Investments in 2014: All That Glittered Was Not Gold [But Brown And Black]

News Analysis: Coffee was the Investment Return Leader for the year, thanks to changing weather conditions and increased customer demand for the brew. If one looks carefully, he or she will see that as to Investments in 2014: All that glittered was not gold [but brown and black].

It is interesting to note that most commodities nose-dived in the on-going World-Wide Economic Slump, as did many financial instruments of many types.

Low interest rates allowed many corporations to borrow funds for repurchase of their stocks; thus boosting their prices. Since there is really little, in terms of economic prosperity, of demand for manufacturer’s goods, one can see an artificial economic bubble growing in size and based on mere holograms [for current Stock Markets]. Stock Markets love ‘Freiers’.

In 2015, as we have stated previously, Commercial Aircraft Manufacturers will have had their “Golden Fleece” taken from them i.e., the high prices of Aviation Fuel. Along with this, the Sukhoi Superjet 100 Aircraft, with Italy’s Alenia Aermacchi,  [which is currently Aviation Agencies’ Certified and flying] will cut into “Single Aisle” Jet Sales of the two Major Airframes. At approximately 35-40 percent of cost to Airlines, why pay more?

 Along with this, the Chinese Single Aisle, C919, was just Chinese Aviation Agency Certified, and will cut into the grossly profitable sales manufactured by the other Major Airframes.

Downstream, the Chinese/Russian Joint COMAC 929, 290 Passenger Jet, and COMAC 939, 390 Passengers Jet are being developed. The availability of funding for these projects by Chinese and Russian interests does NOT bode well for the existing two Major Airframes. Both, will “Pooh-Pooh” any suggestion of their losing market share [and huge profits]; they will probably seek government [surreptitious] interventions  to reduce the threats. Since America’s greatest monetary export manufacturer will be affected, International Businessmen can sit back and watch the machinations occur as Washington Politicians get desperate.

The long term outlook for both Major Airframes is one of high profit unsustainablility. The estimated $20,000,000.00 the aforementioned Airframe allegedly receives in Local, State, and Federal Grants PER AIRCRAFT, will help attenuate the pain perhaps.

Long term, a strong “Short Position” is warranted by International Businessmen and may be considered.

In 2015. we suggest focusing on Food for Seven Billion+ World Inhabitants; EVERYONE MUST EAT.

Conjoined with this idea, is that Climate Change should be carefully evaluated for geographic realities in regards to droughts,  rainfalls, severe weather, etc. thus affecting global food production.

There are other key areas in which to focus one’s evaluations and monies on for 2015 and beyond. To those who consult with us, we will be more than happy to share our analyses. To those who have obviously listened to their Financial Bankers, Brokers, and Gurus, we can only say: The Losing Investments outnumbered the Winners by a substantial margin. These ‘Masters of the Universe’ fates for 2014, in following the herd, have already been sealed, unfortunately for them.

Reality. 

Reference: http://rt.com/business/219187-coffee-price-oil-gold/

1719 Stradivari Viola Is To Be Sold By Bid: Reserve is $45 Million Dollars

News Analysis: A 1719 Stradivari Viola Is To Be Sold By Bid: Reserve is $45 Million Dollars for one of only two know to exist privately. Allegedly only ten of his complete Violas exist today.

Antonio Stradivari knew Instrumental Construction as a Master. Tonal quality of his instruments are said to be without peers.

It is interesting to note that today, in 2014, with all of the Computers, Intelligentsia (just ask them), and Advanced Machinery in existence today, mere Equivalency to a 1719 Stradivari has not been achieved.

Perhaps some Products are Designed and Manufactured by Sheer Genius which are so Revolutionary, for the Benefit of Society, that even the “Masters of the Universe” (in the Business World) do not have the Mental Faculties sufficient to Appreciate nor Replicate those Creations.

So goes Commerce, Science and Technology.

Reality.

Reference: http://tinyurl.com/jwbul47

American New Home Construction Falters Despite “Bubble Masters” Best Efforts

News Analysis: The Real Estate “Bubble Masters” have already been making grandiose projections about the rise in New Housing for Americans. To the naïve Freiers who did not learn their lessons about “The Greater Sucker Principle” in the Crash of 2008 Real Estate, renewed learning may apply.

Despite blaming the Weather for the contraction in Housing Starts, another Reality is at work: Low Paying Jobs, Part-Time Jobs, and No Jobs do not make a sound financial basis upon which people can acquire New Homes.

The $1.2 Trillion Dollars given by the U.S. Treasury to the Banks in 2008 have NOT spiked Manufacturing Employment nor Wage Increases; it merely allowed Bankers to gain financially.

Despite brilliant ‘Teleprompter Based Oratory’ by the White House as to how wonderful the Economy Is (“Just look at the Stock Market”), the struggle faced by Millions of Americans is of growing concern to many. “Hamburger Stand Employment Increases” is a good White House Baseline to brag about.

If one enters in the added cost to Americans of the spurious Medical Program of White House Origination, money for purchasing new housing is a mirage at best. Disinflation is more of a proper summation of the American Economy today.

Inflationary expectations that many of the “Masters of the Universe” projected for their buying enormous quantities of Precious Metals is effete. Perhaps the “Housing Experts” can convince the “Precious Metal Funds” to buy their New Homes, obviously the “Joe Averages of America” are not and cannot.

Reality.

Reference: http://www.reuters.com/article/2014/02/19/us-housing-starts-idUSBREA1I11V20140219

★ One Does Not Have To Like A Physician Terrorist Leader, But One Should Respect Him

News Analysis: The Billions of Dollars spent by the American Government and other Governments trying to Curtail or Decimate a Principal Terrorist Organization (PTO) (and its Egyptian Physician Leader), is inversely related to their success in doing so. The ‘PTO’ is allegedly more geographically wide spread now than when it struck America on ‘9-11’ (an interesting numerical reference to the U.S. Civilian Emergency Telephone Number, some say).

People think that the ‘PTO’ Former Leader (being conveniently shot and his body disposed of rather than being arrested and brought back to America to stand trial as per International Law) may have revealed some Disconcerting Information about what really happened and Who knew What and When in the U.S. White House regarding the ‘9-11’ Attack. Dead Men Cannot Testify in Court.

Moreover, the Farcical Reports by the Mass Media that the former Saudi Arabian Leader “was hiding in caves FOR YEARS” were insults to the intelligence of the American Population. Who in the U.S. Government passed such Drivel on to the Journalism Majors (who did not know any better)?

It appears that the Continuing Position of the Current Regime in the White House is to make the ‘PTO’ a mere “Afterthought” on the ‘World Stage’ while it continues to spend Billions of Dollars trying to catch or eliminate the ‘PTO’ and its Egyptian Physician Leader. Perhaps, some say, the Intellect of the ‘PTO’ Leader is Greater than the Intellect of those World Leaders who seek to Destroy Him? He must be laughing since the First and Fourth Amendments of the U.S. Constitution have effectively been dispensed with for Americans. This as the “Search for Terrorists Behind Every Bush” Mantra stays in place as evidence of the Mass Hysteria in the U.S. Intelligence Community remains. 

After many years trying to eliminate the ‘PTO’, it has apparently morphed into a more Diffuse Organization. Yet, the U.S. National Security Agency is supposed to be able to track ALL World Communications? People are not receiving the Peace they seek; something is amiss.

Perhaps the “Masters of the Universe” in the Intelligence World who have “Been There and Done That” will realize that the Meager “Extermination” Returns they are getting after over a Decade, while spending Billions of Dollars yearly in doing so, need a change. But certainly not the “Change” promised Voters over the last Two Elections.

Reality.

Reference: http://www.weeklystandard.com/articles/rumors-al-qaeda-s-demise_776000.html?page=1

☆ Touted World Financial Recovery From 2008 Has Legs Of Straw

News Analysis:  Nations’ Central Banks, led by the U.S. Federal Reserve and its  Chairman, who is departing shortly, used up his “Ammunition” against Deflation by keeping Interest Rates near Zero . Now what can he or his Replacement Minion do to lessen rates even further, if needed?

After five and one-half years, where is the “Great Recovery” his Cohorts in the U.S. White House promised voters. The “Shuck and Jive” that the Media have been passing on to the Public originated in the White House.

The touted Stock Market Recovery has been a “Bubble” with no substance to support it. Where are the heavy earnings to support the high Stock Prices? Where is the Abundant Manufacturing and Exports of Goods needed?

Now, Investors around the World appear to be understanding that a “Bubble-Master Created Bubble” may soon burst; as did the Real Estate Market and the Precious Metals Market.

Those who hold Bonds can expect elevated Interest Rates to destroy Market Values of the Low Interest Yielding Bonds fashionable during the “Bearded” Federal Reserve Leader’s questionable Reign.

Those “Masters of the Universe” in Banking, Commerce, and Finance who did not see the Debacle of 2008 looming in their immediate future (at that time) apparently again suffer from Myopia in not seeing the pending World-Wide Slump awaiting them shortly.

As for the U.S. White House and its lackeys, if things collapse, and they get dis-spirited, they can always fly to Las Vegas, Nevada and be entertained by their friends (as they did when Benghazi, Libya was on fire a couple of years ago).

Reality.

Reference: http://www.thejakartaglobe.com/business/asian-shares-dive-as-fed-cut-sparks-emerging-market-fears/

The Seeds of Failure are Hidden by the Dirt Covering Them

The recent failing in Brazil of a major corporation, in which Bankruptcy Protection has been requested, is an ever-present reminder of the Foibles of Man.

Seed

It seems that those who rise to the top of business hierarchies in many countries are gifted with huge egos. Properly balanced, this my be good. All too often though the reverse is true: They believe their own publicity. If they are surrounded, as they usually are, by Sycophants, they will be in deep trouble. The advisors who they entrust, learn quickly to tell them what the Nabobs want to hear [rather than what they should hear]. In listening to them, years of effort and monies, are wasted when the corporation fails.

One hearing about these “Masters of the Universe” [MUs], before their failings become public knowledge, seldom critically examines the gestation of the founding business. They keep ABSOLUTELY SECRET their founding financial sources.

Seed

A corporation is founded upon an initial idea and then is morphed into a business model.  All too often it seems the ‘Founder[s]’ of the corporation did not ab ibnitio create the idea. Instead, they quietly ‘borrowed’ the mental construction from another party. Since they were developing the idea into a business model, absolute secrecy from the actual creator is maintained vigorously. Or, through dissimulation, they let the other party in on the idea’s evolution [but represent it as having been their same idea long ago]. Lawsuits by claimants against “Founders” can ruin the business.

Seed

A misrepresentation game often played by MUs is to misrepresent the source[s] of initial funding ‘seed money’. Currently in the Information Technology [IT] Arena, one can readily infer that many “Start Up Companies” have been secretly funded by intelligence agencies or other governmental bodies. If the founder’s IT Capital requirements are too large, who better go to than “Big Brother”. “He” has the capital and will keep the secrecy of the funding since it is in his espionage interest. If information about this is released to the public, decline or failure in business is probable.

Seed

Due to the expansive reach of Organized Crime [OC], the need to “Launder” their money is an on-going problem of gigantic proportions. More established  Criminal Cartels have a plethora of Attorneys, Accountants, Economists, and others to advise them on where to invest their ill-gotten gains. Often, an area such as “Silicon Valley” in California is  ripe for exploitation by OC interests. A naïve creator of ‘Software’ or even ‘Hardware’ used in IT can be mesmerized by the quick offer of  Capital for his invention. Since he or she is not appraised of the true source of the funds [and never asks] an investment occurs by OC in the venture. As a Cancer works inside a body, the business gets “milked” of its subsequent assets [from follow-on investors], and fails.

Seed

If one looks at the ownership interest by the Founder in any public corporation and sees that it has been diluted from “100% Ownership” to a mere pittance of that amount, then caution is advised. The founder may have taken the early road to riches and quickly sold off his or her ownership to others. Perhaps the influence of “ECC 10:19” overwhelmed his judgement. In any event, he can be easily ousted by the other shareholders. His early contributions are of no concern to those who want his corporation for themselves. This is a world-wide occurrence one can read about in the financial pages.

The Bottom-Line of this brief discussion about “Seeds Sown”  is : “Trust, But Verify”.