Investors' Insights:
Week Ending March 9, 2013
FIRST FINANCIAL INSIGHTS
"Investors' Insights"
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
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
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 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
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