And These Are the Folks Who Will Save the World?
http://albertpeia.com/idontthinkso.htm
‘As the fiscal cliff euphoria and start of the year buying fade,
investors are waking up to the fact that fundamentally nothing was fixed in
2012.
Indeed, once could easily argue that the fiscal cliff “deal” is a
great metaphor for 2012 as a whole: an enormous charade played by political
leaders that ultimately solved nothing and in fact left everyone worse off.
Case in point, the “deal” has somehow managed to both raise taxes and
increase the deficit deficit (by $4 trillion, no less). Economically, accomplishing
this should have been virtually impossible. Washington managed to do it. Many
words come to mind concerning this. “Success” is not one of them.
Yet even this situation pales in comparison to that occurring in
Europe today. There the political leaders are now not only proclaiming
that the “worst” is over but that in fact the crisis as a whole is over.
To say this is political grandstanding would be understatement of
the year so far: EU unemployment just hit a new record of 11.8%. Also, both
Greece and Spain have issued reports revealing that their banks are massively
undercapitalized and in fact have negative values.
The Crisis is over, but unemployment continues to grow and the
banks are all insolvent. Only in Europe: a place where career politicians are
caught on microphone admitting that they have no idea what the economic terms
they used in a speech actually mean.
And these people are meant to not only tackle a banking crisis
that makes 2008 look rosy in comparison, but somehow get 17 countries with
hundreds of years of bloodshed between them to stick together as their
respective economies implode?
By way of example, let’s consider Spain.
Throughout the first half of 2012, Prime Minister Rajoy denied
that the country’s banks needed any aid, even going so far as to state that
those who argued otherwise didn’t know what they were talking about.
Then, one of the largest Spanish banks revealed that both its
balance sheet and its “profits” were total fabrications. Rajoy dealt with this
situation by flying to the EU demanding a €100 billion bailout, then flying
back to watch a soccer match. The next day, he then announced that Spain’s
economy was in big trouble.
That is the sort of person that
people are banking on saving Europe.
Good luck with that.
The only glue holding the entire financial system together is the
belief that the Central Banks have this situation under control. The fact of
the matter is that these institutions are largely out of ammunition and have
begun resorting largely to verbal intervention as that is the only
bullet left they have left.
The best example here is again Europe.
In September 2012, the ECB announced a program to engage in
unlimited bond buying. This sounds convincing except that this “unlimited”
quality comes only if a country formally requests a bailout from the
EU.
Any country that does this will have to mean:
Open its books to
the EU (something NO EU country wants to do as it would reveal the
books are cooked).
Agree to austerity
measures, which, even if they’re never implemented, will still result in mass
protests and civil unrest.
Hand over fiscal
sovereignty to the EU.
NO EU member wants to do one of
these, let alone all three of them.
So the ECB’s announcement is really nothing other than verbal
intervention. No money was spent. No new capital was raised for the
banks. No national deficits or debt loads were reduced. The whole thing was
just one big bluff.
Which means everything that has happened in the markets since
September 2012 was based on a massive lie. Again, take a look at Spain: its
bond yields fell indicating that perhaps its debt crisis was under control…
except the only entity in the world buying Spanish debt was Spain itself which
used up 90% of its social security fund to do this.
Spain used up 90% of its social security fund buying its own debt…
and somehow things are “fixed.” What happens this year when Spain has to issue
another €200+ billion in debt? Where will that money come from?
This is why, smart investors are already taking advantage of the
lull in the markets to position themselves accordingly. While everyone else
continues to believe the fairytale story spun by the political class and
mainstream media, our Private
Wealth Advisory newsletter
subscribers have already been warned of these issues and are taking action
(just as they did in early 2008 when others were bullish, or in 2010 when the
EU crisis first began to take off).
Private Wealth Advisory outlined several critical
investment strategies, designed to hedge our subscribers from the risks in the
market while also alerting them to unique investment ideas that 99% of
investors don’t know about.
This includes out of the way hard asset plays that are undervalued
by as much as 70%, back-door investments on Europe’s banking system that allow
individual investors to profit when the stuff hits the fan there, and more.
To find out about these investments and start positioning yourself
for what we all know is coming, but no one wants to openly admit, all you need
to do is take out a trial subscription to Private Wealth Advisory.
You’ll immediately be given full access to the subscribers’ only Private Wealth Advisory website where you can find the historical archives of this
investment newsletter.
You’ll also begin receiving new, hot off the press, issues of Private
Wealth Advisory to your inbox every other
Wednesday. Running between 20 and 30 pages in length, these intensive
newsletters outline an expert understanding of what’s happening in the world,
in plain, easy to understand language so our subscribers have the best research
presented in the clearest way possible.
In this manner, our clients are always informed about the economy,
financial markets, and most importantly, their investments.
To find out more about Private Wealth Advisory and how it can help you and your investments…’
Phoenix Capital Research