Uranium

James Dines has been in the business of making bold calls for over 50 years. In this deep-diving interview, he minces no words about the dire risks the US economy - and the world at large - faces at this juncture.

Simply put, he sees the excessive credit in the financial system as having placed the global economy on a collision-course with hyperinflation.

Unlike past periods of turmoil, there are no truly 'safe' places for investment capital to hide. Geographic markets and almost all asset classes are positively correlated these days. They share many of the same risks and if a systemic crash occurs, they will crash together.  read more »

Recently, we crossed the seven billion threshold for humans on the planet. Most of these people are desperately trying to get up the living standard curve. And that requires resources.

Simple math tells us there is going to be increasing competition for a steadily dwindling -- in both quantity and quality -- global pool of high-grade resources. This 'scramble for stuff' is going to be one of the key defining trends of this century. And while it will have game-changing repercussions across societies, economies, and geopolitics -- we are at a moment in time where tremendous upside awaits investors who recognize today the true future value of key resources and secure meaningful exposure to them.

Rick Rule has made a successful and storied career as a resource investor, and has rarely seen as attractive an alignment for the space as he does today. What is there to be so optimistic about?

 read more »

Monday, July 12, 2010

Executive Summary

• A war with Iran seems likely before the US elections in November.
• The US has committed an act of war in deciding to embargo Iranian fuel shipments and international financial activities.
• The "urgency for dealing with Iran" is driven more by oil competition than military crisis.
• The US militarily occupies or diplomatically controls every strategically-located oil producer in the Middle East except for Iran.
• The most probable explanation for the sudden concern about Iran is likely centered over energy and the 'requirement' of growth that our economic and financial systems demand.
• Seeking militarily-secured access to oil halfway around the world is a weak strategy.
• An Iranian war has the potential to severely disrupt developed economies due to another wild oil-price spike.

These days I am troubled by the renewed beating of the Iranian war drums by the West and Israel.  Troubled, in part, because the world economy needs a war with Iran right now like it needs a hole in the head.  Or perhaps I should say a hole in the barrel, because the most likely immediate outcome of an Iranian war would be a diminution of oil traversing out of the Persian Gulf and a gigantic leap in the price of oil.

Both would add terrible stresses to the global financial system at this particular moment.

The last time I wrote about the urgent beating of the Iranian war drums was in December of 2009.  Then, too, we saw a near-perfect coordination of the media in breathlessly "reporting" whatever the US and Israeli military elements wanted communicated.  Basically it boiled down to something like this:  "THE US MUST IMMEDIATELY DEAL WITH THIS URGENT THREAT RIGHT NOW - NO WAITING - IT IS THAT SERIOUS!!!"  Sorry for shouting there, but that's how it came across to me before it all, oddly and quietly, slipped off of the headlines and out of our collective consciousness, until just recently.

A new Martenson Report is ready for enrolled members.

Link - Growth and the Upcoming Iranian War

Executive Summary

• A war with Iran seems likely before the US elections in November.
• The US has committed an act of war in deciding to embargo Iranian fuel shipments and international financial activities.
• The "urgency for dealing with Iran" is driven more by oil competition than military crisis.
• The US militarily occupies or diplomatically controls every strategically-located oil producer in the Middle East except for Iran.
• The most probable explanation for the sudden concern about Iran is likely centered over energy and the 'requirement' of growth that our economic and financial systems demand.
• Seeking militarily-secured access to oil halfway around the world is a weak strategy.
• An Iranian war has the potential to severely disrupt developed economies due to another wild oil-price spike.

 read more »

Tuesday, January 12, 2010

Executive Summary

• China is pursuing an active policy of resource mercantilism.
• China appears to be strategically preparing for resource scarcity.
• China's auto sales have surpassed those of the US.
• This year China also edged out Germany as the top exporter.
• As China's economy expands, its energy use increases.
• The US should be stewarding its remaining resources and transitioning deliberately to a very different economic model, but instead we are wasting both time and resources.

No, this report has nothing to do with golfing.  In the Chinese calendar, 2010 is the Year of the Tiger.

While the US and Europe are busy wasting time trying to figure out how to return to the condition of illusory economic health that defined The Aughts, China seems to be operating from a very different playbook.

For the moment, I want you to assume that the concept of rapidly (and permanently) depleting resources is a reality.  This shouldn't be much of a stretch, because this is true on a per-capita basis for nearly every critical resource, and some are already "past peak" by any measure.

Now suppose that you have a multi-year view of things and are in charge of running a major nation.  What would your strategy be?

A new Martenson Report is ready for enrolled members.

Link:  Year of the Tiger

Executive Summary

• China is pursuing an active policy of resource mercantilism.
• China appears to be strategically preparing for resource scarcity.
• China's auto sales have surpassed those of the US.
• This year China also edged out Germany as the top exporter.
• As China's economy expands, its energy use increases.
• The US should be stewarding its remaining resources and transitioning deliberately to a very different economic model, but instead we are wasting both time and resources.

No, this report has nothing to do with golfing.  In the Chinese calendar, 2010 is the Year of the Tiger.  read more »