Severe Weather and Debt

Sticking to the topic of insurance, it is important to keep an eye out for natural disasters. If you are living in an area that is prone to natural disasters, and you don't want to find yourself in deep financial trouble should one come around, then it is time for you to get insured. This of course depends on where you live. In Florida for example, it is the storms in the summer through fall that can kill your finances, and set your debt relief efforts back years, if not decades.

The situation in storm affected areas does not seem too good:

Abnormally high temperatures in the Atlantic, where hurricanes frequently form, also factored into Tuesday's prediction. Gray said they are a product of a naturally recurring cycle that is responsible for the recent era of increased storm intensity -- not global warming.

He also agrees with scientists from the National Oceanic and Atmospheric Administration, who on March 8 said there's a good chance that La Nina conditions will emerge in the next two or three months, further increasing the likelihood of an active season.

Characterized by cooling waters in the equatorial Pacific, La Nina has the opposite effect of El Nino. It calms the atmosphere, aiding formation of hurricanes.

But, Klotzbach said, there's not a huge difference between the neutral conditions present now and La Nina. They both make for an ominous six-month hurricane season.

"You can get really active seasons either way," he said. "You just can't have El Nino conditions."

National Economic Collapses

Investors will be rewarded for staying invested, or buying the dips. We also look for rotation into cyclical growth and more focus on value.

"Our basic philosophy for investing in Asia is that, with earnings likely to grow at 8-10 per cent a year for the next decade, in most years and most circumstances investment in Asian equities should produce superior returns - perhaps compounding at 10 per cent - and investors should stay bullish."

On the wider economic front, however, some analysts point to troubling signs emerging of declining export growth around the region as the United States economy slows.

Copyright 2007 South China Morning Post Ltd.
All Rights Reserved

March 27, 2007 Tuesday

While the link to this source is not online on the WWW, it is available. It might be available on local Asian sites.

Essentially, this article emphasized the magnificent merging of philosophy and financial science. It is through engineered thought experiments that rely on empircal evidence for decision making that allows for good outcomes to the self. The only way is to know yourself! And to know your "world" as well.

The long term predictions are the result of those that claim to know. However! Only those truly lodged in the strictest of social secrecies can able to accurately claim that they know themselves enough to trust their own judgment regarding the financial situtation. Complexities with each actors arise as a result of interventions on the part of actors with variable interests in the outcome of the final result in the financial market.

An example of this is actor China acting to bring about an American economic collapse is acting against the actions of America which seek to cause the opposite of economic collapse.

Remote Viewing

Watch this You Tube video about the possibility of
Remote Viewing the Dow Jones Industrial average. This is recommended watching for those interested in predictive science.Tip of the hat to Hdrkid, who may or may not be a time traveler, but definatley researches the issue.

You should use advanced methods of physical sciences to get out of debt if and only if you are certain that the method is reliable. This means that you should know the science to such a degree as to understand an expert in the field (such as a military or government scientist).

Scottish Scam

As this blog has been informing the good reader, the national debt does effect the personal debt. This is due to the complex interaction of exchanges occurring between the producers and consumers in the global political economy. It is the case that there is a similarity when thinkng about the dynamic enviroment in which global financial interactions playing out and affecting one another. Its a ying yang sort of thing.

The subject matter at hand, is the interaction between producers and consumers at the domestic level. Looking at Europe as a case on the flipside of the American case. In Europe, the state tries to forbear debt. It seems that the EUropeans know a thing or two about misery and suffering. This is because of bad economic policies and the backlash of the people. However, trying to alleviate the problems of the people using subsidies is not always a good thing, since it does not always mean positive results.

Consider this article for example, as one piece of evidence:

A Scottish dairy farmer has exploited a glaring loophole in European law to annually earn the right to claim more than £1million in subsidies.

So, this man got the cash, exploiting the good faith and intententions of the state....leaving others in debt, and the state needlessly spending its cash. America has its own sores....

Debt Time-Bomb?

This movie is a must see if you are not in the mood to read and read and read books on debt. Time-Bomb: America's Debt Crises, Causes, Consequences and Solutions is yet another attempt by people to preach financial responsibility.

America ignores the message of TIME-BOMB at its peril. Unless we address our "twin deficits" soon, the American economy will be falling like the towers of the World Trade Center, and no one will be remember why the war on terrorism seemed so important. After seeing this movie, you suddenly realize that there is no escaping the fact that America is moving ahead full-throttle towards an economic crisis of major proportions. And somehow we seem blissfully unaware that anything of this nature awaits us.

The trailer is enough of an eye opener. Go and watch it, and consider what you can do to better your financial situation, and act in a way that will prevent the government from continuing with its ruinous policies.

A Game as Old as Empire

This book is quite revealing. It describes how economics has been used by great powers to maintain their balance in the balance of power scheme of things.

Basicly, it is the story of economic hit-men. These are people who are responsible for the decline and fall of otherwise good economies. By manipulating various economic variables, they are able to bring economies to their knees.

Essentially, this is the same thing as the concept of identity theft. Someone fakes your economic variables by pretending to be you, and then, your personal finances are in disarray.

With economic hit men, it is not on a personal level, but on a national one.

Read more about this book. An excerpt from the review is below:

In gripping detail, they describe the schemes and subterfuges that multinational corporations, governments, powerful individuals, financial institutions, and quasi-governmental agencies use to line their pockets behind the façade of “foreign aid” and “international development.”

The China Game

This article is for more information for those that are interested in China Inc.

It is interesting to read various analysis such as this. It is true that China has America in a tight spot, however, the plunge protection team will without a doubt have thought of something in its secret meeting rooms. Have faith, and think about what the analysts are saying.

As always, "Follow the Money!" The next run up in the metals could be dynamic. Thursday the 15th is my guess for when the start of the push will begin. The Chinese may use derivatives on metals, but delivery of the real commodity has always been China's shown strategy. When done, the fundamentals of supply and demand in true form will come to play.

This is all part of a history we cannot as of yet fully comprehend. After all, this is just the start of the long war. International trade can be used for operations other than war. China may just be trying to wage just that.

This does not mean doom and gloom for America. Indeed, the opposite is true. Our financial engineers are invisible and invincible. We started this game, and have our own back up plans.

One example in the current economic infrastructure is the argument that outsourcing is bad because it makes America vulnerable. This is not necessarily true. While we will delve into this in a later post, for now keep the following account in mind.

It is the case that America has built up the Chinese infrastructure to a point that its newest factories are the products of American foreign direct investment. With such investments in place, it is possible, and quite likely, that American companies have the blueprints to the factoris. The point to this case is this: in times of war, these open sources of intelligence will allow for American war planners to target with great efficiency all of China's industrial production.

And in this exactly is the danger in allowing China to begin divesting from T-Bills and investing in American companies. If they have the same opportunity, the American advantage will have been nullified.

Commodity Prices

For your list of bookmarks: To view all commodity prices click here.

It is important to check these out in the coming days, weeks and months. If China, and its allies, come out of the woodwork, fluctuations in this domain will be evidence for such.

It is important to remember that this age of globalisms all indicators are important as part of a system of systems. It is not just one indicator indicates catastrophe, but rather, many indicators work together to create a catastrophe.

Consider this, when you began to get in debt, it might not have been obvious that you were slowly sinking into debt. However, while you might have, say, piled all you financial purchases onto one credit scheme, you did not consider that some things would change. These changes are always occuring, and therefore, whenever there is one financial dealing made, it should always be taken in the context of there being a cause and effect relationship beyond the actual transaction.

It is therefore the conclusion of this blog that there is not one but many things to consider. So, when checkin the commodity prices, try to keep in mind the fluxuations of all things. Take a look at your local situation, and the political situation in the world, as well as the actual prices indicated by the market.

The invisible hand might be just that, invisible, but it is not unafected by the visible.

What is Subprime?

Many readers have contacted us regarding more information on the subprime commotion. This is not an isolated incident, and must be understood in the context of our general global economy. The Q & A below is helpful when trying to understand the depth of the problem of the subprime. The link to the whole article is in teh post below. For your convienience, it is here as well.

Q: Isn't this just a small part of the mortgage market?

A: Subprime mortgages totaled $600 billion last year, accounting for about one-fifth of the U.S. home loan market. An estimated $1.3 trillion in subprime mortgages are outstanding. That's nearly as large as the entire California economy.

Q: What went wrong?

A: Subprime lenders made too many loans to borrowers who didn't earn enough to make the monthly payments. In some cases, lenders didn't even bother to verify borrowers' incomes.

Some of this trouble might have been avoided if home prices had continued to climb like they did from 2000 to 2005. As a home appreciates, even borrowers who aren't paying the principal loan amount build up equity. That would have made it easier for subprime borrowers to refinance to a low interest rate.

Q: Could the subprime mortgage market's misery infect other parts of the economy?

A: In a worst-case scenario, the wave of anticipated defaults on subprime mortgages and tighter lending standards could combine to drive down home values.

Suprime Commotion

It is not a coincidence that our analysyts caught on to the commotion in the sub-prime field of financial science. There is great worry int eh global economy, and this is not the best time to be in debt. So, make sure that you have all your money that you do have in debt and live within your means. UNDERSTAND the world in which your investments lie. Know that all is interconnected and interdependent. America is vulnerable because of this.

SAN FRANCISCO - The hangover from the lending spree that fed the real estate boom during the first half of this decade keeps getting worse, with the most acute pain tormenting the mortgage niche catering to high-risk, or "subprime," borrowers.

Make Terrorists in Debt!

Raising money for charity in order to use it to kill people is disgusting. Terrorism must end, and we must pay attention to financial systems. The only people that should be in debt are the terrorists. Doing actions such as this:

The Islamic charitable organization, formerly known as the Islamic African Relief Agency-USA, was formed in 1985 and closed in October 2004 after the U.S. Treasury Department said it was a global terrorist organization.

According to the U.S. Attorney's Office for the Western District of Missouri, the group is accused of transferring more than $1.4 million to Iraq from March 1991 to May 2003 in violation of laws imposing sanctions on Iraq.

The long war are those that can control financial flows.

Subprime Psychology

The market often behaves as if it is one collective netity. Nobody would guess that it is the result of collective action on the basis of individuals in the sense that globalization makes everything appear to be unified. However, the way that markets behave are similar to the way that viruses spread. There are contagious effects of certain individual actions.

It is usually the little things that count in big market fluctuations. As you are trying to get out of debt, or remain out of debt, you should be aware of what might rock the subprime house of cards.

Since at least the market rally that started in early 2003, optimistic Pollyanna has ruled the markets, and greed has run rampant. As the markets wait for Fed chairman Ben Bernanke to put on his best Donna Reed mask to bail out the subprime lenders with the Bailey family's honeymoon money, Cassandra and her fear are ruling the day.

A lot of wags have noticed that for the US stock market, bad news is frequently treated as good news. Unemployment is up, or industrial production is down, and stocks rally (due to attendant possibility seen in these reports of upcoming Fed interest-rate cuts). However, when major financial institutions have what are delicately called "liquidity issues" (ie, their loans aren't being paid back - they have no income), that is always bad news. What if the bank defaults, declares bankruptcy? Other banks that it had borrowed money from now won't be getting paid back, they'll lose whatever income stream they were receiving from the first bank. The same with that bank's creditors, and then other banks and so on.

This kind of cascading financial catastrophe is often called a "contagion", and with good reason. Like a virus, it can spread and bankrupt the entire financial system. It almost did in 1998, during the LTCM hedge-fund crisis; in 1929,in an era when the worldwide financial system was far less globalized and integrated than it is today, after the Great Crash it actually did, and so initiated the Great Depression of the 1930s.

Enjoy the whole article. It is insightful and will make you aware of a volatile world that does not exist in the mainstream media.

Iran is a perfect distraction. The Navy is there!

Plunge Protection Team

The President's Working Group on Financial Markets as established by an executive order, is one reason why it is best to sell off your stocks instead of waiting around for their long-term profits, as promised to by the market. You need faith and good luck to hit profits with stock, and it is no more certain that you will win big on the stock market than if you go to the casino. The assumption here is that you really have no idea what is going on in the stock market because you do not have access all the information to KNOW.

Consider this article about the plunge protection team:

These quiet meetings of the Working Group are the financial world's equivalent of the war room. The officials gather regularly to discuss options and review crisis scenarios because they know that the government's reaction to a crumbling stock market would have a critical impact on investor confidence around the world.

In the event of a financial crisis, each federal agency with a seat at the table of the Working Group has a confidential plan. At the SEC, for example, the plan is called the "red book" because of the color of its cover. It is officially known as the Executive Directory for Market Contingencies. The major U.S. stock markets have copies of the commission's plan as well as the CFTC's.

The following point mentioned by the article is the MOST important one:

Gathering accurate information would be the first order of business for federal regulators.

Like the know yourself principle, this works the same way! Although it is not up to you, the individual investor to be able to have the same capabilties as this team to gather information on the market's condition.

"Intelligence gathering is critical," Corrigan said. "It depends on the willingness of major market participants to volunteer problems when they see them and to respond honestly to central bank questions."

The SEC, CFTC and Treasury have market surveillance units. They monitor not only the overall markets, but also the cash positions of all the major stock and commodity brokerages and large traders.

The regulators also are hooked into the "hoot-and-holler" system used to notify participants in all financial markets of trading halts. The hoot-and-holler system alerts traders and regulators when a halt is coming.

Relying on Quick Action

In the event of a sharp market decline, the SEC and CFTC would be in constant contact with brokerage and commodity firms to spot early signs of financial failure. If they concluded that a firm was going down, they would try to move customer positions from that firm to solvent institutions.

So, if you are in debt, get rid of stocks. Even if you are not in debt, and have money to invest, it is perhaps best if you save it for the casino, unless you are willing to sit down and know and understand the situation of each and every company you are considering investing in.