Monday, September 17, 2012

October Surprise to Carterize Obama?

Sep 16, 2012 by

Fed's Asset Purchases are a Charade

Sept. 14 (Bloomberg) -- Stephen Roach, a professor at Yale University and former non-executive chairman for Morgan Stanley in Asia, talks about the decision by Federal Reserve policy makers to proceed with a third round of large-scale asset purchases, inflation in the U.S. and the Chinese economy. He speaks with Trish Regan and Adam Johnson on Bloomberg Television's "Street Smart." Gordon Chang, author of "The Coming Collapse of China," also speaks.

US arms sales spike to record levels

Sep 16, 2012 by RussiaToday

The world may be terrified of a potential war with Iran, but for arms producers - tensions fear is good business. So it is for the Unites States. According to a recent Congressional Research Service report, within just one year the US has tripled its arms sales and half of what US sold last year went to Gulf states.

Brother JohnF - Silver Update: Escape From America

Sep 16, 2012 by BrotherJohnF

Quantitative Easing – What it Means For Us?

By Jordan Eliseo

LJ Financial Group
17th September 2012

The share market in Australia closed at a 3 week high on Friday, buoyed by news from the USA where Federal Reserve President Ben Bernanke kicked off another round of money printing (called quantitative easing). Whilst the market anticipated more stimulus, the announcement was nonetheless extraordinary in that it put neither a time limit on how long they will print money for, nor how many dollars they will eventually print. In essence, he opened the door for perpetual money printing. In this article, we look at whether or not this announcement really is good news for the economy, for the markets, and for us?

In terms of exactly what policy actions were enacted last week, the Federal Reserve committed to purchasing $40 Billion worth of mortgage backed securities every month (i.e. debt backed by houses) until at least the end of the year. Relative to previous versions of Quantitative Easing, this amount of money is actually quite small, but it was the following statement which was of most importance. Bernanke stated:

“The Committee will closely monitor incoming information on economic and financial developments in coming months. If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved.”

Essentially, this statement opens the door to perpetual money printing, as unlike the first 2 versions of quantitative easing, this announcement has neither an end date nor a fixed dollar amount.

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Debt Crisis: Golden Opportunity

By Jordan Eliseo

LJ Financial Group
3th September 2012

The price of Gold has rallied strongly over the last 5 years. When the GFC started back in 2007, you could pick up an ounce of gold for just $670. Wind the clock forward to today, and Gold is now trading at $1690 – a rise of over $1000 per ounce. The increase in price has led many market pundits to say that Gold is ‘in a bubble’ and that the price will soon crash. In this article, we look at some of the myths about gold and debate the questions that regularly come up about this asset class.

Some of the questions commonly asked about Gold include:

• What is Gold?
• Is Gold just another commodity?
• Is the Gold market an illiquid and obscure market?
• Who owns the world’s Gold?
• Is Gold really in ‘a bubble’?

Let’s look at each of these in turn.

Self Managed Super – The Latest Craze!

By Jordan Eliseo

LJ Financial Group
10th September 2012
Australia’s Self-Managed Superannuation market (SMSF) is booming. With assets of over $400bn, the SMSF market is now the largest sector of the nations $1.4 Trillion Superannuation Industry. With the fees for administering SMSF’s falling, the fastest growing demographic in the SMSF landscape is now 30-45 year olds, with over 1000 successful, hard-working Australians taking control of their superannuation each month by going down the SMSF route.

The growth in the SMSF market has been driven by a number of factors. The primary reason, cited by over half of SMSF trustees has been the desire to control their own investments. Other factors driving the growth in the market include

• Significant reductions in both the costs and administrative burden of running a SMSF
• Growing frustration with the lack of service and transparency from traditional superannuation providers
• Continuing poor returns in ‘default’ superannuation products, with many underperforming cash since the turn of the century

All of these factors are driving Australians from all of walks of life to open up a SMSF, with the attached article providing some additional insight into the ‘typical’ SMSF trustee.

With continued volatility in markets, and ongoing economic uncertainty, now is an opportune time for individuals (and families) to consider SMSF. The default super funds that over 80% of Australians are invested in still have largely the same investments as they did leading into the GFC. There is therefore a risk that the losses which burned the majority of Australians back in 2007 and 2008 could be repeated. Working with a trusted advisor both to set up an SMSF and build a more diversified portfolio can have many benefits for those who take the appropriate action. Even a 1% return difference per annum will multiply into hundreds of thousands of dollars of extra retirement income for high income earners in their mid-late 30’s. These are the people that are most going to need their superannuation upon retirement, as the government will find it increasingly difficult to fund the pension going forward.

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The Rich Getting Richer?

SUN 16 SEP 12 | 08:17 PM ET

Mykolas Rambus, CEO at Wealth-X says that the world's richest have learnt how to ride out the economic crisis and stay rich. Yes, Gold is part of that story.

Gold's Global Outlook: The Drivers of Its Rally

Note the talking head says Gold is a non-liquid asset, of course we all know that Gold is the most liquid asset the world has ever known.  

Bloomberg's Mia Saini looks at the impact on gold of the latest Fed asset-purchase program.

Netanyahu - Iran on brink of nuclear bomb in 6-7 months

(Reuters) - Israeli Prime Minister Benjamin Netanyahu warned on Sunday that Iran would reach the brink of being able to build a nuclear bomb in just six or seven months, adding urgency to his demand that President Barack Obama set a "red line" for Tehran amid the worst U.S.-Israeli rift in decades.

Taking to the airwaves to make his case directly to the American public, Netanyahu said that by mid-2013 Iran would have 90 percent of the material it needed for an atomic weapon. He again pressed the United States to spell out limits that Tehran must not cross if it is to avoid military action - something Obama has refused to do.

"You have to place that red line before them now, before it's too late," Netanyahu told NBC's "Meet the Press" program, saying that such a move could reduce the chances of having to attack Iran's nuclear sites.

The unusually public dispute between close allies - coupled with Obama's decision not to meet with Netanyahu later this month - has exposed a gaping U.S.-Israeli divide and stepped up pressure on the U.S. leader in the final stretch of a tight presidential election campaign.

It was Netanyahu's most specific explanation yet on why he has become so strident in his push for Washington to confront Tehran with a more forceful ultimatum. At the same time, his approach could stoke further tensions with Obama, with whom he has had a notoriously testy relationship.

U.S. officials say Iran has yet to decide on a nuclear "breakout" - a final rush to assemble components for a bomb - and they express high confidence that it is still at least a year away from the capacity to build one and would then need more time to fit a warhead onto a missile. This contrasts with Netanyahu's timetable, although he stopped short of saying Iran had decided to manufacture a weapon.

US to flex naval might in Persian Gulf war games

USS Enterprise

Original source

The US Navy is leading its largest-ever war games in the Persian Gulf, with warships from 25 countries being deployed in the region. Tehran, in return, is preparing for its biggest air defense war game in the history of Islamic Republic next month.

The countries that deployed the largest number of warships for the 12-day training mission are the US, Britain, France, Saudi Arabia and the UAE.

The exact number of aircraft carriers, battleships and submarines taking part is unclear. Three American aircraft carriers out of the four currently in commission are reportedly gathering in the Persian Gulf for the training. USS Enterprise, USS John C. Stennis, USS Dwight D. Eisenhower have reportedly arrived.

The USS George Washington is believed to be on patrol in the Pacific Ocean but its exact whereabouts are a mystery. It was sighted near the island of Guam one week ago, and the air carrier’s Facebook page claims that it is still in the Pacific. But since the ship can travel at over 30 knots, it could be on its way to the Persian Gulf.

The aircraft carriers are supported by at least a dozen warships: Ballistic missile cruisers, destroyers, frigates and assault ships carrying thousand of US Marines and spec ops ships.

Britain dispatched six vessels to the Persian Gulf war games: the HMS Diamond, a brand-new £1 billion worth destroyer, four minesweepers and a logistics vessel.

The joint fleet is expected to simulate destroying Iranian fighter jets, battleships and coastal military defenses like missile batteries.

During HYPERINFLATION Your Assets Can Become Liabilities

Sep 16, 2012 by SGTbull07

Barry from D.R. explains the hellish reality of hyperinflation as he experienced it in Argentina. He says having an escape plan is essential, without one, despite prepping & stacking, you're sitting on a 3-legged stool. And when hyperinflation finally hits in the United States, your assets may well become liabilities, because the unprepared & desperate will want what YOU have.

Barry's site:

Sean's websites:

G. Edward Griffin - Understanding the Banking Cartel

Sep 14, 2012 by visionvictory

While at the Casey Summit, Future Money Trends had the pleasure of meeting and interviewing legend in the freedom movement G. Edward Griffin who is the author of the book "The Creature from Jekyll Island".

Law of Unintended Consequences - Australian Stock Futures Rise on Fed Move

A World On The Verge Of War?


Original source

Here is a summary of where the world stands:

  • Unable to reach a compromise over the weekend, South Africa is now in an all out labor strike, with the police again firing rubber bullets at miners with lethal escalation guaranteed
  • Japan "appropriating" China-contested islands provoking a firestorm of retaliation including demands for "war with Japan"
  • Netanyahu telling Meet the Press Iran will have a nuke in six-seven months and must be stopped beforehand
  • Warships from more than 25 countries, including the United States, Britain, France, Saudi Arabia and the UAE, launching a military exercise in the Straits of Hormuz
  • A third US aircraft - the CVN-74 Stennis - carrier is en route to Iran with an ETA of about 10 days

Reggie Middleton - Bernanke lied to the World about QE3 & Unemployment

Sep 16, 2012 by BoomBustBlog

Marc Faber – Most People Look At Markets, But Not Within Markets

Sept. 14 (Bloomberg) — Marc Faber, publisher of the Gloom, Boom & Doom report, talks about Federal Reserve policy and his investment strategy. Faber, speaking with Betty Liu on Bloomberg Television’s “In the Loop,” also discusses gold prices and the property market.

Egon von Greyerz - QE3 is a Catalyst for Gold

Egon von Greyerz discusses QE to infinity and its affects on Gold and the stock market. Listen to the KWN interview here

Listen to Egon live at the Gold Symposium in Sydney, Australia 22-23 October 2012. For the list of other speakers and Symposium details go here