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8.14.2019 - FIR Free Newsletter Bookmark

Where Focus Should Be
 
I know, I know, I should be writing about Jeffery Epstein, and the insanity that allowed him to either 1) be killed, 2) or kill himself, or 3) be whisked to a true high security prison to tell his tales and name names, or 4) be smuggled out, shipped to Israel, as most believe his blackmailings were a Mossad activity.

 
I know, I should be writing about the tensions in Hong Kong and how the Mainland Chinese leaders are beginning to ship tanks and troops to HK’s border, increasingly anxious to put down the protestors with violence.
 
I know, I should be writing about that “phone call” that was placed Tuesday morning between our trade delegates and the Chinese premiers, where it was decided that the US would delay placing more tariffs on hundreds of Chinese goods until December, a move many believe shows a “thaw” on the trade war.
 
I know, I should be writing about the 2 year/10 year inversion, and how just the fear of that on Monday dropped us for 400 points. Or, how the inversion actually happened and today the DOW fell 800 points.
 
There’s a lot of things I could write about today- Like bitchin and moanin about the economic reality of the world, where GERMANY’s AUG ZEW CURRENT SITUATION SURVEY: -13.5 V -6.5E (lowest since May 2010);

THE EXPECTATIONS SURVEY: -44.1 V -28.0E (lowest since Dec. 2011)

Germany's 10-year bond yield falls to -0.61%.
 
Wow, that’s incredibly bad. I wonder how Japan's holding up. Let's look:
Japan Machine Tool Orders -33% vs -37.9% YoY
 
I should even be writing about today’s huge plunge where the DOW was off 800 points because of “all the above” and more. Again, it isn’t JUST the yield curve, it isn’t JUST the trade war, it isn’t JUST slowing in Germany, Japan, S Korea, and the US. It’s all that and more.
 
So yeah, I could drone on about all the ills, tell you to buy gold and silver, and how one day this market’s going to crash, etc. etc, yada yada yada.
 
I’m not going to. Nope, today I’m going to talk about something that is positive for humanity ( perish the thought, right??)
 
Those who’ve read my articles over the years, know I’m somewhat of a survivalist. I’ve written pretty extensively about how to survive through some really tough times, like a hurricane, or a severe power outage that lasts weeks. I’ve shown you things like how to make a rocket stove, what water filter will turn putrid lake water into pristine drinking water, how to make a fire, how to remain sanitary with no running water, etc.
 
But all of those are actually short term fixes for a problem. For instance, if you’ve just experienced a hurricane, you might be without electricity for a few weeks, but it will come back on some day. Likewise if you’ve got no water, in a few days to a few weeks it will probably be back. So, survivalist skills are what you need to get through a few rough weeks or so. I’ve done it several times, and I’m pretty good at it.
 
However, what if your emergency lasts longer than a few weeks? Let’s consider the nightmare that is something like the Flint water problem. For over FIVE years now, Entire neighborhoods have had toxic water being shipped to their homes. When Flint decided to take water right out of the local river, 69 people died of Legionnaires disease. To this very day, clean, clear water, is a luxury in Flint.
 
Does it have to be? No it doesn’t. Let me explain.
 
Being someone that has always considered myself “Prepper light” the idea of clean water has always been on my mind. Sure a “Big Berkey” to filter creek water, and a rocket stove to boil it, will provide you with good drinking and bathing water. But let’s face it, lugging water from the stream or lake, is no fun. A 5 gallon pail of water weighs 40 lbs. Then you have to run it through the Berkey.
 
In a survival situation, that’s no problem. When Sandy took out the well pumps to my place in NJ, I simply lugged water from the lake, ran it through the Berkey, and boiled it on a wood fired rocket stove. My son and I had all the water we needed. MOST did not. But it was tedious, no doubt.
 
What if there was some way to simply “harvest water” no matter where you are? Well there is, and I’ve been following this company’s development for over three years now.
 
There’s water in the air. Lots of it. There’s more water vapor in the air than all the worlds rivers combined. You see it every morning as Dew. You see it on the ground under your air conditioner water outlet. Why not harvest that water?
 
People have been doing that for decades. There’s probably a dozen companies now that sell units you plug in, and it operates like an air conditioner, but “cleaner”. They use food grade metal “screens” that they chill with an air conditioner compressor/evaporator, the water condenses on the screens, and drips into a holding tank. While it will give you good clean water, there’s a lot of issues with it.
 
First off, it needs power to run. Most places don’t have much in the way of power after a big storm, so that is a major shortcoming. Secondly, they need high humidity to work properly. Once humidity drops to about 30%, you might only get a quart or two a day. That’s not going to cut it.
 
But there’s a company called Zero Mass that has impressed me “big time”. The CEO/founder is an engineering professor, and has a PhD in Material sciences. What he dreamed of, was a self contained unit, that by using different materials, could be made so efficient, that just a solar panel, could produce all the water a family of 4 could use. So, he went to work.
 
What they came up with is simply incredible to me. It’s a self contained “panel” that measures 4 feet by 8 feet. It has a solar panel on it. Inside, it has a collection tank, and ozone generator to purify the water, a mineral deposit anode, and the “condensing” area.
 
In the founders own words: “ Each one of these panels is an independent water supply, entirely independent of the grid. No electricity, no piping. Just sunlight and air. Each one produces water, stores it, mineralizes it, ozonates it to make sure it’s sterile. It has an 80PSI pump to deliver to a tap.”
 
If you’re wondering just how efficient this thing is, with two panels, which is the suggested amount for a family residence, it will produce up to 600 water bottles a month. Oh and it can do it in the desert. It can do it in Arizona. It can do it in the mud swamps of Louisiana.
 
They’ve already got these things in 18 different countries. They’re bringing clean water to villages in Africa, hospitals in Mexico, and residences in hurricane prone areas.
 
How great is this?? I personally believe it’s one of the truly GREAT inventions of our time. For approximately 4500 dollars ( Installed) you can have all the water you need for your family to cook and drink, for “ever” really. There’s very few parts that need maintenance, and the panel should last you 20 years.
 
Scaled up, if every household that “could” afford this, did this, the draw on conventional water aquifers would fall in half or more. No more would a hurricane send you to creeks and lakes to “get by” Towns like Flint, could solve their city’s water problem overnight.
 
I like a success story. Zero mass is a major success in my eyes. Think about that “cabin in the woods” you always dreamed of. You electrified it with solar panels, but you still had the daunting task of drilling a well. No more. Just some sunlight.
 
When I think of all the hairbrained crap Uncle Sam spends money on, I shake my head. But here’s a solution to so many people’s issues, that he should be looking hard at this. People near mining towns that have radon, and hydrocarbons coming out of their faucet. People near “clean up sites’ that have all manner of toxins in their water, All those problems go away, with a few simple stand alone “boxes”.
 
I wish this company all the best. I hope they go on to such big production that the cost drops in half and everyone buys one. It truly is a terrific solution. I’m reminded of a flood in northern Jersey years ago. This guy was waist deep in the water and said “look at this, all this water and not a drop of it drinkable.” How ironic and yet so true.
 
It’s people like this guy, thinking about the good he can do for people that breeds a product like this. I wish I was part of it.
 
The Market:
 
So the thing getting all the attention is the 2/10 yield inversion. But as I mentioned above, that’s just the easy pickins. We’ve got issues in Italy, we’ve got Germany slowing, we’ve got Japan slowing, we’ve got a trade war with china, who by the way saw their industrial growth drop to a 17 year low.
 
The market didn’t just fall 800 because of rates. It fell because everywhere you look there’s massive distortions. All the things I mention day after day that didn’t matter...until they did. This week.
 
So, what happens now? The DOW is below its 200 day moving average, and that’s going to be the tell. If they don’t rescue that in the next day or two, then yes, we’re heading lower still.
 
If the 2/10 yield spread widens, they’ll feel better and probably get us back over the 200 day. If we hear anything positive out of US/China trade, we will have a 400 point up day. But make no mistake, this market is wounded.
 
So, lets say they just let things fail. Where’s the next stop? 2822 on the S&P, and 25440 on the DOW. If those fail, then we’re looking at the 200 day moving average on the S&P at 2795, and failing that, the May low, of 2728 on the S&P.
 
Volatility is in fine supply here. Yesterday we gained 400 DOW points. Today we lost 800. What’s tomorrow bring? Frankly anything could happen. Logic says we go lower. But logic loses out to the NY Fed’s trading desk and the plunge patrol team if they get busy.
 
Logic also loses out if the Fed blinks and rushes to cut rates again. While it’s the worst thing they could do, the idiot algo’s would love it and we could put in an 800 point up day.
 
All I can say is that gold is doing well. Silver has been doing well. This is why we’ve continued to be bullish on both, no matter how much the “bad guys” pound on it. While not as sexy as high flying stocks, they tend to show their real value, when all this paper crap starts to burn.
 
Be careful out there folks. Wall Street is trying to tell you this is a blip, nothing to see, move along, all is well. All is not well. All is broken. Yet they WILL try and come up with more duct tape, and bailing wire to keep it together. Volatility will rule. So, don’t get brave or crazy out there, okay? Good.

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