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The Three Items Every Investor Needs to Be Aware of Going Forward

Phoenix Capital Research's picture




 

 

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.

 

On that note, if you’ve yet to prepare for Europe’s BIG collapse…we’ve recently published a report showing investors how to prepare for this. It’s called What Europe’s Collapse Means For You and it explains exactly how the coming Crisis will unfold as well as which investment (both direct and backdoor) you can make to profit from it.

 

This report is 100% FREE. You can pick up a copy today at:

http://gainspainscapital.com/eu-report/

 

Best Regards,

 

Graham Summers

 

PS. We also offer a FREE Special Report detailing the threat of inflation as well as two investments that will explode higher as it seeps throughout the financial system. You can pick up a copy of this report at:

 

http://gainspainscapital.com/gpc-inflation/

 

 

 

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Wed, 11/07/2012 - 18:36 | 2958439 NMC_EXP
NMC_EXP's picture

"The Three Items Every Investor Needs to Be Aware of Going Forward"

Graham Summers - you need to be aware that the phrase "Going Forward" adds absolutely nothing to the sentence.

Regards

Jim

 

Wed, 11/07/2012 - 18:31 | 2958417 larz
larz's picture

Everyone relax and quit beyotching things are fine ... look over there a Springsteen JayZ concert! .. It is Com pleet ly different this time.  Obama has this and Mitt would have if he were elected.  

Wed, 11/07/2012 - 18:08 | 2958282 dracos_ghost
dracos_ghost's picture

The Three Items Every Investor Needs to Be Aware of Going Forward

 

1) Where's my gun.

2) Where's my ammo.

3) Where's my gold.

Wed, 11/07/2012 - 19:21 | 2958596 SafelyGraze
SafelyGraze's picture

three forward-going investor items:

1) the farm had grown richer without making the animals themselves any richer — except, of course, for the pigs and the dogs.

2) Four legs good, two legs better!

3) They knew that life nowadays was harsh and bare, that they were often hungry and often cold, and that they were usually working when they were not asleep. But doubtless it had been worse in the old days. 

3) Do not imagine, comrades, that leadership is a pleasure. On the contrary, it is a deep and heavy responsibility. No one believes more firmly than Comrade Napoleon that all animals are equal. He would be only too happy to let you make your decisions for yourselves. But sometimes you might make the wrong decisions, comrades, and then where should we be?

3)  "You do not imagine, I hope, that we pigs are doing this in a spirit of selfishness and privilege? Many of us actually dislike milk and apples. I dislike them myself. Our sole object in taking these things is to preserve our health. Milk and apples (this has been proved by Science, comrades) contain substances absolutely necessary to the well-being of a pig. We pigs are brainworkers. The whole management and organisation of this farm depend on us. Day and night we are watching over your welfare. It is for YOUR sake that we drink that milk and eat those apples. 

3) when the terror caused by the executions had died down, some of the animals remembered--or thought they remembered--that the Sixth Commandment decreed "No animal shall kill any other animal." And though no one cared to mention it in the hearing of the pigs or the dogs, it was felt that the killings which had taken place did not square with this. Clover asked Benjamin to read her the Sixth Commandment, and when Benjamin, as usual, said that he refused to meddle in such matters, she fetched Muriel. Muriel read the Commandment for her. It ran: "No animal shall kill any other animal WITHOUT CAUSE." Somehow or other, the last two words had slipped out of the animals' memory. But they saw now that the Commandment had not been violated; for clearly there was good reason for killing the traitors who had leagued themselves with Snowball.

Wed, 11/07/2012 - 18:55 | 2958508 New_Meat
New_Meat's picture

then I'll see you in like 88 hours and scoop up all three. - Ned

Wed, 11/07/2012 - 18:52 | 2958501 Treeplanter
Treeplanter's picture

Find it before April-May. 

Wed, 11/07/2012 - 17:51 | 2958216 Jack Sheet
Jack Sheet's picture

This crap is about as novel as a used condom.

Wed, 11/07/2012 - 17:41 | 2958171 All Out Of Bubblegum
All Out Of Bubblegum's picture

Keynes 101: Destroying the economy is good for the economy.

Wed, 11/07/2012 - 17:29 | 2958106 P.T.Bull
P.T.Bull's picture

A restatement of the obvious in order to garner email addresses.

Wed, 11/07/2012 - 17:36 | 2958090 Zero Govt
Zero Govt's picture

"...the world will lurch ever closer to the great debt implosion that will eventually take down the financial system."

you mean Bens Mad Contrarian Hedge Fund isn't going to save us Graham?

did think his Ivy League strategy of backing bankrupt Wall Street bums was a concern as a way of reviving employment, the economy and even turning around banking ...why back bankers, they produce nothing productive?

let's hope there's clawback on his earnings and pension when the strategy only produces nation eating zombies and not green shoots

Wed, 11/07/2012 - 17:21 | 2958052 Metalredneck
Metalredneck's picture

I feel dirty, just for having clicked on this...

Wed, 11/07/2012 - 17:20 | 2958042 digitlman
digitlman's picture

If you have nothing new to say, then don't post, Graham.

Wed, 11/07/2012 - 18:54 | 2958505 silverserfer
silverserfer's picture

digimon, you OBVIOUSLY don't realize that there are 50 shades of brown.

Wed, 11/07/2012 - 16:24 | 2957714 Western
Western's picture

in before the cool kids start making fun of GS, because that's the cool thing to do.. if everyone is doing it, you must also do it.

 

be a part of the group 

 

be one of us

 

shit on mr. summers and get in with the in-crowd

Wed, 11/07/2012 - 17:12 | 2957989 spankthebernank
spankthebernank's picture

What are you the teacher's aide at recess.  His analysis is overly simplistic and he should be called on it.

Thu, 11/08/2012 - 04:32 | 2959661 Western
Western's picture

just pointing out how boring the comments section has become, don't take it so personally LOL.

 

sorry about the misunderstanding, im actually on your team. FUCK GS!! WOOO HOOO

Wed, 11/07/2012 - 18:31 | 2958414 Enslavethechild...
EnslavethechildrenforBen's picture

As usual Graham is an invaluable source of useless, out of date, misdiagnosed, misguided, worthless and basically wrong information.

Do NOT follow this link or you will be banned from the site!