Forget the details and the specifics… here’s the latest news you need to know about.

Europe is bankrupt and the EU will not exist in its current form within 12 months. The ECB tried to “bailout our way to success” strategy on some of the more minor players (Greece), but is now finding that there isn’t actually enough money to bail out the larger players (Spain and Italy).

So, barring a leveraged buyout of Italy by Germany and China, the EU will be breaking up and the Euro collapsing within the next 12 months. How this will happen remains to be seen (the EU splits into two sections? Is done away with altogether? Etc). But the facts remain that the EU has reached the end game for bailouts (you cannot bail out entire countries).

The last straw of hope that the bulls are clinging is China’s recent decision to actively buy EU member states’ sovereign debt. Those of us who recall China’s decision to buy Morgan Stanley in 2008 can’t help but wonder if the country has never heard of “due diligence” or if it simply doesn’t care about losing money.

Speaking of China, the People’s Republic is finding out that the Republic made $540 billion worth of loans to the people that:

1)   Have not been accounted for

2)   Are properly garbage and won’t be paid back

We all know how this scheme ends (see subprime collapse in US). However, given that China pretty much makes up its economic data, it’s pretty safe to assume that the bad loan situation there is even worse than Moody’s believes. So look for a “2008 type” bust in China in the coming months.

And then of course there’s the US: the current least horrendous disaster winner by default (literally in Europe’s case and metaphorically in China’s case). Congress continues to play “debt talk” phone tag with President Obama.

However, to say this is a debate ignores the fact that there isn’t actually two sides to this discussion. Both Congress and the White House are debt-crazed groups who believe throwing good money after bad = recovery. So regardless of whether the debt ceiling is raised or budget talks reach an agreement, the US is broke and will continue to be until we default and restructure our debt obligations.

In simple terms, what I’m trying to say is that we are about to witness another “2008” only on a sovereign scale. The EU will be first, but China, Japan, and even the US will be defaulting in the future. The implications these actions have for asset classes will be HUGE as all assets move relative to sovereign bonds which used to be considered the primary low risk asset class in the world.

So expect another bigger Crisis that that will be the equivalent of 2008 all over again, along with food shortages, civil unrest, outbreaks in crime, bank holidays, and the like. It will, in short, be like what’s going on in the Middle East today (though NATO won’t be bombing us).

Which is why if you haven’t already taken steps to prepare yourself and your portfolio for the coming disaster, you need to do so NOW.

I can show you how…

I’ve recently published three key reports titled Protect Your Family, Protect Your Savings, and Protect Your Portfolio all in all 40+ pages of material devoted to showing individual investors how to prepare these areas of their lives in great detail.

I’m talking about how to prepare for bank holidays, food shortages, stock Crashes, debt defaults, civil unrest and more.

When it comes to profiting from this kind of disaster, few people on the planet have my ability to make Crises pay off.

To whit, my clients actually made money in 2008, having been warned a full three weeks in advance of the Crash to get out the market and go short.

I believe we could see another 2008  situation unfold in the near future, which is why I just unveiled six specific trades  to subscribers… all of which will pay off  HUGE returns as the current stock market collapse accelerates.

So we’re ready for whatever may come. And the worse things get… the more profitable our strategy will be.

If you’ve yet to take these steps yourself, it’s not too late… in fact, you’ve still got time to get your financial “house” in order to not only survive what’s coming… but potentially even make serious money from it.

All you need to do is take out a “trial” subscription to my Private Wealth Advisory newsletter. You’ll immediately be given access to all of the reports I detail above… and you’ll also be on my private client list to receive my bi-weekly investment reports as well as real-time trade updates on when to buy and sell various investments.

And if you should decide that Private Wealth Advisory is not for you, you can ask for a full refund during the first 30 days and I’ll return every cent of your subscription cost.

The reports you’ve downloaded during your “trial” period are yours to keep, even if you choose to cancel.

To get started with you Private Wealth Advisory subscription today, download the Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports and start taking action to prepare for what’s coming…

Click Here Now!

Good Investing!

Graham Summers
Editor In Chief
Gains Pains & Capital

 

Over the weekend it was announced that the European Emergency fund may not be large enough to bailout all of the country’s who are bankrupt in Europe. This is really not a surprise.

Back in 2010 when the bailout fund was first announced I said it would prove to be another “Paulson’s bazooka” effort (in reference to Hank Paulson’s 2008 claim that a blank check to deal with Fannie/ Freddie would be the equivalent of a “bazooka” that would somehow solve those firms’ problems).

The European emergency fund is the exact same idea: that throwing around enough money can solve a debt problem. It’s the big lie: something politicians hope will come true if they say it enough times and loud enough.

However, anyone with a working brain knows there are only two (maybe three) ways to deal with debt: pay it off or default (or some combination of the two). The politicians do not want to admit this because it would mean admitting that they have no clue and that they’ve wasted TRILLIONS of Dollars worth of money.

So here we are, the first wave of the GREAT CRISIS was dealt with by transferring private sector debt onto the public’s balance sheet. Now the second round is hitting and the public sector needs to be bailed out.

So who’s going to do it?

The answer: no one.

Sovereign nations will default whether it be Greece, Italy, Spain, OR the US. There is no way we’ll be paying our debts off. The only reason we haven’t already seen defaults is because the banks won’t take a haircut on their bond holdings.

Politicians who have all been bought out by the banks have fallen for this charade so far. But it won’t last much longer. Banks may get you elected… but they can’t keep you safe from a populace that is rioting outside your door. So the banks will all be taking a BIG hit in the future.

And there’s no shortage of Black Swans to hit either. The Euro problem isn’t going away. In fact, it’s now spread from Greece to Italy and Portugal… the latter county now being officially rated as “junk.”

Meanwhile, China is experiencing a liquidity Crisis on par with the Lehman-collapse. In fact, a recent bond auction there failed to sell EVEN HALF of the bonds offered (there’s not enough capital available).

And then of course there’s the US where we have only 10 days to deal with the debt ceiling before we begin a default.

The next Crisis is literally at our doorstep. And it’s going to kick off another 2008 episode as all the over-leveraged players (read: EVERYONE) will have to sell positions to meet margin/ redemption calls. However, this time around we’ll also see civil unrest as people lose their social safety nets (unemployment, social security, etc).

What will follow will be the equivalent of 2008 all over again, along with food shortages, civil unrest, outbreaks in crime, bank holidays, and the like. It will, in short, be like what’s going on in the Middle East today (though NATO won’t be bombing us).

Which is why if you haven’t already taken steps to prepare yourself and your portfolio for the coming disaster, you need to do so NOW.

I can show you how…

I’ve recently published three key reports titled Protect Your Family, Protect Your Savings, and Protect Your Portfolio all in all 40+ pages of material devoted to showing individual investors how to prepare these areas of their lives in great detail.

I’m talking about how to prepare for bank holidays, food shortages, stock Crashes, debt defaults, civil unrest and more.

When it comes to profiting from this kind of disaster, few people on the  planet have my ability to make Crises pay off.

To whit, my clients actually made money in 2008, having been warned a full three weeks in advance of the Crash to get out the market and go short.

I believe we could see another 2008  situation unfold in the near future, which is why I just unveiled six specific trades  to subscribers… all of which will pay off  HUGE returns as the current stock market collapse accelerates.

So we’re ready for whatever may come. And the worse things get… the more profitable our strategy will be.

If you’ve yet to take these steps yourself, it’s not too late… in fact, you’ve still got time to get your financial “house” in order to not only survive what’s coming… but potentially even make serious money from it.

All you need to do is take out a “trial” subscription to my Private Wealth Advisory newsletter. You’ll immediately be given access to all of the reports I detail above… and you’ll also be on my private client list to receive my bi-weekly investment reports as well as real-time trade updates on when to buy and sell various investments.

And if you should decide that Private Wealth Advisory is not for you, you can ask for a full refund during the first 30 days and I’ll return every cent of your subscription cost.

The reports you’ve downloaded during your “trial” period are yours to keep, even if you choose to cancel.

To get started with you Private Wealth Advisory subscription today, download the Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports and start taking action to prepare for what’s coming…

Click Here Now!

Good Investing!

Graham Summers
Editor In Chief
Gains Pains & Capital

The financial world is beginning to break down in a big way today. In the currency markets, the second Greek bailout is turning out to be precisely the dud I said it would.

After all, it was only one year ago that Greece received its first bailout. Having now asked for extensions on returning those funds AND a second bailout, it’s bizarre that anyone would think giving more money to Greece would fix its problems.

Italy, Spain, and Portugal are all on equally shaky ground. The last of those three was actually just downgraded to “junk” status by Moody’s last week. So it’s not too surprising that the Euro is breaking down in a big way this morning.

We look to have broken out of the triangle pattern I talked about before. We’re now coming up against major support at 140. If we break this line it’s 136 in short order.

The drop in the Euro has coincided with an explosive jump in the US Dollar this morning, which in turn is kicking stocks and commodities (with the exception of Gold and Silver) down in a big way.

I said before that I thought the ramp job in stocks was more manipulation and performance gaming than anything else. If the S&P 500 breaks below 1325 and stays there I’ll be proven right as we’re then going to 1,300 if not 1,275 in very short order.

Meanwhile, Gold is on the verge of challenging its all-time high in US Dollars (and Euros) once again asserting that it is in fact a currency, NOT a commodity. If we break 1,550 and stay there then the next leg up in the precious metal will have begun.

In plain terms, the financial world is on RED ALERT this week as there is really little to hold the markets up anymore (QE 2 ended). Meanwhile the whole financial system is showing signs of extreme duress.

European banks (and nations!) continue to remain insolvent and we will be seeing defaults in the near future. The situation there has not ended by a long shot and I am certain the Euro will no longer exist in its current form within 12 months.

Meanwhile, China’s inflation is spinning out of control. A liquidity crisis is brewing over there that could rival the Lehman Brothers collapse, as the vast majority of local government debt in China is toxic. Indeed, China just failed to sell half of its intended local government debt in a recent bond auction.

And then of course there is the US, where we have officially breached the debt ceiling and are stealing from pension funds to meet new debt issuance. Indeed, things are now so bad with the US that Tim Geithner is potentially jumping ship.

My question is:

How bad must things be getting that Geithner, a man who has lied and swindled the American people with impunity, and has never once suffered the consequences of his actions, is voluntarily “getting out of Dodge”?

The answer: BAD.

Indeed, I think we could very easily see a repeat of the May 2010 Collapse, if not another 2008 type event in the near future. Only this time, the Crisis will be far far worse because the financial world will have realized that the central banks CANNOT solve the problems that brought about 2008.

When that happens, the REAL Crisis will start along with stock crashes, currency defaults, food shortages, and the like. Which is why if you’re not taking steps to prepare for what’s coming now, you need to start moving.

I can show you how.

I’ve recently published three key reports titled Protect Your Family, Protect Your Savings, and Protect Your Portfolio all in all 40+ pages of material devoted to showing individual investors how to prepare these areas of their lives in great detail.

I’m talking about how to prepare for bank holidays, food shortages, stock Crashes, debt defaults, civil unrest and more.

Indeed, I just unveiled six specific trades to subscribers… all of which will pay off HUGE returns as the Euro breaks down.

So we’re ready for whatever may come. And the worse things get… the more profitable our strategy will be.

If you’ve yet to take these steps yourself, it’s not too late… in fact, you’ve still got time to get your financial “house” in order to not only survive what’s coming… but potentially even make serious money from it.

All you need to do is take out a “trial” subscription to my Private Wealth Advisory newsletter. You’ll immediately be given access to all of the reports I detail above… and you’ll also be on my private client list to receive my bi-weekly investment reports as well as real-time trade updates on when to buy and sell various investments.

And if you should decide that Private Wealth Advisory is not for you, you can ask for a full refund during the first 30 days and I’ll return every cent of your subscription cost.

The reports you’ve downloaded during your “trial” period are yours to keep, even if you choose to cancel.

To get started with you Private Wealth Advisory subscription today, download the Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports and start taking action to prepare for what’s coming…

Click Here Now!

Good Investing!

Graham Summers

Editor In Chief

Gains Pains & Capital

 

 

 

 

 

I’ve been warning for years that an inflationary storm was coming. I’ve recently tailored my forecast to allow for a resurgence in deflation based on QE 2 ending and the economy diving, but my long-term forecast remains the same: inflation WILL be exploding in the years to come.

Indeed, even the biggest proponents of paper money (central banks) have begun to realize that their grand experiment is coming to an end. Central banks officially became net buyers of Gold last year. And we now find that they have acquired the most Gold in over a decade.

The Financial Times reports:

Central banks have pulled 635 tonnes of gold from the Bank for International Settlements in the past year, the largest withdrawal in more than a decade.

The move, disclosed in the BIS’s annual report, marks a sharp reversal from the previous year, when central banks added to deposits of gold at the so-called “bank for central banks” rather than lending it directly to the private sector amid growing concerns over counterparty risk.

Let’s consider this. If you’re a central bank and you actually believe in the value of paper money and your ability to create wealth by printing it…why would you be loading up on Gold?

The answer is simple: you see the writing on the wall.

The central banks of the world are in a competition to devalue their respective currencies against each other. They will work together to suppress a particular currency if a carry-trade gets too out of control (see Japan earlier this year), but in general the ECB wants a cheap Euro, the Fed wants a cheap Dollar and so on and so forth.

These guys know that the financial system is broken. They’ve known it for over a decade (Greenspan even admitted that derivatives could “implode” the market in 1999). But they’re going to kick the paper money can down the road as long as they can… primarily because the entire financial system is banking on their ability to “fix” things.

The 2008 Crisis was the first taste of systemic risk. The central banks threw everything including the kitchen sink at the problem in an attempt to hold things up. And it’s worked temporarily in the sense that the financial world still believes central banks can handle the situation.

However, the fact remains that the central banks actually didn’t fix anything. After all, you can only fix a debt problem by paying the debt off or defaulting. Moving it around and issuing more debt to meet current payments does nothing.

In this sense, the world’s central banks literally “bet the farm” on themselves and the view that sovereign balance sheets can stomach this toxic waste. As we’re now discovering in Europe, the laws of the markets (oversaturation of debt, default and the like) apply to countries as well as private banks.

The central banks know this and are now acting accordingly. It is not coincidence that they became net buyers of Gold within two years of the 2008 Crisis. Nor is it coincidence that they are now loading up on Gold at the fastest pace in over a decade. They KNOW (not think) that systemic risk is still on the table in a big way and that they will be POWERLESS to address the next Crisis when it explodes.

You can already see this in their public statements. Bernanke himself even admitted the Fed has no idea why the economy isn’t recovering. If you extend the implications of this statement it becomes clear Bernanke and pals are realizing that printing money is not going to patch up the financial system… Hence the Gold purchases.

In plain terms, the REAL Crisis, the Crisis that was put off temporarily during the last two years, is coming. It will not be a Crisis of stocks or bonds. It will be a Crisis of the financial system itself. A Crisis in which entire countries default. And it will make 2008 look like a picnic.

Remember, every asset class is defined relative to sovereign bonds. So if sovereign bonds begin defaulting… KA-BOOM. Round One (2008) of the Financial Crisis wiped out over $11 trillion in household wealth. Round Two will wipe out…?

On that note, smart investors are already taking steps to prepare for what’s coming. I’m talking about bank holidays, food shortages, stock Crashes, debt defaults, civil unrest and more.

If you’ve yet to prepare yourself and your loved ones for these issues, I’ve recently published three key reports titled Protect Your Family, Protect Your Savings, and Protect Your Portfolio all in all 40+ pages of material devoted to showing individual investors how to prepare these areas of their lives in great detail.

Regarding market profits… few analysts on the planet have my ability to turn a profit during dangerous times.

To whit, I called the 2008 Crash months ahead of time and had my subscribers 100% in cash three weeks before the October-November 2008 nightmare hit. And the Private Wealth Advisory portfolio outperformed the S&P 500 by 15% during the Euro Crisis of May-July 2010.

So if you’re looking for someone to guide you through the coming dangerous times in the markets… you can take out a subscription to Private Wealth Advisory today and immediately begin receiving my hard-hitting analysis of the markets as well as specific investments to buy and sell to insure you stay protected… and turn a profit in the months ahead.

You’ll immediately be given access to all of the reports I detail above… and you’ll also be on my private client list to receive my bi-weekly investment reports as well as real-time trade updates on when to buy and sell various investments.

And if you should decide that Private Wealth Advisory is not for you, you can ask for a full refund during the first 30 days and I’ll return every cent of your subscription cost.

The reports you’ve downloaded during your “trial” period are yours to keep, even if you choose to cancel.

To get started with you Private Wealth Advisory subscription today, download the Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports and start taking action to prepare for what’s coming…

Click Here Now!

Good Investing!

Graham Summers

Editor In Chief

Gains Pains & Capital

 

 

 

 

 

The financial world seems to think that because Greece accepted another bailout we’ll be off to the races in the markets.

Aside from how absolutely moronic this view is (how’d the first Greek bailout work out? And it was what 12 months ago?), we have to consider the backdrop against which this particular tragic-comedy is playing out.

The consensus view from the mainstream financial media and 99% of find managers is that liquidity and access to loose money from central banks will keep things afloat.

However, reality shows this not to be the case… at all. Consider for instance the impact of the Fed’s money pumps.

For starters, as a back of the envelope analysis, consider that in 2007 when the credit markets first jammed up, the Fed resorted to providing emergency money pumps of $30 billion or so.

By June 2008, the Fed had done this 14 times to the tune of $200+ billion. Then came the $700 billion bailout in November 2008.

So by the end of 2008, the Fed had put in nearly $1 trillion in capital to the markets. And this did absolutely nothing to avert the market collapse.

Then came QE 1, which put another $1.25 trillion into the markets. And even after QE 1 ended the Fed continued supplying the juice to the tune of $30 billion or so per month during options expiration weeks.

Then we get QE lite, which results in another $300 billion into the markets plus QE 2 which adds another $600 billion. So all in all, the Fed’s supplied a minimum of $4 TRILLION into the markets since 2008 (I’m not accounting for the trillions more in deal that have not been made public). And the S&P 500 is at roughly the same level as before the Bear Stearns collapse.

So on the surface of it, the Fed’s money spending appears to have accomplished something positive: they spent $4 trillion and the markets rallied bringing household net worth up 17% from its low in 2009.

However, when you dig deeper into the specific results of the Fed’s actions it becomes clear that not only is the Fed creating a giant Ponzi scheme in the financial markets, but that we’re getting close to a breaking point.

Consider that QE 1 provided $1.25 trillion in liquidity to the markets. From the date of its inception until its end, the S&P 500 roughly 540 points. Put another way, each $10 billion was worth 4.3 points on the S&P 500.

In comparison, QE lite and QE 2 put roughly $900 billion into the market (roughly 75% of QE 1) creating a 251-point rally in the S&P 500. In this case, every $10 billion in additional capital was worth 2.7 points on the S&P 500.

So $10 billion of Fed money today is worth just over half (62%) the market gains of $10 billion in Fed money back in 2009. Put another way, every new injection of $10 billion from the Fed is producing less and less results.

If we step back and look at this plainly, we will see that reality does not in any way match the view that the Fed’s liquidity will solve the financial world’s problems. In fact, we see that each Fed move is having a smaller and smaller impact on the financial markets. Extend this idea out a bit further and you find that we will reach a point at which the Fed will no longer have any control over the financial markets.

I believe that we are rapidly approaching that point. Indeed, the Fed has already hit a wall in the sense that the negative impact of its policies (inflation/ prices soaring) far outweigh any positive impact (stocks rallying).

At some point, and I cannot say when, the market will begin to realize that the Fed cannot backstop the entire financial system. When this happens, THEN the REAL Crisis will hit and it will make 2008 look like a picnic. The reason is quite simple: the next Crisis will be a Crisis of Faith pertaining to the US Federal Reserve.

For 80+ years, the US financial system has operated under the belief that the Federal Reserve could handle any problem. This belief was put to the ultimate test in 2008 when the Fed faced off against the biggest Financial Crisis of the last 80 years. And the ONLY thing that kept us from the brink was the belief the Fed could fix things.

It couldn’t. And we’re all beginning to see that now.

So when the next Crisis hits it will become clear the Fed CANNOT fix these issues (it never could but most people hoped regardless). And that’s when the real collapse will begin.

It’s coming. The fact Bernanke has admitted publicly that he’s clueless what’s going on is a MAJOR step towards the world realizing that he’s lost control. Which is why if you’re not taking steps to prepare for what’s coming now, you need to start moving.

I can show you how.

I’ve recently published three key reports titled Protect Your Family, Protect Your Savings, and Protect Your Portfolio all in all 40+ pages of material devoted to showing individual investors how to prepare these areas of their lives in great detail.

I’m talking about how to prepare for bank holidays, food shortages, stock Crashes, debt defaults, civil unrest and more.

Indeed, I just unveiled six specific trades to subscribers… all of which will pay off HUGE returns as the Euro breaks down.

So we’re ready for whatever may come. And the worse things get… the more profitable our strategy will be.

If you’ve yet to take these steps yourself, it’s not too late… in fact, you’ve still got time to get your financial “house” in order to not only survive what’s coming… but potentially even make serious money from it.

All you need to do is take out a “trial” subscription to my Private Wealth Advisory newsletter. You’ll immediately be given access to all of the reports I detail above… and you’ll also be on my private client list to receive my bi-weekly investment reports as well as real-time trade updates on when to buy and sell various investments.

And if you should decide that Private Wealth Advisory is not for you, you can ask for a full refund during the first 30 days and I’ll return every cent of your subscription cost.

The reports you’ve downloaded during your “trial” period are yours to keep, even if you choose to cancel.

To get started with you Private Wealth Advisory subscription today, download the Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports and start taking action to prepare for what’s coming…

Click Here Now!

Good Investing!

Graham Summers

Editor In Chief

Gains Pains & Capital

 

 

 

 

The trouble with financial forecasting for Europe is that the biggest decisions are always made in the political arena, NOT economically. Case in point, Greece, which is obviously bankrupt, voted for another round of bailouts despite the fact the first round was a disaster (won’t be paid back)  and the Greece economy is in ruins.

From a purely economic standpoint, it’d made a heck of a lot more sense to kick Greece out of the Eurozone (why should Germans be shouldered with Greek liabilities?). No businessman with a clue would want to support another Greek bailout. However, politics, not business rules in Europe politicians are both clueless and insanely corrupt.

This is why the Euro has held up and even rallied despite the fact the Eurozone is beyond doomed. Does anyone really believe the Euro is going to even exist in its current form a year from now? We’ve had two Greek bailouts and now Portugal is lining up for a bailout too. And what’s going to stop Spain and Italy from doing the same?

Finally… how on earth is a strong Euro good for the European economy? Why defend it? Why not let it collapse to benefit European exports? Again, politics.

This is why I’m ultrabearish on the Euro and the Eurozone. Sure, the US has horrible deficits, debt loads, and politicians. But the idiocy that occurs on this side of the pond is NOTHING compared to what happens in Europe. In the US, people at least want to be a part of the US (you don’t see New Yorkers wanting out of the union because California is bankrupt).

Europe on the other hand is a bunch of countries, who don’t even speak the same languages, have a long history of wars amongst each other, and who really don’t even like each other, joined together under a single union which most European voters now don’t even want to be a part of.

After all, Greece was bailed out in May of last year. It’s since requested an extension on paying back its bailout funds… AND asked for a second bailout… in 12 months. Spain also just tried to raise 3 billion in Euros to restructure its banks and only managed to raise a little over half of this… at spreads 10 TIMES when investors demanded the last time. Italian banks have fallen 27% so far this year on debt problems… and on and on.

Indeed, the Euro is setting up for a BIG move in the near future. The currency has formed a triangle pattern. These patterns can break out either to way, but given the problems Europe faces today, it will likely be downward. And the target for this pattern is 134-136 or so.

However, that move, will merely be the first of several large drops as the Euro is ultimately not going to exist in its current form within the next two years. BIG MONEY will be made by the smart investors who prepared for this in advance.

Why?

Because when the Euro collapses, it will have a MASSIVE systemic impact. The volatility will be very VERY intense. And various asset classes will implode. Indeed, we will very likely see another Crisis that makes 2008 look like a picnic. Which is why if you’re not taking steps to prepare for what’s coming now, you need to start moving.

I can show you how.

I’ve recently published three key reports titled Protect Your Family, Protect Your Savings, and Protect Your Portfolio all in all 40+ pages of material devoted to showing individual investors how to prepare these areas of their lives in great detail.

I’m talking about how to prepare for bank holidays, food shortages, stock Crashes, debt defaults, civil unrest and more.

Indeed, I just unveiled six specific trades to subscribers… all of which will pay off HUGE returns as the Euro breaks down.

So we’re ready for whatever may come. And the worse things get… the more profitable our strategy will be.

If you’ve yet to take these steps yourself, it’s not too late… in fact, you’ve still got time to get your financial “house” in order to not only survive what’s coming… but potentially even make serious money from it.

All you need to do is take out a “trial” subscription to my Private Wealth Advisory newsletter. You’ll immediately be given access to all of the reports I detail above… and you’ll also be on my private client list to receive my bi-weekly investment reports as well as real-time trade updates on when to buy and sell various investments.

And if you should decide that Private Wealth Advisory is not for you, you can ask for a full refund during the first 30 days and I’ll return every cent of your subscription cost.

The reports you’ve downloaded during your “trial” period are yours to keep, even if you choose to cancel.

To get started with you Private Wealth Advisory subscription today, download the Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports and start taking action to prepare for what’s coming…

Click Here Now!

Good Investing!

Graham Summers

Editor In Chief

Gains Pains & Capital

 

With most of Wall Street absent in advance of the long weekend, those few traders on the street took advantage of the low volume to gun the market higher last week. This, combined with end of the Quarter performance gaming resulted in the market going positively vertical.

From a purely technical standpoint the S&P 500 has bounced hard off of it 200-DMA. We’ve now broken above the 50-DMA and are closing in on major resistance at 1,350:

As I’ve stated numerous times before, stocks are always the last asset class to “get it.” So with that in mind, we need to consider what other asset classes are doing in order to determine if last week’s rally was based on anything real or simply Wall Street shenanigans.

First let’s have a look at agricultural commodities. They lead stocks and other asset classes during the QE lite/ QE 2 rally by several months. They also peaked first in February 2011, well before stocks and other asset classes took a dive. So they’ve worked extremely well as leading market indicators in the last year.

This has to be one of the ugliest charts out there. Having fallen below their 50-DMA, agricultural commodities have since been rejected by that line multiple times. And we are now on the verge of posting a death cross: when the 50-DMA breaks below the 200-DMA.

The picture is equally ugly for Oil and Silver: the other two big market leaders during the last year. Indeed, Gold is the standalone market leader that continues to hold up relatively well, primarily because it’s now the “go to” asset to protect against sovereign default risk:

In light of this, it’s difficult to believe the stock market rally from last week as totally legitimate and not by end of the quarter performance gaming by hedge funds taking advantage of the light volume. This week’s action will go a long ways to explaining what’s to come in the weeks ahead.

In a market like this, the key is to stay nimble and find quick means of profiting from the volatility. Over the last year I’ve developed a system of trading that I believe to be the best such trading system IN THE WORLD.

It’s called Rapid Fire Options Alert and it’s already up 280% this year.

That’s not a typo. Nor am I resorting to some marketing gimmick such as ignoring the losers. Rapid Fire Options Alert has closed 26 trade so far this year. Of these, 21 have been winners. And with an average gain of 20%… well, those gains can add up pretty quickly.

The above chart shows the return Rapid Fire Options Alert ’s trades would have on $10K so far in 2011. What you’re looking at is over $25,000 in profits… using just $10K to trade.

Best of all, this system is unbelievably easy to follow. We typically only trade once a week on Tuesday morning.

When it’s time to make a trade we send out a trade alert via both email and text, explaining exactly what option contract to buy and the price at which to buy it.

Then, when it’s time to sell (usually just 2-3 hours later) we send out another alert via text and email.

That’s it… And we’re up over 280% so far this year.

If this sounds like the kind of profit-producing trading system your portfolio could use, you can sign up for Rapid Fire Options Alert now and have your account in place in time for our next trade due out this week.

To do so… and start seeing some MAJOR returns from your trading as earl as this week…

Click Here Now!!!

Best Regards,

Graham Summers

PS. A final note… we DO offer a 30-day trial refund period. So if you find that

Rapid Fire Options Alert isn’t for you, just drop us a line during the first 30-days and we’ll issue a full refund.

To get started with your Rapid Fire Options Alert subscription…

Click Here Now!!!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In case you missed it, Alan Greenspan just set a new world record for hypocrisy stating that the Fed’s stimulus has had little impact on the US economy.

As a brief reminder, it was Alan Greenspan who created both the Tech and the Housing bubbles by maintaining loose money policies. It was also Greenspan who helped Wall Street to dismantle regulation related derivatives, leverage, and more.

Put another way… pretty much every single problem with the financial system today was created or at least greatly aided by Alan Greespan and his policies. And if you think Greenspan was just an ignorant dupe, you should consider that as early as 1999 he stated in private that derivatives could “implode” the market.

So to see Greenspan now criticizing Bernanke’s moves is beyond astounding. Don’t get me wrong, I’m not in any way defending Bernanke. I’m just saying that it’s odd to see Greenspan criticizing someone who did the EXACT same things Greenspan himself did.

Regardless, Greenspan’s statements (he also said Greece will default) tell us quite a few things about the Fed:

1)   The Fed is a political entity and as such politics, not economics or finance determine its decisions

2)   The Fed is aware that it is incompetent but is beholden to the Wall Street banks

Regarding #1, Greenspan’s sudden move to start stating the obvious, after years of presenting rambling nonsense defending Wall Street, reveals in plain terms that those who run the Fed are essentially political lackeys who operate on behalf of Wall Street.  They are not regulators, nor are they actual policy makers. They are politicians who act as front men for the big banks, presenting a friendly face for Wall Street’s rampant greed and corruption.

Which brings us to point #2, for Greenspan to note that the Fed’s actions have accomplished next to nothing makes it clear, beyond any doubt, that those at the Fed are aware that their policies are futile. Bernanke himself has even hinted at this in a recent press conference in which he stated that the Fed didn’t understand why the economy wasn’t improving.

The take home point with all of this is that the Fed is in fact powerless to address, let alone fix, the Financial Crisis that began in 2007. Indeed, the Fed’s key role in creating it was to let Wall Street dictate the Fed’s moves. And now that the Fed is supposed to solve the Financial Crisis, we’re finding out not only do they have no clue how to do it, but they’re even aware of this fact.

Which brings me to my final point: the Financial Crisis of 2008 is NOT over. In fact, that whole disaster was just a warm up for what’s coming down the pike. Indeed, the Fed is fully aware that it hasn’t solved anything. All it’s done is print money, which has made the Financial System MORE leveraged than it was during the Tech bubble and created inflation in food and energy prices.

Folks, when your answer to a problem is to aggressively pursue the same actions that created the problem there’s only one thing that will come out of it…

DISASTER.

Which is why smart investors are already taking steps to prepare for the next Financial Crisis.  I’m talking about bank holidays, food shortages, a market Crash, civil unrest and worse.

If you’ve not already taken steps to prepare for these issues, I can show you how…

I’ve recently published three key reports titled Protect Your Family, Protect Your Savings, and Protect Your Portfolio all in all 40+ pages of material devoted to showing individual investors how to prepare these areas of their lives in great detail.

I’m talking about how to prepare for bank holidays, food shortages, and the other problems I just listed… In fact, with the right moves, you can actually PROFIT from the coming disaster.

Indeed, I just unveiled six specific trades to subscribers… all of which will pay off HUGE returns as the current stock market collapse accelerates.

So we’re ready for whatever may come. And the worse things get… the more profitable our strategy will be.

If you’ve yet to take these steps yourself, it’s not too late… in fact, you’ve still got time to get your financial “house” in order to not only survive what’s coming… but potentially even make serious money from it.

All you need to do is take out a “trial” subscription to my Private Wealth Advisory newsletter. You’ll immediately be given access to all of the reports I detail above… and you’ll also be on my private client list to receive my bi-weekly investment reports as well as real-time trade updates on when to buy and sell various investments.

And if you should decide that Private Wealth Advisory is not for you, you can ask for a full refund during the first 30 days and I’ll return every cent of your subscription cost.

The reports you’ve downloaded during your “trial” period are yours to keep, even if you choose to cancel.

To get started with you Private Wealth Advisory subscription today, download

the Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports and start taking action to prepare for what’s coming…

Click Here Now!

Good Investing!

Graham Summers

Editor In Chief

Gains Pains & Capital

 

Bernanke has a real problem on his hands. QE 2 spent $600 billion and got him at best a few months’ worth of upticks in well-massaged economic data. In the process it blew up food and energy prices and made the Fed look even stupider than usual (Bill Dudley’s iPad comment comes to mind).

However, the US economy clearly took a nosedive starting in February of this year and we now have a confirmed double dip in housing. So Bernanke’s little brain is whirring with the prospect of printing even more money because… well, that’s all he does.

So, what can he do? He can’t just go and announced QE 3 without risking his own neck… but at the same time, he can’t just have stocks crater overnight by turning the printer off.

Solution: he continues to funnel money into Wall Street via less publicly offensive policies such as QE lite (see the story below):

While the $600 billion purchase program, known as QE2, winds down, the Fed said June 22 that it will continue to buy Treasuries with proceeds from the maturing debt it currently owns. That could mean purchases of as much as $300 billion of government debt over the next 12 months without adding money to the financial system.

http://www.bloomberg.com/news/2011-06-27/fed-seen-buying-25-billion-a-month-in-treasuries-after-qe2-comes-to-end.html

The only question is whether this will be enough juice for the markets until the inevitable QE 3 or some such additional liquidity measure is announced (Bill Gross has hinted it will be unveiled at the Fed’s August FOMC).

The Fed a similar stunt in 2010 when QE 1 ended. However, at that time the game consisted of pumping the system during options expiration weeks to the tune of $20-30 billion tops. This time around, the Fed could be funneling as much as $300 BILLION… and somehow the Fed’s in control of things?

I’ve said it before and I will say it again: Bernake is slowly losing control of the system. In 2007, he was putting $30 billion into the system here and there. In 2008-2010, he upped the ante to $50 billion PER MONTH. QE 2 pushed the amount up to $100 Billion per month. And here he is, hinting at giving ANOTHER $300 BILLION when QE 2 ends!?!?

Folks, there is a name for a financial game that requires larger and larger sums of money to continue. It’s called a Ponzi Scheme and the longer it lasts the more disastrous the collapse will be. Which is why if you haven’t already taken steps to prepare yourself and your portfolio for the coming disaster, you need to do so NOW.

When I say “coming disaster” I’m talking about bank holidays, food shortages, a market Crash, civil unrest and worse.

So if you’re not prepared already, you need to get moving.

I can show you how…

I’ve recently published three key reports titled Protect Your Family, Protect Your Savings, and Protect Your Portfolio all in all 40+ pages of material devoted to showing individual investors how to prepare these areas of their lives in great detail.

I’m talking about how to prepare for bank holidays, food shortages, and all the other horrors I mentioned above. I’m also talking about how to profit from another Market Crash a la 2008.

Indeed, I just unveiled six specific trades to subscribers… all of which will pay off HUGE returns as the current stock market collapse accelerates.

So we’re ready for whatever may come. And the worse things get… the more profitable our strategy will be.

If you’ve yet to take these steps yourself, it’s not too late… in fact, you’ve still got time to get your financial “house” in order to not only survive what’s coming… but potentially even make serious money from it.

All you need to do is take out a “trial” subscription to my Private Wealth Advisory newsletter. You’ll immediately be given access to all of the reports I detail above… and you’ll also be on my private client list to receive my bi-weekly investment reports as well as real-time trade updates on when to buy and sell various investments.

And if you should decide that Private Wealth Advisory is not for you, you can ask for a full refund during the first 30 days and I’ll return every cent of your subscription cost.

The reports you’ve downloaded during your “trial” period are yours to keep, even if you choose to cancel.

To get started with you Private Wealth Advisory subscription today, download the Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports and start taking action to prepare for what’s coming…

Click Here Now!

Good Investing!

Graham Summers

Editor In Chief

Gains Pains & Capital

 

 

 

 

 

First up is the Euro which has the makings of a triangle pattern. These patterns can break to either the upside or the downside… although it’s hard to find reasons the Euro might rally if Greece accepts the next round of austerity measures since most of its resilience has been based on hype and hope of this already.

Indeed, we also see the makings of a Head and Shoulders pattern on the 60-minute chart for the Euro (I’ve also kept the triangle lines in place).

A very common bearish pattern, the H&S here forecasts a downward target of 135-136 or so. Of course neither the triangle nor H&S has been broken yet, so it’s too early to make a move here.

If the Euro does fall, expect the US Dollar to rally based on its index weighting to the former currency. Indeed, we see the potential for a serious US Dollar rally in the form of a bullish falling wedge pattern that may just have broken out to the upside:

The target for this pattern would be north of 80… possibly even 84-86. However, the only thing that could trigger that kind of a run in the greenback would be a MAJOR Euro Crisis.

Since 2007, all major rallies in the US Dollar have been the result of stuff hitting the proverbial fan (the US has most certainly not implemented any fiscal moves that would strengthen our currency from a fundamental standpoint).

So, if and this is a BIG IF the US Dollar starts another bull run courtesy of a Euro collapse, we’ll likely see it peak out in the 84-86 range.

Should this happen, both stocks and commodities would take a sizable hit. However, of the lot Gold would come back the quickest. During the 2008 Crisis, Gold bottomed out in November 2008, a full four months before the US Dollar peaked. And the Euro Crisis of 2010 barely even dented Gold’s upward momentum:

To conclude,  the charts today appear to be emphasizing the threat of deflation courtesy of a Euro collapse rather than inflation. And while it’s too early to invest based on these patterns (most of the patterns have yet to break-out), we’re getting close to finding the most prevalent trends for the coming months. We’ll have a much better idea once we see the results of Greece’s austerity vote.

Good Investing!

Graham Summers

This week we won’t be looking at charts, but instead discussing  the most important macro issues that will determine the future trends of all asset classes.

Tomorrow Greece’s parliament votes on whether or not to implement more “austerity” measures, also known as cutting social programs and raising taxes. Greek citizens, enraged that they keep picking up the tab for banks (both domestic and international) that made poor bets on Greece, will be implementing a series of strikes and riots.

However, the facts remain the same. The world is awash in garbage debt. The only reason the banks and others haven’t taken the “hit” that they NEED to take is because they’ve bought out the politicians. Put another way, we are seeing clearly that the two primary principles of the West (capitalism and democracy) have both become jokes: alleged “capitalists” like the banks don’t ever actually see losses for mistakes and “democratically elected” leaders are in fact owned outright by the banks via donations/ bribes.

Greece, while ultimately a small player in the global debt game, will set the course of the rest of the financial world this week. If Greece implements more austerity measures, that the “extend and pretend” game will continue a little longer, the Euro, stocks and commodities will rise, and the US Dollar will fall.

However, if Greece doesn’t pass more austerity measures, indicating that the bailout/ stimulus nonsense has hit a wall, expect a serious “risk off” move in which stocks, commodities, and the Euro to take a hit, and investors rush into the US Dollar.

However, this will not be a simple one-way street. The EU, and now China are both committed to helping the failed experiment of the Euro continue its death march.

Yes, you read that correctly, China has committed to insuring that Eurozone debt holders don’t take a haircut. It’s even mentioned possibly buying European sovereign bonds outright.

The reasons for this a multiple… but ultimately they boil down to:

1)   China wants to flex its “dump the Dollar” political muscles

2)   China wants to support its primary export market.

China’s been warning about the US Dollar as an investment for years. They’ve lowered their Treasury holdings for five months straight and have even hinted they might cut their holdings by 2/3. So China’s move to support the Euro can be seen as a continuation of this “anti-Dollar trend.”

Regarding exports, the EU accounts for roughly $400 billion of China’s exports, making it China’s single largest export market. So if Europe collapses, China’s economy takes a BIG hit.

And all of these issues (China’s exports, the bailout madness, European bank debt holdings, Greece’s sovereign collapse, the future of the Euro, and stocks, commodities, and the Dollar’s trends) hang on Greece’s shoulders this week.

With that in mind, the Greece situation needs to be watched very, very carefully as all investments will trade based on this outcome and the subsequent interventions by the EU/ China.  With that in mind, stay nimble and don’t over-commit to anyone outcome just yet.

Good Investing!

Graham Summers

PS. If you’re getting worried about the financial markets and have yet to prepare yourself and your loved ones for the dangers lurking in the financial system today, I’ve recently published three key reports titled Protect Your Family, Protect Your Savings, and Protect Your Portfolio all in all 40+ pages of material devoted to showing individual investors how to prepare these areas of their lives in great detail.

I’m talking about how to prepare for bank holidays, food shortages, stock Crashes, debt defaults, civil unrest and more.

Indeed, I just unveiled six specific trades to subscribers… all of which will pay off HUGE returns when the current stock market collapse accelerates.

So we’re ready for whatever may come. And the worse things get… the more profitable our strategy will be.

If you’ve yet to take these steps yourself, it’s not too late… in fact, you’ve still got time to get your financial “house” in order to not only survive what’s coming… but potentially even make serious money from it.

All you need to do is take out a “trial” subscription to my Private Wealth Advisory newsletter. You’ll immediately be given access to all of the reports I detail above… and you’ll also be on my private client list to receive my bi-weekly investment reports as well as real-time trade updates on when to buy and sell various investments.

And if you should decide that Private Wealth Advisory is not for you, you can ask for a full refund during the first 30 days and I’ll return every cent of your subscription cost.

The reports you’ve downloaded during your “trial” period are yours to keep, even if you choose to cancel.

To get started with you Private Wealth Advisory subscription today, download the Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports and start taking action to prepare for what’s coming…

Click Here Now!

Today at 12:30, we’ll know where things are headed.

Today at 12:30PM the Fed will release is FOMC minutes. With QE 2 ended in another week, the Fed June FOMC meeting was the last hope for bulls who believe the Fed is about to unveil another round of QE or some other additional liquidity measure.

As I’ve said repeatedly over the last few weeks, if the Fed doesn’t unveil something new, the markets will tank in a big way as the next Fed FOMC meeting is in August. With the US economy deteriorating at a rapid pace again and stocks’ primary support (QE 2) ending, the markets could see some very nasty drops to the downside.

Indeed, worldwide, interbank liquidity is beginning to dry up rapidly (just like in 2007). Europe has seen interbank lending collapse. And now China has found itself in such an interbank liquidity freeze that the central bank is halting the sale of various bills because there simply isn’t enough cash floating around to meet supply.

Combine this with the ongoing political struggles in the Middle East, roaring inflation in China, Europe’s ongoing banking collapse, and the US’s own debt problems (we’re raiding pension funds to meet new debt issuance) and you’ve got a recipe for disaster.

Put another way… are we about to experience another major round of deflation?

The US Dollar is definitely hinting that something is afoot. Since bottoming in May 2011, we already established a series of higher lows and higher highs:

We’ve also broken above both the 20-DMA, the 50-DMA and we’ve staged a bullish cross-over (when the first breaks above the second).

Big picture, we could definitely see a sharp US Dollar rally hit as we have a clear bullish falling wedge pattern forming in the US Dollar. The US Dollar has just poked its head out of this pattern, but we’ve yet to get a confirmed breakout.

If we do get a confirmed breakout to the upside, the above pattern predicts a run to at least 80 if not 85. The only thing that could push the US Dollar to these levels would be a full-scale Crisis (the only times the US Dollar has rallied since 2007 was during Crises).

I want to be clear here. The US Dollar is ultimately a doomed currency. But it remains the “flight to safety” trade amongst global currencies (along with the Yen and most of all, Gold). Europe is far worse off than the US. And China’s now seeing a liquidity crisis of its own.

With that in mind, we need to consider that the US Dollar may in fact be predicting another deflationary collapse. Which is why if you haven’t already taken steps to prepare yourself and your portfolio for the coming disaster, you need to do so NOW.

I can show you how…

I’ve recently published three key reports titled Protect Your Family, Protect Your Savings, and Protect Your Portfolio all in all 40+ pages of material devoted to showing individual investors how to prepare these areas of their lives in great detail.

I’m talking about how to prepare for bank holidays, food shortages, stock Crashes, debt defaults, civil unrest and more.

Regarding profiting from a deflationary collapse, I just unveiled six specific trades to subscribers… all of which will pay off HUGE returns as the current stock market collapse accelerates.

So we’re ready for whatever may come. And the worse things get… the more profitable our strategy will be.

If you’ve yet to take these steps yourself, it’s not too late… in fact, you’ve still got time to get your financial “house” in order to not only survive what’s coming… but potentially even make serious money from it.

All you need to do is take out a “trial” subscription to my Private Wealth Advisory newsletter. You’ll immediately be given access to all of the reports I detail above… and you’ll also be on my private client list to receive my bi-weekly investment reports as well as real-time trade updates on when to buy and sell various investments.

And if you should decide that Private Wealth Advisory is not for you, you can ask for a full refund during the first 30 days and I’ll return every cent of your subscription cost.

The reports you’ve downloaded during your “trial” period are yours to keep, even if you choose to cancel.

To get started with you Private Wealth Advisory subscription today, download

the Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports and start taking action to prepare for what’s coming…

Click Here Now!

Good Investing!

Graham Summers

Editor In Chief

Gains Pains & Capital

The Euro continues to rally despite the clear fact that the Eurozone is a disaster. It’s strange than grown adults can actually be discussing another Greek bailout when the first one was just one year ago and accomplished nothing. Of course, if the world traded based on fundamentals or common sense, the Euro wouldn’t even exist at this point.

At the heart of this entire situation is the key relationship that determines all economic policy: the relationship between banks and politicians. Most voters in developed countries continue to believe that their vote has some kind of influence in politicians’ decisions. They believe that they somehow can effect change at the ballot box.

The reality is that elections are largely for show these days. Politicians openly sell out their constituents to corporate donors, particularly banks, whether it be by directly taking large donations/ bribes or by appointing ex-bankers and other financial stooges to key decision making positions.

After all, when was the last time some politician picked an engineer or doctor or someone who might actually know anything about… well anything to a position of power? Try never.

No, instead politicians surround themselves with run of the mill financial stooges. Take the US where we allow guys who have rendered entire institutions (and endowments) bankrupt to be key economic decision makers. Heck, we even allow these types to “regulate” their former employers.

The situation is no better in Europe. Angela Merkel tries to maintain the illusion that she somehow will do the right thing (tell Greek bond holders to shove it) but in the end she always buckles. Why? Because German banks are on the hook for $65 billion worth of Greece’s debt.  And whenever she comes close to telling them to take a hit, someone calls her up and tells her that if she does this the bank will implode.

It’s a perfect circle of influence: banks back politicians who once in office dish out the goodies/ handouts. And if the banks screw up, they threaten to take down the financial system, thereby destroying the politician’s chance at re-election.

All in all the banks have done leverage buyouts of Government. The leverage is political in nature (“screw us and we’ll take you down”). The buyout is in the form of donations/ bribes.

However, the primary problem with this system (aside from the fact it’s completely immoral) is that there are no consequences for bad decisions for the banks. Thus, they keep making bigger and bigger bets using more and more leverage thereby increasing systemic risk.

Consider the derivatives market which now stands north of $600 TRILLION in size. How do you think this was allowed to happen? The banks pushed the politicians into rolling back regulation, the banks then went nuts, and now the entire financial system is in jeopardy.

We’ve already had a taste of this in 2008 when the Credit Default Swap (CDS) market, which was $50-60 trillion in size, blew up. We’re now rapidly heading towards an interest rate Crisis and the interest rate-based derivative market is four times as large roughly $200 TRILLION.

This is what happens when no one gets punished for screwing up, the screw-ups get bigger and bigger. And this time around the screw up will involve entire countries going belly-up (see Greece).

It’s already happening in Europe. Whether or not Greece gets another bailout is irrelevant. The European banking system is collapsing. And it’s going to spread to the US in short order.

Which is why if you haven’t already taken steps to prepare yourself and your portfolio for the coming disaster, you need to do so NOW.

When I say “coming disaster” I’m talking about bank holidays, food shortages, a market Crash, civil unrest and worse.

So if you’re not prepared already, you need to get moving.

I can show you how…

I’ve recently published three key reports titled Protect Your Family, Protect Your Savings, and Protect Your Portfolio all in all 40+ pages of material devoted to showing individual investors how to prepare these areas of their lives in great detail.

I’m talking about how to prepare for bank holidays, food shortages, and all the other horrors I mentioned above. I’m also talking about how to profit from another Market Crash a la 2008.

Indeed, I just unveiled six specific trades to subscribers… all of which will pay off HUGE returns as the current stock market collapse accelerates.

So we’re ready for whatever may come. And the worse things get… the more profitable our strategy will be.

If you’ve yet to take these steps yourself, it’s not too late… in fact, you’ve still got time to get your financial “house” in order to not only survive what’s coming… but potentially even make serious money from it.

All you need to do is take out a “trial” subscription to my Private Wealth Advisory newsletter. You’ll immediately be given access to all of the reports I detail above… and you’ll also be on my private client list to receive my bi-weekly investment reports as well as real-time trade updates on when to buy and sell various investments.

And if you should decide that Private Wealth Advisory is not for you, you can ask for a full refund during the first 30 days and I’ll return every cent of your subscription cost.

The reports you’ve downloaded during your “trial” period are yours to keep, even if you choose to cancel.

To get started with you Private Wealth Advisory subscription today, download

the Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports and start taking action to prepare for what’s coming…

Click Here Now!

Good Investing!

Graham Summers

Editor In Chief

Gains Pains & Capital

 

With options expiration over for this month, the stock market is now clinging primarily to the Fed FOMC meeting tomorrow and Wednesday. As noted in last week’s market forecast, if the Fed does not hint at additional liquidity during this meeting we could enter a full-scale bloodbath.

Remember, the primary driver of all stock momentum has been the Fed providing liquidity. The economic data coming out of the US is abysmal (especially since February 2011), housing is a confirmed double dip, unemployment remains terrible (especially when we remove BLS accounting gimmicks) and on and on.

So with QE 2 ending in the coming weeks, only three things are holding the market up from a technical standpoint:

1)   The Fed FOMC meeting (and the hope for more liquidity)

2)   Second quarter performance gaming (2Q ends June 30)

3)   The 200-DMA

Regarding the final point, the S&P 500 is now being compressed between its 50- and 200-day moving averages. We are due for a bounce off the 200-DMA (possibly to 1,300 on the S&P 500) but unless stocks can muster some serious upside momentum, it will only be a bounce followed by more losses.

My suggestion to traders this week is to remain on the sidelines when it comes to stocks. There are too many variables at play for a clear sign of what’s coming. And given the degree of danger in the world, the potential for things to enter full-scale Crisis mode is quite high.

Indeed, the financial system at large is on red alert. Interbank liquidity has begun drying up in both Europe and Asia. Europe is an absolute disaster with more and more Europeans wanting out of the Euro (25% of Greeks, and nearly 60% of Germans). Italy has open discussed potentially dropping out of the Euro, while Spain and Portugal continue to see their debt systems teetering as well.

Meanwhile, here in the US, we have officially breached the debt ceiling. Tim Geithner is now actively raiding pension funds to meet debt demand (a policy he admits will only work until early August).

Aside from this, other countries are rapidly dropping US debt like a hot potato. Russia has sold off 30% of its US Treasury holdings. China has lowered its holdings for five months straight and has even suggested selling off 2/3 of its exposure. And with even legendary bond investors like Bill Gross avoiding Treasuries, we’re rapidly heading into a debt Crisis that will make 2008 look like a picnic.

Which is why if you haven’t already taken steps to prepare yourself and your portfolio for the coming disaster, you need to do so NOW.

I can show you how…

I’ve recently published three key reports titled Protect Your Family, Protect Your Savings, and Protect Your Portfolio all in all 40+ pages of material devoted to showing individual investors how to prepare these areas of their lives in great detail.

I’m talking about how to prepare for bank holidays, food shortages, stock Crashes, debt defaults, civil unrest and more.

Indeed, I just unveiled six specific trades to subscribers… all of which will pay off HUGE returns as the current stock market collapse accelerates.

So we’re ready for whatever may come. And the worse things get… the more profitable our strategy will be.

If you’ve yet to take these steps yourself, it’s not too late… in fact, you’ve still got time to get your financial “house” in order to not only survive what’s coming… but potentially even make serious money from it.

All you need to do is take out a “trial” subscription to my Private Wealth Advisory newsletter. You’ll immediately be given access to all of the reports I detail above… and you’ll also be on my private client list to receive my bi-weekly investment reports as well as real-time trade updates on when to buy and sell various investments.

And if you should decide that Private Wealth Advisory is not for you, you can ask for a full refund during the first 30 days and I’ll return every cent of your subscription cost.

The reports you’ve downloaded during your “trial” period are yours to keep, even if you choose to cancel.

To get started with you Private Wealth Advisory subscription today, download

the Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports and start taking action to prepare for what’s coming…

Click Here Now!

Good Investing!

Graham Summers

Editor In Chief

Gains Pains & Capital

The US economy is literally on the ledge of a cliff.

Today, the Federal Government accounts for 35% of incomes and salaries in the US. That’s over one third of all income in the US coming from the Government’s ability to dole out funds.

What supports this largesse?

Money printing and our ongoing debt-orgy. And today, these are one and the same. The US Federal Reserve and Treasury have enacted policies so insane that the US Federal Reserve is now the single largest holder of US Debt with a balance sheet of  $2.8 trillion.

Let’s give that number some perspective. Germany, the world’s FOURTH largest economy is only $3.3 trillion in size. At $2.8 trillion the Fed’s balance sheet is larger than the economies of France, the UK, and Brazil.

Why is the Fed’s balance sheet so huge? Because US Treasuries are so unattractive to foreign Governments that the Fed has had to pick up the slack and buy our debt (usually within a week or two of it being issued).

Let me rephrase that: the US Fed is now printing money so it can buy US Debt because other investors are no longer interested in buying it.

This is just one of the various schemes Washington is employing to maintain its fiscal insanity. Another is the active raiding of pension funds to buy new US Debt (YES, the Treasury is doing this).

So… the US Government is now paying over 1/3^rd of US incomes… and it’s financing this by having the Fed buy new debt from the Treasury.

Do you think this entire system might end up collapsing in a horrific manner?

And this is just ONE ASPECT of the nightmare that is the US Financial system. I’m not even detailing the $600 TRILLION in derivatives, the clear insolvency of the big banks (you know who I’m talking about), the FDIC running a deficit (are our deposits REALLY insured?), erupting inflation in food and energy prices, (Fed data CLAIMS prices FELL in the last four months) and the hundred other issues all of which will end very, VERY badly.

Regardless of how we look at the US’s current situation, it is clear that 2008 will NOT go down in history as THE Financial Crisis for the US. No, 2008 will be considered the “warm-up.”

The reason for this is simple. 2008 was primarily the collapse of the private banking system in the US. The Fed’s response to this was to transfer the garbage debts that nearly took down the banks ONTO the US’s balance sheet.

Put another way, the Fed allowed the systemic risk to spread from private bank balance sheets ONTO the US’s public balance sheet… which means the next Crisis will involve not only Wall Street and the banks but the US as a whole.

I’m talking about a sovereign debt Crisis. The kind of collapse we’re now seeing in Greece… only for the single largest economy in the world as well as its reserve currency.

So what happens when this Crisis hits and a partial if not complete Government shutdown occurs? What happens when that 35% of incomes and salaries stops being paid? What happens when prisons and other Government paid services run out of money? What happens when the next major banking run reveals that there is no WAY on earth the FDIC can truly insure all the deposits in the US (other than more money printing from the Fed)? What happens when the US defaults on its debts?

THEN and only then will we experience the REAL Crisis of the US Financial system. It is coming. There is no doubt about it. And people are only just starting to wake up to it (nearly half of Americans now believe we’re going to have a Great Depression).

Smart investors and independent thinkers are already taking steps to get ready for this. With just a few key moves and strategies it WILL be possible to not only survive but thrive during the coming disaster.

On that note, I’m currently preparing my subscribers for what is going to be a REAL Crisis. We’re doing this by protecting our families, savings, and portfolios via several  high-impact protection strategies designed to keep these areas of our lives safe during the coming fall-out.

All in all, we’ve taken to prepare for any eventuality whether it be food shortages, hyperinflation, a stock market collapse, a government shutdown… ALL the disastrous outcomes I’ve described above.

So if you’ve yet to take action to prepare yourself and your loved ones for what’s coming… it’s not too late yet… but we’re getting close to it.

To find out more about how to prepare and even thrive during the coming economic fall-out…

Click Here Now

Graham Summers

 

 

With the economic numbers getting worse and worse in the US, it’s clear that the Fed’s policies thus far have ended in abysmal failure. Indeed, I really can’t see how anyone could have argued the US had experienced a recovery to begin with.

• 15 million jobs have been lost since 2007.
• Food stamp usage is up 57% since 2007.
• Over one in five US mortgages is underwater.

Seeing as the Fed’s policies were supposed to help US consumers (we all know their real purpose: Wall Street bonuses), I cannot see how the above numbers indicate success of any kind.

Indeed, the other effects of the Fed’s moves have made an already difficult economic situation far, far worse by pushing the price of food and energy through the roof. Thus most in the US now find themselves facing stagflation in a big way.

However, the Fed is far too myopic in its belief system to possibly consider not printing more money. After all, from the end of QE 1 (April 2010) until the unveiling of QE lite (August 2010), the Fed continued to juice the market every month, particularly during options expiration weeks.

So the Fed will be juicing the system again at some point in the future. It’s all the Fed knows how to do. And it’s all the Fed has done since the Crisis began in 2007. Indeed, the Fed has completely and utterly failed to address ANY of the causes of the Financial Crisis.

Yet, for the Fed the failure to address any of the underlying causes of the Financial Crisis has been a great success story. After all, all it had to do was pump the financial system full of more money (increasing the amount of leverage) and push for the suspension of accounting standards (so the crap debt is still there, but no longer is visible).

So what do we have? A financial system where the underlying problems still exist and the Fed’s simply pumped TRILLIONS into the banks, resulting in commodities soaring, the US Dollar tanking, and investors taking on even more leverage.

Since 2009, I’ve been warning that the Financial Crisis is not over and that the next round will be even worse than the first. THIS is the REAL problem every one should be preparing for… not just a minor correction in stocks or the end of QE 2. Because at some point, the Fed WILL lose control of the system again. And this time it will be COMPLETELY powerless to re-instill confidence (the Fed’s already spent all of its bullets during Round One).

On that note, I’m already preparing subscribers of my Private Wealth Advisory newsletter for what’s coming. While most investors lost money last week, our two deflation trades took off. And we are close to getting “buys” on our other three deflation trades.

So if you’re looking for specific investment ideas (including buy and sell alerts) in this rocky market, few analysts on the planet have my ability to turn a profit during dangerous times.

To whit, I called the 2008 Crash months ahead of time and had my subscribers 100% in cash three weeks before the October-November 2008 nightmare hit. And the Private Wealth Advisory portfolio outperformed the S&P 500 by 15% during the Euro Crisis of May-July 2010.

So if you’re looking for someone to guide you through the coming dangerous times in the markets… you can take out a subscription to Private Wealth Advisory today and immediately begin receiving my hard-hitting analysis of the markets as well as specific investments to buy and sell to insure you stay protected… and turn a profit in the months ahead.

To learn more about Private Wealth Advisory…

Click Here Now!

Good Investing!

Graham Summers

 

 

 

 

As stated in my weekly forecast yesterday, the markets are rapidly adjusting to the fact that QE 3 is not coming anytime too soon.

Indeed, the two primary pro-money pumpers at the Fed (Goldman stooge Bill Dudley and general Wall Street lackey Ben Bernanke) have completely changed their tunes regarding providing additional liquidity to the markets.

Indeed, Dudley who made headlines earlier this year by suggesting iPads were as relevant to inflationary data as food and energy (no joke, he did), is now openly stating that higher commodity prices (inflation) are hurting US households.

Even though I expect a moderate economic recovery to be sustained, the recent disappointing data suggest that downside risks to the outlook have increased. Let me list some of them for you:

• As I mentioned earlier, high oil and commodity prices have further strained many families that already had tight budgets.

This is quite an admission from a man who’s been one of the biggest proponents of “inflation is under control” at the Fed. To give you an idea of the impact of the above statements, Bill King, Chief Market Strategist at Ramsey King Securities notes that stock futures entered a nosedive within minutes of Dudley’s speech last Friday resulting in the market tanking for most of Friday’s session.

This is what happens when the markets are being propped up by nothing but Fed liquidity and the Fed suddenly changes its tune… DOWN we go. However, judging by stocks’ performance so far, traders are still hanging on to hype and hope that the Fed might at least hint of more easing soon.

On that note, the final straw for stock bulls will come June 21-22. If the Fed doesn’t at least HINT of more QE or something like it, then we’re in for a VERY interesting time in the stock market.

Remember, stocks tanked 16% after QE 1 ended in 2010. So far, we’re already down 6% and QE 2 hasn’t even ended yet! If we match last year’s post-QE correction, the S&P 500 will be at 1,144 soon after QE 2 ends. And given the numerous disasters (economic and financial) occurring in the world today, we could easily drop a lot further than that.

On that note, I’m already preparing subscribers of my Private Wealth Advisory newsletter for what’s coming. While most investors lost money last week, our two deflation trades took off. And we are close to getting “buys” on our other three deflation trades.

So if you’re looking for specific investment ideas (including buy and sell alerts) in this rocky market, few analysts on the planet have my ability to turn a profit during dangerous times.

To whit, I called the 2008 Crash months ahead of time and had my subscribers 100% in cash three weeks before the October-November 2008 nightmare hit. And the Private Wealth Advisory portfolio outperformed the S&P 500 by 15% during the Euro Crisis of May-July 2010.

So if you’re looking for someone to guide you through the coming dangerous times in the markets… you can take out a subscription to Private Wealth Advisory today and immediately begin receiving my hard-hitting analysis of the markets as well as specific investments to buy and sell to insure you stay protected… and turn a profit in the months ahead.

To learn more about Private Wealth Advisory…

Click Here Now!

Good Investing!

Graham Summers

 

 

Things are moving quickly now.

Stocks have taken out the critical support lines of 1,294 and 1,275. We’ve also taken out the 50-DMA in a big way and are now closing in on the 200-DMA. If that line doesn’t hold: LOOK OUT BELOW.

I warned investors to shift into more defensive positions last week. The warning was well place: small caps suffered a far worse decline (nearly 4%) compared to the Dow (less than 2%).

Indeed, we’ve now entered a period of “risk off”. Small cap and Tech stocks, which lead to the upside, are falling hardest. Stocks in general are in full-scale correction mode, while Treasuries have begun to rally:

Treasuries and commodities were ahead of stocks here. And given the sharp rally we’ve seen in the former (and correction in the latter), stocks still have some catching up to do.

In the very near-term, we are oversold and could see a bounce early this week. However, every rally should be used to get more defensive as the primary prop for the stock market (QE 2) is ending in the next two weeks.

The one event traders will be hanging on to is the Fed’s FOMC meeting (June 21-22). If the Fed DOESN’T hint at additional liquidity measures, then stocks could enter a free-fall (the next Fed FOMC is August 9 2011).

Indeed, the Fed has gotten itself into an absolute bind. QE 2 bought roughly three months’ worth of improved economic data while simultaneously blowing energy and food prices through the roof. With public outrage soaring the Fed needs things to cool down before it can announce QE3 or anything like it.

The one exception to this would be if the markets enter a full-scale Crisis and stocks close in on 1,000 on the S&P 500. The most likely candidate to trigger this would be the Euro-zone where the “bailout game” might in fact be about to end. This combined with the ECB’s decision not to raise rates could result in the Euro currency getting VERY ugly in no time.

On that note, if we take out 140 on the Euro, that would be a major warning sign that we could be entering another round of systemic risk.

On that note, I’m already preparing subscribers of my Private Wealth Advisory newsletter for what’s coming. While most investors lost money last week, our two deflation trades took off. And we are close to getting “buys” on our other three deflation trades.

So if you’re looking for specific investment ideas (including buy and sell alerts) in this rocky market, few analysts on the planet have my ability to turn a profit during dangerous times.

To whit, I called the 2008 Crash months ahead of time and had my subscribers 100% in cash three weeks before the October-November 2008 nightmare hit. And the Private Wealth Advisory portfolio outperformed the S&P 500 by 15% during the Euro Crisis of May-July 2010.

So if you’re looking for someone to guide you through the coming dangerous times in the markets… you can take out a subscription to Private Wealth Advisory today and immediately begin receiving my hard-hitting analysis of the markets as well as specific investments to buy and sell to insure you stay protected… and turn a profit in the months ahead.

To learn more about Private Wealth Advisory…

Click Here Now!

Good Investing!

Graham Summers

As you know, as far as stocks go, I’m about as bearish as it comes. However, if you’re looking for income, stocks today are far more attractive than sovereign bonds.

Let me post a disclaimer on that statement: stocks are MASSVELY overvalued today and we’re likely going to see a sharp correction if not something worse before the Fed begins another round of money printing.

However, once this correction ends, those looking for income might want to consider looking at high quality blue chip companies, MLPs, and other equity-based investments that offer decent dividends, rather than bonds.

Consider Exxon Mobil (XOM) compared to US Treasuries.

Exxon is best known as an oil giant that produces “obscene” profits. However, its history of producing income for shareholders is beyond stellar: XOM has increased its dividend every year for the last 28 years.

Today, XOM pays 2.2%. That’s more than you’d make lending to the US Government (buying US bonds) for any period of time shorter than 10 years (the 10-year currently pays 2.95% while the 30-year currently pays 4.2%).

XOM also has the following advantages over US bonds:

1)   It produces a good (oil) that people actually need

2)   You can have some clue about the nature of its balance sheet

3)   There are actual investors who want to own it (you don’t need the Fed/ Treasury to perform a giant Ponzi scheme to keep it going)

4)   XOM isn’t run by clueless politicians/ bureaucrats (though they do TRY to control XOM)

Finally, and most importantly, with XOM you’re buying an investment that isn’t clearly bankrupt and destined to default in the near future.

In a world of absolutes, I think XOM’s chart is extremely ugly and we’re likely going to see a correction of some magnitude in the near future. However, investing in a world of loose money is not about finding relative values. And on a relative basis, today companies like XOM are a lot more attractive than US debt.

However, across the board I am wary of the financial markets right now. Indeed, I believe things are about to get REALLY ugly for many asset classes.

It’s clear that the US economy has taken a sharp turn for the worse in the last three months. Considering that we never had a recovery to begin with, I believe we’re heading into a very, VERY rough patch here in the US.

Without adjustments, the US economy LOST (not gained) over 100,000 jobs in April. Nearly 30% of all mortgages in the US have negative equity. Food prices are through the roof. And we’re actively raiding pension funds in order to fund debt issuance.

In plain terms, this is an absolute disaster. And as usual, stocks are the last to “get it.”

Now is the time to be preparing for what’s to come. If you’ve not already taken steps to protect yourself and your loved ones’ finances from what’s coming, I can show you how.

I’ve already got subscribers invested in several key positions that will pay off HUGE returns as the stock carnage escalates.

We’ve also take steps to prepare our families for the upcoming social upheaval that will be occurring shortly.

If you’ve yet to take these steps yourself, it’s not too late… but we’re getting AWFULLY close to it.

To take action now, including specific investment ideas that will profit from the coming collapse in the markets…

Click Here Now!

Good Investing!

Graham Summers

 

No investment goes straight down or straight up. This is especially true when an investment is changing trends from bullish to bearish and breaks below a key support level.

Instead, investments follow what I call the “kiss the line then say goodbye” pattern. That pattern is:

1)   The initial drop

2)   The re-test (kiss)

3)   Good-bye!

In plain terms, this means that once an investment breaks below key support, it usually rallies to re-test that former support line. If it is rejected at that line (indicating support is now resistance) then you are in for a sharper correction.

Which is exactly what’s happening in stocks today:

As you can see, the S&P 500 has taken out critical support at 1,300 or so. It’s now staging a bounce to re-test this line. If it’s rejected here, (meaning former support is now resistance) then we’re going to see a sharp correction to 1,260 or even 1,200 depending on how bad things get.

So pay close attention to that line. If the S&P 500 kisses it and doesn’t break back above… then say GOOD-BYE!

Indeed, I believe things are about to get REALLY ugly.

The US economy has taken a sharp turn for the worse in the last three months. Considering that we never had a recovery to begin with, I believe we’re heading into a very, VERY rough patch here in the US.

Without adjustments, the US economy LOST (not gained) over 100,000 jobs in April. Nearly 30% of all mortgages in the US have negative equity. Food prices are through the roof. And we’re actively raiding pension funds in order to fund debt issuance.

In plain terms, this is an absolute disaster. And as usual, stocks are the last to “get it.”

Now is the time to be preparing for what’s to come. If you’ve not already taken steps to protect yourself and your loved ones’ finances from what’s coming, I can show you how.

I’ve already got subscribers invested in several key positions that will pay off HUGE returns as the stock carnage escalates.

We’ve also take steps to prepare our families for the upcoming social upheaval that will be occurring shortly.

If you’ve yet to take these steps yourself, it’s not too late… but we’re getting AWFULLY close to it.

To take action now, including specific investment ideas that will profit from the coming collapse in the markets…

Click Here Now!

Good Investing!

Graham Summers