Genuine Report 031

Genuine Report 031

The Recap - Most Impactful News of the Year.

The World - Global chess pieces are positioned, technology remains the last wild card.

Business - The Board v. Altman.

Politics & Religion - It’s a Powder Keg.

Forecast - To Buy or Not to Buy (a Home), that is the Question?

Smokescape - The Cigar.

Sport & Combat - The Queue and Stick.

Recap 2023

Most Impactful News of the Year

(December 28th 2023, Toronto)

Cusp of Developing Artificial General Intelligence

With OpenAI’s GPT 4 leaping past previous large language models and embedded with Microsoft Office, the AI-revolution is at full speed ahead with concerns future creative and cognitive jobs are at threat from the new tools.

Acceptance of Unidentified Anomalous Phenomena (UAP)

With unusual radar readings following the tracking of the Chinese Spy Balloon, the public learned of U.S. UAP programs as David Grusch testified in front of Congress and indicates existence of non-human biologic.

Crypto’s Changing of the Guard

Following last year’s fall of Sam Bankman-Fried, now Changpeng Zhao pleads guilty to money laundering via Binance. While U.S. Government program FedNow issues CBDC payments and BlackRock geared to put out Bitcoin ETF.

October 7th

Hamas attacks and reveals the plight in Gaza further dividing the room between Palestine and Israel. With the global position for Israel to limit their reaction, Hamas to release hostages and both sides to agree to a ceasefire.

Borders being Redrawn

Chinese ‘New Standard’ map and contests in South China Seas, resulting in the Japanese military taking an offensive position in the waters, and many war games in preparation for future conflicts in southern trade routes.

Clean Energy on the Horizon / The National Ignition Facility (NIF) repeating Nuclear Fusion with net positive energy yield.

CRISPR Editing takes to Market / FDA approves two CRISPR gene therapies to address Sickle Cell disease, first to market for the scientific methodology to edit genes for health.

Threat of Spread of Antimicrobial-resistant Fungus / Candida Auris in Healthcare Facilities since 2021 has challenged standard treatments.

The Sphere / Opening in Las Vegas, despite $100M in losses, the theatre has the potential to re-define the entertainment industry in the 21st Century.

Ozempic / Weight management drugs, previously known for diabetic treatment are thinning out masses and impacting junk food sales. 

The World

Global chess pieces are positioned; technology remains the last wild card.

Globe / Nobel Physics awards real-time Attosecond laser electron spectroscopy for its ability to capture ‘pulse train’ phases, ‘Assembly Theory’ sparks debate on creation and selectionism, and the 13-sided ‘Einstein’ shape opens up fractal mathematics. First nanophotonic electron accelerator (NEA) may lead to new oncology treatments,. The Vatican approves the blessing of same-sex marriages. B-21 Raider Stealth fighter takes flight and reveals what a 21st Century war machine is built to do.

Asia / Japan militarizes islands around South China Sea with a new policy change of offensive positioning.

  • China champions the sovereignty of Arunachal Pradesh, expands to South Tibet, supports Bhutan all as a challenge to India.

  • The Maldives elect Pro-Chinese President Muizzi, resetting control of the region in the Indian Sea under India.

  • The ‘123 Agreement’ grants The Philippines rights to develop clean nuclear energy.

  • India’s cabinet approves $142B for a 5-year program to feed 800M.

  • Singapore elects Tharman Shanmugaratnam, the first non-Chinese president-elect, with 70% of the votes.

  • Nepal has become first South Asian country to acknowledge same-sex marriage.

Europe / Armenia signs Rome Statute, Putin can now be arrested due to ICC warrant if he arrives in the Caucasus country.

  • Russia builds up Black Sea naval presence, Russia and India play out PASSEX military exercises in the Indian Ocean.

  • Finland closes Russian borders due to concerns they are sending militant cells over the border.

  • Ukraine delays ’24 Presidential elections until end of war, and Nord Stream II destruction linked to Ukrainian officials.

  • Sweden passes steps to join NATO in 2024, as Türkiye relieves its blocks.

  • Spain is mass protesting socialist government looking to free Catalonian separatists and provide amnesty to past regressions.

  • Russia’s Supreme Court rules international LGBT movement as an extremist organization.

Africa and Middle East / Hamas strikes Israel on Oct 7th, the IDF retaliates with Operation Iron Swords,

  • The world demands ceasefire in Gaza, but the US veto the UN call, and no countries take efforts to supply the Palestinians.

  • Despite large Cyclone hitting Yemen, the Iranian backed Houthi’s seize vessels in Red Sea in consideration of support to Israel.

  • The Goods and Energy sectors stop marine traffic in Red Sea due to Houthi attacks and cost of insurance.

  • France is closed out of the relationships with Eastern and Northern Africa,

  • Kenya raises interest rates to 12.5% to stabilize shilling.

South & Central America/ Venezuela sets referendum to annex Guyanese oil-rich territory Essequibo.

  • Ecuador elects relatively unknown 35 year old President Daniel Noboa Azín, in reaction to the populist polarization of Luisa González.

  • Argentina elects Right-wing President Malei in plans to fight inflation by relieving income taxes and paring dollar to U.S. dollar.

  • Panama Canal water levels are continually low due to poor rainfall levels, creating supply chain challenges.

  • U.S. Bolivian ambassador, Manuel Rocha accused of being secret agent for Cuba.

North America / In U.S. 40K die from guns, half by suicide, 600 mass shootings, with only trauma ER to save the rest.

  • Mexico-China relations step up at APEC summit, due to global shifts in manufacturing. Mexico sets anti-vaping bill for 2024.

  • U.S. sets history by ousting House Speaker, Kevin McCarthy, replaced 4-weeks later with religious creationist Mike Johnson.

  • The SAVE program to pause Student Debt loans comes due after 3-year hiatus.

  • Moody’s downgrades U.S. rating from ‘AAA’ stable to negative, and U.S. Fed holds interest rates signaling cuts in 2024.

  • Elon Musk tells advertiser’s “To Go Fuck Themselves’ in his apology to their reaction to his X tweets.

Business

The Biggest Board Misstep in 60 Hours

(December 15th 2023, Calgary)

On November 17th, Friday afternoon, the Chief Scientist of OpenAI, Ilya Sutskever, scheduled a call with CEO, Sam Altman, while he was at Formula 1 in Las Vegas. When Sam joined the call there were 3 other Board members on the line, and they terminated him. 30 minutes later they released the following statement, that “the board, which concluded that he (Sam) was not consistently candid in his communications with them, hindering its ability to exercise its responsibilities”. They officially caught the world off guard, as well as OpenAI President Greg Brockman who was outraged and filed his resignation with three senior researchers.

As Sam Altman had become the spokesperson for OpenAI’s product Chat-GPT and AGI technology altogether, he had created a persona of thoughtfulness and sensitivity for each step this technology must take for the greater good of society. On November 18th, Saturday, Sam tweeted his respect for the company and the time they spent together, while 500 of the 700 employees signed a petition to ensure he stayed. As Microsoft is the largest private shareholder of the for-profit OpenAI business, CEO Satya Nadella quickly advised there is a home and department waiting for Sam and team. The development of Microsoft Office is wholly dependent on the Chat-GPT AI product line as an add-on and this external board decision needed to be mitigated and immediately.

The OpenAI Board underestimated Sam’s importance and the impact of the ambiguity in their messaging of his ousting, they were called to step down, Sam and Greg returned and reset with a new, more impartial Board.

We are all left to wonder was the drive to push out Sam, simply tied to his rush to profit the product, or was it a set of leaders unsettled that he was garnering all the attention and fame? Some conspirarize that ChatGPT studied on data garnered by Chinese Cyber Army Double Dragon (D2), or has effectively developed a product an Artificial General Intelligence (AGI) prior to alerting the board. This could this be why Larry Summers, former U.S. Treasury Secretary was placed on the new OpenAI board, to keep an eye on next step for the company.

Gold – despite large discoveries of late, it still take 10 years to reach markets, Gold is at heights and expected to grow 10% in ‘24.

Oil – Oil inventories on rise, and U.S. rebuilds up Strategic surplus. The increase has seen a 15% drop in crude oil prices this quarter.

Crypto – the Crypto kings who built trading platforms are toppled, as Wall Street focuses on legitimatizing Bitcoin with an ETF.

Politics & Religion

It’s a Powder Keg

(December 7th 2023, Montreal)

Last quarter we noted the conflict in the Caucasus region is concerning, as its political impact is larger than its borders. With events in Gaza, it is easy to see there are powder kegs all throughout the world that could draw us in to WWIII.

Israel / Palestine / Lebanon (proxy for Irán)

Since its origin in 1948, Israel was in conflict with local Palestinians as borders were established and neither side recognized the sovereignty of the other. The religious element between Jews and Muslims heightens tension with all neighbouring states, particularly with Hezbollah up north in Lebanon who attacks with support from Irán. Western interests want to develop the Ben-Gurion Canal to compete with the Suez canal, running alongside Gaza and re-distributing globe trade within the region.

Saudi Arabia / Yemen (proxy for Irán)

Saudi Arabia (Sunni) has been bombarding Yemeni’s (Shiite) for years, Iran (Shiite) funds the Houthi rebellion in Yemen. Although the conflict is often unnoticed by Western media, political powers are aware of the highly strategic importance of this geographic region as a chokehold for global marine trade. 70% of all global oil production runs passed Yemen and could be at risk due to a larger scale conflict.

Democratic Peoples Republic of Korea / Republic of Korea

The end of WWII left key regions unresolved between the Eastern Communist and Western Capitalist regimes, and the Korean War in the 1950’s resulted in a standoff that exists today.  The Demilitarized Zone (DMZ) drew a line on the 38’ parallel separating the population of Korea, with the modern-day North under the authoritarian rule of a dictator and the South having become a top 20 performing economy of the world.

One China – China / Taiwan (backed by U.S.)

Taipei (Taiwan) earned a unique Sino identity through Chiang Kai-shek who fought Mao in the late 1940’s Communist Revolution and his side was driven to the island. In the 1970’s the U.S. developed commercial relations and set a military foothold to support the identity of the Taiwanese. Today, the world is dependent on Taiwan’s capabilities for microchip generation.

South China Seas – currently China works to re-draw the ‘9 Line agreement’ that allows for a sea ‘commons’ to be shared by the Philippines, Vietnam, Indonesia, and others but this is being challenged every day as China grows stronger. As China builds new islands to take over the trade route, remaining countries rely on the UN to uphold acceptance of the Laws of the Sea.

India / China

China released its ‘New Standard Map’ and India relations were heavily strained, as China extends claim into Southern Tibet, areas surrounding Bhutan and the Maldives. Tensions between the countries have always been fierce, as mountainous regions and specific indigenous populations were left undefined and shared. If China makes declarative statements this will draw reactions from India.

India / Pakistan

These two nuclear powers have been at odds since 1947 when Pakistan was established as a Muslim-state, fully separate from India. The religious tensions between the Pakistani Muslim’s and growing power of Hinduism in India are core to the tension, but disputed territories like Kashmir are heightened when either side tries to stake claim, and notably China also has an interest here.

Russia / Finland and Poland (backed by NATO)

Finland purchased ‘David’s Sling’ anti-ballistic missile defense system from Israel to better manage its borders with Russia. Russia entered Ukraine in 2022 on the pretext of joining NATO, since Finland joined the military union on April 2023, they have identified Russia has been sending undercover militants across their shared border resulting in a closure in November 2023.

As Poland joined NATO in 1999, they removed themselves from Russia’s sphere of influence, and as they share a border with Belarus’ a proxy country to support Russian expansion, the border is highly sensitive for all parties.

Kurds / Turkey

With the fall of the Ottoman Empire in WWI, the West drafted the Treaty of Sevres to grant the Kurdish people a nation state in their geographic home of northwestern Iran, northern Syria, northern Iraq, and southeastern Turkey. 3 years later, Turkey declined the development of Kurdistan, leaving 30-40 million Kurds as a minority amongst the four countries. Today, the Kurdish PKK and Ankara have been in a 40-year battle which has seen 40,000 deaths.

The Sahel

The destabilization in Burkina Faso, Mali and Niger has been growing over the last 10 years, with recent military coups ousting French forces and embracing Russia-back Wagner groups. Resulting in conflicts with the Muslims militias of Al Qaeda-affiliated Jama’at Nusrat al-Islam wal-Muslimin (JNIM) and Islamic State in Greater Sahara (ISGS) has resulted in thousands dead. As Western powers push agendas and neighbours like Benin, Côte d’Ivoire and Nigeria impacted this could grow into something much larger.

Congo (DRC)

The Congolese government has ousted international relations as the elect a new government in December 2023. The country has been in a state of conflict for centuries, with international interest pillaging natural resources and internal civil disputes at the core for aggression.

Due to the Congo’s high concentration of cobalt, copper and zinc many world empires have an interest in ensuring access to these materials.

 Nuclear States throughout the World

  • China, France, India, Israel, Iran, Germany, North Korea, Pakistan, United Kingdom, United States, and Russia

  • (In Progress) Belarus, Kazakhstan, South Africa, and Ukraine (who previously dissolved arsenal)

Forecast

To Buy or To Not Buy (a Home), that is the Question.

(Toronto, November 15th 2023)

North America finds itself in an unbalanced Real Estate market, saddled with raised interest rates, low housing supply in hot markets, and banking investment firms hoarding homes to become rentals. The generation of first-time buyers struggle to find an entry point, while others see the market as a tool to indefinitely garner high rent from a population in need.

   Many potential buyers are settling into consideration that they should never enter the market, and look towards alternatives for investment, and set plans to live off the grid in a van down by the river.

With single-home housing costs where they are, it does appear like the costs of owning a home, paying for upkeep, renovations and monthly bills could be better invested. Although there is a case to be made that the growing pains of buying into the market benefit the buyer over the course of time as they build an asset within their varied investment portfolio.

When you buy simply to oppose rent, you are also working towards developing a long-term asset.

Borrowing Against Your Home, Is it Worth It?

At the onset of a Mortgage, beyond the downpayment there will not be much home equity; the difference between your home’s value against the mortgage balance. Over the years as your monthly payments split between loan principal interest and apply to home value debt, you begin to grow your value of ownership.

As your home grows to become an asset, it provides options that can be leveraged as collateral to take out a loan. This can be utilized to support larger home renovations, or a one-time lump sum of large cash. The loan will be as a % of the equity you have on your home, and traditional set a fixed interest in a series of repayment. This is not recommended for loans under $35K, particularly since they will incur a series of additional fees and smaller loans can be procured in better ways.

Another model of borrowing against your home, is by setting up like a Line of Credit that can be borrowed against continuously and a to service smaller purchases similar to a Credit Card, of which it could be attached. If the credit is untouched, then no interest is incurred and this because a vehicle to support rainy days or an additional option to borrow against your asset. 

Summary

Borrowing against your home, is not a first consideration in that you place your home at risk in default, where the Home Equity lender can place a lien on your home and first mortgage. If you do not have 20% equity in your home, then you will need to pay Private Mortgage Insurance (PMI). The vehicles are not a good form to borrow, unless you are looking to pay-off a larger high interest debt and drop your overall payments, and the interest payments will be tax deductible.

Smokescape

The Cigar

(Toronto, October 27th 2023)

Cigar, a word derived from the Mayan Sikar, which is rolled S’ic (Tobacco). The practice of rolling dried and fermented tobacco leaves dates back at least to 900 B.C.E. as referenced in Mayan Pottery, and later industrialized in Spain in 1531 after being introduced to Europe by Christopher Columbus.

Up until the 1870’s, Havana, Cuba was the center of cigar manufacturing which then moved to Key West, U.S.A due to political tensions. Many Spanish and Cuban tabaqueros followed to Florida, and even New York. At the time hand rolled cigars we the driving force of production to be rolled and sold, over the 20th century manufacturing came into play but degraded quality. Today, Aficionados of cigars would push for hand rolled cigars, creating a prestige market and desire for quality from skilled producers particularly from Cuba, Dominican Republic, and Honduras.

The skills to roll a cigar were passed through from family-to-family generations and in 1997, Cigar Aficionado magazine recognized 6 individuals in defining the Premium Cigar

  • Edgar M. Cullman, Chairman, General Cigar Company

  • Zino Davidoff, Founder, Davidoff et Cie.

  • Carlos Fuente Sr., Chairman, Tabacalera A. Fuente y Cia

  • Frank Llaneza, Chairman, Villazon & Co.

  • Stanford J. Newman, Chairman, J.C. Newman Cigar Co.

  • Ángel Oliva Sr., Founder, Oliva Tobacco Co.

Cigars are comprised of three parts…

  • The filler; aged, cured, and fermented tobacco leaves

  • The binder leaf: a medium between the filler and wrapper, which is typically a sun-saturated durable leaf. 

  • The flavour-driven wrapper leaf; the colour of the leaf can vary from Candela (slightly green) to Obsucro (Black) and is the premium factor in the cigar.

The Shapes and Sizes are integral to the flavour and experience of a good cigar, where shapes reflect the tubular presentation. The length captures the volume of tobacco with a wee Cigarello (3.5 Inches) to Gran Corona (9.25 Inches), then the thickness “ring gauge” measured in 64th of an inch reveals the girth of the cigar. These features can help determine your preferences, and which smokes the best for you, the flavourful thick & short or the functional long & lean.

Brand names like Cohiba, Romeo y Julieta or Montecristo are guaranteed to smoke well, but just what makes a good brand name premium cigar. Quality implies the cigars are not overly packed which makes it hard to draw smoke, and not under packed which burn too quickly and do not taste well. The idea is to find a good, flavoured cigar, typically thicker, that burns just right and does not drop ash.

The Top Cigars you should be coveting now (as per Cigar Aficionado July/August 2023)

  • Rocky Patel A.L.R. Second Edition Toro (96 points, $16.25)

  • Arturo Fuente Hemingway Work of Art (95 points, $10.60)

  • Cohiba Maduro 5 Mágicos (94 points, £69.40)

Once you find the right fit, make sure to cut it properly for a good smoke. If you are going to buy them in bulk on your next trip to Cuba, then remember for properly aged cigars moisture is key. And you will need to invest in a quality cedar boxed Humidor.

Sport & Combat

The Queue and Stick

(Toronto, October 13th 2023)

Philosophers would often describe ‘Cause and Effect in thought experiments, by referencing one billiard ball hitting another. The energy transfers through from one ball to the next, and with the right strike geometry will bring that ball to its respective pocket. However, Billiards is more than that.

Cue Sports date back to the 15th Century Europe, where outdoor stick-and-ball games (like jeu de mail or golf) were reconstructed on smaller green clothed tables for indoor play with a new stick – a billiard – to be struck from the ‘tail’ end - the queue. The skilled games utilize billiard balls in their play, so that when struck with the cue they travel across a large well within table surrounded by bumper cushions allowing balls to bounce and clash with other balls or obstacles in the game play.

3 Primary Sub-Divisions of Cue Sports

French Billiards (Carom – 3-Cushion) which requires a pocketless table to play games of skill in hitting each other’s balls and sides to score points, the world’s governing body is Union Mondiale de Billiard (UMB)

Pocket Billiards (Pool) which places 6 to ten pockets throughout the table setting the goal to sink the balls in a particular order to with the prized chicken ‘poulet’ or reward. The most traditional forms are 8-ball and 9-ball pool. The world’s governing body is the World Pool-Billiards Association (WPA).

English Billiards (Snooker) played on the largest table dimensions of the cue sports, with a combination of pattern carom and in turn sinking the balls in 1 of the 6 pockets. The governing bodies of professionals are WPBSA and for the general aspects of the game it is the IBSF.

The games travelled from Europe across the globe, and particularly the modern versions we know today travelled with the British as means of entertainment for their military men. While in India, Neville Chamberlain devised the rules for ‘Snooker’, which was also the derogatory term for a new base recruit. As the games landed in America, the 1900’s Pocket Billiards rose as a method for gambling and set up shop in halls with varying rules for contestants to challenge each other’s skills in 8-ball , and later the faster 9-ball became popular.

With time professional organizations established official rules to support growing audience interest, in the late 19th century for English Billiards, and 1950’s for Pocket Billiards. Today, the most prestigious Triple Crown Snooker Tournament broadcasts to 4.5M viewers, and the Professional Cuesports League (PCL) was rebranded in August 2023 to bring legendary players and faster games within America and ultimately to the world. Cue Sports are well positioned in the 21st century for growing interest.

Despite it being an official sport, still remember when you enter your next pool hall there are many variations of the game. The rules, balls, table dimensions and other various table rules will vary based on region, game type and even the person you are playing with. Unless in a tournament setting, it is best to determine some key rules with your opponent to start the game and that’s where the fun begins.

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