On the Road to EXTINCTION!

January 20 2023

Weekly Column with The Contrarian

The human race is going down the road to extinction. Either Mother Earth is entering menopause or Globe Warning is a real thing. Drought is the leading effect of increasing CO2 levels. The effects of CO2 on the global stratosphere has caused earth's jet stream to fluctuate more. On a hot summer day you can see heat waves radiating off a blacktop driveway. The hotter the planet gets the faster the oceans evaporate. Evaporation is when a solid turns into a gas. Both energy and moisture rises into the upper atmosphere forming our weather. More energy is contained in today's weather patterns. The faster the evaporation, the more energy is generated.

Food insecurity is the result of global warming and human conflict is inevitable. Rising sea levels and drought is reducing the amount of farmable land. Conflicts over land will only get more desperate like we are seeing in the Ukraine. North Korea will use their Nuclear weapons to secure their food supply. so will any other country that has them. World migration will continue towards the food basket countries of the world.

The building of a world economy really started after WWII. The concept was easy. Through multi-national companies manufacturing was moved overseas for two reasons. One, to bolster democracy throughout Europe and second to rebuild Europe using cheap labor. International companies over the years refined the use of cheap manufacturing throughout the world. The more international participation by poorer nations, the higher their standard of living for all who participated.

In 2019, Both political and economic changes were coming that would change the last thirty years of cooperation. Covid-19 added to the division in the world. Countries around the world saw first hand how vulnerable they were to shortages and how dependent they are on other countries. The invasion of Ukraine over land is just the beginning. China will attack Taiwan. Israel will attack Iran, and so on.

In addition to global warming, Political discourse among nations, World inflation and seven rate hikes within twelve months. Global cooperation over the past thirty years helped keep inflation low and money cheap. Going forward you will see countries will bring manufacturing back home at a very high cost. High inflation over a long period of time will eat away the value of assets. The world is moving away from a one world currency. China and Russia are working towards a dollar free trading block. This could happen faster if the Freedom Caucus in the U.S. House of Representative fails to raise the National Debt Ceiling Limit by June 2023. Asset markets are acting like high interest rates and possible default by the U.S. government is not a risk to the market. I disagree. I expect another leg lower in the next few weeks.

Stay tuned!

Any views expressed in the below are the personal views of the author and should not form the basis for making investment decisions, nor be construed as a recommendation or advice to engage in investment transactions.