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Utilities - Category Archive

Jan 30

10 Geopolitical & Economic Predictions for 2010

Filed under China, Commodities, Oil and Gas, Utilities

A great - and still growing - divergence appeared in 2009 between public statements by leaders and their public performance. The politicized, romanticized theater of increasingly populist “democratic” leaders and media seemed to be of a different planet from activities taking place in the real world.

While a large part of the global population appears still transfixed by words, there is a growing perception that great fissures already rend the global strategic architecture.

This is a trend which will compound during 2010.

There is a widespread belief that the world has “ducked the strategic bullet” of global economic collapse, but this is merely the delusionary euphoria of the severely wounded patient. Severe structural damage has occurred to the key driver of global economic stability, the United States. Most major economies of Western Europe and Asia, although in plight, have been protected in their fall by a complex web of structures and the fact that they were not, in many respects, as leveraged as the US. Britain and Japan, however, remain leveraged in their debt-to-asset ratio, to a death-defying degree.

All of this has been long in coming, and brought to a speedy climax by the unprecedented recklessness of inflationary spending by US Pres. Barack Obama, and, in the UK by Prime Minister Gordon Brown. The modern world (East and West, but prompted by the West) is at a junction point in a long process of constantly growing — but poorly-defined — obsession with “rights” (entitlements). This had its origins with the halting, but consistent, rise in global prosperity which began with the early stages of the Second Industrial Revolution (1700-1900).

Thus, a butterfly flutters its wings in 18th Century Britain and a tsunami engulfs the world in the early 21st Century.

Managing the now-overwhelming sense of entitlement in what we call modern democracies has become, because of the power of a comprehensive, but ill-informed electorate, an exercise in mob control, and an opportunity for populist demagoguery. Continue…

All entries filed under Utilities

NIFTY Making New 2009 Highs
no responses - Posted 09.09.09
We remain bearish on India despite the generally bullish sentiment on most technical blogs. The NIFTY's rise above 4800 made headlines - it is possible for the momentum to carry it up further - as all eyes are set on the 5000 mark. We remain very cautious of the rally ...continue
Buying Utilities
no responses - Posted 01.13.09
Further to the previous post on utilities, I have purchased today APA, SKI, and SPN. They are all trading at 10%+ yields with guaranteed income in a regulated environment. Just as we can't stop eating, we can't stop using gas and electricity. As I believe interest rates will be kept ...continue
Contributing Editor
1 response - Posted 01.04.09
Hi all I will be writing regular columns on this site about where I think the markets are going. I along with the inflationist are both strong believers in what's coming up next: hyperinflation. The important thing is to selectively accumulate during the next couple of years when the world ...continue

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