read More)

 

Hmm ... Emerging Pattern?

Despite how others are interpreting the latest figures, reported by the FDIC - we do not share their same enthusiasm. In fact, we have grave concerns, as the pattern appears to mimic the one experienced during the credit humbling days of the Great Depression. Here are some numbers to consider.

 

In Q2 2009, nine months after the meltdown, only 4.7% of the 8,195 insured banks were classified as problems. By the second quarter of 2012, the percentage rose to 13.3% of 7,513 insured creditors - at the same time, over 600 banks had vanished for a host of reasons. Today, we are looking at a figure of 10.3%, on a total report of 7,018 insured banks. Now these percentages do look somewhat comparable, in shape, to the 1930-32 period graph for bank failures, prior to the big collapse of 1933. Spooky.

 

Add to this numerical and graphic analysis, the fact that we have seen an extended period of monetary and quantitative easing, that has not seen benefits flow down to the Main Street banks. Disturbing! These banks are indeed no where near the numbers reported just nine months after the great 2008 meltdown - 4.7% to 10.3%. Meaning the problems have not been fixed to any great extent by policy measures, so far.
 

But could there be another 1933 in a year or two? The odds are good that a further market and credit meltdown is in the cards. First, because policy has had very little impact on the credit system's organic health; and secondly, a rise in interest rates would deflate financial and property assets, and thereby wipe out much of the equity in an already problematic and highly levered system. Thirdly, let's not forget that the global economy is fragile and exposed to contract widely with minor tremors.
 

These numbers and analysis are forewarning, so it would be wise for policy-makers to have the toxic-asset bail-out (disaster) plans in place well before events transpire, breaking the bank machine. But, should we ever expect them to Think ahead? Perhaps as 2008 indicates, the idea is just too novel.
 

Investors should also take note that another credit crunch is, not only terrrible for markets, but also the domestic economy, as the banking system that is even numerically weaker than it was back in 2009, cannot quickly act to stabilise both activity and valuation contractions. Meaning that the breach in valuations could also be much greater than the September 2008 meltdown losses, as market liquidity is also more susceptible to rapid tightening with weaker banks.
 

To close, analyse and draw your own conclusions, but we cannot help having this sinking feeling inside - there is something in the Autumn Air.

INVESTORS' INSIGHTS

First Financial Insights

August 2, 2013

When the bank machines are broken, expect...

The Jim Rogers Blog : WE ARE IN BIG TROUBLE! - There is a huge artificial Boom (video)

We are right behind Jim on this issue and recommend reminding yourself often and keeping an eye the ball, not getting caught when the trap collapses.

INVESTORS' INSIGHTS

 

This is beginning to sound like a chorus line with a song that sings about the coming collapse of almost every kind of asset value. We recently commented in The New York Times that values could collapse by as much as 50% should long rates rise by 2% or more. Readers got mad at us, but it's not our fault, because we did not invent financial mathematics - someone else did! Nor we do believe that these rules are open to negotiation, legislation or persuasion of any kind. They are absolute.

So how did we ever get backed into this corner? Well. you can blame the usual suspects, who lost sight of common sense and were "influenced by the political immediacy of their times." Now there is no where to run or hide.

INVESTORS' INSIGHTS

First Financial Insights

August 1, 2013

Remember these guys - Unusual Suspects?

The Eric Sprott Blog: HA! HA! - There is a Serious Shortage of Gold - (Read More)

"I think it’s just been one big scheme to try to get people dissuaded from owning gold and to cause supply to come out. As you mentione...

So do want to buy our new book - with over 1 million pre-sold copies? The title is "The Secret to How to Make a Lot of Money Real Quick"; - write a book like this.
 

Sarcasm notwithstanding, Eric is basically a promoter and should disclose his personal, corporate and managed positions, so it is clear where he is coming from and fair to everyone who listens to his pitch. As well, to make this relevant for serious investors - sources, numbers and opposing views should be brought forward for objective analysis. We strongly believe, moreover, that if this was such a great investment, folks like Buffet, Bogle, Gates, Goldman and many others, would all be quietly chasing this huge home run. There is little evidence suggesting they are swinging at the plate.

 

In the meantime, we will continue to support the belief that gold is a psychotic placebo, that has lost substantial real purchasing power over the past 33 years, as well as being the one of the worst asset classes over that time. Making it just a speculative relic used by barbarian traders that holds none of the attributes true investors desire - like expected or defined returns.
 

Bottom line, we are not putting much faith in the rhetoric of gold promoters like Faber, Sprott and Rogers. For as Charlie Monger would say, "if its too good to be true, it usually is "

INVESTORS' INSIGHTS

First Financial Insights

July 31, 2013

Our Message..

These wise guys are not "Gold bugs" for a reason -

The Dr Peter G Kinesa Blog: ECONOMIC GRAPH OF THE DAY: UK Wildlife Index Decli...: (Read More)

ECONOMIC GRAPH OF THE DAY: UK Wildlife Index Decline (1968 -2010) To the point, forget about all the graphs, ch...

You may think that Peter's comments are absurd, outlandish or just plain funny from an investment, finance and economic point of view. We, on the other hand, view such measures and observations quite seriously. So much so, that in the end we believe that one his upcoming books "Bugonomics - The Silent GDP of Bugs" will far out pace Freakonomics as a best seller.
 

Bugs by their nature are existentialists, just as Pete's Economic Doctrine plants itself in this philosophic foundation. For when man is gone, what happens to Bugs? Or is the question worded backwards? Hmm.

Read the book...

INVESTORS' INSIGHTS

First Financial Insights

July 30, 2013

BUGONOMICS - The Silent GDP of Bugs

 

 

INVESTORS' INSIGHTS - Financial Times, The Guardian, Portugal. Gold

INVESTORS' INSIGHTS:

Week Ended July 14, 2013

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Financial Times - Portugal's Bonds Soar 7.9% -  MORE Euro Troubles  

Just add another country to the list of European nations that are seeking "national salvation" as 10 year bonds rose to 7.9% this past Friday, settling back to 7.27% - up 53 basis points. Again the neo-classical economists have no solutions and no plan, other than to print money and provide bail-outs. Nor do they even remotely understand that the underlying issues stem from physical economic constraints - too many people and too few resources. So the economic cancer that came to the forefront in Greece, is masticating around the continent, remember Cyprus just a few short months ago . 

Here's the real problem - as Europe falls apart and bond yields move to 10% and higher in these "thinly traded markets," the fears will begin to take hold and grip the global markets as well. At the same time, the European economies are also starting to slip into one of the profoundest depressions ever to be experienced, as asset prices deflate and consumer disposal spending is over-burdened with huge increases in debt service costs. A One - Two body blow.

This could be the snowball that plunges the bond markets into a long bear-cycle. Expect the turmoil in Europe, to test the nerves of jittery bond traders in Asia and North America this week. And this could also trigger long over due downside actions in the equity markets around the world next week.

Seems like there is no where to run; no where to hide.For now.

INVESTORS INSIGHTS

First Financial Insights

July 11, 2013

Who will pull the trigger?

The Marc Faber Blog : Crude Oil is one of the very few Commodities that look attractive

What is it about these guys? One day, Dr.Kinesa, says oil could go to $500 a barrel because the finite physical constraints are going to cause economic problems, resulting in social disruptions, political turmoil and then geo-political upheaval . What can we say? We read the same articles or fools seldom differ...

INVESTORS INSIGHTS

First Financial Insights

July 11, 2013

Great Minds Think Alike

THE JIM ROGERS BLOG - Rogers: More Money has been lost in GOLD Mining Shares than any other industry in America 

We agree for the most part, except JIM you forgot one important aspect of mining, that is many mines are polymetallic, so they extract many other minerals including gold in their process. Should gold gravitate to zero, these mines will treat it as a by-product, and thus only assign the incremental costs associated with the ore or even  possibly leave it unprocessed for a period of time. If gold is a by-product then the full weight of production costs will not be attributed.So even at $50 an ounce, some miners may still be able to produce it on a break-even cash basis  because the cost assignments are arbitrary.

Anyway we are happy you enoyed our article - "Gold is a Psychotic Placebo - NOT AN INVESTMENT." And by the way, we confirm that old story about gold mines - 99% of all stock mining ventures end up being worthless. And yes, it will be very hard for these sociopaths to attract capital in the future. That's one good thing for the greater cause - our future generations!

INVESTORS' INSIGHTS

First Financial Insights

July 10, 2013

Somewhere Under A Rainbow

The Guardian - SuperFreakonomics is SuperFreakingWrong

The Guardian - SuperFreakonomics is SuperFreakingWrong

 Business Media Protecting our Planet

This article brings out a number of salient points regarding the information propaganda game being played with climate change by the nefarious business press. Never, however, do Canadians forget that "the medium is the massage" - because media has the subtle profound power to define realities that don't actually exist. The list of outright lies built on misinformation with its brutal consequences are endless. Therefore, investors should, as a rule, have little faith in the objectivity of the mainstream business press that is sadly run by so many hidden agendas.  

Climate change as pointed out in this article is being panned or suppressed with the passion of an addict who denies their affliction. The usual media suspects are mentioned, along with other crazies, who are promoting hair-brained schemes* to remedy irreversible damages already facing the bio-sphere. More false PROFITS! 

*(Remember Get Smart? Let's Bring Down the Cone of Silence)

To invest effectively, the planet's hard physical constraints must be considered in any decisions we make. Denial or ignorance could be very costly. Is climate change that serious? The best way to answer the question is with the question: Why is, Mayor Bloomberg, spending $30 Billion on a seawall for New York City? 

That's a serious - REAL Business Agenda...

INVESTORS' INSIGHTS

First Financial Insights

July 9, 2013 

Climate Change - could be bad for Business? 

The New York Times, Marc Faber, Peter Kinesa, Eric Sprott, Pierogi Farms

Investors' Insights:

Week Ending March 9, 2013

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Marc Faber : The Financial System will go Broke within the next 3 to 10 Years

When the markets look like they're ready to take a big bull run up hitting peaks, its a good time to refresh your thinking - at least to provide some balance - with a few words from Dr Doom. So here is his very popular video from last year forecasting a break down within the next 3 to 10 years.

Our predating post - Economic Collapse 2020 - A Failed Theory - pretty much says the same thing with a similar time line. Coincidence? Not really, its a calculated bet based on trends in resource inventories, inflation and simple mathematics. When rates move from these all-time historical lows they will bring asset values down in a blink of an eye. Thus all vavcation plans should also include a move to cash while your away - otherwise, you may not be coming back.

First Financial Insights

March 7, 2013  

Feeling a little high? Let Dr Doom help - 

Watch my video 

Dr Peter G Kinesa : The New York Times - Euro Zone Reports Record Jobl...:

The New York Times - Euro Zone Reports Record Joblessness Rates and Low inflation Place your bets! For some reason I think that both numbe...

Who will lead Europe? 

Reading between the lines,  I think Peter is saying that we should keep an eye on this Cardinals' Conclave - it could have serious political-economic consequences. 

Ever wonder if the Vatican keeps pictures such as this in their archives, just to remind them of their morale fortitude in the face of evil and personal danger? So few can ever reach the higher ground, when there are words - and words will determine the course of human existence. Pray they are the right ones. For words resting in the wrong hands are more dangerous to human enterprise, more dangerous than any arsenal of weapons ever assembled by man.

"It's not the facts that count, its the interpretation" - Winnie    

First Financial Insights

March 6, 2013  

Eric Sprott Blog: Canada Has NO Gold:

Eric Sprott discussing the complete lack of gold reserves that the Canadian government has. Start stacking Canada! End of the Road: H...

That's a good thing. Eric clearly needs a few lessons in Meta and Macro Economics, including an understanding of the Nauru Paradigm Cycle. First, what type of countries require large Gold reserves? Well, of course, countries on the verge of physical bankruptcy - meaning they have virtually exhausted all their non-renewable and renewable resources - hence, they are entering the last stages of the Nauru Paradigm. Gold is the last stand for these desperate countries, providing one remaining lifeline to deferring the inevitable collapse of their economic, political and social complexes. But, Gold can only relieves such symptoms temporarily - it does not fix or cure the underlying economic malady. 

By the way, most countries entering this final phase of the Nauru Cycle can expect two outcomes: increasing social unrest and growing external hostilities. This is a historical fact, but it is also reflected on today's geo-political stage. Consider Syria, Egypt, Iran, Greece, France, Japan and many others (China?) - all are nations entering the final stages of the Nauru cycle - where physical resources per capita are in rapid decline.  Expect More Wars.

Canada, on the other hand,  is invariably the richest country in the world given the vastness of its resources and infrastructure complexes. Its per capita resource/currency ratio is second to none, given its relatively low population.The last thing Canada needs is more Gold - it has enough in the ground in the event of need. Yet, there's more...

More reasons why Canada doesn't need Gold reserves? 

First; in a few short years, Canadians will be able to pick it up tonnes of Gold on the cheap, as last stage countries in the Nauru survival mode are dumping their reserves to finance wars; stay social unrest or ensure departing dictators have their retirement assets available in the right places, after political life. (Dictator's Survival Guide: Zurich Gnomes 101) .

Second, for the reasons mentioned, Canada's currency is trending upwards under immense long-term pressures, so the last thing it needs are measures that could be perceived to strengthen this sleeping giant of global currencies. It would not surprise us to see the Canadian dollar rise to $1.50 US in five years, and climb further to $2.00 in ten or less years - particularly when the FED's exponential, on-going debasement of the greenback is taken into account. This the price to be paid by the US for running its fiat currency presses 24/ 7. Meanwhile, these fiat currency presses, allow the  US  pay debts with paper IOU's, knowing that any debt repayment in physical currency forms is impossible (not enough OIL in the world?) - this paper chase cannot; however, last forever.  People figure it out, sooner or later.

A patient Canada is sure to be a BIG Winner in the Gold game down the road; albeit, a meaningless win when critical global resources are practically depleted or unusable. Mr Sprott needs to revisit his Meta-Economic books and refresh his understanding of the deep implications of the "Nauru Paradigm Cycle."

It goes without saying, that the Canadian dollar is a great surrogate  play on hard and soft commodities (including fresh water), both of which have more real upside in the coming years. Rogers, Soros and Faber think these commodities are too. Gold is a more speculative strategy - we prefer the elements offering real economic utilities - not golden abstractions from OZ. 

From Behind the Wizard's Curtain,

First Financial Insights

March 5, 2013 

Nauru Paradigm - when there is nothing left!

"Hey guys, that's not Nauru ??? Oh, I see?"

Marc Faber - "SELL EVERYTHING" - A Correction Could Start Any Day

Worth watching Marc dodge Maria's skeptical questions in this CNBC interview. We are not  being as analytical as Dr Kinesa's in his post today about the mathematics and logic of everything. In fact, we go along with Faber and Kinesa  foreseeing stormy markets ahead as we plow through this  "Ice Age " in valuations trapped by rates being too low, for too long - with no easy way out of the trap. 

When you listen to Dr Doom and the best bets he can put forward are the Ukraine and Viet Nam; you get a real sense that things are pretty tough. He does like the resource sector, but does not point to any specifics. Technology stocks are also on his watch list  - have consumer gadgets and applications peaked?

Who knows as consumers, according to recent studies, certainly do not seem to be as concerned about the environment anymore - that puts a damper on green tech as well.

Oh well, who has a retail pierogi farm or franchise for sale? 

First Financial Insights
March 4, 2013

Pierogi Farms Cheap!  - Exceptional South Kiev Investment Properties

$50,000 US - 10 Acres

Contact Ivan Jureychuck

Cabbage Roll Farms Realtors 

Bernie Madoff, Marc Faber, Jim Rogers, Peter Schiff, Eric Sprott

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Week Ending March 2, 2013

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Marc Faber - 2013 Gold Price Prediction

Now this video gives us a little insight into why he is carrying so much Gold in his own portfolio -25%. So now, you can see why he is so eager to have us buy more and protect his position. Otherwise, if we do the opposite and sell all our holdings - then our poor Mr. Faber faces unkind losses and embarrassment. All this could also lead to a career change for our dearest unbiased advisor.

By the way, will you tell us Marc when you decide to sell or reduce this position before you actually do? Hmm...

Madoff get back in the cage -

First Financial Insights

March 1, 2013 

Believe me, I told you 25% is in Gold

Home Sweet Home

Peter Schiff Blog: Video: The Real State Of The Union:

 Video Summary: The real state of the US economy; Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is t...

Here's Peter at his finest. Now let's do a straw poll here, does he make any sense? You're right he doesn't, as like most in this sales practice filled charlatans, they focus primarily on short-term abstracts and situations. Never do we get to the real problems causing the bloated debt, climatic chaos and financial tipping point.

Consider this,within the next ten years there will be less food, water, energy, and minerals, but more gold, pollution and people demanding more of the less food, water, energy, and minerals.And with each subsequent ten year period it will get much worse, until we actually run out of almost everything.

Beam  me up Scotty...

First Financial Insights

February 28, 2013

Peter, thanks for your thoughts and advice.

Marc Faber : Buy Gold To Protect Against The Next Crisis - Dr. Peter G Kinesa

Not really by design, but this week the two themes at "Investors' Insights" are quite similar, even in spelling: God and Gold. They both promise miracles and value forever. These assertions are not subject to object tests of quantum information, and thus fail to meet the burdens of proof needed to judge their on-going existence as scientific truths.You are, thus, left to your own speculative devices.

Peter is absolutely correct in pointing out that gold is not insurance against systemic risk - we believe any educated mind can easily understand the mathematical and physical reasons fairly quickly. However, it is beyond us why Marc said this, and Peter is being a little tough with his remarks. That's Peter.

To be clear, it is impossible for gold to insure systemic, nor does the belief in the other one, insure you absolute entry somewhere forever  over the rainbow.

First Financial Insights

February 27, 2013

Marc Faber : Buy Gold To Protect Against The Next Crisis - Dr. Peter G Kinesa

Oh My Gosh! Why all the Bugginess over Gold? It does nothing for our real economy, nothing to assure our on-going subsistence and expends currency from the real wealth of the planet. A net negative to planetary wealth.

Marc in this telephone interview is again taking on a senior role at the Pearly Gates, by saying or suggesting two things. Gold is insurance against systemic risk. And investors should hold up to 25% of their portfolio assets in gold. There is no way on earth that he can predict or state this just based on past events. The future is filled with a vast number of permutations, as regards the possibilities and possibilities of outcomes. One is that the price gold collapses more that everything else for any number of reasons. To say gold is some form of insurance against anything is - JUST PLAIN STUPID!

That said,obviously the 25% gold allocation is also not so wise for non-speculative portfolios.

When the crap really hits the fan, folks are going to be thinking more about gas, water, food and medicine. Things get pretty basic.

But let's not get into the prediction game here.

Dr Peter G Kinesa

February 26, 2013

" Peter, Gold Is Insurance Against Systemic Risk!" - GOD

Jim Rogers : Gold Is Overdue For A Nice Correction

Yesterday we published, commented and provided the link to one pundit's (Eric Sprott) video regarding the price of Gold. Now here's Jimmy, more or less saying "hey guys, this is too good to be true".  We would guess his opinion is a little less biased and closer to the probable outcomes that lie ahead - classic reversion to mean. But it is also remarkable, to see how two leading pundits differ. Such are the markets.

Still, as we said yesterday, even God knows he is not a Gold Pundit. Nor are we.

First Financial Insights

February 26, 2013

You decide?

Eric Sprott Blog: Is the West Dishoarding Its Sovereign Treasure?: 

Chris Martenson of Peak Prosperity interviews Eric Sprott of Sprott Assets. This interview occurs during the recent smash down of gold ...

This is not a asset category that we generally hold an on-going opinion on. First, the idea that gold is the last store of value is a preposterous idea in our "scientific economic modelling" having no relevance whatever to sustaining human existence. Gold's value is thus an abstract construct, and not a concrete construct for purposes of object scientific analysis. John Maynard Keynes also refused to entertain it as have any meaning to real economic activity. Rarely do we ever agree with Keynes - he had his flashes of brilliance. 

It is simply an element extracted from the planet that is a bit more attractive looking than others, so it must logically have more value. This group think " beauty in the eye of the beholder" has a long history. But history will never predict the future, it simple allows for the setting of possibilities and assignment of probabilities.

So we would agree with the Central Bankers who are quietly unloading their inventory,while trying sustain these high price levels for as long as possible. Gold's price, because of its speculative nature, could collapse at any time for whatever reasons - to $1000 or even $500 per ounce. And, not return to these price levels for years. One thing we can guarantee for absolute certain: neither the Central Banks nor Eric Sprott knows for sure. And we know that we certainly do not know. " No one does in reality."

Most importantly,the difference between Gold Pundits and God. God knows he is not a Gold Pundit.

So why have regrets, particularly when there is enough gold above ground for 400 years of industrial production, while oil runs out in about 40 years. Then good luck, in 2055 or 65 in exchanging that ounce (ton) of a pretty metal for a fruits and vegetables basket. 

First Financial Insights

February 25, 2013

How many tons of gold per basket in 2065?

Not even God knows for sure...

Dr Peter G Kinesa : Paul Krugman - Currency War Confusions

Dr Peter G Kinesa : Paul Krugman - Currency War Confusions: 

Take me to your leaders!

Paul Krugman - Currency War Confusion  OR Just the Same Old BS (click here) The New York Times, February 15, 2013  Why do I state over...

It goes without saying that Peter's comments are aligned with our views. But let us underscore our disbelief and utter dismay for Economists and all their related academic and institutional establishments. What planet do they think we are living on? Surely, these wise folks are smart enough to figure out that growth cannot go on and on and on. But who knows, maybe not.

Perhaps they truly believe that their abstract world governed by the thesis that a positive sum game without constraints, actually exists. That the real world's negative sum game, with all its physical and mathematical constraints, is just a bad dream. When these two worlds collide the human disaster will, however, be unprecedented ; as all order in economics, politics and civil society will just completely fall apart. And then. And only then; will they be calling on YOU know WHO, to try and put Humpty Dumpty back together again.

So let their words mean what they mean them to say, reality pays little attention to such childish semantical games -  little heed at all. And let's just face it, the Harvards, Oxfords, IMFs, World Banks, Finance Ministers, Economists and all the rest, have not advanced economic thinking in over 200 years.(Just ask them - what are the critical outlooks for economic study?) Nor has any form of quantum thought, information, discovery and research every been applied to this "field of study" in a substantive way. Still, they continue to call this a science? Ha!

So in the end, we have just one question about this group of neurotic malcontents...

First Financial Insights
February 19, 2013

...why are these guys so...

Eric Sprott, Jim Rogers, Winston Churchill, Peter Kinesa, Marc Faber

Investors' Insights:

Week Ending Febraury 16, 2013

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"Investors' Insights"

Dr Peter G Kinesa Blog, February 15, 2013

Article; The Guardian (UK), 

Indeed, there is a gathering storm ...so let them know!

First Financial Insights

February 15, 2013

Secret funding helped build vast network of climate denial thinktanks

C

"Don't Worry Mom - What goes around; Comes Around..."

Can you believe this? Are these people nuts? There is no climate change. We are not overpopulated. The world has enough resources for eternities. No species are going extinct. Glaciers are not melting.  Fresh Water is plentiful.  The global economy is not on the brink of collapse. These are just a few of the misconceptions and lies that these right-wing kooks are promoting.

What next? Mathematics does not exist? The laws of physics are negotiable and may be legislated away? We have supernatural powers?

Funny, the Nazi’s believed in the occult too. There is no doubt that these jug-heads are revisiting Mein Kampf for inspiration, techniques and speeches to stir the vast uneducated masses. To stir their fears with lies, propaganda and rhetorical ideologue.  However, this time the holocaust will go well beyond millions – for the fate of the human race is now at stake along with the lives of billions.  There are no higher stakes.

The mainstream media is restricted in how they may coin and define these sick, twisted and intellectually perverted right-wing think (sic) - tanks. We are not. They are carbon copies of the 1930’s  Brown Shirts that bullied their way into German power. And the world has not forgotten the dangers and sickness that these cowards bring upon an unsuspecting world. Churchill taught us well. We will never forget Winnie’s tenacity, wisdom and superb foresight that saved not only a Great Island Nation- but it also saved a civilization from its untold evils.

So today again, this evil stirs in our midst. Seeks to destroy the civility of our species. To undermine its true progress by destroying the books of science and truth; to serve their sole evil perversions.  

  

So let them know that on every beachhead of thought, they will find those with a greater will. A greater determination.  An unyielding belief that we will prevail. We will prevail against all adversities. And let them know, that there is no doubt – no doubt at all, that we will win and defeat their lies, censorship and propaganda on every turn. On every word. On every deed.

History has revealed their sicknesses before, so let them know that we understand the hardships we face in defeating the cancer of these think-tanks and their nefarious troops of words and deeds. Let them know, that we see this gathering storm. Let them know, that we will prevail against all adversities – and, win today and all the many days that lie ahead. So, let them know!

An Outraged and Inspired,

Dr Peter G Kinesa

February 15, 2013

A gathering storm...so let them know!

Jim Rogers : The next 30 years will be the decade where the producers of real goods are in charge

Preaching to the converted here Jim; as shortages, not just in fossil fuels, but in many other key non-renewables should see hard commodity prices spike a 1000% plus, in 30 years. Soft commodities will also experience similar lifts as usable farmland is lost to climatic chaos and unfettered development. All of which makes no sense whatsoever, when projected increases in population  range from 2 to 3 billion during this period. Now crunch these numbers. 

That's why we agree, and say that this mess just doesn't pencil out.

First Financial Insights

February 14, 2013

Secrets of Crunching Numbers 

Eric Sprott Blog: There is a Serious Vulnerability in the Financial ...

Eric Sprott is interviewed by Greg Hunter of USA WatchDog. Eric discusses how the bond markets has become a farce and that it could col...

When the brightest "independent" investment and economic thinkers are all singing from the same page - well you think that there might be a little more substance over form in their carefully and wisely constructed professional views. We certainly do not ignore the leading chorus of Eric Sprott, Peter Kinesa, Marc Faber and Jimmy Rogers - and, of course, yours truly. One would be foolish not to believe that there is something in the wind and coming soon - and it is not the Easter Bunny.

In short, what all of us are saying is that at any moment bonds could collapse sending the global economy into a New Dark Age. Such is the wisdom of your "Council of Elders."

First Financial Insights

February 13, 2013

"So Eric, Peter and Marc now agree with Jimmy, right?"

Marc Faber Interview with MoneyControl.com

Marc believes markets are topping out and points to Apple's 30% decline as to how stocks can rise then fall back again. So short term, he thinks that a 10 to 30% reversal is still in the cards. He points to the sell off that occurred in 1987, when stocks collapsed 40% in two month after a preceding 44% run up.

We concur with Faber, that the risks are high in the short-term, but we know that markets can climb the wall of worry, despite rational fundamentals. It has its own mind; perhaps abetted by the flash- traders dance, thereby becoming more of a casino. However, as there is no strong rational for any long-term positive sentiment, we are biased towards short positions particularly in US Banks, Brokers and Treasuries. Tech companies should also see valuations punished more than the broader market. Facebook and Apple are still high on the list.

The turning point will be the collapse in Bond Market that is long over due, as everyone knows that the inflation figures are being rigged by Washington to keep rates low. This game cannot last, as sooner or later the market sees through such things; albeit the FED can continue to prop it up by printing more money.

These are time to be extra careful. Period

First Financial Insights

February 12, 2013

Funny Money Games: When Seven is Eleven?

Jim Rogers Bullish on Water Investments

Who could dispute Jim's logic on this bet? First, water is the most essential ingredient required by farmers to ensure the delivery of their harvested crops. Our food stock capacities are thus directly tied to  the adequacy of water supplies. Global populations continue to grow at a rate of over 1% a year with no signs of abatement. We are thus annually adding close to 100 million new mouths to feed.

Now at the same time, farmland and water is contracting due to commercialization, climate and polluting elements With each day, farmland and water are thus becoming more vital to the subsistence of global populations. In fact, China is now importing Great Lakes Water from Lake Michigan through Nestles. This is a sure sign that the supply of fresh water has deteriorated to an unacceptable level in a maior industrial nation. "Serious and deeply disconcerting."

So we are on side with Jim here, but the question is how to invest in this critical sector? Not equities for sure, as the levels of global systemic risk are presently much to high, in light of sizable increases in global interest rates, pending. To be short, we return to a buying farm - Jim's top investment pick - with one additional caveat ; just make sure it has an assured supply of water on the property.  

First Financial Insights

Febrauary 10, 2013 

Running on Empty