The Politics of God

When the brooding Emperor of Rome – Tiberius – fills the river Tiber with the dead bodies of all those he imagined were the supporters of the Julii, he betrays a fear of something he cannot allow to abide under his rule; namely, opposition. Even just the threat of potential opposition.



The couch of some decadent tyrant or potentate...
Let's get one!

The Roman political undercurrent in the Jesus story is that from the very start, when three wise men from the East, seek out a new-born child in order to proclaim that this child is a king, and not just a king, but some kind of special king – from this start, the folklore matches entirely with the political suspicion that Plutarch gives words to, in writing, namely that Julius Caesar's son Caesarion was spirited away to India, and not murdered, and that in the time both of Augustus and Tiberius there was a fear that there may have been still remaining, someone in the direct bloodline of Julius Caesar that the Julii might eventually put forward as the legitimate, and actual Caesar.

There were, in Rome at the time, two main and powerful opposing families: the Claudians and the Julians or Julii.

Now as far as the other psychopath Herod goes, not very much is ever given completely decisively as to the reason the usurper Herod sets about to kill babies, but the assumption has always been that he feared some claimant appearing that would stake out an hereditary local kingship that the local public would agree with; something he did not have himself. That Herod was extraordinarily ambitious and materialistic and suspicious and ego-centric and murderous and maybe mad as well, is fairly well-attested to by most authors of the time.

Chopping down the king of trees...
An ancient tradition!

Objectively, and from some distance in history, it is very difficult to steer away from the ironical prospect that rather than a tame and peaceful god or any quiet-voiced preacher, one group of rulers feared the rise of a popularly political figure, such as an accepted hereditary king of the East, and another group feared the rise of a popularly accepted hereditary king of the West – Caesarion or any of his 'possible' offspring would have provided just such an identity, being both a descendant of Cleopatra VII the Pharaoh, and Julius Caesar.

So on one level, the Christmas Story is a highly political and earthly one. It's about babies, and the eminence of them, and the sinister interest politicians and rulers have in them for highly obscure reasons; it's about the birth of kings and popular feelings about magic and power, and days off from doing the work of slaves; it's about material expectation, wealth, celebration and events out of the ordinary; and it's about plum dough (pronounced 'duff,' as you know) and alcohol and reaching a divine ecstacy through overindulgence in food and wine...

In short, one is able to celebrate the Jesus wine and bread thing along the lines of the more typical of your Epicurean ideals – 'eat this drink this get this imbibe this, and you shall surely experience heaven forsooth...'

Well in my mind you see, it was this Augustus fellow and his gloomy follower Tiberius who started all of this austerity nonsense, for one thing, and suppression of the common good, and this accounting for every sin and crime except not of the elite's ones of course, and especially all of this forcing the public into debt for no altruistic purposes. On the other hand, by my reckoning the earthly politics of god, goes along these lines: 'take this fish and open its mouth, and within it you shall find a coin, sufficient to pay taxes to Caesar.'

Oh for a real god and a real Caesar!

Alas for the present for the most part we must make do with a fake Douglas Fir made in China, a Bitcoin and a GMO piece of fish-filler.

Personally I have been endeavouring to search for some fantastic and fascinating expensive luxury gifts to lust after or salivate over during this latest Christmas Season, and I believe I have observed that even the obvious up-scale usual places in which to find this sort of rubbish are coming up pretty short-handed on the lust-inspiring. That is not good.

What? Are all the billionaires feeling sad and bored, or lost and stale?

Or maybe just clueless and unable to get away with it ever since money itself was thrown into the River Tiber by more recent psychopathic administrators.

I wonder what threat real money poses to those in power...?

The new Rolls Wraith film clip

Yet, miracle of miracles! I have myself not made sufficient profits this year to have to pay any false Caesars their levies. There is a god afterall, it seems. My type of god of course. And a very devious sort that sort is too! But it does for me. I know I should lift my horizons to more difficult tasks in the line of miraculous interventions. A Rolls Wraith is under consideration. I shall not be leaving the girl at the iron gate though - in case my god is taking hints only from the company's marketing...!

...And by the way please leave the girl in, By Jove!

Ogilvy's Reunion

The latest sensation in the advertising world is the new Google India 'Reunion' ad., which you can catch on YouTube. It's definitely worth taking a look at. In many respects many of today's film-clip adverts are more engaging and interesting than a lot of modern day full length feature films. I guess unless producers are prepared to take risks and actually buy and pay for some new script or storyline that isn't a total re-hash of something already done, dead, buried, resurrected, gone to heaven, fallen back to earth, and then beginning a whole cycle all over again – movies are just going to go the way of everything else sucked dry by this parasitic era.

Google India's 'Reunion' ad -
check it out on YouTube

Ogilvy Mather created and produced this ad for Google and there are certainly one or two things worth noting about this agency. David Ogilvy was the absolutely nonpareil advertising guru of all time, really – the man who created the 'Man in the Hathaway' shirt concept.

The standard biographies claim that Ogilvy worked for the British Secret Service and he may have done...

But his original employers and business partners, the Mather and Crowther and Dawson families, have more interesting histories. The actuality of who in that crowd worked for secret agencies was that one of these families possessed sets of twins, who were stage performers, and who travelled all over the world, coming into close contact in those days, with the dying-out Bohemian families – which consisted of Russians, Pomeranians, Armenians, Hungarians, the Belgian aristocracy, even some French remnants of the Louis' aristocrats. It was never that these groups lost entirely the wealth they once overtly possessed, rather, the major wars in Europe, invasions, political aggression, all caused them to take their wealth underground. The word 'hotel' in French history did not quite have the same sense of a place open to the travelling middle classes, and the Majestic Hotel in Paris served as more or less, the administrative Capital of every ruler of France since Napoleon until and including Hitler.

This hotel ( The Paris Majestic) was built and owned by an Armenian who said he was a Tunisian, and it was here that the famous Sarkies family got their training in hotel management and I suppose, entrepreneurship.

Secret services to this day employ twins...

Nostalgia is a funny thing, some people get taken over by prejudices of childhood or youth and young adulthood implicit in marketing that exploits nostalgic visions and end up missing out on the rewards of the future being born.

Another old guy's nostalgic vision?

I would compare and contrast Lily Allen's latest music video 'Hard Out Here' side by side with the Ogilvy 'Reunion' ad. The Ogilvy ad relies on viewers suspending some disbelief at certain points, in order to get the emotional messages through in a short time-span – and it's getting a lot of positive response. Allen's music video is copping a huge amount of criticism, on the other hand. Her vision is probably not as kind, on the surface, to the historical subject that she deals with. Personally I find the two examples virtually equivalent. I don't think there is anything underhanded in Ogilvy's nostalgic vision, and neither do I see anything underhanded in the way Allen treats her subject matter. The public's reaction though, seems vastly different.

Lily Allen

My own perspective may have something to do with the peculiarity that absolutely nothing at all has changed in the cherished components of my life, over considerable time and through horrendous external ructions. I presume I tend to see which things are inclined to remain, and which, time and fashion are bound to jettison. I could be wrong. I'll have to wait a little longer to find out. But I can see myself nodding sagaciously to the others who waited with me... Waiting, let me tell you, is a vastly underestimated thing.

 

Fabius (the Waiter) Maximus.

Dreams And Fables... And Sables...

I re-watched this week, a fairly recent interview with the diamond expert Chaim Even-Zohar, covering his thoughts on what the future could hold for De Beers in the hands of its new majority shareholder - Anglo American Group - and in the absence of people like Nicky Oppenheimer and Varda Shine. One of the things he said as an incidental aside, was that 'big corporations and big groups like to sit on a lot of money so that they can do the things they like best – which is to use the money to give them opportunities to buy things.'

Now that is an interesting remark, and it's certainly true about what companies like to do, but it is a standard strategy that applies only when the circumstances are standard also. Which they are not now.

The opportunity for profit, say in the trading of diamonds for example, where the average price per carat is arguably a structured one (let's not go into it too deeply right now) - that opportunity is a highly privileged one that is not necessarily going to be able to function in most economies over the history of Mankind. Government direct increases to Money Supply, and the effects of past eras of inflation, allow for much more simplistic attitudes to profit opportunity than is often credited by those looking at 'success stories' such as the De Beers' one. For instance, in hindsight, is it really the brilliance of De Beers original marketing campaigns – as economic folklore credits – that created demand at such elevated prices; or, is it more likely to have been the fact that there has been so much money surplus in the hands of high end consumers due to high circulation velocities, and vast increases in Money Supply throughout the period.

So let's go back: 20th century 'standard' profit opportunities are based around the idea that premiums can deliver you profits. You pay a premium to secure a position in the beneficial outcome of a market transaction (and scale it up to maximize the results, of course), and because everyone has easy access to vast amounts of money, whether as debt (velocity and inflation effects), or as reserve funds (during this period largely a Money Supply-side factor), if you buy 'right,' almost regardless of the premium, there is simply guaranteed to be a way up or out. It's easy to look like a product development, or a sales, or marketing genius.

But in this century, last century's standard approach cannot be applied wholesale and be made to function successfully. Money velocity and fiscal policy conditions are very different.

Velocity is catastrophically low - so buying a diamond, for example, might as well indeed be 'forever' that is if you ever intended to sell it again for cash at some point...!

All of this is not to say that the perceived value of diamonds is actually misplaced in principle – and many people want to say this kind of thing about diamonds although I personally do not. Diamonds can physically last a very long time requiring very little or no maintenance, and they hold a certain amount of liquid value over that very long time, and therefore they do represent a reasonable means of establishing a family legacy that can run over at least more than one or two generations. As a commercial business though, they rely on the availability of consumers with cash to spend.



Rubellite ring from Hardy Brothers Jewellers

Yet if I were to consider some form of legacy creation that was meant to run over the whole of two or more generations, personally I would be acquiring rubellite gemstones rather than too many diamonds. Rubellite, even by today's low money velocity standards, is not expensive in the market. But that is not to say that it won't ever be...

Marketing companies say that diamonds are incredibly valuable – and this alone is not going to undermine the fact that they continue to be exorbitantly priced. But if you want to actually have a ten or twenty carat top grade diamond, the average person is simply not going to be able to afford one. But you might be able to get a ten carat top grade rubellite gemstone, even one with an inclusion that actually looks like the famous fictional Pink Panther! I don't think there's many people that realize that certain minor inclusions are prized in rubellite, unlike inclusions in other gemstones. Yes, The Pink Panther is a fictional Hollywood tale about a large fictional diamond with an inclusion that looked like a pink panther. But no, the tale is not entirely mythical, but may have been based on Eastern legend about rubellite. Frankly, if I told you what I know about these legends, you might rush out and buy some rubellite right away, stick it next to an old Arabian oil lamp and start to rub it to warm it up.

But there's plenty of time. You will want to get a lot of quality rubellite stones at $200 a carat so that you will have a treasure trove of them to sell at $600 a carat.

Put it this way, if you bid along with Steinmetz's more-or-less own diamond agent for the Steinmetz pink at $1.6 million per carat, you are going to be waiting a hell of a long time to sell it at $3.2 million per carat, unless you were using your own money; a waste of time and money you would suppose...

But going from Even-Zohar's terrific book “From Minesite to Mistress” being able to sit drinking champagne among millionaires and have your expensive friend sporting a ten carat top grade rubellite cocktail ring on her gloved hand, is the stuff of legend not of myth.

 

 

Calvin J. Bear

The 'Thermidor' Financial Market

The word for the month of July, in French, is 'Thermidor.'

And, it is from this word that the dish 'Lobster Thermidor' gets its name.

Lobster Thermidor

Well, in fact, it is a specific July that the name is derived from – the one in 1794, during which Robespierre was overthrown.

Maximilien Robespierre was a truly abominable person, who made much of his integrity and honesty, and yet who could not resist manipulating and exploiting the clamor of the crowd, for his own power-hungry ends. His time at the top of power in France was known as the Reign of Terror, a period during which almost anyone might have been executed on the strength of a trifle because of the self-serving zealotry of Robespierre in particular.

And it is with this little item of history in mind, that I wish to address the matter of taking financial risk today. Risk is of course, as you no doubt know, not about the potential of loss, but about the degree of volatility, over the expected course of any investment. When the word 'risk' is used by the less learned, and is meant by them to apply to things like race horse gambling and so on, they are actually talking about the relative 'odds' for any outcome occurring, and not about professional investment risk as such. These people are generally looking at some very very quick event, in which money might be made on an immediate expected outcome. Professional investors want to have some ultimate result averaged out over a long period, say, ten years, for example.

We might well inquire into the consequence for our definition of risk (which is the standard economics textbook one, by the way), of a Central Bank and their political accomplices manufacturing a 'zero risk' climate for interest costs and share prices.

Revenues and profits by companies ought to have the most significant bearing on share prices, but, if they don't because of Central Banking policy to support equity price levels regardless of all other factors besides the government and bank determination to ensure liquidity (by which, they really mean, 'to preserve the remuneration levels of executives at unprecedented and unjustifiable heights') – then we are being faced with a similar form of hypocrisy that Miximilien Robespierre indulged in.

Will there ever be a 'Thermidor Reaction' – which is what the overthrowing of Robespierre was called at the time – against contemporary Central Banks and hypocritical and self-servingly hypocritical, zealot-driven, governments?

On the surface, since there is no volatility, it seems that there is no risk entailed in investing in stockmarkets. But there are also no standard ways of understanding profit opportunity either, because of the artificiality of the price of money... And many people also complain about the hidebound nature of the rules and bureaucratic red tape involved in launching productive capital of any kind.

Thus, one thing is clearly rising – public dissatisfaction. And this, like the recipe for Lobster Thermidor, is also a recipe full of mustard powder, if only metaphorically.

Holy Grail?
(...why am I always posting Maserati pics?!)

If there are any of you still out there who cherish the idea of being an individual – and individualistic - money-making private investor, then you must look at non-standard ways of perceiving profit opportunity. You must abandon the standard route, go into the deep silence similar to that of a Benedictine cloister, and hope that you will gain a vision of the investor's equivalent of the Holy Grail! There are many knights on this Quest for the 'holy grail;' but like the myth, only one or two out of many will ever see it I fear. This I certainly know – no major name in investing is even close to seeing it. No. Not even one of them. Not Buffett, not Gross, not any of them. These times have found ALL of them wanting.

 

In the next post, I shall outline some non-standard profit opportunities.

 

Best

 

Calvin J. Bear