Video Tutorial with Jerry Robinson There are two major approaches to stock analysis: technical analysis and fundamental analysis. On this week’s live coaching call, I spent some time explaining the difference between these two approaches to stock analysis....
America Distracted by Cheap Money as World War 3 Looms
Plus, what’s next for U.S. stocks?
Hit the play button above and read along below…
Bernanke: ‘It All Depends on the Data’
First, Jerry Robinson provides his commentary on Ben Bernanke’s three-step process for ending QE as stated during his testimony before Congress this week.
Bernanke believes that current Fed policy is gradually improving the overall economy. He thinks that by year’s end, the Fed will be able to taper its current QE program. However, since the Fed is one of the main reasons we got into an economic crisis in the first place, we seriously doubt that the central bank can get us out of it.
Bernanke says the tapering of quantitative easing “all depends on the data.”
If the data is the ultimate determining factor for choosing to cut QE, then I believe we will be getting an increase on QE.
This economy is sick. It is a paper economy. Everything in this paper-based economy is based upon faith… that is, the full faith and credit of the federal government. We put faith in the idea that the government and the Fed will keep the value of the dollar high by keeping it in short supply.
But what is a dollar really worth? Does it have any intrinsic value? I am holding a piece of silver in my hand and it feels so good. Silver is real money and has been used as money for ages. In fact, silver is the same word as Money in the Hebrew language!
Hebrew: “Kesef” (It means “money” and also “silver”)
Anyway, back to this withering economy.
This economy has been sustained purely on life support as the Fed pumps $1 trillion per year into the government coffers.
Our deadbeat government is living like a welfare queen.
America is spread out all across the world. The cost of the empire is crushing. Its much like the ancient Roman Empire. The Caesars were snakes that maintained lifestyles of luxury as the masses were crushed under the weight of heavy taxation and rampant inflation. Ancient Rome built a vast empire spanning from Spain to the Sinai. But as they grew larger, they became increasingly vulnerable. Soon their enormous size became their Achilles heel. One way to destroy your enemy in this high-stakes geopolitical chess game is to spur them on to spend themselves into oblivion on absolutely fruitless endeavors.
Have our enemies succeeded in an effort to get the U.S. to overspend on fruitless endeavors?
Your money is debt. It’s a hard truth. It was a hard truth for the ancient Romans as they watched their cities burn. They had built wonderful lives of seeming stability. As Roman citizens, they were on top of the world. The world feared Rome because it was a fierce enemy. No army could defeat the full force and fury of the ancient Roman army. Unlike many of the armies in ancient times, the Roman legions were composed of professional soldiers. And they were paid. And while they were often outnumbered, they managed to maintain an empire in a time of great regional turmoil for centuries.
Sadly, America, like Rome, has also overextended itself. It is too spread out across the globe. As America has been busy attempting to solve the world’s problems, its own internal problems have erupted like a volcano.
Do you remember the market crash of 2007-08?
Those were dark days. And quite frankly, scary days. And I was one of the few voices issuing a major warning prior to the crash. We came out with a free seminar called: The Perfect Storm. And that is exactly what 2007-2008 was. It was like a domino effect.
And we are now on the cusp of yet another major economic crash.
The policy put forth by the Federal Reserve is directly responsible for the boom and bust cycle our economy has been experiencing for a century now. Where are we in this cycle? We are experiencing a boom.
And what comes after a boom in this crazy world where the Fed makes the rules?
You better believe the bust is coming. Oh, it will come with a vengeance. The greedy “banksters” who are currently bidding up the financial markets will exit the market in advance of the most dramatic decline we have ever seen.
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Here at FTMDaily, we use a market indicator system to tell us when to get in the market, and more importantly, when to get OUT. It’s a simple green, yellow, red alert system for the stock market.
This alert system called the 2008 crisis. And I trust that it will get me out in time as it has faithfully in the past. At the root of the system, the plumbing if you will, is an analysis of supply and demand figures from the markets. On Wall Street they call it volume. Big institutional investors leave easily identifiable traces of their movements through a simple reading of a stock chart with both the price and the volume. It is amazing what you can read from a chart.
But back to the coming market crash…
Its coming. Its hardwired into the system. Fractional-reserve banking, which is just a fancy term for how our banking system really works, is like a game of musical chairs. It’s a complete fraud.
When will the American people wake up and realize this?
You’ve played musical chairs… And so you know that somebody has to lose. Similarly, foreclosures, bankruptcies, and defaults must occur in our current financial system, as not everyone can win. There will be losers.
So, how do you win in this game? Its just like any game. If you want to win, you must begin by learning the rules of the game.
What are the rules of the game? You can find them in the federal IRS tax code, but we’ll save that for another show.
Another steep market decline is on the horizon. I can’t tell you when it will occur. And don’t trust anyone who tells you he can.
There are only two kinds of people that can give you the date of the next crash:
1) People with insider information who will soon be going to jail.
2) And complete hucksters who lurk on nearly every corner of the internet, ready to take your cash for their garbage content.
I am a trend follower… what they call a trend trader.
I trade and invest with the current trends. I don’t claim to know what the trend will be in the future, but I follow the trend that is currently happening. When the market’s going down, I like to short the major indices and a few select stocks. You can use options, stocks, and my favorite way: ETFs. (ETF stands for exchange traded fund.) These are like mutual funds in that they are composed of a basket of stocks. But ETFs go one step further. They trade on the stock exchanges just like a stock. I love using ETFs for shorting purposes as they don’t bite nearly as bad as when I am wrong on shorting a stock!
Now, as a trend trader, I am currently riding the market up — and have been for some time. I don’t know when the winds will change, but they will.
And when the bust comes, guess what I am going to do?
I am going to change my investing strategy from buying long to shorting. And with the abundance of ETFs that are available today, it is possible to buy an ETF whose price goes up when the market goes down. (If you like to trade ETFs like me, check out our subscribers-only ETF Cheat Sheet here.)
I plan to profit from this madness. More millionaires were made during the Great Depression than in any other time in American history.
But the really big money is not going to be made in stocks. It is going to come from the dramatic rise in the prices of precious metals.
Tom Cloud joins us for his weekly Precious Metals Update. In this segment, Tom discusses the impact Fed Chairman Ben Bernanke’s testimony before Congress will have upon the price of gold and silver. We continue to see delayed delivery times of silver coins from both the U.S. and Canadian Mints. These delays show evidence of the continued demand for physical silver. Listen as Tom explains more.
Americans Obsessed with Zimmerman Trial as Russia Stages Largest Military Drill Since Soviet Era
You can probably feel it… war is in the air. More so than I can ever remember.
This week, as the media attempted to start all out race riots across America with the outcome of the George Zimmerman case, the world outside of the U.S. began pounding the war drums.
Yes, Washington’s lapdog corporate-owned media did what they do best. That is, creating a smokescreen to distract and disorient the American people with racial tensions. After all, the Zimmerman trial brought big bucks to the mainstream outlets in need of some good old summertime ratings.
And did you notice that virtually EVERYONE had an opinion on the George Zimmerman case?
Do you know why?
Because this is the kind of story that this “Jerry Springer generation” of Americans can really sink their teeth into…
Oh, but give them a good racial drama, Jerry Springer-style, and the American people suddenly develop an opinion.
Friends, the psychopaths running this country are destroying your personal freedoms at an unprecedented pace as they use their media outlets to smokescreen you to what is really occurring in this world.
And the way that they have been able to succeed to the point that they have is due to an American population that is completely uninformed.
I have received emails asking me what I thought about the George Zimmerman case. Did I think he was innocent or guilty?
And while my prayers are with the Martin and Zimmerman family, I must admit, I was too busy watching the Middle East go up in flames and watching the Russian military stage the largest military drill since the Soviet-era to stop and form an opinion about whether or not the left is using the race card.
The U.S. media virtually ignored most of the most important news stories this week, as usual. (Sign up for our daily email news briefing to get REAL news in your inbox everyday.)
In fact, let’s talk about Russia for a moment. As you know, NSA whistleblower, Edward Snowden, is still in the transit terminal of the Moscow airport where he has been living for three weeks.
The U.S. wants Snowden bad. Not because he has posed a legitimate threat to national security. That is another U.S. mainstream media lie. To me, Snowden is one of the most courageous men of our generation. He placed his entire life on the line, knowing the extreme torture that would await him at the hands of the United States if he were captured.
Some people have said: What do you mean? Snowden is a coward. He should have stayed in the country and faced the music.
That is simply absurd.
But don’t take my word for it.
Just ask William Binney, former highly-placed intelligence official with the NSA who turned whistleblower and resigned on October 31, 2001, after more than 30 years with the agency.
Binney blew the whistle on the creeps running these unconstitutional and illegal snooping operations at the NSA by providing key information to the American public on the NSA’s giant data center currently under construction in Bluffdale, Utah, where the NSA will have virtually unlimited ability to track and store all phone calls, google searches, emails, etc. from around the world.
But his testimony fell mostly on deaf ears in the corporate-owned media.
Or ask Thomas Drake, a former senior NSA executive and highly decorated veteran of the U.S. Air Force and Navy who blew the whistle on the NSA claiming that the government was committing grave crimes against the American people through its intrusive data gathering schemes.
The story that Edward Snowden is telling is not new.
The only difference? Snowden got away with proof. You see, the handful of whistleblowers who have escaped the NSA have only had a tale to tell. It was up to the American public to believe it or not.
But when Snowden fled his home in Hawaii, he got away with a massive amount of information that proves without a shadow of a doubt that the NSA has been violating the privacy of not only every American citizen, but many citizens, public officials, and corporations from around the world.
The top officials within the U.S. military-industrial complex want Snowden because he has exposed them.
Say what you want about Edward Snowden, but the man has more guts than anyone I have ever seen. He is standing up to America’s bloodthirsty military-industrial complex the only way that he possibly can… from a distance. The fact that he is stuck in Russia, however, has put U.S.-Russia relations on ice.
Apparently, last Friday, President Obama and Russian President Putin spoke by phone about Snowden. No doubt, Obama was placing pressure on Putin to hand Snowden over U.S. authorities. Not only did Putin reject Obama’s request, but he went out the same evening and called the largest surprise military drill in Russia since the Soviet era, involving over 160,000 troops, 5,000 tanks and armored vehicles, 130 aircraft and 70 Pacific Fleet warships.
But I don’t think Snowden was the primary reason for Russia’s massive surprise military drill. Instead, I believe that Russia’s belligerence has more to do with the events unfolding in Syria.
The Build-Up to World War III
Like I said at the outset of today’s show, I believe that the world is closer to the brink of all-out world war than at any other time in my life.
There are wars and rumors of wars, and tensions are rising.
This week, the United Nations reported that approximately 5,000 people are dying each month in Syria due to the civil war that is ripping apart their country.
Tensions between Japan and its neighbors China and Russia are rising.
Here’s a report out of Tokyo:
“Japan’s Air Self-Defense Force had to scramble fighter jets in response to flights by Russian military aircraft near Japanese airspace and over the disputed Kuril Islands on Monday”
For years, Japan was denied the ability to build up its military in the wake of World War II by a Western treaty.
However, all that is changing now as Japan has once again begun flexing its military muscles and has become rather belligerent towards China and Russia over territorial disputes in the international waters that separate them.
And of course, tensions remain high between Israel and Iran.
The U.S. has long been planning a hot war with Iran due to fears over the country being able to create a nuclear bomb. Israel has threatened to strike Iran before they are able to develop such a weapon.
But after the bumbling mess that Bush got us into in Iraq, the U.S. is weary of launching another pre-emptive war based on faulty intelligence claims of nuclear weapon capability. But despite all kinds of punitive measures, such as stiff economic sanctions and ample provocation, Iran has failed to strike first.
And here is where I think Syria comes into play.
The West has been attempting to topple the Syrian government and its Alawite leader, Bashar Al-Assad, since the beginning of the Arab Spring. The conflict in Syria began back in March of 2011 with some relatively small protests. But by April of 2011, the protests had spread nationwide in Syria. After Assad tried to squash the protests through brute military force, the protests morphed into an armed rebellion, which has left approximately 100,000 people dead.
The U.S. and NATO got tangled up into this mess last year when they began providing non-lethal military aid to the Syrian rebels. But over the last several weeks, numerous reports have come out showing that the both the U.S. and Britain have been providing more than just non-lethal military aid to the Syrian rebel groups, which include elements of Al-Qaeda and other terrorist organizations. There was even a report released last week that some Taliban forces had recently joined the Syrian rebels in their fight against the Assad regime, but we were unable to verify those reports.
As of late, there have been reports of stashes of chemical weapons being found around the country.
Regardless, the point is, this: What is the Obama administration doing in Syria?
Does anyone have a problem with the U.S. providing aid and comfort to members of Al Qaeda and other known terrorist groups (and even possibly the Taliban) in this Syrian conflict?
If you believe the government’s official story about 9/11, then you know that Osama Bin Laden took the fall for the tragedy of that day, despite the fact that our own FBI never charged him with any crime relating to 9/11 due to a complete lack of evidence.
Over the years, geopolitical analysts, even some on this very show, have told us that Osama Bin Laden was once allied with the U.S. and received aid and comfort when the U.S. was financing the Afghan rebels as they stood up against a Soviet invasion throughout the 1980s.
How do we know that we aren’t throwing money and weapons at the next Osama Bin Laden wanna be in Syria right now?
And if I had a son or daughter who died in the attacks of 9/11, or in Iraq at the hands of Al Qaeda, or in Afghanistan at the hands of the Taliban, and then I saw the U.S. snuggling up with these groups telling me they were the good guys in Syria, I would probably lose my mind!
So, what’s Obama’s end game here?
What is it about Syria?
Well, back in 2005-2006, Iran signed a mutual defense pact with Syria, in which both countries vowed to defend the other in a time of war.
Essentially, I believe that Obama may be trying to engage Iran through a technicality. For years, the U.S. has failed to provoke Iran into a direct confrontation, so why not apply pressure to one of their allies (Syria). If Syria breaks and retaliates, then the U.S. and NATO could then claim authority to engage the Syrian military head on, and this of course, would trigger the terms of the mutual defense pact, essentially drawing Iran out into a fight that the U.S. has long desired.
Now why would the U.S. want a fight with Iran? The petrodollar system.
(see video below for a full explanation of the tensions between the U.S. and Iran that date back to the 1950’s).
Here’s the problem… Both China and Russia are firmly allied with Iran, and to a lesser extent, Syria. Syria is much more strategically important to Russia than it is to China as Syria provides a buffer from Western military forces in the greater Middle East.
While Iran is bound to engage Western military forces in battle if they invade Syria, Russia and China have both threatened to support Syria and/or Iran as they perceive these countries to be vital to their national interests.
So, here’s my point… I believe that Obama is seeking to provoke a fight with Russia, China, and Iran by way of Syria.
Now, back to Edward Snowden for a minute. Remember, he is stuck in Moscow and Putin refuses to give him up.
U.S. Defense and Intelligence officials are piping mad and want Obama to apply more pressure to Russia in order to get Snowden back stateside.
Oh yeah, and when Obama was in Africa a few weeks ago, reporters asked him if he was going to go after Snowden. Obama responded by saying that he was “not going to scramble U.S. fighter jets for a 29-year old hacker.”
Well, France, Italy, Spain, and Portugal refused airspace to the plane of Bolivian head of state, Evo Morales, as he was travelling on his way back home from Russia — simply because they suspected that Snowden was on board. Morales was rightfully outraged and demanded an explanation. It turns out the U.S. had directed these European countries to deny Morales access to their airspace.
Friends, the world is on the cusp of another major world war. In fact, I think that the history books will show that we have already entered the pre-stages of this coming war right here in 2013.
Whatever you do, do not go to sleep now. And if you have been sleeping, it is time to wake up to the realities facing our nation.
America is bankrupt and we are living at the end of an empire. Historically speaking, life at the end of an empire is the most dangerous time to be alive. Nations do crazy things when they are on the ropes.
Madmen are running the country. Decorated five-star general and former President Dwight D. Eisenhower warned against what he called the military-industrial complex, the effects of which we are seeing in almost every foreign relations news headline today.
In conclusion, I just want to play President Eisenhower’s warning for you. I know I have probably played this on air before. But his words have never been more true than they are today. And the threat that these unelected national security officials at the NSA, the CIA, and in the upper ranks of the U.S. military pose not only to the world, but to you and I, has never been greater. They are intoxicated on their own power. They operate under the cover of darkness. And they will destroy all who seek to expose them.
“In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the militaryindustrial complex. The potential for the disastrous rise of misplaced power exists and will persist. We must never let the weight of this combination endanger our liberties or democratic processes. We should take nothing for granted. Only an alert and knowledgeable citizenry can compel the proper meshing of the huge industrial and military machinery of defense with our peaceful methods and goals, so that security and liberty may prosper together.” – President Dwight D. Eisenhower, 1961
In this week’s Retirement Minute segment, contributor John Bearss discusses the greatest asset in people’s lives. Usually when asked, “What is your greatest asset?” most people would say their home, their 401(k), or their IRA. The truth is, during a person’s working years, their greatest asset is: their ability to earn an income.
According to the National Safety Council, there is a 1 in 21 chance that you will have a disabling accident. No estate or financial plan can be considered complete unless there has been an evaluation of the risks of disability. Listen as John discusses how you can protect your greatest asset.
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