By: Doug Noland | Fri, Jan 13, 2012
The start of a new market year is, undoubtedly, analytically intriguing. One wouldn't think that the calendar should have such impact. Yet January arrives with a clean performance slate and an opportunity for new, perhaps not as unsullied, market dynamics. What's the new game? The previous year's underperformers can rather abruptly be transformed into darlings of the New Year (especially if those stocks have large short positions). The general market also tends to benefit from strong seasonal inflows. And if stocks can charge out of the blocks briskly, a plethora of bullish news and analysis is sure to follow.
Such a fluid backdrop is conducive to abrupt changes in analytical focus - a new prevailing "analytical regime" in a capricious marketplace. Last year's now stale worries are easily dismissed, as a confluence of more constructive market trading action and news flow supports a major boost to bullish market sentiment. A short squeeze (buying to reverse short positions) - in positions that tended to be consistent with prior market focus/worries - works wonders in bolstering the perception of a more optimistic analytical outlook and diminished risk profile throughout the marketplace.
14 January 2012
Jim Rogers: US Govt to ‘Juice Up’ Economy in Election Year
Friday, 13 Jan 2012 09:01 AM
By Forrest Jones
The U.S. government will spend beyond its means and the Federal Reserve will print money to juice up the economy as part of an election-year popularity ploy, says international investor Jim Rogers.
"You have to remember two things — election in America in November, so you are going to see a lot of good news. Of course you have the American government spending staggering amounts of money right now, printing a lot of money and getting ready for the election," Rogers tells The Economic Times, an Indian English-language daily newspaper.
"It happens every four years in America. They do their best to get the economy juiced up so they can win the election."
By Forrest Jones
The U.S. government will spend beyond its means and the Federal Reserve will print money to juice up the economy as part of an election-year popularity ploy, says international investor Jim Rogers.
"You have to remember two things — election in America in November, so you are going to see a lot of good news. Of course you have the American government spending staggering amounts of money right now, printing a lot of money and getting ready for the election," Rogers tells The Economic Times, an Indian English-language daily newspaper.
"It happens every four years in America. They do their best to get the economy juiced up so they can win the election."
Gold and Silver Decline as Europe Receives Downgrades
By Eric McWhinnie
January 13, 2012 4:46 PM EST
Wall St. Cheat Sheet
On Friday, gold (NYSEARCA:GLD) futures for February delivery decreased $16.90 to settle at $1,630.80 per ounce, while silver (NYSEARCA:SLV) futures fell 60 cents to settle at $29.52.
Must Read
Euro-zone governments are expecting new debt-crisis commotion following reports ratings agency Standard & Poor’s (NYSE:MHP) plans to downgrade the credit ratings of two of the euro zone’s six AAA-rated nations.
January 13, 2012 4:46 PM EST
Wall St. Cheat Sheet
On Friday, gold (NYSEARCA:GLD) futures for February delivery decreased $16.90 to settle at $1,630.80 per ounce, while silver (NYSEARCA:SLV) futures fell 60 cents to settle at $29.52.
Must Read
Euro-zone governments are expecting new debt-crisis commotion following reports ratings agency Standard & Poor’s (NYSE:MHP) plans to downgrade the credit ratings of two of the euro zone’s six AAA-rated nations.
Are The Middle East Wars Really About Forcing the World Into Dollars and Private Central Banking?
Submitted by George Washington on 01/13/2012 19:54 -0500
The Middle Eastern and North African wars – planned 20 years ago – don’t necessarily have much to do with fighting terrorism. See this, this and this.
They are, in reality, about oil.
And protecting Israel (and read the section entitled “Securing the Realm” here).
But as AFP reports today, there is another major motivation for the expanding wars:
The Middle Eastern and North African wars – planned 20 years ago – don’t necessarily have much to do with fighting terrorism. See this, this and this.
They are, in reality, about oil.
And protecting Israel (and read the section entitled “Securing the Realm” here).
But as AFP reports today, there is another major motivation for the expanding wars:
The US Government Is Bankrupt
By Doug Casey, Casey Research
Everyone knows that the US government is bankrupt and has been for many years. But I thought it might be instructive to see what its current cash-flow situation actually is. At least insofar as it's possible to get a clear picture.
As you know, the so-called Super Committee recently tried to come up with a plan to cut the deficit by $1.5 trillion and failed completely. To anyone who understands the nature of the political process, the failure was, of course, as predictable as it was shameful. What's even more shameful, though, is that the sought-after $1.5 trillion cut wasn't meant to apply to the annual budget but to the total budget of the next 10 years – a fact that is rarely mentioned.
Everyone knows that the US government is bankrupt and has been for many years. But I thought it might be instructive to see what its current cash-flow situation actually is. At least insofar as it's possible to get a clear picture.
As you know, the so-called Super Committee recently tried to come up with a plan to cut the deficit by $1.5 trillion and failed completely. To anyone who understands the nature of the political process, the failure was, of course, as predictable as it was shameful. What's even more shameful, though, is that the sought-after $1.5 trillion cut wasn't meant to apply to the annual budget but to the total budget of the next 10 years – a fact that is rarely mentioned.
13 January 2012
US stations two aircraft carriers opposite Iran, 15,000 troops in Kuwait
DEBKAfile Exclusive Report January 13, 2012, 12:00 PM (GMT+02:00)
US President Barack Obama is busy aligning Middle East allies with the next US steps on Iran. Contributing to the mounting sense in Washington of an approaching US-Iranian confrontation, the Pentagon is substantially building up its combat power around Iran, stationing nearly 15,000 troops in Kuwait - two Army infantry brigades and a helicopter unit – and keeping two aircraft carriers the region. The USS Carl Vinson, the USS John Stennis which was to have returned to home base and their strike groups will stay in the Arabian Sea.
Iran is caught up in the same pre-war swirl of activity. Parliament Speaker Ali Larijani spent two days in Ankara this week. But Turkish leaders failed in their bid to sell their good offices as brokers for averting the expected collision between Tehran and the West. Before flying out of Ankara Friday, Jan. 13, Larijani commented: "We have different ways of doing things."
debkafile's Iranian sources quote the Iranian official as telling his hosts that his country is prepared to take on any military aggressors. One of the responses weighed in Tehran to meet the rising military pressure might be an open declaration of Iran as a nuclear power. By accepting a visit by IAEA inspectors on Jan. 28 - to investigate charges that Iran is running a clandestine nuclear bomb program - Tehran may be moving toward that irreversible admission - or possibly its first nuclear test.
US President Barack Obama is busy aligning Middle East allies with the next US steps on Iran. Contributing to the mounting sense in Washington of an approaching US-Iranian confrontation, the Pentagon is substantially building up its combat power around Iran, stationing nearly 15,000 troops in Kuwait - two Army infantry brigades and a helicopter unit – and keeping two aircraft carriers the region. The USS Carl Vinson, the USS John Stennis which was to have returned to home base and their strike groups will stay in the Arabian Sea.
Iran is caught up in the same pre-war swirl of activity. Parliament Speaker Ali Larijani spent two days in Ankara this week. But Turkish leaders failed in their bid to sell their good offices as brokers for averting the expected collision between Tehran and the West. Before flying out of Ankara Friday, Jan. 13, Larijani commented: "We have different ways of doing things."
debkafile's Iranian sources quote the Iranian official as telling his hosts that his country is prepared to take on any military aggressors. One of the responses weighed in Tehran to meet the rising military pressure might be an open declaration of Iran as a nuclear power. By accepting a visit by IAEA inspectors on Jan. 28 - to investigate charges that Iran is running a clandestine nuclear bomb program - Tehran may be moving toward that irreversible admission - or possibly its first nuclear test.
It's Offical: S&P Announces Mass Downgrade Of Eurozone Countries
Eric Platt | Jan. 13, 2012, 4:38 PM
Standard & Poor's has officially cut the long-term credit rating of France and eight other Eurozone nations.
Italy, Portugal, Cyprus, and Spain saw two notch downgrades, while Austria, France, Malta, Slovakia, and Slovenia were dropped one level.
The ratings agency reiterated its ratings on Belgium, Estonia, Finland, Germany, Ireland, Luxembourg, and the Netherlands.
Standard & Poor's has officially cut the long-term credit rating of France and eight other Eurozone nations.
Italy, Portugal, Cyprus, and Spain saw two notch downgrades, while Austria, France, Malta, Slovakia, and Slovenia were dropped one level.
The ratings agency reiterated its ratings on Belgium, Estonia, Finland, Germany, Ireland, Luxembourg, and the Netherlands.
Fed Plays PR Games
By:
John Browne
Friday, January 13, 2012
The world was taken by surprise recently by the Federal Reserve Board’s announcement that it would publish some of its economic forecasting that forms the basis for its short-term interest rate strategy. The Fed claims that the move will vastly increase so-called transparency, which has become a buzz word for honesty and virtue. However, the new policies do nothing to remove the cloak of secrecy that conceals still many of its most significant activities. This myth of new transparency will do little to lure investors back into the markets but as an unintended consequence will reveal just how profoundly the markets are currently guided from the top.
John Browne
Friday, January 13, 2012
The world was taken by surprise recently by the Federal Reserve Board’s announcement that it would publish some of its economic forecasting that forms the basis for its short-term interest rate strategy. The Fed claims that the move will vastly increase so-called transparency, which has become a buzz word for honesty and virtue. However, the new policies do nothing to remove the cloak of secrecy that conceals still many of its most significant activities. This myth of new transparency will do little to lure investors back into the markets but as an unintended consequence will reveal just how profoundly the markets are currently guided from the top.
Markets Tumble as French Downgrade Causes Chaos
By Tom Nicolson: Subscribe to Tom's RSS feed
January 13, 2012 11:10 AM EST
Financial rating agency Standard & Poor's is poised to downgrade the French credit rating in an expectation that has sent shockwaves through the eurozone and global markets.
France, along with the other eurozone countries, was put on to "negative credit watch" towards the end of 2011 but the official announcement of the downgrade from AAA to AA is likely to put huge pressure on President Nicolas Sarkozy just months ahead of the general election.
The downgrade will mean France's sovereign bond yield will increase, making it essentially more expensive for Paris to borrow money. That will ultimately weaken the French economy.
January 13, 2012 11:10 AM EST
Financial rating agency Standard & Poor's is poised to downgrade the French credit rating in an expectation that has sent shockwaves through the eurozone and global markets.
France, along with the other eurozone countries, was put on to "negative credit watch" towards the end of 2011 but the official announcement of the downgrade from AAA to AA is likely to put huge pressure on President Nicolas Sarkozy just months ahead of the general election.
The downgrade will mean France's sovereign bond yield will increase, making it essentially more expensive for Paris to borrow money. That will ultimately weaken the French economy.
Obama on Pace to Borrow $6.2T in One Term—More Than All Presidents from Washington Through Clinton Combined
By Terence P. Jeffrey
January 13, 2012
(CNSNews.com) - President Barack Obama has been increasing the national debt during his presidency by an average of $4.24 billion per day ($4,240,506,004.34) putting him on a pace to increase the national debt by $6.2 trillion ($6,195,379,272,340.74) by the end of his term on Jan. 20, 2013, according to the debt figures published by the U.S. Treasury.
That $6.2 trillion is more debt than was accumulated by all U.S. presidents from George Washington through Bill Clinton combined.
January 13, 2012
(CNSNews.com) - President Barack Obama has been increasing the national debt during his presidency by an average of $4.24 billion per day ($4,240,506,004.34) putting him on a pace to increase the national debt by $6.2 trillion ($6,195,379,272,340.74) by the end of his term on Jan. 20, 2013, according to the debt figures published by the U.S. Treasury.
That $6.2 trillion is more debt than was accumulated by all U.S. presidents from George Washington through Bill Clinton combined.
MF Global Three Times A Day
MF Global went down in October and the government which can sniff out weapons of mass destruction thousands of kilometres away in enemy territory, still cannot figure out what happened to $1.2 billion in its own back yard. These outcomes are perfectly understandable when one is not searching for the truth.
But without being callous to the predicament of investors in MF Global, does it really matter what happened to the money?
In my view it matters not one iota given that the USA experiences the equivalent of three MF Global events each and every day of the year with a Federal deficit of $1.3 trillion in 2011. And three MF Globals per day is just the start given the additional issues with State and local finances, poorly performing pension plans, educational debt, the mortgage woes of borrowers and the despair of the unemployed.
According to one source, MF Global had 50,000 active commodities accounts and 400 securities accounts. The average loss against these accounts is $23,809 per customer and to date a number of class actions have been initiated.
But without being callous to the predicament of investors in MF Global, does it really matter what happened to the money?
In my view it matters not one iota given that the USA experiences the equivalent of three MF Global events each and every day of the year with a Federal deficit of $1.3 trillion in 2011. And three MF Globals per day is just the start given the additional issues with State and local finances, poorly performing pension plans, educational debt, the mortgage woes of borrowers and the despair of the unemployed.
According to one source, MF Global had 50,000 active commodities accounts and 400 securities accounts. The average loss against these accounts is $23,809 per customer and to date a number of class actions have been initiated.
SilverDoctors: Italy Slashed to BBB+
SilverDoctors: Italy Slashed to BBB+: An EU official has just confirmed Italy has been downgraded to BBB+. ITALY CUT TWO LEVELS TO BBB+ BY S&P, EU OFFICIAL SAYS
Gold: Current bull market is a carbon copy of the 1970's bull market
By Hubert Moolman
Below, is a Gold alert sent to my premium subscribers, on 5 January 2012. The patterns indicated, suggest that we will have a massive rally in gold over the coming months.
Below, is a graphic that compares the gold chart from 1998 to present, to that of 1975 to 1979.
Below, is a Gold alert sent to my premium subscribers, on 5 January 2012. The patterns indicated, suggest that we will have a massive rally in gold over the coming months.
Below, is a graphic that compares the gold chart from 1998 to present, to that of 1975 to 1979.
Silver: If you buy anything in 2012, buy Silver
NEW YORK (Commodity Online): Silver is the commodity to buy in 2012, believes Smith McKenna LLC adding that silver will dominate the markets in 2012.
Stephen M. Smith, managing member Smith McKenna, has 20 plus years of experience in commodity-market analysis and advises that silver will emerge as king.
"It's the only place to be," says Smith. "Silver will dominate the commodity market in 2012."
Smith strongly believes that political and economic changes have a dynamic impact on prices and in this time of global economic advancements there will be a mega shift in the metal market. Silver will dictate market direction.
Stephen M. Smith, managing member Smith McKenna, has 20 plus years of experience in commodity-market analysis and advises that silver will emerge as king.
"It's the only place to be," says Smith. "Silver will dominate the commodity market in 2012."
Smith strongly believes that political and economic changes have a dynamic impact on prices and in this time of global economic advancements there will be a mega shift in the metal market. Silver will dictate market direction.
Silver: Are you ready to make profit in 2012
By Hubert Moolman
I presented the following chart, which indicated that Silver was at a major crossroads:
"This pattern on the silver chart has me convinced that silver will rise even faster than a lot of silver bulls are expecting. Let me give you an example of what is likely to come next, after this pattern. Below, is a comparison of the current pattern on the silver chart, and a similar pattern that was on the Gold chart in 2007:"
I presented the following chart, which indicated that Silver was at a major crossroads:
"This pattern on the silver chart has me convinced that silver will rise even faster than a lot of silver bulls are expecting. Let me give you an example of what is likely to come next, after this pattern. Below, is a comparison of the current pattern on the silver chart, and a similar pattern that was on the Gold chart in 2007:"
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