Mid-Week Dollar, Gold & SP500 Trend Trading

November 11th, 2010

It has been a roller coaster week thus far as stocks and precious metals plunged on heavy selling volume on the back of a rising dollar, only to make a strong rebound Wednesday. While there has been significant intraday price movement, it was no surprise to us as we have been anticipating this pullback since discussing it in my Sunday Gold Newsletter.

Let’s take a quick look at the charts…

US Dollar Daily Trading Chart

The past couple weeks the dollar has traded in a choppy fashion, and last week I mentioned to subscribers to keep any new positions small. The dollar looked ready to make a bounce and if it reverses we will see stocks and commodities correct rather sharply.

Last week we trimmed some profits on our gold and SP500 trading positions in anticipation of a rising dollar/lower equity and metals prices. The dollar is currently in a down trend so we are still trading with the trend, but the next couple sessions could potentially change that.

As you can see on the chart a similar pattern to what we saw during the May/June top earlier this year has now formed in reverse this month. It’s a simple pattern I call a drop-n-wash. It is like dropping a knife – you panic, then take action (move foot, then wash the kife). That is typically how the market reacts to this type of price pattern after an extended trend has taking place for a long period of time.

The dollar made an obvious breakdown which the entire world witnessed, causing traders who recently went long to panic and sell their positions. Those who like to short the dollar would have taken a short position, only to see the market reverse and head straight back up again. This pattern has yet to confirm, but through the use of the shorter time frame charts (5 Min, 10 Min, 30 Min), I have a feeling the dollar may continue to rise. However, until the dollar shows considerable strength I am still playing the long equities / long gold side of the equation.

SPY – SP500 ETF Trading Fund

The SP500 made a nice move up last week and we trimmed our position back to lock in more gains as I anticipated this pullback and possible gap fill. As you can see on the chart the moving averages are all heading up and that’s the direction we are still focusing on playing (buying dips).

The morning dip on Wednesday the market sentiment started to shift to become extremely bearish on the short term time frame (10 minute charts). If the market drops down to fill the rest of that gap, I have a feeling the majority of traders will panic out of their position giving us an extreme sentiment buy signal. Also a gap fill will bring the price down to the key moving averages which will act as a support level. I will notify members to add more to my SP500 long position if that happens.

GLD – Gold ETF Trading Fund

Gold has much of the same story as the SP500 but with a couple twists. Gold has huge global demand from banks, investors and traders adding more buying power to this investment than stocks right now. We could see gold hold up above its gap that formed last week. That being said, a pullback to the key moving averages would not only act as a major support level but also fill the gap. We currently have our long positions, but trimmed some profits near the highs and are sitting tight letting the market work it’s self out.

My trading partner J.W. Jones posted a great gold play yesterday which had a nice payout already. Read about his gold options trade here.

Mid-Week ETF Trading Conclusion:

In short, the focus should be kept on trading with the underlying trends until a trend change has been confirmed. So that means short the dollar, long equities, metals and oil.

That being said, because things are starting to look unstable it is crucial to trade smaller position sizes during times of uncertainty like this. Anticipating major market tops is very difficult and generally costly play, just ask everyone who has been trying to pick a top for the past 2 months… Anticipate trend changes, but don’t trade them until the price/volume action confirms the new trend.

Get My Daily Pre-Market Trading Videos, Daily Updates & Trade Alerts Here: www.GoldAndOilGuy.com

Chris Vermeulen

Read more here:
Mid-Week Dollar, Gold & SP500 Trend Trading




Chris Vermeulen is a full time daytrader and swing trader specializing in trading (NYSE:GLD), (NYSE:GDX), XGD.TO, (NYSE:SLV) and (NYSE:USO). I provide my trading charts, market insight and trading signals to members of my newsletter service. If you have any questions feel free to send me an email: Chris@TheGoldAndOilGuy.com This article is intended solely for information purposes. The opinions are those of the author only. Please conduct further research and consult your financial advisor before making any investment/trading decision. No responsibility can be accepted for losses that may result as a consequence of trading on the basis of this analysis.

Commodities, ETF, OPTIONS

Three ETFs To Avoid Increased Margin Requirements On Commodities

November 11th, 2010

On Wednesday, the CME group raised margin requirements on trading soybeans futures contracts, shortly after the Chicago exchange increased margin requirements to curb silver and cotton trading, further boosting the appeal of exchange traded funds (ETFs) which enable investors to gain exposure to these commodities.

Margin requirements are the minimum deposit, or cash, that a trader is required to put with up an exchange to cover inherent risks involved with trading commodities.  When compared to stocks, in general, commodities are traded in margin accounts, where traders has the ability to control contracts with values a lot more than what they have in accounts.

The fuss around commodities and margin requirements has escalated due to the recent surge in appeal of commodities.  Recently, the appeal of commodities has grown due to supply and demand issues fueled by strength in emerging markets and quantitative easing monetary policies implemented by the US which is devaluing the US dollar, which is the currency that nearly all commodities are traded in. 

As a result, many regulators fear that speculative money has flooded the commodities markets pushing prices to near record highs which has amplified volatility and could eventually lead to a bubble or a massive sell off sending prices in a downward spiral.  If this phenomenon were to prevail, a shortfall could potentially expose clearinghouses to major losses if traders refuse to pony up payment.  To mitigate the downside risks of a shortfall prevailing and default of payment, exchanges have raised margin requirements which makes it more cash-intensive for investors to directly invest in commodities.   

From an investor’s perspective, the following ETFs enable one to play soybeans, silver and cotton without having to tie up excessive amounts of cash on margin:

  • iPath DJ-UBS Agriculture TR Sub-Idx ETN (JJA), which seeks to replicate a basket of futures contracts of which nearly 24.3% is allocated to soybeans.
  • PowerShares DB Silver Fund (DBS), which holds futures contracts of silver
  • iPath DJ-UBS Cotton TR Sub-Idx ETN (BAL), which seeks to reflect the returns that are potentially available through an unleveraged investment in the futures contracts of cotton.

Disclosure: No Positions

Read more here:
Three ETFs To Avoid Increased Margin Requirements On Commodities




HERE IS YOUR FOOTER

Commodities, ETF, Uncategorized

Three ETFs To Avoid Increased Margin Requirements On Commodities

November 11th, 2010

On Wednesday, the CME group raised margin requirements on trading soybeans futures contracts, shortly after the Chicago exchange increased margin requirements to curb silver and cotton trading, further boosting the appeal of exchange traded funds (ETFs) which enable investors to gain exposure to these commodities.

Margin requirements are the minimum deposit, or cash, that a trader is required to put with up an exchange to cover inherent risks involved with trading commodities.  When compared to stocks, in general, commodities are traded in margin accounts, where traders has the ability to control contracts with values a lot more than what they have in accounts.

The fuss around commodities and margin requirements has escalated due to the recent surge in appeal of commodities.  Recently, the appeal of commodities has grown due to supply and demand issues fueled by strength in emerging markets and quantitative easing monetary policies implemented by the US which is devaluing the US dollar, which is the currency that nearly all commodities are traded in. 

As a result, many regulators fear that speculative money has flooded the commodities markets pushing prices to near record highs which has amplified volatility and could eventually lead to a bubble or a massive sell off sending prices in a downward spiral.  If this phenomenon were to prevail, a shortfall could potentially expose clearinghouses to major losses if traders refuse to pony up payment.  To mitigate the downside risks of a shortfall prevailing and default of payment, exchanges have raised margin requirements which makes it more cash-intensive for investors to directly invest in commodities.   

From an investor’s perspective, the following ETFs enable one to play soybeans, silver and cotton without having to tie up excessive amounts of cash on margin:

  • iPath DJ-UBS Agriculture TR Sub-Idx ETN (JJA), which seeks to replicate a basket of futures contracts of which nearly 24.3% is allocated to soybeans.
  • PowerShares DB Silver Fund (DBS), which holds futures contracts of silver
  • iPath DJ-UBS Cotton TR Sub-Idx ETN (BAL), which seeks to reflect the returns that are potentially available through an unleveraged investment in the futures contracts of cotton.

Disclosure: No Positions

Read more here:
Three ETFs To Avoid Increased Margin Requirements On Commodities




HERE IS YOUR FOOTER

Commodities, ETF, Uncategorized

Have You Seen the Latest Move in XOM

November 11th, 2010

I admit that the most recent move higher in Exxon-Mobil (XOM) – a leading bellweather stock to watch – has been impressive, taking price up into weekly resistance.

Let’s move our way up from the daily chart to view the weekly level and find out what might be the next potential move for XOM.

I’ve written previously about the daily chart Triangle Pattern breakout at the $60 level, and this week hit the upside price pattern projection target as drawn.

The general rule is to take the height of a triangle formation and then add that price distance to the breakout from the triangle pattern – in this case at $60.

There’s different ways to draw the height, but this particular method is about a $10 move that – when added to the $60 level – took price where we are now at $71.

If the pattern is complete, we could see a pullback develop.  This corresponds with a price movement up into weekly potential resistance.

The 200 week SMA currently resides at the $72.00 per share level, which also was a prior price high level as seen from 2009 forward (minus the little blip up in November ‘09).

It’s possible – not guaranteed of course – that we could see a pullback soon – or at least a little pause.

And if buyers are more powerful to overcome the potential chart sellers at the $72 level, then Exxon-Mobil’s next upside breakout targets immediately become $75 (the November 2009 high) and above $75 is the $80 level (late 2008 level).

When a major stock like Exxon-Mobile moves this much – from $55 to $71 in about 5 months, it’s often time to take notice and watch closely for further upside moves – if the $71 breaks.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter:  http://twitter.com/afraidtotrade

Read more here:
Have You Seen the Latest Move in XOM

Uncategorized

Have You Seen the Latest Move in XOM

November 11th, 2010

I admit that the most recent move higher in Exxon-Mobil (XOM) – a leading bellweather stock to watch – has been impressive, taking price up into weekly resistance.

Let’s move our way up from the daily chart to view the weekly level and find out what might be the next potential move for XOM.

I’ve written previously about the daily chart Triangle Pattern breakout at the $60 level, and this week hit the upside price pattern projection target as drawn.

The general rule is to take the height of a triangle formation and then add that price distance to the breakout from the triangle pattern – in this case at $60.

There’s different ways to draw the height, but this particular method is about a $10 move that – when added to the $60 level – took price where we are now at $71.

If the pattern is complete, we could see a pullback develop.  This corresponds with a price movement up into weekly potential resistance.

The 200 week SMA currently resides at the $72.00 per share level, which also was a prior price high level as seen from 2009 forward (minus the little blip up in November ‘09).

It’s possible – not guaranteed of course – that we could see a pullback soon – or at least a little pause.

And if buyers are more powerful to overcome the potential chart sellers at the $72 level, then Exxon-Mobil’s next upside breakout targets immediately become $75 (the November 2009 high) and above $75 is the $80 level (late 2008 level).

When a major stock like Exxon-Mobile moves this much – from $55 to $71 in about 5 months, it’s often time to take notice and watch closely for further upside moves – if the $71 breaks.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter:  http://twitter.com/afraidtotrade

Read more here:
Have You Seen the Latest Move in XOM

Uncategorized

Economic Irony: Creating Bubbles to Maintain Stability

November 11th, 2010

“Global Backlash Grows,” says The Wall Street Journal.

This is the backlash against Ben Bernanke’s crackpot money-printing scheme.

The foreigners don’t like it. Because the US is flooding the world with “hot money.” This fast cash chases oil, commodities, collectibles, farmland – just about everything.

It creates bubbles. It distorts markets. And it will certainly lead to busts and bankruptcies…and maybe to hyperinflation, too.

So, sit back and enjoy the show, dear reader. It’s the greatest show on earth. Yes, it will most likely lead to embarrassment and poverty in the US. Yes, the US dollar will cease being the world’s reserve currency. And yes, America’s leading economists – many of whom have won Nobel prizes – will be shown to be hapless goofballs.

But this is all good news to us. Under the leadership of modern US economists, Americans have been getting poorer for the last 10 years.

Why? How could that be?

With the encouragement of the Fed and Congress, Americans consumed more than they produced. “Go out and buy an SUV,” said a Federal Reserve governor. “Buy a new house,” said Fannie Mae. “Spend, spend, spend,” said mainstream economists.

Result: Americans have less real, net wealth than they had when this millennium began.

Now, finally, the average yahoo is wising up. He’s lost this job. And he knows he’s been played for a fool. But he’s learning. He’s defaulting on his mortgage…and he’s paying down his debt.

Consumer credit keeps contracting…it went down by $2.1 billion in September.

But the feds have kept at it. They tempted him with lower interest rates: the Fed brought its key rate down to zero; it can’t go lower.

The Fed also bought up worthless mortgage loans so he could borrow more cheaply and took over Fannie and Freddie so they could continue suckering people into a lifetime of mortgage payments. The latest word is that losses from Fannie and Freddie could reach to $363 billion through 2013, according to the Federal Housing Finance Agency.

But with Tea Partiers in the House…and the Fed hard up against the “zero bound,” what else could they do?

The Fed could print money! No need to ask Congress to pass spending legislation now. Forget what it says in the Constitution. The Fed can print money. And it can use the money how it sees fit – even funding an “off the records” stimulus program if it wants to.

Each dollar is, in effect, a liability of the US government…engaging the full faith and credit of the government and its taxpayers. But what law was voted on? What act of Congress authorized spending billions of dollars?

How came it to be that the taxpayers are on the hook for $600 billion more in financial responsibilities with no vote of their elected representatives? No point in even asking the question….

This is, after all, late, degenerate state-guided capitalism. If Congress can make citizens buy something they don’t want – such as health insurance – surely the Fed, which is a privately-owned bank, can write checks from the taxpayers’ checkbooks. Heck, nothing is too absurd.

So, the Fed goes boldly where no sensible person would want to go. It is trying – trying! – to create bubbles…asset bubbles, to make people feel like they have more money. If people feel richer, the feds reason, they’ll spend more money. Presto, we’ll be richer.

Are we beginning to rant and rave? Are we “losing it”? Is there a doctor in the house?

Regards,

Bill Bonner

for The Daily Reckoning

Economic Irony: Creating Bubbles to Maintain Stability originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today’s markets. Its been called “the most entertaining read of the day.”

Read more here:
Economic Irony: Creating Bubbles to Maintain Stability




The Daily Reckoning is a contrarian e-letter, brought to you by New York Times best-selling authors Bill Bonner and Addison Wiggin since 1999. The DR looks at the economic world-at-large and offers its major players – investors, politicians, economists and the average consumer – some much-needed constructive criticism.

Commodities, Uncategorized

Economic Irony: Creating Bubbles to Maintain Stability

November 11th, 2010

“Global Backlash Grows,” says The Wall Street Journal.

This is the backlash against Ben Bernanke’s crackpot money-printing scheme.

The foreigners don’t like it. Because the US is flooding the world with “hot money.” This fast cash chases oil, commodities, collectibles, farmland – just about everything.

It creates bubbles. It distorts markets. And it will certainly lead to busts and bankruptcies…and maybe to hyperinflation, too.

So, sit back and enjoy the show, dear reader. It’s the greatest show on earth. Yes, it will most likely lead to embarrassment and poverty in the US. Yes, the US dollar will cease being the world’s reserve currency. And yes, America’s leading economists – many of whom have won Nobel prizes – will be shown to be hapless goofballs.

But this is all good news to us. Under the leadership of modern US economists, Americans have been getting poorer for the last 10 years.

Why? How could that be?

With the encouragement of the Fed and Congress, Americans consumed more than they produced. “Go out and buy an SUV,” said a Federal Reserve governor. “Buy a new house,” said Fannie Mae. “Spend, spend, spend,” said mainstream economists.

Result: Americans have less real, net wealth than they had when this millennium began.

Now, finally, the average yahoo is wising up. He’s lost this job. And he knows he’s been played for a fool. But he’s learning. He’s defaulting on his mortgage…and he’s paying down his debt.

Consumer credit keeps contracting…it went down by $2.1 billion in September.

But the feds have kept at it. They tempted him with lower interest rates: the Fed brought its key rate down to zero; it can’t go lower.

The Fed also bought up worthless mortgage loans so he could borrow more cheaply and took over Fannie and Freddie so they could continue suckering people into a lifetime of mortgage payments. The latest word is that losses from Fannie and Freddie could reach to $363 billion through 2013, according to the Federal Housing Finance Agency.

But with Tea Partiers in the House…and the Fed hard up against the “zero bound,” what else could they do?

The Fed could print money! No need to ask Congress to pass spending legislation now. Forget what it says in the Constitution. The Fed can print money. And it can use the money how it sees fit – even funding an “off the records” stimulus program if it wants to.

Each dollar is, in effect, a liability of the US government…engaging the full faith and credit of the government and its taxpayers. But what law was voted on? What act of Congress authorized spending billions of dollars?

How came it to be that the taxpayers are on the hook for $600 billion more in financial responsibilities with no vote of their elected representatives? No point in even asking the question….

This is, after all, late, degenerate state-guided capitalism. If Congress can make citizens buy something they don’t want – such as health insurance – surely the Fed, which is a privately-owned bank, can write checks from the taxpayers’ checkbooks. Heck, nothing is too absurd.

So, the Fed goes boldly where no sensible person would want to go. It is trying – trying! – to create bubbles…asset bubbles, to make people feel like they have more money. If people feel richer, the feds reason, they’ll spend more money. Presto, we’ll be richer.

Are we beginning to rant and rave? Are we “losing it”? Is there a doctor in the house?

Regards,

Bill Bonner

for The Daily Reckoning

Economic Irony: Creating Bubbles to Maintain Stability originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today’s markets. Its been called “the most entertaining read of the day.”

Read more here:
Economic Irony: Creating Bubbles to Maintain Stability




The Daily Reckoning is a contrarian e-letter, brought to you by New York Times best-selling authors Bill Bonner and Addison Wiggin since 1999. The DR looks at the economic world-at-large and offers its major players – investors, politicians, economists and the average consumer – some much-needed constructive criticism.

Commodities, Uncategorized

Why Commodities are Rallying as Currencies Decline

November 10th, 2010

Cotton…silver…palladium…nickel…corn.

What do these things have in common?

Answer: They are not a dollar bill. And neither are they a euro (EUR) or a renminbi (CNY) or a rupee (INR)…or any of the other currencies that central bankers around the world are aggressively debasing.

“It’s not just our own Federal Reserve that wants to destroy its currency,” observes Chris Mayer, editor of Capital & Crisis. “It seems everybody is doing it. As Eric Sprott, a great investor hailing from the Great White North, recently noted in his Markets at a Glance letter:

‘By our count, no less than 23 separate countries have now intervened in the foreign exchange market in some way since Sept. 21, 2010. The goal for all is to increase the supply of their respective paper currencies in order to drive them down in value.’

“Investors, though, aren’t dummies – at least not always. That’s why real assets are rallying.”

Commodity Price Rallies Year-to-Date

The nearby chart tells the tale. Commodities, as an asset class, have become quasi-currencies. From gold to coffee to cattle, commodities of all types have been soaring in price, ever since the Federal Reserve publicly declared its war on deflation. General Bernanke vowed to conduct this war aggressively and to utilize a battlefield tactic he called “quantitative easing.”

The war has been underway for several months, but victory is nowhere in sight. Instead the battlefield is littered with the remains of dollar bills that once seemed so powerful and full of potential.

Seeing the results of this campaign, investors are growing increasingly fearful of taking sides with the US dollar. Instead, they are placing their security in the hands of gold, silver, platinum and numerous other commodities. As such, every major commodity has outperformed the S&P 500’s 8.8% gain for the year to date. Only zinc and cocoa trail behind.

In a world where every major paper currency is suspect, gold is a compelling alternative. But it is not the only alternative. As reliable stores of value, a bale of cotton or a bushel of wheat also seemed preferable to paper currencies.

“And, as if [commodities] needed another reason to rally,” co-editor, Joel Bowman, observed earlier this week, “China is betting on ‘stuff’ over ‘paper.’

“Reports Barron’s: ‘This year, for the first time ever, China has been investing more overseas in assets like iron, oil and copper than it puts into US government bonds.

“‘China in this year’s first half spent $31 billion on hard assets,’ the journal continues, ‘compared with $23 billion on Treasuries and other US government bonds. Experts say China’s investments in each of these asset classes will total about $55 billion for the full year. But even a tie marks a major turnaround from China’s previous practices. For many years, the mainland spent next to nothing on hard assets abroad, while its purchases of US government debt ranged as high as $100 billion a year.’”

Monetary tastes and habits – like culinary tastes and habits – do not change overnight. But once these habits begin to change, they rarely regress to their previous condition. General Bernanke would be unwise to ignore this tendency of human behavior.

McDonald’s opened its first restaurant in China in 1990 – trying to sell hamburgers to rice- and chicken-eaters. Twenty years later, 1,100 McDonald’s restaurants dot the Chinese landscape…and 1,000 more will open by 2014. Tastes rarely change quickly, but when they do change, they usually change forever.

The Chinese, the world’s largest buyers of Treasury debt, are slowly changing their monetary tastes and habits – preferring hard assets over US paper. Likewise, global commodity markets are telling us loud and clear that many, many investors around the world are also changing their monetary tastes and habits – also preferring hard assets over US paper.

But in the midst of these evolving long-term trends, short-term counter-trends sporadically arrive – usually with a surprising fury and intensity. Yesterday was one of those moments. Gold, silver and platinum, along with almost every other major commodity traced out what chartists call an “outside day reversal.” In other words, these commodities advanced strongly early in the trading session to exceed the prior day’s highs, but then reversed later in the trading session to finish the day below the prior day’s lows. And most of these commodities performed this volatile feat on extremely high volume. Net-net, a classic outside day reversal – the kind of pattern that usually signals the end of the rally, at least temporarily.

Silver Price

“This could be a blowoff day for the precious metals,” options pro, Jay Shartsis remarked during yesterday’s trading session. “I note the SLV (IShares Silver Trust) is trading huge volume. It opened at $27.80 and hit $28.30. If it closes near the bottom of the day, a sharp drop seems likely. First hint will be a decline below the opening of $27.80…I am buying puts on Pan American Silver”

Three hours after Jay’s missive, SLV closed the trading session at $26.18, thereby confirming his bearish expectation.

So the red-hot precious metals sector has decided to take a well-deserved breather. In all likelihood this breather will last a while – a few days at least, a few weeks perhaps. But the long-term trend for silver, gold and most other commodities remains unchanged. As long as the Fed and 22 other like-minded central bankers are racing one another to devalue their currencies, commodities will remain “well bid.”

“If you are worried about gold tanking, you shouldn’t be,” says Chris Mayer. “Gold has lots of room to move higher. It is a metal whose value depends on the dilution of paper currencies. As the central banks of the world have expressly told us that they intend to dilute their currencies, you should have few worries about gold’s price…and natural resources should still be a good sandbox to play in to make a lot of money and protect your wealth against inflation.”

Amen.

Eric Fry
for The Daily Reckoning

Why Commodities are Rallying as Currencies Decline originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today’s markets. Its been called “the most entertaining read of the day.”

Read more here:
Why Commodities are Rallying as Currencies Decline




The Daily Reckoning is a contrarian e-letter, brought to you by New York Times best-selling authors Bill Bonner and Addison Wiggin since 1999. The DR looks at the economic world-at-large and offers its major players – investors, politicians, economists and the average consumer – some much-needed constructive criticism.

Commodities, OPTIONS, Uncategorized

BioTime Cracks the DNA Cell Command Code

November 10th, 2010

I apologize for the headline. As a writer, I know it’s too long. It breaks all the rules of style and aesthetics. Some things, however, are more important than aesthetics – such as life-saving fortune-creating science.

I am honestly staggered by the advances being made by science in this field. There are times that I seriously regret having put myself into the position that I can’t invest personally in the companies I recommend to my Breakthrough Technology Alert subscribers. When I agreed to launch that publication, I had no idea how quickly regenerative science technologies would begin to accelerate.

I know that financial newsletter writers use exaggeration and exclamation points the way McDonald’s slings beef and buns, but I’m not kidding. So much has happened. There has been so much good news of late that my challenge is only to sort out what to tell you first.

So, today, I’m going to tell you about one of the most recent developments. BioTime’s (AMEX:BTX) new program to identify the gene transcription factors that control cells (please note, BioTime now trades under the new ticker symbol BTX). This is power that goes far beyond alchemists’ dreams of transmutation. Turning lead into gold is nothing compared to the ability to turn adult skin cells into youthful angioblasts, hemangioblasts and other repair cells.

These cells will rejuvenate your entire cardiovascular system and restore it to complete youthful status. What Dr. Michael West of BioTime is now learning to do reminds me of the mythical life-extending Philosopher’s Stone of alchemical lore – but it is not myth.

BioTime has confirmed, yet again, that it is the undisputed leader in regenerative medicine and cell biology.

As I’ve told you before, Dr. West recently documented, with the help of other scientists, that he can take an aged skin cell on the verge of dying, and turn it into a perfect youthful induced pluripotent stem cell identical in every aspect to an embryonic stem cell.

So, having demonstrated that he can change cell types with transcription factors, West set out to map the totality of human cell development – which he calls the embryome. The embryome is the genome’s programming code and is of greater scientific importance.

He began with the ACTCellerate program, funded in large part by the California Institute for Regenerative medicine. He allowed stem cells to develop, charting the changes and the factors that cause them. At each step, he was able to produce new purified cell types, which are of enormous value and importance to research scientists.

ACTCellerate has produced hundreds of cell types. 140 are being sold by BioTime. On October 22, however, he announced 12 new stem cell lines at the GTBio conference. The real news for those paying attention was not, however, this marginal increase in cell type inventory. It was the way he derived them.

Dr. West and the BioTime scientists have been performing complex experiments, applying transcription factors to both embryonic and iPS cells. As he cracks the code of cellular fate, the code of life itself, he applies for the patents on the methods – which have long been honored by the courts.

Eventually, by the way, only iPS cells will be used in regenerative medicine. It is important at this point in the research, however, to make sure that iPS cells behave the same as embryonic stem cells. I personally think it is important to realize that iPS technology is in the process of making embryonic stem cells completely obsolete. To accomplish this task, however, a small number of embryonic cell lines are being used as controls.

Dr. West calls this new phase in the cracking of embryome ACTCellerate 2 or PureStem. Already, BioTime has 12 new cell lines, created using transcription factors, for sale. In his presentation here, he goes through the process of creating pituitary lines.

As I said, patents are being applied for. Thousands of other cell types will eventually be added to this IP library. In the process, medicine will be utterly and permanently transformed. In a rational world, we would be having parades over this breakthrough. I’ll tell you why.

In between the complexity of creating muscle cells with MYOD1 and iPS cells with four transcription factors is every other cell type in your body and probably many, many new ones. Among those that we know are on West’s roadmap are the cells that will rejuvenate your cardiovascular and immune systems to youthful strength.

How would you like the cardiovascular and immune system vigor of an adolescent? If you said no, I’d guess you were not that old anyway. Proof of principle, incidentally, has already been demonstrated in animal experiments.

These therapies may be as simple as giving blood to a Biotime clinic and coming back for a transfusion in a few days. It’s almost certainly that simple when it comes to heart and artery rejuvenation.

A multitude of other therapies will also become available due to BioTime’s PureStem research. One that I’m particularly looking forward to is a simple injectable cell cure for lactose intolerance. The day when I can once again eat Parmigiano Reggiano and Brie without concern will be a true day of celebration. Improved eyesight, muscle tone and reflexes will be nice too. Maybe some more hair too.

The really important thing about the cardiovascular and immune system rejuvenation, however, is that these procedures will extend healthy lifespans for the majority of the population significantly. There’s still a ways to go, to be sure, but we can at least see the finish line.

In closing, let me return to my oft-used analogy of investing during the Great Depression. Visionary investors who believed in the emerging technologies of electronics, radio and home refrigeration did well even during the downturn. Eventually, they earned fortunes.

Regards,

Patrick Cox
for The Daily Reckoning

BioTime Cracks the DNA Cell Command Code originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today’s markets. Its been called “the most entertaining read of the day.”

Read more here:
BioTime Cracks the DNA Cell Command Code




The Daily Reckoning is a contrarian e-letter, brought to you by New York Times best-selling authors Bill Bonner and Addison Wiggin since 1999. The DR looks at the economic world-at-large and offers its major players – investors, politicians, economists and the average consumer – some much-needed constructive criticism.

Uncategorized

Ben Bernanke: The Chauncey Gardiner of Central Banking

November 10th, 2010

“[H]igher stock prices will boost consumer wealth and help increase confidence, which can also spur spending. Increased spending will lead to higher incomes.” -Federal Reserve Chairman Ben S. Bernanke, Washington Post, November 4, 2010

In Ben Bernanke’s Washington Post elucidation of Fed policy, “What the Fed Did and Why: Supporting the Recovery and Sustaining Price Stability,” the Fed chairman cut-and-pasted misleading paragraphs from earlier misleading speeches. He did not discuss the two most important aspects of his money experiment. Bernanke did not address, first, the real economy or, second, the rest of the world. It will be the first of these lapses that will be discussed below.

On November 3, 2010, the Federal Open Market Committee’s [FOMC] decided to buy $600 billion in bonds. The exchange works as follows: $600 billion of cash will be dispensed to the banking system by the Fed and $600 billion of U.S. Treasury bonds will be extracted. The Fed will also reinvest over $400 billion of maturing mortgage securities it bought earlier and buy Treasuries. The total purchases of over $1 trillion will satisfy, to some degree, the Federal Reserve’s unstated but sine qua non obligation to fund the Treasury Department’s deficit.

This package is known as QE2: quantitative easing, second round. The first round was initiated in March of 2009. On March 18, 2009, the Fed announced it would buy $750 billion of mortgage-backed bonds, $100 billion of Fannie Mae and Freddie Mac securities, and $300 billion of long-term Treasury securities.

To herald the New Era in central banking, Chairman Bernanke appeared on “60 Minutes.” His March 15, 2009, TV appearance was introduced with fanfare: “You’ve never seen an interview with Ben Bernanke… By tradition, Federal Reserve Chairmen do not do interviews. That is, until now.”

On the show, Chairman Bernanke forecast that “green shoots [will] appear in different markets.”

INTERVIEWER: “Do you see green shoots?”

Chairman BERNANKE: “I do. I do see green shoots.”

Do you see green shoots?,” became the question on CNBC that every guest was asked. Most saw green shoots, some were looking for them, and others thought the question was childish, and probably did not receive another invitation to this carnival.

Before embarking on QE2, one might suppose the FOMC studied the aftermath to QE1. In this regard, the central bankers were handed a treat. Bernanke’s Domino Theory in the November 4, 2010, Washington Post is quoted above. The catalyst for recovery is “higher stock prices.” The stock market has risen 75% since March 9, 2009. Bernanke could not have asked for a more boisterous number to plug into his equation.

The result? Incomes have fallen. Employment is hard to find. In the Washington Post, the Fed chairman justified QE2 (as he had QE1) by stating the Fed’s mandate “to promote a high level of employment.” The official and understated unemployment rate was 8.1% when Bernanke was interviewed in March 2009. The official rate has risen to 9.6%. The “U-6″ level of unemployment has risen from 15.6% to 17.0% since March 2009. This number, calculated and released monthly by the Bureau of Labor Statistics, includes the unemployed plus those who are “discouraged” – people who have not looked for a job in the past four weeks because they think there are none – plus, those working part time because they cannot find a full-time job. The number of unemployed who have been without a job for 27 weeks or longer rose from 3.2 million in March 2009 to 6.2 million in October 2010.

Nevertheless, Bernanke’s central-planning unit will fix higher stock prices: Please note, in his Domino Theory, “higher stock prices” are not conditional. Bernanke’s assumption should not be taken unconditionally to the market, since Bernanke’s plan will fail, but it may produce a Garden of Eden before we drown in a Valley of Tears. An example of Bernanke’s checkered record in market rigging is the Fed’s failure to boost the housing market. The Fed has bought over $1 trillion of mortgage securities. According to the National Association of Realtors, the average existing home sales price in March 2009 was $170,000. This rose to $183,000 in June 2010, but has now fallen to $172,000. This much can be said of the Fed’s mortgage effort: without it, house prices would be much lower.

Another noteworthy feature of the Post article is Bernanke’s narrow understanding of an economy. He described it as a “virtuous circle that will ‘further support economic expansion.’” (Further expansion is false, but so was the entire article.) The virtuous circle will “lower mortgage rates” and “lower corporate bond rates” and prod “higher stock prices,” according to Bernanke. This will “spur spending.”

He did not mention that personal consumption did rise in September 2010 (by 0.1%). Alas, this was achieved the old-fashioned way: Americans spent more than they earned. The chairman shows no signs of understanding there are many paths by which “increased spending will lead to higher incomes” and that he is navigating the worst one. (For the lower 99.9% of the American people that is, not for the Federal Reserve chairman.)

That is the entire American economy according to the Fed chairman, the former college economist, who calls himself a macroeconomist. What “macro” means to the professor is uncertain, but the dictionary defines a macroeconomist as one who studies the economy “as a whole.”

It is surprising the P.R. division at the Fed did not tell the horticultural expert he should at least mention “Main Street,” or the “real economy,” two terms used to distinguish the rest of America from Wall Street and Washington. (Wall Street and Washington being one in the same.) In the Post, Bernanke’s only solution to economic doldrums is to manipulate asset prices. He has spent the past 18 months distorting stock, bond, commodity, and currency markets. This is from a man who never spent a day off a university campus until he went to Washington. (From the “60 Minutes” interview: “I’ve never been on Wall Street.”)

Jobs and higher incomes are produced from profits. Bernanke never used the word “business” in his Post piece.  He never mentioned “banks” or “banking” or “credit.” Saving the banking system was (apparently) his crutch for pouring money into banks and regenerating their criminal culture. He is, after all, running the central bank, but his financial system, and his economy, has been reduced to stocks and bonds.

Nevertheless, taking the world as it is and not as Simple Ben would have it, business and bank loans are part of the economy and QE1 had little influence on either. In his one, glancing reference to the job-creating world, the Fed chairman asserted: “Lower corporate bond rates [courtesy of the Fed's manipulations - editor's note] will encourage investment.”

Really? In its latest poll, the National Federation of Independent Business (NFIB), which represents small businesses, found that 52% of its members do not want a loan. That is a record high. Only 3% of NFIB members said getting a loan was a problem. Stephen Schwartzman, co-founder of Blackstone, the ubiquitous private-equity buyout firm, sees no point to QE2: “It’s not an enormous incentive to do something different with your businesses because rates are down a few basis points. Money is already quite cheap.” It is so cheap that Wall Street has leveraged itself to an estimated record $144 billion payout in 2010 bonuses, according to MSN News.

Again, taking the world as it is and not as it should be, we are stuck with Simple Ben. He has announced QE2, restating the same ambitions as when he launched QE1. Albert Einstein has been quoted by several critics in reference to QE2: “The definition of insanity is doing the same thing over and over again and expecting different results.” Bernanke’s inability to do anything other than what he has done before resembles a fictional character with a narrow view of the world.

Chauncey Gardiner (actually, Chance the gardener), was the mentally incapacitated gardener played by Peter Sellers in the screen version of Jerzy Kozinski’s sagacious novel Being There. Chauncey, a man whose life was limited to gardening and watching TV, became, through a series of misapprehensions, the top adviser to officials in Washington, including the President:

President “Bobby”: Mr. Gardener, do you agree with Ben, or do you think that we can stimulate growth through temporary incentives?

[Long pause]

Chance the Gardener: As long as the roots are not severed, all is well. And all will be well in the garden.

President “Bobby”: In the garden.

Chance the Gardener: Yes. In the garden, growth has it seasons. First comes spring and summer, but then we have fall and winter. And then we get spring and summer again.

President “Bobby”: Spring and summer.

Chance the Gardener: Yes.

President “Bobby”: Then fall and winter.

Chance the Gardener: Yes.

Benjamin Rand: I think what our insightful young friend is saying is that we welcome the inevitable seasons of nature, but we’re upset by the seasons of our economy.

Chance the Gardener: Yes! There will be growth in the spring!

Benjamin Rand: Hmm!

Chance the Gardener: Hmm!

President “Bobby”: Hmm. Well, Mr. Gardiner, I must admit that is one of the most refreshing and optimistic statements I’ve heard in a very, very long time.

[Benjamin Rand applauds]

President “Bobby”: I admire your good, solid sense. That’s precisely what we lack on Capitol Hill.

President Bobby adopted Chance’s optimistic advice in an address before the Financial Institute of America. His speech was the talk of the town. Television, even in that distant past (Being There was written in 1970), was on the spot, with its unfailing ability to trivialize any topic.

The host of “This Evening,” a fictional, national TV news show with 40 million viewers, asked Chauncey Gardiner to appear after the Vice President cancelled.

Chauncey was asked for his opinion of the President’s address, in which President Bobby “compared the economy of this country to a garden and indicated that after a period of decline a time of growth would naturally follow.” Chauncey replied: “I do agree with the President: everything in it will grow strong in due course. And there is still plenty of room in it for new trees and new flowers of all kinds.”

At the end of Chauncey’s appearance, the host embraced him center stage. The audience’s “applause mounted to uproar.”

After his “green shoots” prophecy, Chairman Bernanke closed his “60 Minutes” performance. He offered Americans a sunlit future: “I think we will see recession coming to an end, probably this year [2009]. We’ll see recovery beginning next year, and it will pick up steam, over time.”

In the wake of this rousing prediction from the Chauncey Gardner of Central Banking, Wall Street TV performers have talked the stock market up 75%. We are seeing new vistas of instability.

Regards,

Frederick Sheehan,
for The Daily Reckoning

[For more of Frederick Sheehan's perspective you can visit his blogs here and at www.AuContrarian.com. You can also purchase his book, Panderer to Power: The Untold Story of How Alan Greenspan Enriched Wall Street and Left a Legacy of Recession (McGraw-Hill, 2009), here.]

Ben Bernanke: The Chauncey Gardiner of Central Banking originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today’s markets. Its been called “the most entertaining read of the day.”

Read more here:
Ben Bernanke: The Chauncey Gardiner of Central Banking




The Daily Reckoning is a contrarian e-letter, brought to you by New York Times best-selling authors Bill Bonner and Addison Wiggin since 1999. The DR looks at the economic world-at-large and offers its major players – investors, politicians, economists and the average consumer – some much-needed constructive criticism.

Uncategorized

Prepare for Mass Inflation

November 10th, 2010

The thing that has sent me into Mogambo Panic Mode (MPM) over the terrifying inflationary implications is the latest outrage from the Federal Reserve, reported at Bloomberg.com as, “The Federal Reserve will buy an additional $600 billion of Treasuries through June, expanding record stimulus and risking its credibility in a bid to reduce unemployment and avert deflation.”

It turns out that the announced $600 billion, in six measly months, as perfectly horrific as it is, is not the whole story, as we later find out when Bloomberg later in the article reports, “Including Treasury purchases from reinvesting proceeds of mortgage payments, the Fed will buy a total of $850 billion to $900 billion of securities through June, or about $110 billion per month, the New York Fed said in accompanying statement.”

$110 billion per month! Per month! Per freaking month! Gaaahhhh!

Economicpolicyjournal.com has some dire analysis, and says, “The key is to realize that supermoney can have a multiple impact on the money supply. In 2008, just before the financial crisis broke out, the multiplier impact on M2 was 10. Got that 10? Although, I don’t necessarily expect it to go that high at this point (there are all those excess reserves). A multiplier impact of 2 or 3 is certainly not out of the question. That would put the M2 money supply increase in the range of $1.6 trillion to $2.7 trillion. In other words, an annualized money growth rate of over 20%. And this is conservative.”

By this time I am so freaked out that I am feverishly double-locked in the Mogambo Bunker Of Absolute Fear (MBOAF) and am now curled up in a fetal position on the floor, whimpering, petrified at the horror of such inflation in the money supply, because inflation in prices always results from an increase in the money supply. And such a whopping increase in the money supply means a whopping inflation.

In all the noise and racket, I almost missed it when they went on, “If the multiplier is higher and money starts to flow out of excess reserves, you could see M2 grow at record high rates, possibly 30% to 40% on an annualized basis. In other words, the amount of new money hitting the system could be [a] huge amount.”

I was going to use this as an opportunity to call out on the Mogambo Secure Line To The Cruel Outside World (MSLTTCOW) to tell you to drop everything and run out to buy gold, silver and oil stocks as a defense against such ruinous inflation, but it was done for me when they wrote, “Folks, the dollar is now securely on the road to major devaluation. Price inflation at the consumer level by the end of 2011 will be well into double digits. Way, way into double digits. Prepare yourself now. Start with some gold and silver.”

In case you were wondering, the purpose of the QE program is to create the money that the government needs to borrow this year. Otherwise, the Treasury has to try and sell $2 trillion in bonds to the few people who have saved some cash money, but it is ludicrous to think that these few people could possibly come up with $2 trillion! Hahaha!

And then more next year, and the year after, and the year after! Hahaha! Insane!

And if you think that this will not end Very, Very Badly (VVB), then I am pretty sure that I am on safe ground to say that you don’t know squat about economics. I say this without fear of contradiction for two important reasons.

Firstly, I say that I do not fear being contradicted because nobody knows where I am, and even if they did know where I was, they would not have the guts to say anything to me because of the lessons learned from TV, which proved conclusively that “facing down” an armed lunatic is a Bad, Bad Idea (BBI) unless it is in the last 10 minutes of the TV show, and even then it is often “iffy.”

And I also say this without fear of contradiction because there is not one example in the last 4,500 years – 4,500 years! – where any of the thousands and thousands of corrupt, dirtbag governments that borrowed themselves into such overwhelming bankruptcy and/or created so much new fiat money to spend that had ever, ever, ever, either magically or miraculously, succeeded in preventing total disaster by (unbelievably) creating, borrowing and spending more money!

And this goes “doubly-especially” when the government is borrowing another staggering chunk of money that equals a mammoth 14% of GDP, which they do by having the Federal Reserve print up a lot of new money for them to borrow, which (all other things being equal) increases the money supply by 14%! Gaaahhh!

If you are within a few blocks of me, then you no doubt noticed that I am Screaming My Guts Out (SMGO) in outrage and hysterical fear because of such monetary and fiscal insanity, which will cause a devastating inflation in prices that it will probably wipe this country off the economic map, which is a metaphor, or more probably wiping us literally off the map, since this is always when a lot of wars break out.

To even suggest otherwise is Sheer Freaking Lunacy (SFL), and if you do, then you will be shunned by decent people and end up in the gutter, career-wise, writing about economics for The New York Times or be a laughable egghead university professor at Princeton (“Them that can, do, and those that can’t, teach, or end up as chairmen of the Federal Reserve where they can prove that they can’t, but they thought they could because they were willingly gullible halfwits who could not see the utter stupidity of their preposterously simplistic neo-Keynesian econometric crapola of equations and computer models, which is such an absurd idea that it makes me guffaw in a Loud Mogambo Laugh Of Scorn (LMLOS) for Ben Bernanke, Paul Krugman and all the lowlifes who agree with either of them about anything.)”

And so I say, unless they also urge you to buy gold, silver and oil, in which case it shows that they are intelligent in ways other than economics, or it shows that they are just lazy, because buying gold, silver and oil when the Federal Reserve is creating So Damned Freaking Much (SDFM) money is so easy that you gotta say, “Whee! This investing stuff is easy!”

The Mogambo Guru
for The Daily Reckoning

Prepare for Mass Inflation originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today’s markets. Its been called “the most entertaining read of the day.”

Read more here:
Prepare for Mass Inflation




The Daily Reckoning is a contrarian e-letter, brought to you by New York Times best-selling authors Bill Bonner and Addison Wiggin since 1999. The DR looks at the economic world-at-large and offers its major players – investors, politicians, economists and the average consumer – some much-needed constructive criticism.

Uncategorized

Fed money-printing scheme triggering bond price meltdown!

November 10th, 2010

Larry Edelson

Since talk of new money-printing first surfaced a few weeks ago, 30-year bond yields have jumped sharply higher — from 3.46% to 4.32%. That’s a 25% surge in borrowing costs!

It’s the biggest interest rate rise in a year — and it’s showing no signs of slowing. Yields surged yesterday after a lousy auction of 10-year Treasury Notes. Then they surged AGAIN today after the sale of $16 billion in 30-year Treasury bonds bombed.

Ironically, this is exactly what Bernanke said would NOT happen:

In fact, the Fed chief’s main excuse for printing $600 billion over the next eight months was that the money was needed to buy up bonds and LOWER long-term interest rates!

But just as we warn in our online presentation, global investors in U.S. bonds are recoiling in horror — and for good reason:

They know that the Fed money-printing will drive the REAL value of their bonds down sharply!

No wonder they’re dumping U.S. bonds, driving the prices lower!

And no wonder they’re demanding higher yields, driving long-term interest rates higher!

Moreover, bonds are just ONE of the five asset classes directly impacted by the Fed’s new money-printing scheme. The others are:

* Currencies. As the Fed drives down the value of the dollar, it drives UP the value of major foreign currencies. Meanwhile, right now — TODAY — the Fed’s money printing plans are wreaking havoc at the G-20 meetings in Seoul, South Korea.

The main problem: Foreign nations are concerned that this massive supply of newly-created dollars will flood into their economies and drive their currencies through the roof!

* Precious metals. Despite a correction that began last night, gold and silver are still in massive, long-term bull markets.

* Agricultural commodities. Since QE2 talk began, commodities have been on a tear. They’re rising even faster than bonds are falling.

* Stocks. QE2 has mixed impacts on the U.S. economy and stocks. But for emerging markets, the combination of strong domestic growth and a rapid influx of U.S. dollars has been extremely positive.

RGP

We cover these new dangers and opportunities in our online PowerPoint presentation, available to view immediately.

The audio-visual presentation shows you …

  • Why Bernanke’s claim that he will “only” print another $600 billion is a bald-faced lie
  • Why the Fed will have to print five times more to have any hope of stimulating the economy …
  • The three major asset classes most likely to skyrocket as the Fed floods the world with unbacked paper dollars, and …
  • How you can harness that potential with the investing approach that could have turned every $25,000 you invested into $644,500.

But this window of opportunity is closing in a few days.

So I recommend you turn up your computer speakers and click this link to view this crucial presentation now.

Best wishes,

Mike Larson

Related posts:

  1. Silver EXPLODES 5.8%! Gold surging! Global firestorm about Fed money printing
  2. You’re the Winner in the ETF Price War
  3. RATE FUTURES REPORT: Poor Bond Sale Weakens Entire Curve

Read more here:
Fed money-printing scheme triggering bond price meltdown!

Commodities, ETF, Mutual Fund, Uncategorized

Fed money-printing scheme triggering bond price meltdown!

November 10th, 2010

Larry Edelson

Since talk of new money-printing first surfaced a few weeks ago, 30-year bond yields have jumped sharply higher — from 3.46% to 4.32%. That’s a 25% surge in borrowing costs!

It’s the biggest interest rate rise in a year — and it’s showing no signs of slowing. Yields surged yesterday after a lousy auction of 10-year Treasury Notes. Then they surged AGAIN today after the sale of $16 billion in 30-year Treasury bonds bombed.

Ironically, this is exactly what Bernanke said would NOT happen:

In fact, the Fed chief’s main excuse for printing $600 billion over the next eight months was that the money was needed to buy up bonds and LOWER long-term interest rates!

But just as we warn in our online presentation, global investors in U.S. bonds are recoiling in horror — and for good reason:

They know that the Fed money-printing will drive the REAL value of their bonds down sharply!

No wonder they’re dumping U.S. bonds, driving the prices lower!

And no wonder they’re demanding higher yields, driving long-term interest rates higher!

Moreover, bonds are just ONE of the five asset classes directly impacted by the Fed’s new money-printing scheme. The others are:

* Currencies. As the Fed drives down the value of the dollar, it drives UP the value of major foreign currencies. Meanwhile, right now — TODAY — the Fed’s money printing plans are wreaking havoc at the G-20 meetings in Seoul, South Korea.

The main problem: Foreign nations are concerned that this massive supply of newly-created dollars will flood into their economies and drive their currencies through the roof!

* Precious metals. Despite a correction that began last night, gold and silver are still in massive, long-term bull markets.

* Agricultural commodities. Since QE2 talk began, commodities have been on a tear. They’re rising even faster than bonds are falling.

* Stocks. QE2 has mixed impacts on the U.S. economy and stocks. But for emerging markets, the combination of strong domestic growth and a rapid influx of U.S. dollars has been extremely positive.

RGP

We cover these new dangers and opportunities in our online PowerPoint presentation, available to view immediately.

The audio-visual presentation shows you …

  • Why Bernanke’s claim that he will “only” print another $600 billion is a bald-faced lie
  • Why the Fed will have to print five times more to have any hope of stimulating the economy …
  • The three major asset classes most likely to skyrocket as the Fed floods the world with unbacked paper dollars, and …
  • How you can harness that potential with the investing approach that could have turned every $25,000 you invested into $644,500.

But this window of opportunity is closing in a few days.

So I recommend you turn up your computer speakers and click this link to view this crucial presentation now.

Best wishes,

Mike Larson

Related posts:

  1. Silver EXPLODES 5.8%! Gold surging! Global firestorm about Fed money printing
  2. You’re the Winner in the ETF Price War
  3. RATE FUTURES REPORT: Poor Bond Sale Weakens Entire Curve

Read more here:
Fed money-printing scheme triggering bond price meltdown!

Commodities, ETF, Mutual Fund, Uncategorized

How the Fed Keeps Feeding the Financial Crisis

November 10th, 2010

Wow! Is this fun, or what? We are so lucky, we can scarcely believe it. We’re getting to live through something most people only read about in the history books…a monetary meltdown.

Last week, our own central bank – the US Federal Reserve – announced that it would print up another $600 billion. This will bring the total to $2.3 trillion added in just a bit over 24 months.

Is this crazy? Is it foolish? Is it stupid? Yes! It is all of those things and more – vain, pigheaded, destructive, reckless…

…supply your own adjective!

Intervention on this scale is risky. So, you might expect that the Fed has some sort of computer program – trusted, reliable, tested and proven – that tells it exactly how much money to put into the system via its QE program…and when.

Well, if you think that, you’re dreaming. The Fed has no such computer program. No formula. Not even a theory that will hold up to inspection.

The whole thing is just a willful, dangerous gamble.

And we’re just happy that it is happening now…when we’re still alive to appreciate it.

It’s not everyone who gets to see a genuine, real-life example of hyperinflation…depression…money panic…and currency suicide. We’re going to see them all. At least, we think so…

Yesterday, the Dow went down 60 points. Gold rose $6.

A 60-point decline isn’t much. But how come now? How could it be that it comes a week after the Fed announced the boldest, most flamboyant and foolhardy adventure in currency debasement in history?

We don’t know. But it doesn’t look good. We would normally expect investors to take the bait…to run up stock prices a bit more. And THEN we’d have a stock crash.

Could it be that investors are looking ahead? Could it be that they see the handwriting on the wall? Could it be that they can read it – even from a distance – and that is spells DISASTER?

Again, if we knew the answer to these questions… Well, never mind…no one knows the answer.

Since we don’t know, we’re going to run our Crash Alert flag up the pole. The old, tattered flag isn’t always a reliable indicator of a coming crash. But it is a pretty good signal of the risk of a crash.

Again, we don’t know what will happen. But we know the risk of a crash is high. Investors are buying stocks as speculations. The Fed’s hot money is not really going to improve the economy. Everyone but Ben Bernanke knows that. Investors are just speculating that it will push up the stock market. They’re gambling too – just like the Fed.

And maybe it will. But it will be temporary. Because the only thing that can push up the stock market in a reliable way is real growth. And you don’t get real growth by running the printing press. If you did, Zimbabwe would be growing faster than China.

No, dear reader, hot money produces hot action in the market. Speculative fever. Bubbles.

…And crashes, of course.

Watch out. Stay out.

Bill Bonner
for The Daily Reckoning

How the Fed Keeps Feeding the Financial Crisis originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today’s markets. Its been called “the most entertaining read of the day.”

Read more here:
How the Fed Keeps Feeding the Financial Crisis




The Daily Reckoning is a contrarian e-letter, brought to you by New York Times best-selling authors Bill Bonner and Addison Wiggin since 1999. The DR looks at the economic world-at-large and offers its major players – investors, politicians, economists and the average consumer – some much-needed constructive criticism.

Uncategorized

Three Upcoming Webinar Events with Corey

November 10th, 2010

Although I try to do at least one webinar every month or every other month, by next week, I will be conducting three featured webinar events and I wanted to create a reference post and invite you to all of them.

Today, Wednesday Nov 10, I’m pleased to be announced I will be presenting an initial discussion on “Popped Stops,” as part of the FuturePath Trading Educational Webinar Series, co-hosted with Linda Raschke and LBR Group.

The webinar will begin at 3:30 CST and the direct registration link is here:  Popped Stops

The information for this and other upcoming educational webinars from FuturePath/LBR Group is here:

FuturePath Trading Educational Webinar Series.

Online Chat:  Sector Rotation Tactics

And on Thursday, November 11th at 12:30 CST / 1:30 EST, I will be participating in a Chat Session via the eMoney Show from the Toronto World Money show presentation.

It will be a brief chat where I will cover Sector Rotation Tactics then answer a few questions.

Here is the Direct Registration Link:  “Sector Rotation Tactics Chat

and More Information – and more chats and archived webinars – via the eMoneyShow Homepage.

“The Popped Stops Play:  Profiting from Failed Trades”

My Session at the Traders Expo Las Vegas will be live-casted via webinar, and you will be able to attend the presentation from the comfort of your office or home.

Here is the direct link to register:  “The Popped Stops Play.”

It will take place Thursday, November 18th at 10:00am CST / 11:00am EST.

Details and registration are included in the link above.

All events are free and I want to thank LBR Group, FuturePath, and the MoneyShow staff for hosting these events.

It will be a busy week but I hope to see you there!

Corey Rosenbloom, CMT

Read more here:
Three Upcoming Webinar Events with Corey

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