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‘The
Obama Administration has won its second term. And now that the election is over
we can come to grips with the fact that nothing has been fixed and that the
math is impossible both in Europe and here.
First
and foremost, Greece is out of money… again.
The
country is currently embroiled in a new 48 hour strike to protest the next wave
of austerity measures which will be voted on today in order for Greece to
qualify for the next round of bailout funds.
The
bailout in question, €31.5 billion, was actually due five months ago but was
not paid as Greece has failed to meet budgetary requirements. Without this
money the country will run out of funds by November 16. We’ll see how this pans
out but suffice to say the same issues (Greece is broke and will remain in the
EU as long as it gets money) are still in play. None of them are good.
Then
of course there is Spain, which continues to present impossible ideas to deal
with its impossible economic situation. The country currently has just €37
billion in cash lying around. With this, it somehow plans on buying €60
billion worth of bad bank assets.
This
is doable over time… provided that Spain doesn’t have a single other problem
occur. Unfortunately, we’re up to five regions requesting bailouts leaving just
€3 billion in funds available for any other regions that face a shortfall
(there will be more).
Meanwhile,
Spanish banks continue to draw over €400 billion from the ECB… up from €300+ in
June. And on top of this, the country needs to raise €207 billion next year
while keeping rates low.
And
then of course there is the US…
The
US re-entered recession in June 2012. And we are now facing the fiscal cliff
again with the threat of tax hikes hitting in early 2013. We also have $16
trillion in debt and are running our fourth $1+ trillion financed by the US
Federal Reserve which bought over 70% of all US Treasury issuance last year.
Speaking
of the Fed, Obama’s win means Bernanke’s job is secure at least until he
decides he wants to step down… which if he has any sense he’ll do so that the
disaster waiting to unfold can happen on someone else’s watch.
That
someone else will likely be Janet Yellen, the current Vice Chair of the Fed,
who is an even bigger dove/fan of money printing than Bernanke (she said that
QE 3 would “benefit the world,” a truly staggering claim given the increase in
inflation both in the US and especially in emerging markets).
What
does this mean?
Simple…
the very same problems that the world faced on November 5, 2012 remain in place.
And we now know that those in power (Bernanke and Draghi) favor money printing
over everything else. So the cost of living/ inflation will continue to rise
and the world will lurch ever closer to the great debt implosion that will
eventually take down the financial system.
Now
more than ever, investors need to get access to high quality guidance and
insights. There sheer magnitude of the issues the global financial system is
facing is enormous!
For
that reason, we have lowered the price of an annual subscription of my Private Wealth Advisory newsletter to just $249 (down from $300).Private Wealth Advisory is my bi-weekly investment advisory service tailor
made for individual investors who want to stay informed of the real
story in the global economy and outperform markets.To whit, my clients made money in 2008. And we’ve been playing the Euro Crisis to
perfection, with our portfolio returning 34% between July 31 2011 and July 31
2012 (compared to a 2% return for the S&P 500).
And this incredible newsletter is now on sale at $249 for the next 12 hours (until tonight at midnight).So if you’ve been holding off on subscribing to Private Wealth Advisory for whatever reason, this is your one chance to subscribe now, and lock in a price of $249 for the lifetime of your subscription.Because tonight at midnight, the price is going back up to $299 and will stay there for good.To take advantage of this Special One Time offer… and start receiving my hard hitting, global market investment commentary delivered to your inbox every other Wednesday…Click Here Now!!!Best Regards,Graham Summers’