CLSA: n Russell Napier, QE2's and his Outlook on the inflation-deflation

Scottish economic historian of the S & p target price to 400?  Be still, beating hearts!

CLSA: "Russell Napier is my new favorite to take the listener to his interview with Jim Puplava financial sense.
He believes that the QE2 is reigniting credit growth of-at least here in the United States.  But now we export our inflation in emerging markets creditors.  So if the United States to take the policy of "qe Infinite" can be significant pushback.

(In 100% of his take to agree "in the Old West deflation (US, Europe and Japan), emerging markets in Asia and the inflation of" we are in the drawing that today).

Also, I appreciate his take Us by the Ministry of finance and the stock markets are both relatively overvalued the measure, which to a large extent the Fed QE events.  I've been arguing that we are still in the internal market and of our earthly Bear should be fine, not forgetting US stocks until they are sporting P/E: n 8 and 5-6%.

Napier attended the Singapore dollar as a possible "new Swiss franc", such as the Singaporeans have been allowing the currency to combat rising inflation, in the light of the above, the import from the West, forced.

Finally, he thinks, the world's environment, the depression could slump, although the deflationary environments yields rise at the same time (la 1931).  The biggest pain to everyone!

Again, here is the link to the full interview.

Hat Tip to send this along JL!

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What is really happening in Iraq and why it matters to investors

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Soldiering on: Why Our Military Adventures Matter to InvestorsRecently, I read a book titled The Good Soldiers that also serves as an object lesson in the disconnect between what’s going on in Washington D.C. and reality. It was written by David Finkel, a Pulitzer-winning author, and it came to me via a friend who is going through a stage where she feels drawn to books about war, mostly about World War II. Showing flexibility, her interest has expanded to the ongoing conflict in Iraq – the theater of operations that serves as backdrop for The Good Soldiers.Despite it going solidly against my literary preferences, I dragged the book along during a quick trip to Florida – a spur-of-the-moment thing to attend a golf school (I figured it was either that or get thrown off the local course for energetic exclamations of elaborate expletives resulting from my golf shots constantly flying off in unexpected and unwelcomed directions). Out of courtesy if nothing else, I figured I’d read a few pages of the book before putting it down – and so was surprised when it sucked me in, and kept me in, pretty much until I was finished.The background story is that the author of the book traveled to Iraq with a battalion of U.S. soldiers sent as part of the “surge,” then lived with them for the 14 months of their deployment. As far as I can tell, he approached his topic with no overt political intentions – rather, he just wanted to document the war as experienced by a battalion operating from a small base in one of the worst corners of Baghdad.As one might expect, as they departed from the United States for Baghdad, the soldiers and their brigade commander, Col. Ralph Kauzlarich, were full of fight, patriotism, and the confidence that only a chosen people can possess. It was, in their view, a just war and they deeply believed that in no time at all they'd use their superior war-making capabilities – supported by the sure knowledge that they held the moral high ground – to clean the bad guys out of Dodge and get the whole mess straightened out pronto.Reality, however, turned out to be significantly different, starting with the fact that rather than being welcoming, the population was overtly hostile – so much so that almost every time the soldiers drove off the base (which was part of the daily routine), the locals would try to maim and kill them. And they had considerable success at it.In addition to trying to kill them, the community’s leaders seemed uninterested in the outreach efforts the colonel was instructed to make, including an initiative to rebuild the sewers and fix the power and water delivery systems in the area around his command. Of course, it didn’t help that it was the blunt-force approach used by the U.S. military in capturing Baghdad that destroyed so much of the infrastructure in the first place. Regardless, all attempts at doing “good works” were stalled and disappointed at every turn, with billions of dollars wasted in the process.As the book progresses, the author juxtaposes President Bush's and General Petraeus' rosy comments about how well the surge is working with the on-the-ground realities. And those realities are presented as raw and graphic as they are – with the tops of soldiers’ heads being taken off by IEDs, or burning to death in Humvees while friends watch helplessly.So successful was the military and political leadership in convincing Congress and the media that the surge was a winning strategy that, to this day, its acceptance as a fact has become a meme throughout the body politic. Back on the ground in Iraq, however, the daily grinding down of the front-line forces continues apace.During the period of time covered in The Good Soldiers, the Iraqi insurgent attacks lightened up only slightly – but only because the ruling mullah in the battalion’s area of operation unilaterally called a cease-fire. The resulting dialing-back of attacks on U.S. forces was immediately pounced upon by the military leadership and the Bush administration as proof that the surge was working.That that wasn’t the case became clear the day the same mullah called off his cease-fire and hell opened up. One minute the area was relatively quiet – the next, the streets were filled with armed gunmen and snipers, and bombs were going off on what seemed like every corner.One of the more remarkable aspects of the war, an aspect that largely goes unreported, was just how sophisticated the Iraqi opposition became in their attacks against the occupying forces. Not only did their roadside bombs become murderously powerful – so powerful that they could almost evaporate a fully armored Humvee – but the Iraqis began attacking the U.S. bases using everything from mortars to rockets and even homemade missiles.The lob bomb, for example, was created out of propane tanks, filled with ball bearings and shrapnel, with a triggering device welded to the nose, and a rocket on the rear. In one instance, two large dump trucks drove near the base; after tilting up their backs to drop their loads, they revealed rails which were then used to guide a barrage of lob bombs, resulting in millions of dollars of damage to the American base.By the end of the battalion’s stay, the soldiers were mentally and, in many cases, physically ruined. One chapter near the end of the book, which recounted Col. Kauzlarich’s visits to some of his wounded soldiers back in the States – soldiers who suffered truly catastrophic injuries – I had to skip after just a couple of pages. It was just too painful to read.There are a number of important lessons that can be derived from The Good Soldiers, including:The on-the-ground commanders and soldiers being sent into places like Iraq and Afghanistan have only the best of intentions. Though their reasons for joining up may vary, as they head off for war, most believe their leaders wouldn’t deploy them unless there was good reason to do so. Thus when it becomes clear to them just how ill-used they have been – that they have lost friends and limbs for no discernable purpose – it creates a deep sense of disillusionment. The odds of another Timothy McVeigh emerging from the crowd of returning vets are very high.
Despite the U.S. government spending tens of millions of dollars a day in Iraq – with the total spent now approaching $1 trillion – the mission has accomplished nothing other than antagonizing the Iraqis whose doors the U.S. troops kick down regularly. When I say “accomplished nothing,” that is actually an overstatement. In fact, other than toppling Saddam, the outcome of the mission has been to create an everlasting antipathy between many Iraqis and the United States, blowing wind into the sails of the most radical elements of Iraqi society. What a mess.
The U.S. occupation has turned into a very effective laboratory for the insurgents. At the beginning of the conflict, the resistance fighters were relatively weak – but as time has gone by, the natural ability of humans to adapt and improvise has led to the development of an array of inexpensive but seriously lethal antipersonnel weaponry. That these technologies are now spreading throughout the region can be seen in the recent death of eight U.S. soldiers in Afghanistan, in a single blast.
Short of staging a scorched-earth form of warfare – turning these cities into parking lots – the U.S. cannot possibly ever win one of these conflicts. There is no fixed enemy that the U.S. can target with its superior weapons. And it’s unrealistic that the military can hunt down all of the opposition by going door to door.
The U.S. political and military leadership is straight out lying to its troops and to the public at large. It is hard to comprehend why, but I dare you to read The Good Soldiers and come away with any other conclusion. Maybe they continue the tragic farce because to cut and run – as we ultimately did in Vietnam – is just too embarrassing. Maybe it’s because they are so effectively lobbied by the war profiteers – may they eventually rot in the hottest corner of hell. Maybe it’s because they are allowed to wage war from a safe distance (no politicians visited the forward operating base where Kauzlarich and his battalion were based during their stay there, and Petraeus only made a single, quick stopover).

Meanwhile, the U.S. continues to bleed billions in these misguided wars, while the soldiers just bleed.

Someone, and probably a lot of people, should be held accountable for this travesty – as in being brought up on serious charges and, if found to have propagated lies resulting in the loss of lives and the wasting of hundreds of billions of dollars, sent to jail for a very, very long time. Or, better still, turned over to the Iraqis to punish. I’m sure they’d figure out something appropriately medieval.Given the urgency of addressing the U.S. debt and deficits, the bloated U.S. military budget is clearly the most obvious place to start making cuts that will actually matter. Yet Congress made no such cuts when passing the $690 billion budget requested by the Defense Department – doing so last week by an overwhelming margin.That budget includes another $119 billion to flush down the toilets of Iraq and Afghanistan. Showing that it has learned no lessons, the Obama administration – encouraged no doubt by new friends in the military-industrial complex – has already managed to spend $750 million in the undeclared war on Libya.There is a way to use this understanding that the bankrupt U.S. and its allies are doing little more than breaking furniture and making enemies in the Middle East to one’s advantage. Simply, unless and until the U.S. politicians muster enough spine to pull out of Iraq and Afghanistan and slash the military budget, the government’s massive budget deficits will continue.And if the budget deficits continue, then the trend for the U.S. dollar is sharply downward (though I remain convinced we’ll see a rally in the near term, a topic we’ll be tackling in greater detail in the upcoming edition of The Casey Report).That is not conjecture, but the unavoidable conclusion uncovered by a number of objective analyses done on past sovereign debt crises by folks such as Kenneth Rogoff and Casey’s Chief Economist Bud Conrad.To those readers who think that cutting the military budget, or pulling out wholesale from the Middle East, will increase threats to the continental United States, we will have to agree to disagree. In my view, destroying our economy to wage war – in the process squandering the huge commercial advantage of providing the world its reserve currency – is far more destabilizing. As is making yet more enemies by continuing to lob bombs and kick in doors here, there, and everywhere.Unfortunately, the U.S. leadership and, I guess, some significant swath of the voting public who supports that leadership are suffering from some sort of mass psychosis (or maybe it’s paranoia), that actually has them thinking that it is somehow in the country’s interest to continue flinging billions of dollars and the lives of its good soldiers into lost causes overseas.But don’t take my word on the topic – do yourself a favor and pick up a copy of The Good Soldiers today. As I can’t know where you stand on these wars, I can’t say whether or not reading the book will change your mind. But I can guarantee you that its on-the-ground perspective will enlighten you as to the true and disturbing nature of what’s really going on, and the futility of it all. It is anything but entertaining, but is very well written and very illuminating.Meanwhile, use the military budget as a proxy for the seriousness (or lack thereof) of the government’s intent to reduce its spending by any significant amount. And, absent any serious cuts in that spending, continue to take measures to protect yourself against wholesale debasement of the currency.Every month, David Galland and his co-editors – among them Doug Casey – of The Casey Report research and analyze significant events in the U.S. and global economy, as well as in politics and the markets. Their goal is to recognize the trends in the making that will directly or indirectly affect investors… and to provide the best profit opportunities, even in a time of crisis. Learn how you can outpace rampant inflation by crisis-investing like the pros in this free report.Ed. note: I am a Casey Report subscriber and affiliate.

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2011, the demand for gold in China Overtakes developed West (together!)

Here are some charts of gold, which need to make their own jaw-drop in the people's Republic of China.  Frank Holmes, writing a courtesy of: Kitco.com

The World Gold Council (WGC) released its "Gold demand, the development of the" quarterly report last week, and as always, it was full of fascinating information on the strength of gold on the world market. Gold demand increased by 11% 981.3 tonnes in 2011, 43.7 billion dollar worth at the end of the quarter in the first quarter.

This is not a completely new phenomenon in China. In the years 2007-2010 investment demand rose by 68% compounded annual growth rate of CPM units. The company predicted to increase the demand for investment in China to 34,7% in 2011, but this new data on it may need to change its forecast.

Song Qing, the Shanghai-based Lion fund management, the Director told Bloomberg News that "gold has taken a new role in China's concern about inflation … keskelläVain imagine the total wealth of the people's Republic of China, and even a small percentage of the purchase of gold by selecting. This demand will be huge. "

The full article: Asian Tiger teeth into Gold tubes

And this chart says it all:
Scratching my head, was accompanied by a friend of mine here in the United States, Wondering who was buying all the heck that gold the past during startup.  Then went to the Asia and saw eye-to-West is no longer driving these markets.  And this chart really says it all.

The interesting thing I've learned that the same phenomenon occurred even more dramatic extent-rare, with the China collectibles.  A friend of my wife's father is a very wealthy business man in Taiwan.  He has collected rare items in the system of the people's Republic of China in the last 20-30 years.  Now, when he is gone, he begins to sell off some of his collection and is so astounding time women he pays for the items (100 x-1000x, in some cases).

Now that the Chinese are beating the new millionaires and billionaires, including rare historical items in the balance of the system is due to the dramatic increase in prices.  And the same will happens to gold, which is the middle class can play itself to the trend.

When all of the type to buy what they help to save their wealth as the Renminbi?  Vis-à-vis the US dollar?  Eur?

This trend should be kept, I guess, as long as real interest rates are near zero, or negative, there (in theory, the real prices are approximately 1% today, if you think inflation is really running 5%).

Hat Tip to the TIP of the drugs on a daily basis in this link.

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3 to protect the investments of the portfolio of inflation

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Whether you think we'll see inflation or deflation in the short term, even the most ardent deflationists will admit that inflation is likely, eventually, once the bad credit outstanding has retired to money heaven.

So when inflation does return - whether it's next year, or longer, what are the best ways to shelter cold hard cash?  Inflation expert Terry Coxon explores here (fellow Harry Browne fans will recognize Terry's name - they did a lot of work together).  Coxon's Open Opportunity IRA is an especially attractive idea, for those of us who want more flexibility from our retirement plans (and/or are worried that the government may eventually try to lock them up in "Patriot bonds"!)

3 Ways to Shelter Your Cash from Inflation

By Terry Coxon, The Casey Report

The high rate of inflation most of us believe is waiting not too far down the road will be an earthquake for investment markets. The likely winners (gold, silver, precious metals stocks) and the likely losers (long-term bonds and most stocks) aren’t too hard to identify. But separating the sheep from the goats is only one element for financial success in an environment of rapidly rising consumer prices.

Higher rates of price inflation will bring greater volatility to all financial markets. The higher you expect inflation and hence gold to go, the more volatility you should expect to see for assets of every type. Even if in fact the dollar is on the road to perdition, there will be detours and backtracking along the way.

Inflation doesn't operate smoothly; it is a disrupter for both the economy and for the political system. From time to time over the next five to ten years, the Federal Reserve will come to see inflation as its most urgent problem. And every time that happens, the Fed will slow the creation of fresh dollars or even put up a big INTERMISSION sign and stop printing altogether for a while.

Such seizures of monetary virtue won’t last long, but while they do last, they will hammer most investment markets, including the market for the yellow stuff and for stocks of companies that produce or look for it. You could be absolutely correct about where the dollar is headed in the long run and still have a scary ride.

2008 was just a preview of the downdrafts you will need to survive. There will be even uglier smash-ups, and you don’t want to be among the hard-money investors who get carried off on a stretcher. To avoid being one of them, you’ll need to include cash as a constant, permanent element of your portfolio. Cash is a courage booster. Having a substantial cash reserve makes it easier to hold on to your other investments when they are getting battered and you are tempted to bail out. And cash gives you the wherewithal to buy on dips – and on the big dumps.

Of course, cash will be the asset whose value is shrinking. But the rate at which the purchasing power of your cash declines will depend very much on how you hold it.

Interest rates on money market instruments, such as Treasury bills and large CDs, track the rate of inflation fairly closely. By creating money fast enough, the Federal Reserve can keep rates on money market instruments one or two percentage points below the inflation rate, but not indefinitely. And any such effort to suppress short-term interest rates succeeds at the cost of producing even higher inflation later. Similarly, the Fed can keep money market rates one or two points above the inflation rate for a while, with the likely eventual result of a slowing in inflation. But over long periods, the average yield on money market instruments about matches the average rate of inflation.

Given that money market yields travel the same path as inflation rates, holding cash doesn’t seem to be terribly painful. The loss in purchasing power about gets made up for by the yield. That’s a nice thought – until you think about taxes. Even though the yield is merely replacing the purchasing power being lost, the yield is subject to income tax, unless you do something about it.

Doing nothing about it is, in a subtle way, risky for your portfolio. When price inflation gets to, say, 10% and money market yields are near the same level, if you are in a 40% tax bracket, you’ll be losing purchasing power on your cash at a rate of 4% per year. The situation will get worse as inflation moves higher, and you’ll be tempted to cut back on cash in order to cut back on the leakage. And that will leave you dangerously ill-prepared for the next INTERMISSION sign.

Logically, then, to make holding cash cheap or even free, you need to hold the cash in an environment where the yield is protected from taxes. Let’s look at the possibilities, some of which, you should be warned, may make you say “Yuk.”

A straight annuity is a contract with an insurance company that pays you a certain amount per year for the rest of your life. A deferred annuity begins with an accumulation period, during which the contract earns interest or some other investment return. You can end the accumulation period whenever you want and then either start receiving a lifetime of payments or simply withdraw the contract's accumulated value.

Earnings in a deferred annuity are tax-deferred until they are withdrawn. So if the return on a deferred annuity tracks money market yields, then the real value of the annuity will hold approximately steady, even at high rates of inflation.

Deferred annuities are now an almost forgotten topic. They were, for the first time ever, a very big topic in the high-inflation years of the 1970s and 1980s. The reason was simple – sky-high interest rates. But in more recent experience, interest rates have been so low that the advantage of tax-deferred compounding has hardly been worth the trouble. It's when interest rates are high that tax-deferred compounding brings a big payoff.

When price inflation heats up and puts money market rates on a boil, expect to see ads for deferred annuities on every financial street corner. The right annuity contract will certainly be better than leaving cash in a bank account, but it still won't be the most attractive medium for holding cash through a period of rapid inflation. There are one, or perhaps two, limitations on an annuity's appeal.

The first is that the protection from being taxed on a fictitious return only goes so far. Even though the money inside the annuity may be holding its purchasing power (with interest continuously replacing what is being lost to inflation), eventually you'll cash the annuity in. At that point, all the interest will be taxable. After, say, a decade of high inflation, most of what comes out of the annuity will be accumulated interest – which will be taxable as ordinary income. So you'd have a one-time loss of nearly 40% of your purchasing power, assuming you're in a 40% tax bracket. (I know that sounds awful, but it would be a far better result than paying tax on interest income year by year during a decade of rapid inflation.)

The second limitation is that, so far as I have been able to determine, no insurance company offers a program that would let you switch the value of an annuity between money investments and something related to precious metals. That may change as inflation and the public's interest in gold picks up. But until it does, there would be no tax-efficient way to tap the purchasing power your annuity had been protecting to buy something gold-related during the downdrafts we're trying to prepare for.

As with a deferred annuity, the earnings on a cash value life insurance policy can accumulate and compound free of current tax. But that’s where the similarity ends.

Unlike the earnings on a deferred annuity, the earnings on cash value life insurance can come out of the policy tax free. The tidiest way is for you to die at just the moment that is most convenient for your financial plan. An alternative, if you don’t have such an accommodating attitude, is to borrow the earnings from the policy. You can do so tax free if the policy satisfies the “7-pay” rule: pay for the  policy no more rapidly than with seven equal annual premiums.

Being able to borrow from the policy tax free would allow you to tap its value whenever gold and other hard investments have had a sizeable setback. Convenient. But, depending on your circumstances, that convenience may or may not be available to you for free.

Between the Internal Revenue Code's requirements for a contract to qualify as “life insurance” and the perversely characterized “consumer protection” rules of the various states, it is not possible to buy a life insurance policy in the U.S. that does not have a face value far above the amount you’ve invested in the policy. The difference represents the insurance company’s risk – mortality risk – that you may stop breathing ahead of schedule. The insurance company, of course, will charge for that risk. There are a lot of variables, but think of the charge as amounting to something on the order of 1% per year of the capital you want to wrap inside the policy to protect the return from taxes.

Whether a cash value insurance policy (a 7-pay policy, so that you can borrow tax free) is a good place to shelter cash from the winds of inflation depends in large part on whether paying for mortality risk is or is not a wasted cost for you. If you now have a reason to own term life insurance, you are paying purely for mortality risk. In that case, it would make sense for you to convert to a cash value policy that could be invested in money market instruments as a way to prepare for high inflation. There wouldn’t be any additional mortality cost, and you would get the tax advantages of life insurance.

On the other hand, if you have no use for pure life insurance coverage, using a cash value policy for its tax advantages would require you to become a regular bettor in the actuarial casino, which you probably would not want to do.

If it is available to you, by far the best way to hold cash through an inflationary storm is in an Individual Retirement Account. Without any of the costs that come with a deferred annuity or a life insurance policy, you can invest in T-bills, insured jumbo CDs and other money market instruments and in near-cash assets such as very short-term bonds. You can have a free hand to tap the cash at opportune times to purchase precious metals and precious metal stocks. The whole arrangement is protected from current taxes, and with a Roth IRA the proceeds eventually can come out tax free.

You can do exactly the same with a solo 401(k) plan. And if you have a 401(k) plan that's sponsored by your employer, you may be able to do about the same, depending on the investment options the plan allows.

A retirement plan would be the ideal vehicle, but there is a size constraint. While the size of a deferred annuity or of a cash value life insurance policy is limited only by the size of your checkbook, IRAs are not so easily scalable. However, if you have a traditional IRA and would like to move a chunk of non-IRA money into it, there is a way to effectively do so.

Take a close look at your traditional IRA. How much of it is building tax-deferred wealth foryou? Less than meets the eye.

If you are in, say, a 40% tax bracket, then no matter how large your IRA gets to be, when it comes time to take a distribution, 40% will go to the government. Your ability to postpone that event won't change the nature of it. In effect, the government now owns 40% of your IRA, and you own only 60%. If there is, for the sake of round numbers, $100,000 in your IRA, only $60,000 is working for you.

Fortunately, there is a way to buy out the government's share. It's a Roth conversion. You pay the tax now, so that eventually your withdrawals will be tax free. The result: the assets you own directly decline by $40,000 (the money you spend to pay the tax bill on the conversion); and the amount in the IRA that is working exclusively for you increases by $40,000.

That's a big improvement, because the net effect is to move capital out of a tax-paying environment and into a tax-free environment where all of the earnings get reinvested. To continue the example, the effective size of your IRA increases by two-thirds ($40,000/$60,000). That's two-thirds more money doing the happy work of tax-free compounding for your benefit.

You can do the same with a solo 401(k) – effectively plump it up through a Roth conversion.

The financial logic of a Roth conversion is compelling. The case is even stronger if you first restructure your IRA as an Open Opportunity IRA. The Open Opportunity structure starts out as a big idea – radically greater investment freedom – and then gets bigger.

Instead of being restricted to the menu of investments allowed by your existing IRA custodian, your IRA would own a single asset – a limited liability company that you manage. Then you would roll over the investments from your existing IRA into the new IRA and then into the LLC. As Manager of the LLC, you would have the choice of keeping the existing investments or switching to real estate, gold coins, equipment leasing or almost anything else.

That's the investment freedom. In addition, by designing the LLC appropriately, significant savings on the cost of your Roth conversion may be possible..

You can learn more about the Open Opportunity IRA in "The Year of the Roth," in the June 2010 edition of The Casey Report.

Deferred annuities, cash value life insurance and retirement plans – these are the ready vehicles for protecting the purchasing power of the cash you need for portfolio safety during times of rapid inflation. They do the job by reinvesting money market yields, which tend strongly to track inflation rates, without loss to current tax.

Of course, the three alternatives aren't exclusive; you can use more than one. Which of them would be best for you depends not just on their characteristics but on your individual circumstances. Now, before CPI inflation starts making double-digit headlines, is a good time to start weighing your choices. Even if you don't like any of the choices, any of them will be better than letting your cash rot.

Contributing Editor Terry Coxon is president of Passport Financial, Inc., and for over 30 years has advised clients on legal ways to internationalize their assets to optimize tax, wealth protection and estate planning goals.

[For a very limited time, you can now profit from the investment advice of both the Casey Research team and 35 big-name experts… like ShadowStats’ John Williams, James G. Rickards, Chris Whalen, Mike Maloney and many others. Get your Double-Dip Crisis Bundle today – for one low price. More info here.]

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With the winding-down QE2 which ' Flation rule date?

At the end of the reported or at least, to stop the QE is exactly what the deflation camp has been waiting for.  (Well ... sort of.  Because some of the ample liquidity is going to the hanging, "QE2". 5 "format.  "Remember when Bernanke claimed that, after the Fed would eliminate an additional QE1, liquidity from the system?)Regardless of the results of the June, the Treasury is a cool billion to $ 100 plus Finance on a monthly basis, without the assistance of the Fed, at least for now.  And emerging markets and options contracts for crude oil contracts, the home of the newly printed money to be not nearly 100 billion dollars a month.  This will start the return of the nation in 2008, deflation?

In the first place, is expected to see what we * think * we know.  Ben Bernanke became the Felix Zulauf, such as the history of the first Central banker to actually say that he wants to go up stock quotes.  And he made a stock!

Food prices and Energy prices ... and. .. With the other stock markets, etc.  We have a lot of inflation in the United States of nShny here, because as I learned last month while traveling in Asia, inflation has been America's leading export last year!

Industrializing Asia increasing, countries which boast of more favorable as a whole, and inflationary pressures, as we have the Western countries (especially in Europe and the United States) has been taking Bernanke n brunt QE.  Here in the United States, we have been getting squeezed higher food and Energy prices, but the service is based on prices and wages, has largely stopped, as does the pricing power.

Looking beyond the next five to 10 years are the fundamental reasons why Asia should continue to grow and why food and energy prices should continue to increase.  There is also the fundamental reasons why Europe and the United States is likely to slow the growth of the economies, at best, and why they attract some of the aging population and the natural deflationary environments headwinds, their economies (such as Japan post-1990).

Wild card is of course the money printing.  Bernanke made sure me and other deflationists, find the stupid in the past 24 months.  Correct, the game was to buy traditional inflation hedges such as gold, commodities and money-printing on the Launcher.

And in the next five to 10 years, I think it is very likely that we will see more turns of the QE.  The atmosphere is now against the Fed continue to print, but when things are likely to roll over again, they should be enough to support the patenting of printing-presses.

QE2, for me, it was crazy.  It should have been in the past, the first of the QE2, glaring red flag, all of which were the tilt.  The world was ending.  But the 20% drop in stocks on the God of fear the Fed that if they are not to "do something", as the case may be, upon the economic rapture should.

History shows this rhyming.  Andrew Dickson White in excellent Fiat money inflation (hat Tip to Dr. Evil rec) in France, the profiles of the traditional political roadmap for the French hyperinflaation the late 1790 's.  They will be printed once and it seemed a little better for the economy.  They stopped and things turned down.

Thus, they printed a second time.  And things went a little better, but not as much as for the first time.  Gee, who knew of the funding was like heroin!

But now, the French Government was on the hook, they will be printed in the til-Jim Rogers, I would say, they ran out of the trees.

I do not know, for example, the Government printing money for children's historical literature disseminated throughout Europe, and then stop.  It is the abuse, which is very difficult to break.  So in the long term to continue printing money seems to be the most likely attack scenario.

But what about in the short term?  We are very much in the second bout could not get deflation.  And commodities and stocks of 2 + years of one way to carry out on-the-sky winded into, this may be the best time to take in order to take account of inflation hedges, pile.

NET-net, we are lucky, investment, that we do not need to be performed on each trade.  I like Jim Rogers take agriculture best.  Over the course of the next 10 years, it has an ascending fundamentals.  The prices will continue until a new supply line and that takes time.

Continuous printing of money to the world, unfortunately, but fortunately we can Add some of the investors, the ag is extremely sensitive to fuel price increases in grain.

Summary of inflation or deflation?,  It depends on, and really, it does not matter either.  In the medium and long term, the food and energy prices will continue until a new supply line.  Emerging and growth of the market is facing inflation, while in Japan, Europe, and the United States is likely to see the Dichotomy that deflation, inflation.  Until and unless we see a "qe Infinite" is Marc Faber is a pleasant message.

Regardless of how this all plays agricultural displays most of the day, the wager in question was me on board sound card.

Related reading: our exclusive interview with Jim Rogers in Singapore-commodities-China

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Could oil hit $ 80 on the US economy?

artist (s): William Davies
(UK)

Global economic growth, the collapse of the prices of crude oil and/or petroleum products (NYME_CL) have decreased dramatically in July 2008 the heady heights.

But now some of the crude oil market is an alert with a positive signal to the observers, which could mean higher crude prices.

This is significant, because, according to the INO.com, Adam Hewison is around 18 months, that the legal position, Buy signal showing the energy market for the first time.

Even if the current $45-an increase in the price of crude oil around the character would be very welcome news producers, such as OPEC, the key question is how such a move would have a marked influence on the weak Us economy.

Saudi Arabia has said more than once that it would like to see oil or more than EUR 70, or, as the current low prices are hitting quite difficult in the Gulf States.

Still quite a lot throughout the entire world economy is struggling to Show positive changes in the present growth in some emerging markets such as China, while posting a positive one, the number of the GROSS DOMESTIC PRODUCT (GDP) growth.

So if oil moves higher prices could increase in the amount of the US economy to cope with its current state? Find out below:

America is still heavily dependent on commodities, and yet the basic regulation, the terms and conditions set forth in this limited control of the production and distribution.

Taking into account that the large oil reserves have potentially volatile areas of the energy problem is very serious and makes Us vulnerable.

His own page just a small link in the supply chain, also for a short period of time could lead to the development of the crude oil market dynamics of large and relatively easy to surge back into the oil, $ $ 70-80 barrel range at the time.

Check out the video below If Adam will be reviewed in the light of the reference value on crude oil prices in the zones for the following 12 months, or through it.

Enjoy.

William Davies.

http://crudeoilbounce.commoditycrunch.com

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Video of the diversification of the commodity futures trading

According to Marianna Gomes
(Buenos Aires)

Not just watched an excellent video, showing the benefit of the diversification of their commodity futures trading, market Club s trade triangle technology.

This video showed me clearly to the benefit of having a one-color command in the game plan (or a trading plan) as the very flat trading and similar maps that to a diverse portfolio of commodity futures, combined with very impressive results to give.

Equally important is much reduced, revealing the diversification of the capital, and in this case, we saw impressive results in the 6 quarters, according to market Club trading in range of assets.

The video you can see how trading the selected for their historical record of strong and long term trends and Trade Triangle technology, using a particular conditions, it is possible to obtain very good results.

The selected conditions were corn (CBOT_C), wheat (CBOT_W), soybeans (CBOT_ZS), crude oil (NYMEX_CL), gold (XAUUSDO), and finally the dollar index (NYBOT_DX).

I was very impressed by how the video clearly demonstrates the adoption of this technology, either to go long the Clear signals (buy) or to go to short (sell), depending on the direction and color of the triangle.

Green triangle pointing up indicates the Buy signal, even if the downward pointing red triangle to sell signal.

Key in this technology is, how you can combine the weekly and daily signals. The weekly triangle allows you to provide your own development and the scheduling of the triangle are used to trade daily.

All I can say is that the entire group of mainly agricultural commodities, diversification of the results is very impressive and market Club approach allows you to filter your online stores, to stand back and wait until the right opportunity.

It also reduces the risk of a comprehensive approach to help you.

As we shall try to explain the still only sit back and enjoy the words, the video below.

All good

Marianna Gomes
commodity trading today, on behalf of the

http://diversifytradingvideo.commoditycrunch.com

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