|
Human behavior
and the broad social trends driving the global financial crisis,
globalization and the economy in 2010, Part I
For greater
insight into the philosophy behind Tedbits, have a
look at the Tedbits Overview. To
help understand our mission in serving you, the Tedbits
Overview gives a broad description of what's unfolding globally and what you
can expect from Tedbits as a regular reader.
In order to fully grasp the enormity of
what is unfolding and to understand the upcoming Tedbits
2010 Outlook, I have penned two essays which will be presented over the next
two weeks. Beginning in January, I am going to be doing a tour-de-force 2010
Outlook, spanning what you can expect in 2010 both fundamentally and
technically.
Part One is entitled "The
Something-for-Nothing Personality", which appears in the final decades
of the demise of EMPIRES and is the catalyst and driving force behind the
collapse of the economies in which they reside. They vote for a living and
ask public servants to confiscate wealth from others and transfer it to
themselves. This group is fully in control of the G7 and are crony
capitalists, elites, public servants, trade unionists and welfare recipients,
just to name a few. Locusts, which strip economies BARE and eat the roots of
wealth generation until the empire collapses under the weight of
inextinguishable debt, unpayable entitlements and
sovereign defaults through various means.
Conversely, Part Two next week is
entitled the "I Will Work 60 hours a Week for a Better Life for Myself
and My Family." this personality is diametrically opposed to the
"something for nothing" personality. They take nothing for granted,
they are rugged individualists and have the work and savings habits upon
which wealthy societies and economies are built. Wealth creation, rising
middle classes and REAL incomes explode higher in the same manner the United
States and Europe once did.
In order to understand that there is no
escape from the final debacles in the G7 or triumphs in the emerging world
you must understand HUMAN behavior and motivation.
Large opportunities reside amidst the destruction or rising empires that
these people create; in fact, the largest fortunes in history count these
periods when the seeds where planted. By using Mal-investments created during
the credit bubbles and buying them for pennies on the dollar as they fall
into insolvency or by investing in societies in which rising middles classes present untold opportunities as these emerging
economies ascend into developed societies.
Take a look at a recent comment from
Bill Buckler at www.the-privateer.com (I urge you to subscribe):
"According to the US Debt Clock
(http://www.usdebtclock.org take a look, its
ugly), the current US population is 308 million. Of that total population,
just over 35 percent (108.7 million) are taxpayers. The rest are those who
pay no net tax, government employees, dependents and those who are unemployed
and/or on welfare. These percentages would be similar in any nation with a
mature welfare state.
If you subtract Americans under the age
of 18 from the almost 200 million Americans who do not pay tax, the US is in
a situation where many more people vote for a living than work for one. This
too is an inevitable end result of any mature welfare state. The fact remains
that in the US, 108 million productive people are supporting almost 200
million drones. Those same 108 million people are paying the ever increasing
interest bill on the so-called "public debt". And finally, those
same 108 million people are the only REAL source of the wherewithal to
eventually repay the debts...As long as more people vote for a living than work
for one in the US, that simply is NOT going to
happen. A productive minority CANNOT support a non productive majority."
Thank you, Bill, for summation of the
enormity of the something for nothings in the land of the world's RESERVE
currency. The demise of the G7 financial and monetary systems looms as the
wealth-creating sectors endure slavery under the whip of their masters and
wealth creation expires to be replaced by the printing press. Take the math a
little further as the top ten percent of taxpayers pay over 90% of the taxes,
so in actuality 10.8 million people of 308 million are pulling the tax wagon.
Just 3 % of the population is paying the majority of taxes. What's going to
happen when the beltway raises taxes on these people to 50 or 60% and they
decide it's not worth it to work hard anymore? Can you say disaster?
California income tax receipts have collapsed under the same recipe.
Buy and hold is dead except for a few
asset classes, but opportunities will abound during the next several years,
the MISPRICINGS of virtually every asset class WILL BE RESOLVED higher or
lower and provide unbelievable opportunities for PREPARED investors. I
believe the greatest stock buying opportunity in history lies on the near
horizon, and will be from levels (LOWER) you won't believe.
Selling opportunities abound in stocks
and especially bonds (IOU's payable in IOU's, how obscene) of all types.
Currency markets will zoom higher and lower depending on the fiscal and
monetary responsibility or irresponsibility of the various central banks and
public servants in charge of their respective countries. Economic decoupling
has been on plain display during the last two years and the financial markets
are often NOT the face of the economies in which they reside. You must learn
to fix your paper currencies and make money in rising and falling markets. To learn more click here.
This goes hand in hand with currency
debasement and credit-based monetary systems. During the latter stages of the
demise of empires wealth creation fails as the "something for
nothing" personality ATTACKS the last vestiges of the productive
elements of their economies and societies, thus creating falling incomes
which the financial authorities attempt to fill through MONEY printing and what
is currently called Quantitative Easing (central bank monetization of
government spending).
During these periods NO ONE knows the
purchasing power of the currency in which ANY asset is PRICED as the US
Dollars, Euros, Swiss Francs and UK Pounds are printed almost limitlessly to
RESCUE the system in question -- the purchasing power is always undergoing
discovery up or down. You can see this in the demise of every credit-based
monetary system in history, including but not limited to the Weimar Republic,
Argentina and Zimbabwe. Never in history has this type of financial and
monetary system been able to avoid its demise in the manner which is
unfolding at this time.
Now click here for the commentary on the
"Something for Nothing" personality, it is lengthy and detailed but
ESSENTIAL for understanding the 2010 Outlook and beyond.
In conclusion: The most recent Health
Care REFORM is a perfect example of the "Something for Nothing"
personality at work; thousands of earmarks and quid pro quo to bribe one
special interest or another to agree, always with the cost of the agreement
sent to someone else who is not at the political banquet table -- they are
the main course of the something for nothings.
Public servant, elites, crony
capitalists, big-trade unions, and special interests (the people described by
the privateer quote) are legislating benefits for themselves of one sort or
another at the expense of small business, non politically-connected entities,
such as the millions of members of the Chamber of Commerce and National
Federation of Independent Businesses as well as the public (the public that
supports this does not understand they are the patsies and the ones that
oppose it do!)
HEALTHCARE reform (in name only, it is a
criminal enterprise being born): Legislating 17% of the US economy to flow
through their sticky little fingers and allow them to SELL regulatory relief
through campaign support of one type or another. Rent seekers and shakedown
artists who produce nothing and legislate for their interest rather then the public at large. Obscene, immoral and corrupt is
the proper description of these people. Of course they and the main stream
media say they are doing this to SAVE you!
Please notice that The President has
just conducted two summits, one on the economy and the other on jobs. In
attendance were the Senate and House public serpents, big banks and brokers,
big trade unions, the largest corporations in the world (who work offshore
with the blessings of the public servants and big trade unions) and predators
on the private sector. Conspicuously absent was the backbone of the private
sector such as the Chamber of Commerce (3 million plus small businesses) and
the NFIB (National Federation Independent Businesses.) These are the prey of
the aforementioned group and it includes you, your neighbors
and everyone who actually produces more then they consume. Public serpents
call them the "RICH". This is outrageous; summits on jobs and
economics and the REAL private sector WAS NOT INVITED! Ob@manation.
This is not doom and gloom; it is
reality that is packed with opportunities as volatility in all markets
expands to price in this unfolding global financial crisis. And, volatility
is opportunity for the prepared investor. In today's world you must take
advantage of these situations as they unfold. Currencies, stocks, bonds,
commodities, natural resources and more will rise or fall to reflect the
economic maelstrom as it continues to unfold. Learn how to do so.
I
will be appearing at the Freedom Fest World Economic Summit on January 31
through Feb. 2, 2010 at Atlantis Paradise Island Resort, Bahamas (www.freedomfest.com/wes/). I urge you to attend as I will be
doing two break-out sessions on the unfolding economics of the global
financial crisis and how to assemble investments to meet its challenges.
Thank
you for reading Tedbits. If you enjoyed it...
Theodore “Ty” Andros
www.traderview.com
All
articles by Ty Andros
Please remember that subscribers
generally receive Tedbits two to three days before
it is posted on the web. Subscribers will also start receiving guest essays
from leading economic pundits, and a blog looms soon. So if you want it early
and the added features SUBSCRIBE NOW it's FREE!
Thank you for reading Tedbits if you enjoyed it send it to a friend and
subscribe its free at www.TraderView.com don't miss the next edition of Tedbits.
If you enjoyed this edition of Tedbits then subscribe - it's free, and we ask you to send it to a friend and visit our archives for additional insights from previous
editions, lively thoughts, and our guest commentaries. Tedbits
is a weekly publication.
Click here and I will prepare a complimentary,
no-obligation, custom-tailored set of portfolio recommendations designed to
specifically meet your investment needs. Thank you.
Tedbits is authored by Theodore "Ty" Andros, and
is registered with TraderView, a registered CTA
(Commodity Trading Advisor) and Global Asset Advisors (Introducing Broker). TraderView is a managed futures and alternative
investment boutique. Mr. Andros began his commodity career in the early
1980's and became a managed futures and forex
specialist beginning in 1985. Mr. Andros duties include marketing, sales, and
portfolio selection and monitoring, customer relations and all aspects
required in building a successful managed futures and alternative investment
brokerage service. Mr. Andros attended the University of San Diego, and the
University of Miami, majoring in Marketing, Economics and Business
Administration. He began his career as a broker in 1983, and has worked his
way to the creation of TraderView. Mr. Andros is
active in Economic analysis and brings this information and analysis to his
clients on a regular basis, creating investment portfolios designed to
capture these unfolding opportunities as the emerge. Ty prides himself on his
personal preparation for the markets as they unfold and his ability to take
this information and build innovative professionally managed portfolios.
Developing a loyal clientele.
This report may
include information obtained from sources believed to be reliable and
accurate as of the date of this publication, but no independent verification
has been made to ensure its accuracy or completeness. Opinions expressed are
subject to change without notice. This report is not a request to engage in
any transaction involving the purchase or sale of futures contracts or
options on futures. There is a substantial risk of loss associated with
trading futures and options on futures.
| 
