http://albertpeia.com/2warningsandpullingplugoneuro.htm
‘The following is an excerpt
from the latest issue of Private Wealth Advisory. In it, we outline in stark detail the
single biggest threat to investors’ wealth today. Over 99% of investors fail to
grasp these issues. But the consequences for those who miss this, will be catastrophic, possibly a
30%+ loss of portfolio.
Not subscribers. We made money during 2008
and throughout the Euro Crisis. And this next implosion will make us money to.
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The Fed’s let the
inflation genie out of the box. It’s not going to show up in the CPI because US
Government changes the CPI regularly to underplay the threat of inflation.
However, if you look at what’s happening in the real economy with corporations,
all of the warning signs area already there.
Chipotle Mexican
Grill Inc. higher food costs to dampen fourth-quarter earnings, despite
continued strength in its underlying sales trends.
The Denver
burrito chain, which has about 1,350 locations in the U.S., has been looking
for ways to boost its customer traffic growth, which began tapering off last
spring.
“While food
costs driven by underlying inflation increased faster than expected in the
fourth quarter, we’re optimistic that food inflation will level off in 2013,”
said co-Chief Executive Monty Moran.
http://online.wsj.com/article/SB10001424127887323468604578246201531551498.html
Xstrata plc, the
Swiss mining company, which is subject of a $US33 billion ($A32.4 billion)
takeover by Glencore International, said 2012 profit plunged 37 per
cent on weaker commodity prices and higher costs.
Net income,
excluding exceptional items, such as impairment charges, fell to $US3.65
billion from $US5.79 billion a year earlier, the company said. Sales at the
world’s largest exporter of power-station coal slid 7 per cent to $US31.6
billion.
”The combined
impact of falling commodity prices, ongoing inflationary pressure on
operating costs and continued strong producer currencies relative to the US
dollar put pressure on our margins,” chief executive officer Mick Davis said in
the statement
LOWER PROFIT: Fourth-quarter net income at
Southwest Airlines Co. fell by nearly half, to $78 million. Adjusted profit still beat analysts’
expectations, however.
HIGHER COSTS:
Earnings were pulled down by increases in the cost of labor, maintenance and
fuel. Expenses rose faster than revenue.
http://bigstory.ap.org/article/news-summary-costs-cut-southwests-4q-profit
The key point here
is that inflation is already present in the financial system no matter what the
Fed admits. This situation is only going to worsen. Indeed, you consider that
costs are rising at the precise time that incomes are falling, you have a
recipe for serious economic contraction similar to that of 2008:
U.S. incomes
fell the most in two decades in January as higher tax rates kicked in, though
American consumers opted to cut back on savings.
Personal incomes
dropped 3.6% in January, the Commerce Department said Friday. Economists
surveyed by Dow Jones Newswires expected a 2.5% decline.
The decline more
than reversed big gains in December, when companies accelerated payouts of
dividends and bonuses ahead of January tax increases. Many economists expect
incomes to resume their slow growth after a bumpy couple of months.
Generally, if
Americans have less money in their pockets they spend less on goods and
services. But personal-consumption expenditures, which measure purchases
ranging from cars and clothes to health care and travel, rose 0.2% in January,
in line with economists’ expectations. Consumers cut back on big-ticket items
but spent more on services.
http://online.wsj.com/article/SB10001424127887323978104578333961864183212.html?mod=googlenews_wsj
Indeed, Bernanke’s
“wealth” effect for the markets has been totally negated by the fact that
households are selling their retirement to make ends meet:
One in four
Americans is raiding their meager retirement savings to pay their monthly
bills, according to a new study.
When Amy
Shankland’s husband, John, was laid off from his job, they tapped into their
IRAs to get by. With credit card debt, big medical expenses, two young sons,
the Shanklands had few options.
“We didn’t know
what to do. It was either bankruptcy or cash in our IRAs,” Amy Shankland told
NBC News.
The Shanklands
are not alone. Americans are borrowing against their 401(k) to pay for
non-retirement needs such as mortgages, credit card debt or college tuition,
according to a new study from financial advisory firm HelloWallet. That amounts for more than $70
billion in annual withdrawals.
http://www.nbcnews.com/business/more-americans-raiding-401-k-s-pay-bills-1B7989986
All of this
indicates that we are heaving into another massive economic contraction.
Against this backdrop, stocks have formed a bubble. We all know how this will
end. But most investors are ignoring all of the warning signs and buying stocks
like there’s no tomorrow
This is precisely
the sort of action we saw going into the Tech top and the 2007 top. The Fed has
managed to create a bubble in stocks and housing again… right as the US economy
collapses (just like in 2000 and 2007). We all know what came next.
This is precisely
the sort of “unquantifiable” investment analysis we specialize in with our Private Wealth
Advisory newsletter.
With most of the
markets dominated by computer programs and Wall Street sharks, the only way to
make serious money is by focusing on the opportunities and risks that no
computer or group-think Wall Streeter can come up with. If you can do this, you
can still making a killing in the markets.
We’re speaking from
experience here.
By focusing on
investment ideas and portfolio risks that are “unquantifiable” we’ve
shown a success rate of OVER 80% on our investments.
Put another way,
we’ve made money on more than eight out of ten investments. This includes a 74
trade-winning streak (from July 2011-July 2012 we didn’t close a single losing
trade).
And this is not some
flash in the pan either.. Private
Wealth Advisory has a history of beating the market and locking in serious gains
when others are losing their shirts (we saw a 7% gain in 2008 when the markets
fell over 30%)
Indeed, I’m so
confident in this newsletter that it comes with a 30-day refund period. If
you’re not totally satisfied with Private Wealth
Advisory in the first month, simply drop us a line and we’ll refund every
cent of your subscription.
You’ll have full
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Wealth Advisory archives in that time. You’ll also receive two new hot off the
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how it can help you beat Wall Street and the market…
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Research
-----
March 11, 2013 http://gainspainscapital.com
‘Back in 2011, I
predicted that when push ultimately came to shove, Germany would leave the Euro
before it picked up the full tab. The reasoning is simple: the Germany
population will not stand for rampant monetization. They know how that ends
(Weimar) and they will kick out any politician who seems to support the idea.
German Chancellor
Angela Merkel has walked a tightrope over the last few years of keeping the EU
together without infuriating the German populace to the point of having to
abandon ship.
To do this, Merkel
has maintained a firm stance of “we’ll write the check provided conditions are
met” much as a parent would give a child his or her allowance provided the
child performed its chores satisfactorily. In the case of Germany, the “chores”
are required conditions of austerity measures and budgetary requirements in
exchange for bailout funds.
By doing this,
Merkel is able to play hardball on an economic front (having failed to meet its
German-required financial targets Greece had to wait an additional six months
to receive another installment of its Second bailout) without appear too
hard-nosed on a political front (she continually pushes to keep the Euro
together, expressing a willingness to help other nations… as long as they meet
her budgetary requirements).
The policy has thus
far been a success with Merkel’s approval rating soaring to its highest level
since 2009 (before her re-election bid). However, her political party has begun
to realize that there will be consequences for defending the Euro no matter
what the cost, suffering an unexpected defeat in January of this year.
Germany’s
center-left opposition won a wafer-thin victory over Chancellor Angela Merkel’s
coalition in a major state election Sunday, dealing a setback as she seeks a
third term at the helm of Europe’s biggest economy later this year.
The opposition
Social Democrats and Greens won a single-seat majority in the state legislature
in Lower Saxony, ousting the coalition of Merkel’s conservative Christian
Democratic Union and the pro-market Free Democrats that has run the
northwestern region for 10 years. The same parties form the national
government.
The 58-year-old
Merkel will seek another four-year term in a national parliamentary election
expected in September. She and her party are riding high in national polls, but
the opposition hoped the Lower Saxony vote would show she is vulnerable.
The outcome could
boost what so far has been a sputtering campaign by Merkel’s Social Democratic
challenger, Peer Steinbrueck.
“This evening gives
us real tailwind for the national election,” said Katrin Goering-Eckardt, a
leader of Steinbrueck’s allies, the Greens. “We can and will manage to replace
the (center-right) coalition.”
However, the close
outcome also underscores the possibility of a messy result in
September, with no clear winner.
http://bigstory.ap.org/article/merkel-risks-election-year-setback-state-vote
Merkel is up for
re-election this year. So she will be more attentive to voter needs than usual.
With that in mind, the following news story doesn’t bode well for her and her
pro-Euro policies:
One in four
Germans would be ready to vote in September’s federal election for a party that
wants to quit the euro, according to an opinion poll published on Monday that
highlights German unease over the costs of the euro zone crisis.
Germany’s mainstream
parties remain solidly pro-euro despite grumbling over bailouts of countries
such as Greece. A German taboo on nationalism, rooted in atonement for the
crimes of the Nazi era, has helped to muffle eurosceptic voices.
But the poll
conducted by TNS-Emnid for the weekly Focus magazine showed 26 percent
of Germans would consider backing a party that wanted to take Germany out of
the euro and as many as four in 10 Germans in the 40-49 age bracket would do
so.
“This suggests there
may be potential here for a new protest party,” Emnid chief Klaus Peter
Schoeppner told Focus.
http://www.reuters.com/article/2013/03/11/us-germany-eurosceptics-idUSBRE92A07F20130311
This is a MAJOR
trend to watch. If the German population begins to swing more in favor of
leaving Euro, to the extent that it could cost Merkel her re-election, then my
2011 prediction could indeed begin to become a reality.
I’ve already alerted
Private Wealth Advisory subscribers
to 6 trades that will all produce HUGE profits as this mess collapses… And I
expect BIG GAINS in the coming months. The set up today is much like that in
2007/2008, when I warned of a major Crash… and we saw triple digit gains while
everyone else lost their shirts.
However this time around the
collapse will be even greater for the simple reason that the Central Banks have
already spent 99% of their ammo propping the system up after 2008. So when
things hit the fan this time around, they won’t have the tools to fix it. Which
means… systemic collapse.
We’ve also taken
steps to prepare our loved ones and personal finances for systemic risk with my
Protect Your Family, Protect Your Savings, and
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With a total of 20
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And more…
I can do the same
for you. All you need to do is take out a subscription to my Private Wealth Advisory newsletter.
You’ll immediate be
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You’ll also join my
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To take out an
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and start taking steps to insure your loved ones and personal finances move
through the coming storm safely…’
Best Regards,
Graham Summers