Wednesday, July 22, 2015

America and China... Superpowers?

In an interview about his latest book, Superpower, Ian Bremmer stated that America needs a strategy that doesn't just last for three months or a year, but for a generation. And the world is moving in a direction where the promises of an ‘indispensable’ America are going to be increasingly hard to fulfill. He warns about the risks in the world in terms of how much leadership there isn't in Europe, the challenge posed by a rising China, the implosion of the Middle East, the rise of terrorist organizations and even things like “quantum computing” which are going to undermine the power of nation states.

Recently, the GOP candidates for the presidency of the United States are bringing a debate about immigration which, despite Mr. Obama's attempts have not advance as promised but it is now known that the largest number of immigrants into the United States no longer comes from Mexico - as of 2014, it comes from China. And that means that America is educating an entire generation of Chinese elites to understand that there is actually a very different kind of system out there.

However, in the past 35 years there's only been one geopolitical constant in the entire world. Only one. And that's the rise of China. What's really dangerous is that China is the only country of size right now that has a global strategy. We should not pretend that that's not true. They have money and they're spending it. They're building architecture and infrastructure. They're trying to align countries more with their long- term strategic and economic interests as they see them. The fact is the Americans, by far a greater power than China in every aspect, have nothing to respond to that with. That's ludicrous.

Bremmer also argues that: “ America massively underestimated the Chinese”. We spend virtually no time thinking about them. There's no question that China has very real problems, and those problems are going to affect them a great deal over the long term. But they understand what they need to do to resolve them; they are taking very significant steps both domestically and internationally. And America is not. It's one thing to cede space to the Chinese out of a strategy. We're ceding them space that we haven't even considered.”

In my view, Americans have gotten disillusioned with the inauthenticity of their own leaders, and the politics and politicians in Washington. After living through the 2008 financial crisis, Bush vs. Gore, Guantanamo and Abu Ghraib - all of this stuff – and now we’re facing a $5 billion dollar election campaign where the most recognizable names are another Bush and another Clinton - one can't ignore the disillusion.

So any candidate aspiring to win the “White House” and battle against the status quo will not only compete against recognizable names and their coffers of money (Trump included with his delusional 10 Billion dollars of wealth!) but this is really not about the next five years, this is about setting us up for the next generation. And there, I think China could change an awful lot. If we don’t act now by electing the candidate with a coherent long-term planning strategy (including an immigration policy consistent with what made America great) we might be headed instead into a period of profound and long-term creative destruction geo-politically.

Coherent long- term planning is the only way to go...!



Monday, July 16, 2012

Integrity,Wall Street and US Debt!

It is without a doubt the single most important loss ever posted by a company:Almost 6 billion dollars (and counting)... yet no real answers about how this really happened. JP Morgan's CEO Jamie Dimon claims he did not know or was not aware of the specific rules that were broken. He didn't know if they were simply not followed or non-existent. Regardless, he had no choice but to assume full responsibility. Mr. Dimon, considered one of the most brilliant and influential financial gurus of our time, has not faced any wrongdoing or suffered any consequences (other than appearing/testifying a couple of times to government committees). The DOJ however, seems to continue working on this case. Is this company becoming too big to monitor? too big to oversee? Too big to fail?

Pointing to the CEO of any "public entities debacles" is the right thing to do, particularly in these day an age when we all immediately turn to identify the guilty person(s) involved and everyone is "guilty until proven innocent"via internet, 24/7 news (breaking or not), Facebook, Twitter, etc. (all in less than 1 minute (although typing 140 characters or less, which in reality could take less than 30 seconds - including misspellings! is certainly routine these days). Having said that, are these losses only Mr. Dimo's fault? Is there any integrity left in the markets and investment circles? Are the employees and managers -whom really were disrupting all rules for their "own benefit(s)" acting selfishly?- or is it too naive, assuming Mr. Dimon's expertise in these matters, that these individuals were just really following their bosses orders? I couldn't agree more with the concept that if you want to gamble with your own monies...go right ahead... but gambling with other people's monies, particularly with Government insured deposits held by banks- is and should be penalized as criminal. Financial institutions are supposed to TRADE. That's why they called it trading! What JPM did was really...betting. Pure and simple. For it not to be penalized is just wrong!

To most people, the solution to a debt crisis is very simple: get rid of debt! The U.S. debt is up to $ 15.9 trillion which is 102% over GDP. When debt grows 21% per year and GDP grows by 1.1% is simply unsustainable. As we know, from history, excessive debt causes Governments to devaluate their currencies. A thousand years ago it meant adding lead to gold. Two hundred and fifty years ago, it meant printing more paper money. Today, it means one guy in a Federal office typing zeros on a laptop and 'selling' it to another Government. The reason why we don't have inflation (in spite of stimulus) is because money isn't moving. Banks don't want to lend money because they can get it FREE from the Government. This vicious circle must end: Less spending leads to less making, which leads to less spending...
Obviously, at some point, the velocity of money must go UP and with upcoming elections perhaps not until November. The only sector where there might be some opportunity until then is on precious metals markets. Silver in particular. The downside is $ 21; the upside is $ 47. Check it out today, see how the trend is going and ACT.




Joe Velarde


E-global Solutions. 2012.


All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. We do not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. The publisher, editors and consultants of E-global Solutions Newsletter may actively trade in the investments discussed in this newsletter. They may have substantial positions in the securities recommended and may increase or decrease such positions without notice. Readers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this newsletter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law. Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info here.



Friday, May 4, 2012

Leadership


We all get frustrated when things don’t go our way but -with the premise that the world is probably going to get more unpredictable than less- our ways of thinking (that have gotten us where we are) will be even more insufficient going forward. We need a “new way of thinking”. One that complements NOT replaces the way we were taught to reason.Starting well before we enter school, we were all taught what can best be described as prediction reasoning. It is a pattern of thinking and acting based on the assumption that the future is going to behave in a way similar to the present and the immediate past.
Leonard Schlesinger, in his wonderful book: JUST START, states that “treating an uncertain world as if it were predictable only gets you into trouble”. But if you can’t predict the future (and increasingly you can’t) ACTION and inspiring others trumps everything else.

Connect and collaborate, don't command and control

The days of leading companies via a one-way conversation are over. Power has shifted and our leadership must shift with it. The old system of "command and control" to exert power over people is fast being replaced by "connect and collaborate" -- to generate power through people. Leaders and managers cannot just impose their will.

 Inspire, don't only motivate or coerce
There are three ways to get people to do things: coercion, motivation or inspiration. Leaders need to focus more on inspiration and less on coercion and motivation, since external rewards and carrots and sticks have limitations (particularly in hard times when there are fewer carrots to go round). Business today faces an inspiration deficit as demonstrated recently by "The How Report," an independent study that the company LRN conducted with the Boston Research Group and Research Data Technology.

The report found that CEOs are six times more likely than "average workers" to believe they work in a company where people are inspired. Employees said they were primarily coerced (84%) or motivated (12%) by carrots and sticks at work rather than inspired by values and a commitment to a mission and purpose (4%).
Yet the study reveals that companies that do inspire their people through values significantly outperform those who don't. These companies experience higher levels of innovation, employee loyalty, and customer satisfaction, and lower levels of misconduct, employee fear of speaking up, and retaliation.



Behavior as offense, not defense

The most successful sports coaches have shown that behavior is no longer a defensive tactic. Instead, behavior is now an offensive strategy that inspirational leaders need to deploy all over the pitch to create the conditions that result in the game being won, not just being played. There are simply too many shots on goal for them to block in our radically interconnected world. The best defense is to keep the ball.
Behavior has become a powerful source of excellence and competitive advantage. Bosses can no longer get away with telling subordinates, "Just get it done -- I don't care how." Today's successful leaders are those who flip the switch and replace task-based jobs (which are about what people must do) with values-based missions (how we get things done).

Recognize and reward for "how" and not "what"

Leaders and managers should go out of their way to recognize employees for how they do what they do, not for what they do or how much they get done. This could consist of starting their next meeting not by asking "What is on the agenda?" but "How are we going to connect and collaborate to make a difference?"
Or it could be emphasizing a principled decision that a colleague has made for their company in the interests of long-term sustainability at the expense of short-term expediency. Today's most successful leaders realize the need to relinquish traditional modes of control and set an example to their employees for how they lead, speak and manage performance.

Hire for character, not just skill

"Who" is an anagram of "how" and in a world where "how" matters more than ever, it takes "who" to do "how."
The Greek philosopher Heraclitus said, "Character is fate" and it is the responsibility of leaders to enlist employees who can contribute their full character and creativity to perform their best work and whose reason and purpose for going to work every day extends beyond their paycheck.

By inspiring their employees to pursue a higher, more meaningful purpose and achieve real sustainable value, leaders can achieve significance, not just long-term success.
China’s most famous philosopher, Confucius, said over 2,000 years ago: "The journey of a thousand miles begins with a single step." The leaders who commit their companies to go on a journey to find new ways to innovate in "how" will be those whose organizations thrive, not just survive.


Joe Velarde
Managing Director
eglobal.joe.velarde@gmail.com

E-global Solutions. 2011.

All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. We do not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. The publisher, editors and consultants of E-global Solutions Newsletter may actively trade in the investments discussed in this newsletter. They may have substantial positions in the securities recommended and may increase or decrease such positions without notice. Readers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this newsletter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law. Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info here.






Monday, February 20, 2012

The effect of collections for Big and Small companies

Lately, we have been preoccupied with Greece, Italy, Spain and Portugal collections as the financial crisis continues to develop around European and Middle East countries.
While investigating the status of current collections and day sales outstanding (DSO) indicators of the big Pharmaceutical and Medical related industries for companies like Merck, J&J, Medtronic, Boston Scientific, St Jude and Abbot Labs(to name a few) we found that the problem might be a little heavier than expected. This must be causing lots of headaches among CEO's and CFO's of these entities trying to minimize their exposure. In the blog sphere there is very little information to ascertain whether DSO's are rampantly increasing or not. Most likely their impact is embedded within the overall numbers. These entities are so invested in above areas that we find it difficult to believe that the posted numbers are correctly showing reality. Merck states 63 DSO's, Abbot claims 65, Boston 61, Medtronic 84, J&J 62 and St. Jude 91 days. If Greece is not paying, Italy takes about 500+days to collect, Spain is in crisis and Portugal is being voiced as the next one to tumble (not to mention France) is it possible that someone is fuzzing with the numbers?
When you add international sanctions (in the case of Iran) where payment alternatives are hard to find the conclusion is even darker on actual DSO's. How do this companies manage to stay current in these territories?
Different alternatives for big pharmaceutical and medical companies to collect monies owed are simply not possible anymore. Who is financing and at what cost are the DSO's maintained? if larger corporations are struggling to collect, imagine what small companies must be going through. Addressing these issues immediately- as cash inflows aren't coming as they used to- is a MUST for all companies regardless of size. If you are interested in additional information, please let me know.


Joe Velarde
Managing Director
eglobal.joe.velarde@gmail.com
E-global Solutions. 2011. 
All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. We  do not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. The publisher, editors and consultants of E-global Solutions Newsletter may actively trade in the investments discussed in this newsletter. They may have substantial positions in the securities recommended and may increase or decrease such positions without notice. Readers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this newsletter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law. Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info here

Sunday, October 2, 2011

A Clean Revolution!

Within the next two decades, China will build another United States in terms of homes and commercial buildings. It is projected that the middle class will grow from less than 2 billion to 5 billion and while raising the prosperity of so many people will be an extraordinary achievement this growth will come with an enormous demand for resources and energy.
The concern, however is that we also need to reduce emissions by around two thirds of today's level. This task by itself is herculean since, for the most part, the way we heat our homes, power our industries and move around the planet, remains on a system first developed in the 19th century which continues to depend on fossil fuels. We need a swift transition to low carbon and become a green economy!
A massive scaling up of clean energy, clean technologies and energy efficiency will create jobs, boost economic growth, protect the environment and secure clean energy access for all.

Please visit: http://www.thecleanrevolution.org/ for more information. A clean revolution is the only sensible way forward for humanity's future.


Tip of the year for investing in cleaning energy:


Famed futurist Ray Kurzweil has said solar will power the entire world in 16 years.He should know. The MIT grad, father of modern scanning technology, and holder of seventeen honorary doctorates is known by many as the rightful heir to Thomas Edison. Forbes calls him "the ultimate thinking machine."
His solar prediction is based off his Law of Accelerating Returns — an extension of Moore's Law — that says technology can be rapidly improved and deployed as costs come down and improvements are made.
That's exactly what happened with computers. And now everyone has one.
Solar is in the early stages of this phenomenon...

But it can't happen with debacles like Solyndra. And it can't happen if solar companies only follow the status quo.As with computers, the money will be made by the company that revolutionizes the way the core product is made.
Intel made investors over 18,000% doing just that in the 90's.
This company is about to do the same for solar.It doesn't use panels or films or mirrors; it's a spray that can be used anywhere to turn almost any surface into a power generator... with greater efficiency and fewer costs.Like with Intel, those who know about and understand it first will make the most.
To learn more, Feel free to click below:


http://www.angelnexus.com/o/web/29465


Joe Velarde
Managing Director
eglobal.joe.velarde@gmail.com
E-global Solutions. 2011. 
All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. We  do not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. The publisher, editors and consultants of E-global Solutions Newsletter may actively trade in the investments discussed in this newsletter. They may have substantial positions in the securities recommended and may increase or decrease such positions without notice. Readers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this newsletter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law.
Please note: It is not our intention to send email to anyone who doesn't want it.  If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info here

Sunday, July 17, 2011

Europe crisis? America debt ceiling? Stock market alternatives?

European crisis, America’s debt ceiling, Murdoch’s global media empire under fire, unemployment numbers down. And if it’s not unemployment, we’re all supposed to be shocked that debt is coming back to bite us in the ass...but some folks act as if this stuff surprises them. For months, this market has made little sense. They rallied 600 points at the beginning of this month on the idea that unemployment figures would magically improve then goes down again or steady up without any visible reason.But what has changed? Not a damned thing.

If you want to make some real money in this market, go where the action is.

Go where supply doesn’t equal demand. Go where national powers are going nuts because China insists on behaving like a crying brat.
Because if you continue to invest in the same items that the media throws down our throats every day, you’ll lose your mind — and for some of us whatever’s left of our hair.
Want to know what’s going to happen over the next few weeks?
America will pull a rabbit out of her hat, and the debt ceiling crisis will be averted in the eleventh hour. Europe will continue to fall apart, as the press clamors over the slow death of the Euro. Housing will not improve; unemployment will not improve.
Obama's threats to hold back Social Security checks won’t hold water, and we’ll run up a few hundred more points on the Dow as Bernanke teases QE3.
And here's another likelihood for 2011...and some positive news: Rare earth prices will continue to sky rocket!

We can all agree that rare earth prices are exploding. And we can all agree that we still have no alternatives. Months after China cut its export quotas and began hoarding this group of chemical elements we so desperately need comes word that Japan has found the rare earth discovery of a lifetime — enough minerals to supply the world.
But was this news nothing more than a political ploy, intent on forcing China to ease its restrictions? No one knows for sure.
The discovery, as it turns out, isn’t even large enough to impact China’s hold.
That means prices will continue to go up — bad news for America, Japan, and anyone else with their sights set on a green future.

Elissa Resources (ELI.V) trade just expanded its land position at the mining company's Thor rare earth project.

Lynas (LYSCF.PK), owner of the Mount Weld mine in Australia, has plans to produce by the end of the year, hitting 22,000 tons by 2013.

Molycorp (MCP) has plans to start up its Mountain Pass mine in California next year, ramping up to output of 40,000 tones a year by late 2013.

And don't forget about Rare Earth Elements (REE), the Market Vectors Rare Earth Metals ETF (REMX), and the Greenland play that have been touting us for months.

Do your research, stay afloat, keep an eye on the underwater rare earth story...but keep an eye on what’s going on above earth too…Stay alert and share the positive news when you find them.

Good luck, 


Joe Velarde
Managing Director
eglobal.joe.velarde@gmail.com
E-global Solutions. 2011. 
All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. We  do not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. The publisher, editors and consultants of E-global Solutions Newsletter may actively trade in the investments discussed in this newsletter. They may have substantial positions in the securities recommended and may increase or decrease such positions without notice. Readers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this newsletter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law.
Please note: It is not our intention to send email to anyone who doesn't want it.  If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info here

Thursday, July 14, 2011

The next financial crash?

Two subjects on my mind today. The first is - as usual - some esoteric musings on human nature,  the second - exactly how and when American
Blue Chip stocks will crash ?

Just last week, I was browsing through an article out of the Harvard Business Review
on Ernest Dichter's work back in the sixties on crowd motivation. Dr. Evil Dichter is the supposedly
"evil genius" who brought Freudian psychology to Madison Avenue on a silver platter.

He is credited with inventing focus groups and such. He coined "put a tiger in your tank" for Esso.
And when he determined young girls wanted something sexy in the dollhouse he created Barbie for Mattel.
Dichter determined there are four things that motivate a body to tell other folks about something.
He was thinking about brands, but the ideas are really the viral spread of ideas - that is to say, memes.
Here are his four rules:"The first (about 33% of the cases) is because of product-involvement.
The experience is so novel and pleasurable that it must be shared." "The second (about 24%) is self-involvement.
 Sharing knowledge or opinions is a way to gain attention, show connoisseurship, feel like a pioneer, have inside
information, seek confirmation of a person's own judgment, or assert superiority."  "The third (around 20%) is other-involvement.
The speaker wants to reach out and help to express neighborliness, caring, and friendship.
"The fourth (around 20%) is message-involvement. The message is so humorous or informative that it deserves sharing.
" I'd like to think I write to you because of Reasons #3 and #4, but my wife says it's more likely #2.

Putting Theory to Work

Now let's put our viral skills to a practical use: determining when the markets will tip over into their next deep slump.

We already know many of the memes in play such as "Recession," "Unemployment" and "Inflation," and the upcoming
end of the Fed's free money program - AKA "QE2". In fact, we can quantify the exact effect QE2 had on Blue Chip stocks.
This exercise offers us a pretty clear view of what has been going on over the past year or so, and what is likely to happen over the next year.

The Worst Choice Washington is now faced with a horrid choice: it can cease and desist printing and borrowing.
Without this prop, the markets will, of course, collapse. But there is a chance that this breakdown will be limited in scope.
Or they can (and to be frank, most likely will) cave in to political pressure and commence QE3. This will buy one more upside leg, but will also cause the eventual crash to double in scope. The best hope we can offer you is that we can find a way to monetize these moves via call and put options, regardless of which dark path Washington walks down. However, you will need to be able to buy the calls and puts we recommend. So feel free to check out this free special report on how to score winning option contracts. Why are we giving away valuable info like this? Again, I'd like to think that it's Dichter's third rule.
But, of course, we do have a second motive: We, financial writers, desperately need folks like you to stay profitable in both UP and down cycles. So it is in all our interests that you acquire these critical tools.

Good luck, 

Joe Velarde
Managing Director
E-global Solutions. 2011. 
All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. We  do not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. The publisher, editors and consultants of E-global Solutions Newsletter may actively trade in the investments discussed in this newsletter. They may have substantial positions in the securities recommended and may increase or decrease such positions without notice. Readers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this newsletter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law.
Please note: It is not our intention to send email to anyone who doesn't want it.  If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info here