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Why There Won’t Be a Chinese Collapse…



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$26,000 Worth of Financial Research – Or a Cup of Coffee?

This is why China should scare the hell out of you

We now believe and can prove with our research beyond any reasonable doubt – that the Chinese Government has recently put into place a covert plan. The result of this plan is simple… The extraction of enormous sums of money from both the United States government – and ordinary citizens like you and me. I’m sure you think this sounds impossible. But please take a look at the facts for yourself. See S&A Founder Porter Stansberry’s complete investigation here


March 7, 2012




The Real China Story: It’s What Premier Wen Didn’t Say That Matters


By Keith Fitz-Gerald, Chief Investment Strategist

According to Premier Wen Jiabao on Monday, China is only going to grow at 7.5% this year.

But this isn’t the bombshell most Western analysts think it is-even though the markets sold off on the day and may continue their temper tantrum later this week.

It’s actually what Premier Wen didn’t say that really matters. As is so often the case in China, it’s what goes on behind the scene that is far more interesting – and actionable.

In that sense, Premier Wen’s comments aren’t really news at all, but rather recognition of the symbolic priorities attached to Chinese growth.

As I have talked about at length in the past, China needs to do three things this year: 1) keep growth in line, 2) promote monetary stability and 3) be flexible with regard to inflation.

What makes Wen’s 7.5% GDP figure significant is that in dropping it by half a percent, Premier Wen is not saying, but, in fact, telegraphing two things:

  • China’s domestic growth priorities have now trumped growth through exports and manufacturing in terms of relative importance; and,
  • The Communist Party expects to shift spending to lower brow projects like ordinary train lines, rural roads, education and technical infrastructure.

Having spent more than 20 years doing business in Asia, I’ve learned that Chinese leaders almost never say anything in public they haven’t already baked into the cake.

This stands in stark contrast to our own politicians who frequently write checks with their mouths that they can’t possibly cash.

Understanding the China Story

No. China’s leaders are acutely aware of “face” and the risks of losing it. So it’s what hasn’t been said that’s actually far more important here.

The real message is that China expects to maintain growth above 6%, the internal Party Elite’s real target, and continue to develop employment opportunities that will keep its 1.3 billion people fed, clothed and housed – so they don’t revolt.

Never mind Iran’s “Red Line.” This is the one that matters.

Understand the importance of 6% and you will understand China in a way that Washington doesn’t.

Exports, imports, the yuan, the ghost cities, and hard landings…

None of these things hold a candle to what Beijing considers its most important issue–ensuring China’s own survival.

To continue reading, please click here…

————————————————————————————————-

Time for the Truth

What you’re about to see today comes directly from Dr. Kent Moors – Big Oil’s go-to energy consultant. He’s been waiting to pull the trigger on this one for months. And now it’s time. So get ready… He’s going to ask you to forget everything you’ve heard about oil lately. The pundits, as you’ll see, don’t understand what’s really happening. He, of course, does. And now he’s taking the true oil story public. This is big
————————————————————————————————


A Flash Crash, Fat Fingers, and Positioning for a Correction

By Shah Gilani, Capital Waves Strategist

Speculation is running rampant about what really happened to the markets last week.

In case you missed it, as Fed Chairman Ben Bernanke was chatting up Congressional clowns last Wednesday morning, Treasury bond prices collapsed in one minute flat, and gold dropped 3.73% in less than an hour, ending $90 an ounce (or 6%) lower.

Was it a “ghost in the machine” flash crash?

Was it a “fat finger” error?

What happened?

Starting at 10:40 a.m. on Wednesday morning, sell orders began cascading into the 10-year Treasury bond pit at the Chicago Merc. The heaviest selling occurred between 10:43 and 10:44, but continued until 10:54.

A massive 80,000 contracts for June delivery were dumped in the pit, followed by another 47,000 contracts. While another 52,000 contracts of five-year note futures were simultaneously dumped.

The price action was so heavy, the 10-year yield rose from 1.94% to 2.01% in a flash.

Over at the gold pit, some 31 tons of gold was sold, rather quickly.

Turns out, it wasn’t a fat finger. You know, a fat finger – when someone accidentally types a mistake into a trading computer. Like, maybe they were supposed to type in a sell order for 8,000 contracts, and they hit the zero key one time too many, and they sell 80,000 contracts.

Well, according the Merc, it wasn’t a fat finger error. They were all proper trades.

So if it wasn’t a fat finger, was it a flash crash caused by some computer programs doing their algo thing and unloading both barrels?

No, that’s not likely, either.

The truth is, we still don’t know exactly why it happened.

But I’m going to tell you what I think it was…

To continue reading, please click here…


I Really Wish You’d Bought This Stock

A Message from William Patalon III, Executive Editor

One morning a couple weeks ago, our e-commerce director handed me a stack of printouts – each one a glowing e-mail from a Private Briefing subscriber.

“It looks like they made some serious cash on that recommendation,” my colleague told me. “Bill, there are dozens more. I’ve never seen anything even close to this.”

He was referring to a biotech stock I had recommended only one month before.
The company crushed analyst estimates – just as we predicted. In only 30 days, its shares zoomed as much as 60%.

Happy e-mails have been rolling in ever since …
Charles P. said:
“To say that I am happy would be an understatement”

Steve T. said:
“I jumped on it and have been enjoying the ride up.”

Richard P., a California software expert, told me:
“The recommendations and insight [your experts have] had is spot on. Your service is well worth the money… thank you!”

If you still haven’t joined Private Briefing, you’re missing this and a whole lot more.

Since that service was launched only six months ago, we’ve given our readers 41 winners – including 24 for double-digit gains. It’s not surprising. After all, I cherry pick these recommendations from our top analysts – including Keith Fitz-Gerald, Dr. Kent Moors, Shah Gilani and Peter Krauth.

The best part: It costs only $5.

to see what we have for you today. Don’t miss the next winner.



The VIX Indicator: What this Contrarian Index is Telling Us Now

By Don Miller, Contributing Writer


Most investors think of the VIX Indicator (VIX) as the “fear gauge.”

True to form, the old saying with the VIX is, “When the VIX is high, it’s time to buy.”

But experts look at the VIX as much more than just an index.

They view the VIX as possibly one of the best contrarian indicators in the business.

While most investors are scrambling to figure out whether the market’s headed up or down, savvy pros use the VIX both as means of protection and a source of profit.

“It gives you an idea of how uneasy people are about the markets,” Joe Levin, vice president of product development at the Chicago Board of Options Exchange (CBOE) told CNNMoney.

That is, it tells you whether or not the markets have reached an extreme level of sentiment – either bullish or bearish.

More often than not, it is the action in the VIX that signals major market tops and bottoms.

But before we get into how to use the VIX, we need to understand what the VIX actually is.

To continue reading, please click here…

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Profit From Today’s Apple Announcement


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KEY ECONOMIC REPORTS THIS WEEK

Release Date
3/5
Pending home sales index (1/12). Texas manufacturing index (2/12).
3/6

None scheduled

3/7
ADP employment (2/12); Productivity (4Q); Unit labor costs (4Q); Consumer credit (1/12)
3/8
Weekly jobless claims
3/9
Nonfarm payrolls (2/12); Unemployment rate (2/12); Average hourly earnings (2/12); Trade deficit (1/12); Wholesale inventories (1/12)

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