INVESTORS' INSIGHTS - NEWS ALERT - "Russia Rebuffs Cyprus...

INVESTORS’ INSIGHTS
 

“NEWS ALERT ”

Russia Rebuffs Cyprus Bailout

Click Above for today's Globe and Mail Article

 

This is getting to be worse than the Wild,Wild West or the Lehman Bros. fiasco of 2008. Where was the EU and ECB oversight in the first place? Does the ECB, EU and IMF not have any regulatory metrics in place to detect or prevent such issues from ever reaching this stage?. Granted Cyprus is less than .2% of the EU's GDP, but still, could you imagine the US not bailing out Rhode Island? Or Canda PEI? The message would be clear: "there is no political union nor governing Central Bank". 

This is the absolute wrong message for the EU and ECB to be sending ,when they will be facing crisis after crisis in the months ahead. Bond markets should be shrivering, as these new frontiers are openiing unknown, unknowns with the potential to dominoe into the global system. Trigering the much feared rise in interest rates around the world.

Whatever bailout funds Cyprus had expected it needed, is now sure to be much larger as every depositor with a heart beat will be looking to withdraw their funds as soon as possible. Some sources say the Russians have as much as $65 billion on deposit, that they could be wanting to pull out the moment the bank doors open.on Tuesday. This could therefore get much uglier.

Is it the beginning of the end for the whole EU experiment? It does not look promising.

 

 

 

 

Investors' Insights

First Financial Insights

Comments

The Globe and Mail

Toronto, ON
March 22, 2013

 
 

 

Unknown, Unknowns

 

INVESTORS" INSIGHTS - "NEWS ALERT MARKET WARNING' - Cyprus Rejects Deposit Tax

INVESTORS’ INSIGHTS

“NEWS ALERT MARKET WARNING”

Cyprus Rejects Deposit Tax
Click Above for today's Wall Street Journal Article

No one voted for what could have been the most devastating economic policy action in over a hundred years anywhere. Wall Street Journal's article sets out further details and is linked above. With the rejection of this plan the country still faces major hurdles in order to avoid bankruptcy - whether a deal can be cut with the Russians remains uncertain. We are consequently withdrawing our stern "Market Warning", but will continue to keep an eye on events, particularly if Cyprus is the first nation to be forced from the EU due to its financial and economic mismanagement.

First Financial Insights

March 19, 2013

EU Policy-Makers Look To Future of Cyprus

"Guys, that's not Cyprus! Oh, I get it - another Nauru?" 

INVESTORS' INSIGHTS - "MARKET WARNING" - Cyprus Deposit Seizures Create More EU Fears

INVESTORS’ INSIGHTS

“MARKET WARNING”

What if your bank shut down, then gave 10% of your (and everyone’s) money to the government? This just happened in Cyprus.

Click Above

This deposit seizure is a very serious matter and  policy event that has far-reaching economic and investment implications on a number of fronts; as it sets a dangerous precedent for banks, brokerages, pensions, insurance companies and all other forms and shapes of financial concerns around the world. What happened in Cyprus, could it also occur anywhere in the world - as desperate governments are forced to take harsh illegal actions that violate all forms of commercial law, regulation, ethics and fair economic principles? Who can answer this question now?

Cyprus opens the door to a jackpot of issues that occurs when governments legitimize the outright theft of deposits and assets from bank accounts within their jurisdictions. This is theft of the worst form. For it undercuts the " Rule of International Law " and thereby all confidence in engaging in financial transactions with international bodies or their banking agents. Should this "illegitimate tactic" spread to other European jurisdictions, then the whole financial system could collapse in just a few days, as a panic moves from country to country - and therein; bank to bank. 

Let's remember too, that Cyprus is not a third world country under the control of a socio-pathic despot. Its actions appear to have the tacit approval of the EU and ECB. The implications of which place the whole European banking, brokerage and commercial system in "grave jeopardy"  - leading to a possible collapse in EU financial markets and systems due to fears of more deposit seizures.  

The amount, extent, and rippling effects of the theft of banking deposits or assets by any government is so devastating that immediate measures, sanctions and condemnations must come forward from all world governments, financial institutions and regulatory bodies. Or else we risk seeing the beginning of a wide-spread fear that has the potential to snowball out of control. 

Why? Because the question everyone will be asking is: Who's next? Italy? Spain? Greece? Ireland? Portugal? Savvy investors, banks, funds and institutions are sure to start readjusting their positions next week (many did over the weekend no doubt) before the markets open Monday and banks in Cyprus reopen on Thursday. We, hence, expect major outflows and realignments of capital out of marginal EU nations should no counter-measures be applied.

What Cyprus has done is completely unacceptable and thus harsh measures are needed to correct this violation or else the whole global financial system risks a collapse. The problem is that even if measures are taken to fix this immediately; it has created a "whole new fear or risk" in the minds of investors regarding the safety of funds in banks and institutions in Europe, - or perhaps everywhere. This is the last type of policy action one could imagine in such a fragile economic environment. Markets are sure to respond with deep concern.

This is potentially far worse than the crisis that was caused by the Lehman Bros fiasco and we have consequently issued a Market Warning to all our clients, readers and followers for this week. Of course, we will be following and commenting on events as they unfold.

   

So, we too say, "Be careful out there" 



INVESTORS' INSIGHTS
First Financial Insights
March 17, 2013 

GAME CHANGER - 

When Integrity is Lost 

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

Investors' Insights:

Week Ending Febraury 16, 2013

FIRST FINANCIAL INSIGHTS

"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

Paul Krugman, Jim Rogers, Marc Faber, Nouriel Roubini

Investors' Insights:
Week Ending December 15, 2012 

FIRST FINANCIAL INSIGHTS

"Investors' Insights"

"THRILLA IN MANILLA"

2012 Heavyweight Fight

Faber vs Krugman

Dr Peter G Kinesa : HBO LIVE: #FABER vs #KRUGMAN 2012 Heavyweight T...: Marc Faber: Paul Krugman Should Go & Live In North Korea The gloves are off - and the promoters are lining up for the biggest fight ever ...

This should prove to be one of the most exciting heavyweight battles in decades. Fans are so excited that tickets were sold out in a couple of hours. However you can still watch it LIVE on HBO.

This is fun, yet all jokes reveal serious matters. See ya there!

First Financial Insights

December 15, 2012

Jim Rogers: I would like to find a way to invest in North Korea

North Korea? Really? Too funny - we just do not know if we should laugh or cry about this implied advice? Certainly, Mr Rogers must regret these remarks in view of recent events, Then again; never mind recent events, how about the on-going atrocities of this evil blood-drenched regime. Oh well, why should anyone believe in moral capitalism when there is a buck to be made? Ask any mercenary...

Well Jim I guess we know what side you' re on and who you expect to win the inevitable confrontation. Gotta love geo-political investing.

Any other bets?

First Financial Insights

December 14, 2012

"One Should Only Invest (Bet) in Winners"

Dr Peter G Kinesa : Marc Faber : In a Negative Real Interest Environment...:

Marc Faber : In a Negative Real Interest Environment Some Assets could go Ballistic on the upside Think about what this means in a practical...

Paul Krugman calls this predicament a "liquidity trap". Often we stated that the mathematics also creates a "valuation trap". Then adding them both together creates a "reality trap" - the breach of the physical imbalance between abstractionists' and existentialists' theories leading to economic collapse. 

Or you could say, the pie just got too small to support the population and its unbridled appetite to produce and consume the resources of a finite planet.

That's not philosophy... it's science!

First Financial Insights

December 13, 2012

That's not a banana...

Nouriel Roubini Blog: To Keep Greece In The Eurozone, You Need A Transfe...:

"To keep Greece in the euro zone, effectively you need a transfer union, you have to realize that the problems of Greece are long-term, it’s ..."

It never ceases to amaze us how classical economists ignore reality and rely on abstracts - to fix what are very real physical economic problems. Now, to uphold the integrity of their craft they suggest ideas that will take 10 to 20 years to (sic) succeed. So we have to wait 20 years to see if they are right or not?

Whereas Greece's problems will never be fixed as the physical economic geography has a smell of Nauru too it. So a return to a smaller population that lives off of farming and fishing is inevitable.

First Financial Insights

December, 12, 2012

Greek fishing business catches Nauru?

Eric Sprott Blog: Gold - Solution to the Banking Crisis:  

By: Eric Sprott & David Baker The Basel Committee on Banking Supervision is an exclusive and somewhat mysterious entity that issues bank...

One can only wonder if we ever truly leave our childhood fantasies behind? Central Bankers provide much evidence that many of us continue to hold on to these fantasies, despite the preponderance of science and evidence to the contrary. Blame it on group think? Politics? Denial? Or a host of other factors - the reality is that Central Bankers need to come to grips with scientific and mathematical constraints; otherwise, they are going to be waiting an awfully long time, for the Jolly Fella to arrive.

At the same time, we should also remind them - there is no Tooth Fairy!   

First Financial Insights

December 11, 2012

Are they still waiting? 

Dr Peter G Kinesa : Finance Documentaries: Super Rich: The Greed Game:

  

Finance Documentaries: Super Rich: The Greed Game : The luxurious lifestyle of those at the top of the world of finance inspires awe, disgu...

Greed in many forms, has it consequences - are those who have benefited from the economic doctrines that asserted that growth was the panacea, now facing the portrait of Dorian Grey? 

We are afraid to find out...

First Financial Insights

December 11,2012

An Economic Portrait?

Nouriel Roubini, Peter Kinesa, Jim Rogers, Nassim Taleb...

Investors' Insights:
Week Ending December 1, 2012 

FIRST FINANCIAL INSIGHTS

"Investors' Insights"

Hmmm...

Jim Rogers: Politicians always look for the easy answer

There is a good reason for this - they are not exactly the sharpest knives in the drawer. In fact, once there was a village in Texas missing a idiot..Some things we should never forget.

FirstFinancial Insights

November 30, 2012

Sure I can spell it!

Nouriel Roubini Blog: A EU Of Regions? Not Likely.:

Nassim Taleb idea of Anti-Fragile implies that a EU of regions would work better than a EU of nations. But fat chance of this happening. - i...

Nassim is partly right - the EU needs to say we "whoops" we made a huge mistake; completely break-up, restrict immigration, stop subsidizing Germany and let each country take advantage of its comparative strengths - something that was once called "free markets"

But as Nouriel says, " Fat Chance"

First Financial Insights
November 29, 2012


That's Italy! There's Spain! And Greece is the back...

Jim Rogers: We Will have Wars

Jimmy what's up with the war-mongering.? It is just not about wars ... its about BIG wars when the tensions amoung great powers reach a zenith. The American Imperial Empire will fall like all the others due to geo-economic overreach, but there may not be a country standing in the wings to take their place. Why? Because the curtains will be closed.

First Financial Insights

November 29,2012

What type of WAR?

Peter Schiff Blog: Video: No Ceiling For Gold Prices:

Related: SPDR Gold Trust (ETF), Newmont Mining (NEM), Goldcorp (GG), Barrick Gold (ABX) Peter Schiff`s comments on the economy, stock m...

We hear Glen Beck is Peter's Advisor; Ha! Anyway a word to the wise: when Schiff, Rogers, Faber and Glenn Beck are all recommending Asia it is time to move on - or else you can buy what they are  selling. If you know what I mean...

First Financial Insights

November 28,2012 

Sorry you guys are upset -

  

Marc Faber Forecasts Keynesian Catastrophe for Global Economy

We do not share Marc' s enthusiasm for China, Asia and emerging markets for reasons related to future scarcity of resources and related transportation costs that will make these places unsuitable investments longer-term. Moreover, China is a meta socio-economic-political  powder keg - it will collapse in the not too distant future. Be ready for that landscape.

Oh yeah; our bets are on sophisticated, low population, resource laden economies and those who have the Biggest Guns: Russia, Canada, Australia, and America. Good luck to the rest...

First Financial Insights

November 28,2012

China Rising?

Nouriel Roubini Blog: 2013: Downside Risks To Global Growth Will Be Exac...:

"In 2013, downside risks to global growth will be exacerbated by the spread of fiscal austerity to most advanced economies." - in Project Sy...

You can tell that the neo-classical economists really have no clue about what makes things work. The economies that are failing and will continue to; is  because they have no inputs for producing outputs of value. Many are running out of gas - others, just running out of stuff. Abractionists - go figure?

Watch them scratch their heads when China and Japan start their respective downward spirals - again without physical inputs; outcomes are highly predictable.

First Financial Insights

November 27, 2012

Economist or Madman?

Our Country's Hidden and Very Real Liabilities

 Well at least it has stars!

This is a right-wing American blog that is a good source of incredulous and inaccurate information. Very reassuring

Actually, Bill Gross estimates total US government debt at well over $100 trillion, which is almost equal to the value of the World's probable oil reserves. Ouch! How do you pay it off? You don't - and you can now see where our problems begin.

First Financial Insights

November 27, 2012

Marc Faber : We are already in Recession

Indeed Professor -

In case you don't understand what Marc is saying - GDP numbers are meaningless measures of just about everything. Hey, what did expect from madmen?

First Financial Insights

November 27, 2012

Jim Rogers: Both English and Mandarin will be important in the 21st century

Jimmy is forever the optimist. That's a good thing, most of the time. But China is ripe for another cultural revolution, where the human costs could exceed the 60 to 80 million lives lost during the last cleansing. Jim's blind faith in such regimes stirs the hearts of those who contrarily pursue dignity, justice and freedom for the many. Hearts passionately set against these inconceivable human atrocities. In short - The Good Guys! 

So forget about China and Mandarin, as it operates against the foundations of the sensibilities defining humanity. CHINA IS DOOMED. And America's Walmart (A. K. A  ChinaMart) will need to find another impoverished and subjugated people to exploit: governed by genocidal goons. Just good business?

First Financial Insights 
November 26, 2012

How's about Russian?