International Commerce

★ Wealth Advisers: Thousands Are Available Now (To Increase Bankers’ Wealth)

News Analysis: Banks are hiring additional Wealth Advisers, beyond the present Thousands, (to increase the Wealth of Bankers). As more of these people are hired, one must ask: What “Real-World” Experience do they have in: Aeronautics, Agriculture, Building Construction, Manufacturing, Mining, Science, Shipping, or Technology? These are Core Industries, in varying degrees,  for Countries World-Wide.

All too often, the Public is addled by the Marketing by Financial Institutions (FI’s)  into thinking the ‘FI’s’ have all the answers of the Financial Future of Humanity; Hardly!

The end-result desired by the ‘FI’s’ is ‘significant’ Profitability Increases for themselves FIRST. As a follow-on, Client’s Monetary Growth above (however slight) a country’s Consumer Price Index  is Acceptable. A Party interested in Wealth Retention will be appeased by such mediocre performance, hopefully.

2013, was a well ‘Manipulated Market’ for Stocks (as one views a Snap-Shot). To those ‘FI’s’ who point to Clients’ Wealth increases in 2013, one can ask: “Please repeat this performance in 2014”. Many experienced International Investors  think ‘FI’s’ will be “Rolling Sevens” as in a ‘Crap Game’. To add ‘legitimacy’ to 2013 Stock Market Performance, one can expect that 2014 will also come in ‘Like a Lion’ (but ‘Go Out Like A Lamb’).

The “Legitimacy Factor of 2014” in support of 2013’s “Manipulated Market” should ‘Peter-Out’ in approximately a May-June, 2014, time-frame. By continuing out several months into 2014, the Public may think that all-is-well and invest their funds without discretion. ‘FI’ Wealth Managers will be more than happy to accept the funds. The public will be reassured by the ‘FI’s’ that “2014 will replicate or out-do 2013 AND continue into 2015!” Retail and Investment Bank Managers will be “Shorting their Investments while ‘Going Long’ for their Clients”; this is REAL WORLD History for many Wall Street Bankers in particular. “Fleece the Freiers” is their Mantra.

Wise Investors understand that a “One-Year Performance Snap-Shot” is hardly indicative of a Substantial Enduring-Over-Time Investment Market. It is more suited to ‘Day-Traders’. It is also very indicative of a “Artificially Created Bubble”! Where is the Support for this 2013 Market? There is minimal: Manufacturing of Big-Ticket Consumer Items such as “Business Jets” and Yachts: Large Service Contracts; Large Private Employment of Persons with College Degrees or Advanced Degrees.

It appears that, regarding Employment (at least in America) the Federal Government has had the largest employment increase. The National Security Agency and Transportation Security Administration are both bulging with employees many people think. These employees lessen the Unemployment figures which the ‘White House’ loves to allude. 

For 2014, a Wise Investor will have to consider: “Should my Gains remain (by ‘Cashing Out’) or ‘Play and possibly Pay’ on or before a Stock Market Collapse?”

As 2013 ends today, the “Bubble Masters” will be celebrating the New Year with Champagne (as they gleefully anticipate the next Incipient Bubble; of their creation).

Reality.

 Reference: http://www.bizjournals.com/sanjose/news/2013/12/30/wells-fargo-bofa-hunt-talent-to-serve.html?page=all

NYK Shipping Lines Builds Japan’s First Dual-Use LNG/Heavy Fuel Tugboat

News Analysis: Japan’s Nippon Yusen Kaisha ‘NYK’ Shipping Line has received Japanese Government Funding for this New-Build. This advanced approach to controlling Maritime Harbor Atmospheric Pollution is commendable. It is hoped this vessel will be a precursor for such vessels operating in the heaviest of Harbor Atmospheric Pollution areas of the World, such as the Port of Los Angeles, in Southern California. NYK Shipping Lines maintains a technological advantage over many competitors. It realizes there is only One Precious Atmosphere in the World; it must be protected. 

Reality.

Reference: http://www.nyk.com/english/release/2446/002945.html

California, U.S.A., The “Golden Arm” State

News Analysis:  The World’s “Sixth Largest Economy”, California,  also has a Plethora of Customers for Narcotics. Not limited to: “The Movie Industry” (‘Users’ whom have been well reported for decades – Especially when they “Overdose”); Various Novel Writers who use Illegal Methamphetamines; “Silicon Valley IT Nerds”; Los Angeles/Orange County ‘Professionals’; and of course, the oldest Narcotics-User-Profession of all – Medical Doctors (with their immediately available, Abundant Supply).

Since California Residents are a large ‘Customer Base’ of Illegal Narcotics Users, growers of Marijuana, for example, have established ‘Grass Farms’ in neighboring wooded areas (throughout the State) to the populations (providing lower shipping costs, interdiction by law enforcement, and greater profits). Cocaine, Heroin, and Opium Sources typically originate out of the Country.

To those Addicts who need “Medications” stronger than that provided by the “Non-American Fabrications”, they merely visit their Friendly Prescribing Physicians. Since there are Medical Doctors who are Addicts themselves, they ‘understand the needs’ of their patients.

The Medical Board of California even has a “Physician Wellness” Program for Addicted Medical Doctors since the Narcotics Problem in the Medical Community is so Acute.

To the State of California’s Credit it is trying to “Weed Out” the ‘Sham Followers of the Hippocratic Oath” and remove the Licenses of those Physicians.

Of California’s 130,000+ Physicians & Surgeons, one can realize that investigating All would be an arduous task (especially for a heavily indebted State Government). Those few who are investigated can expect, perhaps License Revocation, for a period of time. Incarceration in a State Penal Institution is highly unlikely (but a Good Story for a Film produced by the Illegal Drug Users of the “Motion Picture Industry”).

In California, in particular, as well as in other American States, there is too much profitability in the Illegal Trade by Bankers, Growers, Investors, Manufacturers, Politicians, and Tainted Law Enforcement  to reasonably expect an abatement of this Business.

Reality.

Reference: http://www.sacbee.com/2013/12/19/6015437/california-doctor-license-revocations.html

★ 2014 Equity Investments: “Stay Long” Is A Fool’s Song

News Analysis:  As to 2014 Equity Investments, it becomes a Year of less capability of Central Banks to play “Interest Rate Lowering Games” (IRLG)  to Support their Economies. With ‘IRLG’ already, in 2013, at historic lows  in most countries, do Central Banks “lower rates into negative ranges”? Effectively: Do these Banks pay Borrowers for the Borrowing of monies from the Banks?

Since MANY Banks throughout the World already have questionable loans made to customers, if the borrowers start defaulting, en-masse, what happens to the Banks? What happens to Equity Markets? Can ALL Banks even pass ‘Stress Tests’?

Central Banks can be ordered to print more Money (mere paper with ink on it); Supported by Next To Nothing. For example, if a “Super Power”, which already has $17+ Trillion Dollars in Debt, wants ‘Monetary Expansion’, it works its ‘Bureau of Printing and Engraving’ Presses 24 hours a Day, Seven Days a week and ‘Voila” More Money! No problem! Inflationary Effects of such behavior can be curtailed in the Short Term only. The effect on the populations’ thoughts are “Things are not bad. People have money”. They spend the money and a ‘Multiplier Effect” takes place creating activities financially.

However, since the money is based not on increases in Gross Domestic Product of the Country, but on Printing Capacity, a ‘Mirage” of Good Economic Health exists (Until the ‘Patient” coughs)

Covering the Costs of War, Natural Calamities (such as America’s “Hurricane Sandy” hitting New York City, Tornadoes, or Tsunamis (like the Fukushima, Japan Incident) can  be the “Cough” the Central Banks can ill-afford. The Delayed Repairs thereafter (as in Hurricane Sandy) evidence the Government’s actual lack of financial resources (to which it is loathe to admit). Additionally, borrowing more money by Central banks increases Debt Service Expenses.

One must ask, how can the Stock Markets be at “Highs” with Weak Economies and Poor Prospects for Growth in 2014? What major Manufacturing Programs are currently occurring? Where are “High-Dollar” Service Contracts being let? Are there large  areas of the Economy paying “Good Wages”?  Is National Employment at high levels?

“Markets look SIX MONTHS Ahead” is the Stockbroker’s Mantra. Current Market Prices Of Stocks are NOT supported by Economic Realities, many people think; Not of 2013, nor 2014.

In Not “Actually Solving the Economic Problems”, as aforementioned, the governments turn to their Civilian Banks who utilize the services of the “Bubble Masters”. These are the platoon of Economic Marketeers, including the Mass Media, who start ‘blowing their “Bugles” for a ‘Charge’ into a particular Industry they have already prepared. The Bankers, Brokers, and their  ‘Buddies’ win, other lose; and so it goes. One should realize: The present  “Stock Bubble” will collapse (as did the “Gold Bubble” before it and the “Real Estate Bubble” preceding the Gold Bubble)!

“Listening to Brokers will make one ‘Broker'”, many cautious people say. Brokers opine that “2014 will be a Year of Cautious Investing” while they and their friends ‘Short the market’ (to get every ‘Last Dime’ from the “Freiers”).

 A Wise Investor may think: “Do I want to risk my current gains by seeking every  last Penney or do I cash out now and Plan for Tomorrow; with my Gains of Today?” 

When Brokers say “Stay Long” (with mediocre realities), Smart Thinkers ask “Why?”.

As the Wise Investor considers to hold or sell his or her Equities, Bankers, Brokers, and their Buddies consider which new “Market Bubble” they will create; for them to Win, others to Lose.

Very Smart Investors consult Others who can correctly ‘Connect the Dots’ for determination of ‘Incipient Economic Bubbles’ so they also can Win in these ‘Carnival Games’.

Reality.

Reference: http://news.xinhuanet.com/english/world/2013-12/28/c_133003842.htm

☆ Luxembourg’s Banque et Caisse d’Epargne de l’Etat (BCEE) Flies Through “Stress Test”

News Analysis: The Bank in Luxembourg: Banque et Caisse d’Epargne de l’Etat performed very well in its being reviewed by European Banking Authorities. It has a 16.3% Liquidity Ratio, well above a required minimum of 9% as derived from  “Basel Accord” Provisions.

The ‘Liquidity Coverage Ratio’ is set up so Financial Institutions can survive “Tremors” in short-timed liquidity situations. By holding a certain percentage of High-Liquidity Assets such as Treasury Bonds or Cash (the equivalent of or greater than the Bank’s Net Cash over thirty days time), a Bank is deemed to be “Less Stressed” since it has a minimum of 100% containment.  

The effects to possible Borrowers at a Bank is that it has less money available for short term loans.

‘BCEE’ performs with a Professionalism much in consonance with the Economic Awareness And Good Practices of other Monetary Elements in Luxembourg (which is of International Financial Renown).

Reality.

Reference: http://www.wort.lu/en/view/luxembourg-s-bcee-a-model-student-52b00f6ae4b006edcdac8714

★ Bolivia’s Communications Satellite Attains Stationary Position Over Country.

News Analysis: Bolivian President Juan Evo Morales Ayma must be very proud to have witnessed the Communications Satellite Advance for his country of 10.4 Million people. The satellite can easily cover Bolivia’s Territory of  1,098,581 km2 (424,163 mi2).

The Satellite was built by a Chinese Aerospace Company and launched in China. It has an effective life expectancy of 15 years.

A little history preceding this Bolivian Satellite Activity for readers may be useful:

President Morales joined the Leaders of South American Nations in decrying the U.S. National Security Agency’s (NSA) ‘Wholesale’ Electronic Espionage of the Entire World’ in general. More specifically, the ‘NSA’ espionage on the ‘Personal Communications’ of South American Leaders was abhorred. It was allegedly thought by Bolivia’s President to be an Abomination to Good International Relations.

These South American Leaders and the World’s Population asks: Who gave the United States the Legal Right to Spy on the entire Planet; God? If the Gentleman who revealed this travesty to Privacy had not, the ‘NSA’ machinations would never see ‘the light of day’. The fact is  that 400,000+ Americans working on such programs have been “De-sensitized” to what is Legal and/or Moral on a WORLD SCALE. Much as the atrocities in World War II were committed by De-sensitized Individuals also, these Americans, some would say, were of similar ilk to those of the past.   

Having the Capability to Spy on the World’s Population does not mean one has to do so (just as having Intercontinental Ballistic Missiles handy means one should launch them – “Just Because We Can”). “The Mass Mental Pathology displayed by the Uncaring ‘Intelligence’ Minions of Washington, D.C. is very obvious”, Health Professionals may think.

Newspaper reports suggest that many Nations are urging their Citizens to acquire Non-American Made Computers, Telecommunications Equipment, and Componentry. This, as a result of the Ignorant Decisions made in Washington, D.C. One can opine the Bolivia Satellite Program is, in part due to such American Government behavior being rejected by the Country. Other Nations will probably follow Bolivia’s Lead and acquire satellites from Non-American Sources. Brazil just purchased $4 BILLION DOLLARS of Swedish Vigen Fighter Aircraft, rather than American F-18’s, due to this ‘NSA’ Transgression, news reports say.

“Reverse Dollar Diplomacy”(Ceasing the Purchase of American Goods and Services), when in the amounts of Billions of Dollars of Sales lost, might gain the attention of those in the U.S. Capitol. There apparently those in Washington, D.C., who do not yet Understand nor Care of the fact that: “The Entire Population of the World wants its Privacy to be held Private”. One might think: ‘Perhaps if the Gross Domestic Product Statistics of the U.S.  clearly evidence Negative Economic Effects of World Population Disgust with ‘NSA’ Practices, some things may change towards actual Privacy’.

To believe ANY American Politicians that the World’s Privacy Obliteration by the ‘NSA’ has Stopped or will be Stopped is UNWISE. The ‘NSA’ and its cohorts have too much Financial and Careers interest to Cease and Desist.

Investors should consider “Shorting” the stocks of American IT Companies involved with the NSA. Accrued business losses, forecasted to occur, will send their stocks on a downward spiral. Going ‘Long” on Non-American IT Companies is a wise play. There will be much Nation-to-Nation commerce that DOES NOT say “Made in the U.S.A.”. 

Reality.

Reference: http://news.xinhuanet.com/english/sci/2013-12/27/c_133002303.htm

★ Fairbanks, Alaska Experiences -40F (-40C) Temperatures

News Analysis: Recurring cold temperature in Fairbanks, Alaska, and surrounding areas such  as -58 F (-50C) in Chicken, Alaska, make some people question “Global Warming” (GW); this which is so readily endorsed by Politicians with Resolute Authority.

Fairbanks has been tracking temperatures since 1930. It averages 12 days a year of -40F (-40C) or colder. The last Winter WITHOUT a -40F Temperature was in 2002-03. The Winter of 1976-77 had a lowest temperature of only -28F (-33C).

Since the warmest Winter was in 1976-77, for approximately 35 years, Winters have been much Colder. “Perhaps ‘Climate Change’ is obviously occurring (but towards the Cold in some areas of the world)” some would say.

Many Climatologists of the World think that the Time Scale being discussed needs to be lengthened for greater accuracy in deciding the veracity of ‘GW’. Rather than making pronouncements based on Ten or Twenty Years of seasonal measurements, a Scale of One-Hundred Years is more representative. Arborists/Botanists think a Time Scale of Hundreds of Years is more germane as some Species have their Tree Rings  examined.

The Polemics regarding ‘GW’ should be examined objectively as to whose Vested Interests are involved one way or another. As with many subjects there are the ‘Puppets’ controlled by the ‘Puppet Masters’. ‘GW’ lends itself to Spectacular Exploitation. As an example of this thought, consider that a Famous American POLITICIAN pushed a ‘GW’ Agenda to the World Press. The Media “Bit the Bait” and the “race was on”. Since the aforementioned Politician (reputedly a Multi-Millionaire now) was American, had he visited Fairbanks and asked for Actual Measurements of Winter Temperatures in Alaska since 1930? If he had, he may have been less opinionated about the “Global Catastrophe” (some say of an ideology he represents).

As to Vested Interests, consider: If a Coal Fired Electric Plant closes, who benefits? Suppliers of Electricity based on Oil. If an Oil-based Electric Plant Closes, who benefits? Solar or Wind Energy Companies. And so it goes. AFAB (Anything For A Buck) is the conceptual model for proponents one way or another. Lobbyists hired to interact with Governments push the vested interests of those not so much caring about the Planet but more about their Wallets.

Since discerning Observers of International Events see through the “Clouds of Deceit” practiced by the Politicians’ Handlers, they can discern the truth of ‘GW’. Perhaps, in reality, it is merely “Climate Change”, ‘Hotter or Colder’. 

Some of the ‘Puppets’ who are “Devout Environmentalists” (DE) may, in their later years, realize ‘EVERYONE ON EARTH, LIVES ON EARTH’; no Sane Persons desire to destroy their Habitat. Esteemed Scientists  merely disagree on “Mother Nature’s” ‘Hard-To-Interpret Behavior’.

Citizens of the World are also entitled to be cautious about listening to Vested-Interest Politicians with Hidden Personal Agendas who tout “Global Warming”.

Everyone may understand that Winters in Fairbanks, Alaska, are Colder Now than they were Thirty-Five years ago.

Reality.

Reference: http://tinyurl.com/lnmezuk

China To Increase “Dollar Diplomacy” (DD) In 2014

News Analysis: Determined to increase prosperity in other Nations of the World, China will expand its “Dollar Diplomacy’ (DD) Activities this coming year. The Wisdom of the Chinese to assist others in need by expanding trade between it and they is edifying. “Customers” who have more can Purchase more. Also giving Monetary Grants and Loans shows excellent thought. ‘DD’ allows for Friendships to grow and for Mutual Respect to be enhanced.

Trust between Countries can only occur NOT where Hegemony exists but where Cooperation amongst Friends is prevalent.

Reality.

Reference: http://news.xinhuanet.com/english/china/2013-12/26/c_132998506.htm

Mexico Banks Multi-Billions Of Dollars

News Analysis: Contrary to Special Interest Marketing of Mexico as an “Impoverished Country  that is too poor to feed its Citizens”, Mexico’s Central Bank indicates Billions of Dollars are deposited.

The Foreign Reserves of $176.55 Billion Dollars had risen by $893 Million last week alone!

Its 9.2% growth rate in the Money Supply is nothing to dismiss lightly.

One has to ask why a Country: With Great Weather; Two Oceans; Abundant Minerals; Hard Working Citizenry; $176.55 Billion Dollars in its Central Bank has a “Prevalent Population Poverty Pose” which it allows to be fostered by the ‘Gringos al Norte’? When remittances from America, by Mexican Residents,  are in the Tens of Billions of Dollars NO ECONOMISTS NOR POLITICIANS ‘Scream’ in Washington, D.C.; Why not? the Outflow of Monies is not the best for America at this time. Some American Citizens wonder; “Are some people in the Capitol somehow benefitting Personally by this Charade of National Impoverishment?”

Reality.

Reference: http://laht.com/article.asp?ArticleId=1375950&CategoryId=14091

☆ Gold And Silver Lose Their Glitter

News Analysis: Investment Funds have lost Billions of Dollars by investing in Gold (Au) And Silver (Ag) using Incorrect Assumptions. One ‘Famous New York Trader’ bought heavily into Metal Certificates with Investors Money. He thought Inflation would immediately ‘rear its head’ and he would prevail with his wise purchases. Unfortunately, Central Banks of various Countries lowering their interest rates were not heavily considered possible by this Gentleman. To his dismay, inflation has been minimal world-wide from such Banks’ activities. The Au/Ag investments he and other “Financial Wizards” made, at present, are huge losses since high inflation did not appear.

A Major Flaw that the “Financial Masters of the Universe” (FMOTU) have is their inabilities to both See and Evaluate Potentialities correctly; then Invest accordingly. Beyond what their Business Administration or Economics Professors taught them, there is MUCH MORE to Wise Investing that should be considered. For Example: What are the Domestic Political Objectives of the Governments regarding their States of the Economy? What Geo-Political Situations between Nations  are being Covertly or Overtly being pursued? What “Hidden Agendas” are influencing a Country’s Leaders? What influence is Climate Change having on Commodities, if any? The list is endless. The aforementioned may be beyond the reasoned thinking of the ‘FMOTU’. Are they to admit to Prospective Investors their Economic Myopia? Probably not, since many have Hyper-Egos combined with Minimal Integrity.

Much as: ‘A “Ph.D.” Knows More And More About Less And Less’ so too go the ‘FMOTU’.

Conversely,  the study of  “More and More” about “More and More” requires a Mentality of Adaptation to the entire Field of Learning. In such study, people realize that with the widest variety of subjects, Everything Interconnects Somewhere. Difficult as it may be to learn about a myriad of subjects, it is both Possible and REQUIRED.

Let the Egotists make their Unwisely-Timed Economic Ventures. Sagacious Investors think broadly, humbly, and without “Blinders” on.

Reality.

Reference: http://www.business-standard.com/article/international/gold-steady-set-for-biggest-annual-loss-in-3-decades-113122600083_1.html