Sony pulling a Hollywood production:
If there should be anything inviolate in this country, it is the rights granted by the Constitution of this country. While I will forever seek to protect another person's rights against what I consider to be my own, the balance is the American Life. Its continued genesis is shared through time's lament of lost life, and the shared fortune naturally brought by a time like Christmas. Through these ideas, we find the combined fortitude that gives cause for the U.S.A, and a blessing never to be taken for granted. Sharing of blessing is known in this country, and expressed by well recognized holidays.
In my appreciation for reasons why people look to this nation for various purposes: I know, having learned from others, the steely spine of our U.S.A . At this point, so much can go unspoken, but certainly recognized and felt by the American public.
I recall a State of this grand United States that has a motto of Tread on me Not. I also recall an international law that says don't export extortion. I also recall a publicly broadcast press conference from the President of the United States. President Obama said the U.S. will respond, but at its own choosing.
From this, U.S.A. holds the hand, and certainly against further cowardly attacks.
Unlike many countries, we make an effort to leave no "man" behind. Please consider www.woundedwarriorproject.org/ Freedom is certainly not free.
Sunday, December 21, 2014
2014 showed signs of substantial yield seeking, now second step is an investement in technology and transportation
The global market was once disjointed when it entered 2014. Late in 2013, we saw oil service industry gluts and signs of pricing pressure for the underlying commodity. We also saw commodity currencies at highs, such as the Australian dollar, China attempting hawkish methods of monetary rebalancing despite commodities stock piled at its ports, and rising local government debt that leads national debt, not to mention China's corporate debt.
As the year moved forward, we saw Japan enhance their QE in magnificent proportions. But the Japanese economy stalled due to an April consumer tax increase, and never has deviated the decline in yen, or the yields on JGB values. Europe, in like mind has the European Central Bank (ECB) buying covered bonds. They are talking about buying other forms of debt, if not equities.
Between the Japan and Europe QE, and U.S. propositions of tightening, a serious decoupling is occurring between the considerations of enhanced QE and indications of cyclical rotation in the emerging markets, and commodity based advanced markets. All influence the other advanced markets, against the emerging markets' associated mutual currencies of trade.
To explain, advanced markets relied for a long time on the developing growth of emerging markets and on commodity based markets to feed the idea of global growth. Now, we have those same growth markets needing to develop a more complex cycle of production, versus a simple proposition of re-investment in continued growth. This opposes the once known thesis of supplying these markets with easy U.S. cash. Perhaps, in the future, academics will confirm the declining influence of QE over markets, even when different countries enhance QE.
At this time, U.S. equities grow as did the production capacity of these emerging and commodity based countries. This occurs while the U.S. has good corporate earnings, though revenues have been generally slower. Nonetheless, the U.S. is the best of countries, among countries, in terms of economic performance.
Let me say, when the U.S. dollar appreciates, with its assets, that appears to be a carry trade. Recently, a carry trade idea was to buy a dollar and invest in higher yielding assets. Essentially, a carry trade is gaining from a currency, while also buying assets that grow. To make this work, you need to buy advancing currencies (sell declining currencies), and use the money to buy higher yielding asset classes. In this proposition, one must not be greedy. Reason is that currency markets will hurt, and remember pigs to get fat, but hogs will be slaughtered. So, caution and understanding the trade is of the utmost need.
Basic example today of a carry trade was: sell the euro to buy the U.S. dollar. With the proceeds, buy U.S. equities.
The U.S. is still looking at a bull market of sector advantage. This concept is shifting the extraction and growth that once dramatically grew economies into the efficient utilization of economic production and ultimately delivery capacity. Creating synergies and ultimate production to utilization of capacity, mostly in natural resources, will be driven by technology. Logical reason is simply the need of emerging and commodity economies to transition their investment into the maturity of processing and delivery of production.
This need goes into the technology needed to meet inventory and delivery against production levels. The need continues into transportation and end use utilization needs. Logistics, ordering, and order confirmation..... and all associated technology is what I look forward to. Among various markets.
Consumption is needed to create this product shift, and associated demand to absorb capacity.
If the U.S. economy leads the world by virtue of its consumers: A few dollars more (Clint Eastwood movie), can make a difference, as with money in the American consumer's pocket to help the globe.
Developing larger groups of consumers by larger production delivery systems, technology, logistics can all create a higher demand for the production capacity once created. Down side risk is wage depression sustained by over capacity due to inability to move surplus capacity, resistant local regulatory regimes and regional banking regimes that fail to move productive capacity, and globally declined demand. Upside advantage is removal of regional commodity glut bottlenecks due to inability to move commodities to market while transitioning from extraction to marketing, efficiency of moving production to market with improved technology that helps to efficiently move various products regionally and globally, and diversified product movement that results in value added synergies for production. Also, upside is preventing regulatory risk, in an environment that, among emerging markets, wants to protect their shores.
Ultimately, these emerging countries must weigh their shores going forward against the heft of their allowance of in-flowing investment capital. Consequent of country investment inflow, partnerships have developed. As a practical matter to protect their foreign currency reserves and current account these countries must acknowledge their growth partners, simply as a partnership matter. To allow confidence in investment partners, and to allow investment on a deeper level, these countries must allow inventory and shipment technology. That is, second step methods to prevent capital outflow.
Together, all countries can acknowledge emerging market currency risk. And search primarily for all countries to recognize a level of investment risk in global growth, and then seek private market methods to mitigate such risks. Especially in this environment of substantial first stage investment, a natural recognition means accounting for the second step of securing foreign investment. That is preventing capital flight to sustain capital on any second step to maintain building partners.Where not all companies are poised for, or want to engage in second steps, there are certainly those that want to and can. And with a view to safety and security.
Sustaining value of capital investment for both investor and host country seems very mutually beneficial for both the host country and the investor. Prevention of capital flight, which creates currency disturbance, is the mutual injury to guard.
Matters certainly appear that where emerging market businesses might not have the common technology known in advanced economies, there is a new level of development to be had. It's a level of development known to those that can apply advanced technology on a cost effective basis firstly. Secondly is not selling the impossible or imprudent, rather selling the effective for business partner needs. There certainly will be room to grow mutual investment. Where a rule of law secures investment over time, a rule of law can still exist, and comes to exist by popular movement and expectation.
As the year moved forward, we saw Japan enhance their QE in magnificent proportions. But the Japanese economy stalled due to an April consumer tax increase, and never has deviated the decline in yen, or the yields on JGB values. Europe, in like mind has the European Central Bank (ECB) buying covered bonds. They are talking about buying other forms of debt, if not equities.
Between the Japan and Europe QE, and U.S. propositions of tightening, a serious decoupling is occurring between the considerations of enhanced QE and indications of cyclical rotation in the emerging markets, and commodity based advanced markets. All influence the other advanced markets, against the emerging markets' associated mutual currencies of trade.
To explain, advanced markets relied for a long time on the developing growth of emerging markets and on commodity based markets to feed the idea of global growth. Now, we have those same growth markets needing to develop a more complex cycle of production, versus a simple proposition of re-investment in continued growth. This opposes the once known thesis of supplying these markets with easy U.S. cash. Perhaps, in the future, academics will confirm the declining influence of QE over markets, even when different countries enhance QE.
At this time, U.S. equities grow as did the production capacity of these emerging and commodity based countries. This occurs while the U.S. has good corporate earnings, though revenues have been generally slower. Nonetheless, the U.S. is the best of countries, among countries, in terms of economic performance.
Let me say, when the U.S. dollar appreciates, with its assets, that appears to be a carry trade. Recently, a carry trade idea was to buy a dollar and invest in higher yielding assets. Essentially, a carry trade is gaining from a currency, while also buying assets that grow. To make this work, you need to buy advancing currencies (sell declining currencies), and use the money to buy higher yielding asset classes. In this proposition, one must not be greedy. Reason is that currency markets will hurt, and remember pigs to get fat, but hogs will be slaughtered. So, caution and understanding the trade is of the utmost need.
Basic example today of a carry trade was: sell the euro to buy the U.S. dollar. With the proceeds, buy U.S. equities.
The U.S. is still looking at a bull market of sector advantage. This concept is shifting the extraction and growth that once dramatically grew economies into the efficient utilization of economic production and ultimately delivery capacity. Creating synergies and ultimate production to utilization of capacity, mostly in natural resources, will be driven by technology. Logical reason is simply the need of emerging and commodity economies to transition their investment into the maturity of processing and delivery of production.
This need goes into the technology needed to meet inventory and delivery against production levels. The need continues into transportation and end use utilization needs. Logistics, ordering, and order confirmation..... and all associated technology is what I look forward to. Among various markets.
Consumption is needed to create this product shift, and associated demand to absorb capacity.
If the U.S. economy leads the world by virtue of its consumers: A few dollars more (Clint Eastwood movie), can make a difference, as with money in the American consumer's pocket to help the globe.
Developing larger groups of consumers by larger production delivery systems, technology, logistics can all create a higher demand for the production capacity once created. Down side risk is wage depression sustained by over capacity due to inability to move surplus capacity, resistant local regulatory regimes and regional banking regimes that fail to move productive capacity, and globally declined demand. Upside advantage is removal of regional commodity glut bottlenecks due to inability to move commodities to market while transitioning from extraction to marketing, efficiency of moving production to market with improved technology that helps to efficiently move various products regionally and globally, and diversified product movement that results in value added synergies for production. Also, upside is preventing regulatory risk, in an environment that, among emerging markets, wants to protect their shores.
Ultimately, these emerging countries must weigh their shores going forward against the heft of their allowance of in-flowing investment capital. Consequent of country investment inflow, partnerships have developed. As a practical matter to protect their foreign currency reserves and current account these countries must acknowledge their growth partners, simply as a partnership matter. To allow confidence in investment partners, and to allow investment on a deeper level, these countries must allow inventory and shipment technology. That is, second step methods to prevent capital outflow.
Together, all countries can acknowledge emerging market currency risk. And search primarily for all countries to recognize a level of investment risk in global growth, and then seek private market methods to mitigate such risks. Especially in this environment of substantial first stage investment, a natural recognition means accounting for the second step of securing foreign investment. That is preventing capital flight to sustain capital on any second step to maintain building partners.Where not all companies are poised for, or want to engage in second steps, there are certainly those that want to and can. And with a view to safety and security.
Sustaining value of capital investment for both investor and host country seems very mutually beneficial for both the host country and the investor. Prevention of capital flight, which creates currency disturbance, is the mutual injury to guard.
Matters certainly appear that where emerging market businesses might not have the common technology known in advanced economies, there is a new level of development to be had. It's a level of development known to those that can apply advanced technology on a cost effective basis firstly. Secondly is not selling the impossible or imprudent, rather selling the effective for business partner needs. There certainly will be room to grow mutual investment. Where a rule of law secures investment over time, a rule of law can still exist, and comes to exist by popular movement and expectation.
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