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Freeport-McMoran posts 50% decline in VALUE!

January 28, 2015

The stock price of Freeport-McMoran has lost nearly half its value since this summer (according to the Arizona Daily Star…January 28, 2015 edition). The dark side of lower oil prices have come home to roost in Arizona. The mining and energy giant said it lost $2.9 billion on declining revenue of $5.2 billion. The company has reduced the ‘value’ of its energy properties by $3.3 billion compared to a year earlier. The company has been Arizona’s most valuable asset, but now the company’s ‘value’ is down nearly 50%. Freeport-McMoran mines copper, gold, and other minerals along with huge investments in oil and natural gas properties. What do these numbers indicate about this concept we call ‘value’? Why are the physical objects ignored by our ‘value’ calculations?

Physical/material assets are now ‘valued’ via our cyber $$$. This creates ‘imaginary’ values for all these physical objects. Yes, the concept of ‘value’ is within our consciousness!

The concept of ‘value’ is at the core of Capitalism. Today, however, this concept is becoming mostly meaningless as all financial assets derive their ‘values’ from our imaginary cyber currencies. In reality, ‘values’ of financial assets have been decoupled from the ‘value’ of the underlying material assets. Freeport-McMoran has huge supplies of material assets in the ground and above ground on their numerous properties. These material assets, however, get their ‘value’ from the cash flows which this company generates. Today, cash flows are generated in our imaginary cyber currencies and this creates volatile ‘values’ from this company and all hard asset companies.

One of my friends at the club house (where I live) asked me this morning how the ‘value’ of this Arizona company could decline by 50% when most of their assets are hard/material items (silver/gold/oil/natural gas/buildings, etc.). My response was that ‘value’ today is derived in our imaginary cyber currency (the $$$) and this means that financial ‘values’ are really decoupled from these real/hard/material assets. We can witness this same reality when we think of our own home (house/site). The house/site is real and material but the ‘value’ of these objects is derived in an ‘imaginary’ currency (the $$$). All ‘values’ are now imaginary and within our inner consciousness. Few, however, seem to discern this reality!

What we need to recognize is that we now live with CYBER currencies (money) and this type of money is within cyberspace (a virtual artificial space which does not exist within our greater material universe). This means that when we ‘value’ material objects (gold, silver, oil, lumber, houses, etc.) with this CYBER unit, we end up with a volatile result which is merely ‘imaginary’ (within our mind). The vast majority of financial investors and pundits seem not to discern this reality of our markets. All our financial markets are now mostly cyber markets (within cyberspace). What is cyberspace? Where is cyberspace? Do you discern? Are you aware that nearly ALL asset ‘values’ (and our phony money) is now IMAGINARY?

Yes, we now live within our ‘imagination’ when it comes to economics and finance. This subjective/emotional space is within our metaphysical consciousness. Consciousness needs to be understood if we desire to grow our economy going forward. Few, however, seem to discern that all our money is now within this inner metaphysical space. Both cyberspace and consciousness need to be understood going forward if we desire to grow and prosper on this planet. Here are a couple of websites which you can visit if you desire to understand cyberspace and/or consciousness:

1. Cyberspace: (gives great overview)!

2. Cyberspace:  (what a great video this is!) WATCH!

3. Consciousness:  (Peter Russell gives a great overview)!

4. Consciousness:  (click on consciousness for  many views)!

Everyone who works with money, finance, or economics should flock to the above websites for understanding! Our future will be defined by those who understand the above two concepts. Take the time to watch the above videos many times! Your intellectual growth will benefit! Enjoy! I am:

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