How to survive the Global Chaos of 2014

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Hot off today's Newsletter Presses:

The Demise of American Yield

By Chad Shoop, Editor of Pure Income

Dear Sovereign Investor,

The smart money, aka Wall Street, typically sets the tone in the market, leaving retail investors a step behind.

At the beginning of August, however, retail investors tried to beat smart money to the punch by exiting high-yielding bonds first, causing the price to decline rapidly.

But Wall Street wasn’t going to let that happen. Instead of hitting the exits and being a day late to the selloff, the big institutions kicked off their own rally and bought up high-yielding bonds. Institutional players poured $650 million into the junk bond market in just one week, ending a month of outflows.

There is much more to this than just “buying the dip.” It actually speaks to what I have been telling you about over the last few months … low interest rates are here to stay.

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The primary reason retail investors were getting jittery over their junk bond holdings is the inevitable interest-rate rise that is coming down the pike from the Fed as early as next year. Higher rates will send many traders rushing into higher rated bonds because of their improved yield and attractive security in comparison to junk bonds. As a result, junk bonds would then suffer a sharp selloff, crushing the value of the junk bonds anyone might still be holding.

But that’s where they had a fundamental lapse in judgment. Yes, the Fed will raise rates at some point from these historic lows, but the extent of that rise will be practically irrelevant until mid-2016 or later.
The Disappointing Rate-Hike Cycle

This goes back to several points I and our investment director Jeff Opdyke have touched on recently — the Fed simply cannot raise rates by any significant amount.

All the talk is on when the Fed will raise rates. But what investors and analysts should really focus on is how much the Fed will raise rates. If rates were at 3% by the end of 2015, that would be a significant move from today’s near 0%. But I believe interest rates will be barely off of 0%, and almost definitely below 1% by the end of 2015.

The United States simply can’t afford higher interest rates. The government’s interest payments on our $17 trillion debt would skyrocket. If rates were to revert to the Fed’s long-run average, our interest payments on this debt would nearly double, and that’s just assuming that we don’t accumulate more debt.

Rising interest rates alone can put our struggling housing market on the brink of collapse, while our country teeters on the edge of an economic collapse. And considering how reactionary our Fed is to the stock market, rising rates would cause investors to flee stocks, causing a market crash — something the Fed doves don’t want on their watch.

Even the Fed itself sees rates approaching only 2% in 2016 — and that is likely to be pushed back to 2017 or possibly even 2018 because of the factors listed above.

The Fed continues to find reasons to keep rates low. Whether it is current inflation, long-run inflation, unemployment or labor slack, our economy is not ready for increasing rates, according to Fed Chair Janet Yellen and the rest of her posse.

The bottom line is that the United States simply cannot afford for rates to rise significantly. Not only does this mean the hunt for yield is still on in equity markets, but for traditional income assets as well — such as Treasurys, CDs or money market accounts.

Junk bonds are fetching a yield of less than 6%. While that sounds attractive, remember this is junk-rated debt and tends to be extremely volatile, as demonstrated by the recent selloff. The 10-year Treasury Note is currently yielding 2.4%, but this too is vulnerable, like junk bonds, to the upcoming rise in interest rates and investors overreacting — failing to realize that as rates rise, the price of bonds and Treasury Notes declines, reducing your overall gains.

Most of your banking products, money market accounts and CDs are paying next to nothing, leaving you with few traditional places to collect income.  But we recently came across a product that is outpacing the national average money market account yield by more than ninefold.
A Yield That’s Over Nine Times the National Average

Trying to find just one good, decent yielding money market account can be challenging. Virtually every institution has reduced the yield to almost zero — the national average is just 0.11%. But that’s exactly why EverBank designed its unique Yield Pledge® Money Market Account. For first-time accountholders, this account has a first-year annual percentage yield (APY) that is roughly nine times the national average for balances up to $50,000.

EverBank understands that yield will continue to play an important role for income seekers and that the opportunities out there are extremely limited — especially in these standard accounts that most institutions have reduced to a near-zero yield.

While we have a marketing agreement with EverBank, I recommend this product personally because I believe it’s a fundamentally sound way to grab higher yield given the current economic environment.

Regards,

Chad Shoop
Editor, Pure Income

P.S. EverBank’s Yield Pledge Money Market Account provides you with a first-year APY well above the national average, giving you access to the steady income you’re searching for in this low interest-rate environment.

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The Government Guilt Trip for Your Money
By Jocelynn Smith, Managing Editor

Dear Sovereign Investor,

Burger King (NYSE:BKW) was crucified in the media this week after it announced that it was not only purchasing Canadian company Tim Hortons (NYSE:THI) but that it was also moving its address to Canada, benefitting from a so-called tax inversion.

President Obama calls it something else — an “unpatriotic loophole.”

But, of course he would say that, as ridiculous as it is. He has to.

First, Burger King pays an average corporate tax of 27.5% compared with Tim Hortons’ average tax of 27% in Canada. Not a huge difference. However, Burger King will benefit because it won’t be paying American taxes on what it earns in South Africa or Colombia or the 93 other countries where it has franchises. American companies share this taxation “privilege” with only one other country in the world — Libya.

And second, the idea that a tax inversion is an “unpatriotic loophole” is just silly. What could be more American than saving a few bucks? Are you telling me that Ohio Senator Sherrod Brown — the gentleman calling for a boycott of Burger King because of its move to Canada — doesn’t take advantage of every deduction and loophole available to him when he files his taxes every year? Are the rest of Americans who take joy in cutting down their tax liability “unpatriotic” as well?

When you consider that the U.S. government has tallied up a debt of more than $17 trillion and doesn’t show any sign of stopping, do you want to throw your hard-earned money down that bottomless pit to nowhere?

No, I didn’t think so.

As for the companies that are seeking a tax inversion to cut down their tax liabilities, this isn’t about patriotism. It’s business. And the money these companies don’t toss down the bottomless pit of government spending can be used for brilliant things such as reinvesting and growing their business, creating new jobs, paying higher wages to employees and even redistributing those funds to shareholders in the form of dividends.

Protecting your wealth isn’t unpatriotic, but responsible and wise — and it’s not unpatriotic to look outside the U.S. for these kinds of breaks. The American government is in a bind with debt and it can’t see a way out of it without the money it can grab from both corporations and individual citizens. We at the Sovereign Society remain steadfast in our resolve to find you the best asset protection avenues and investments that will keep your money in your pocket rather than Uncle Sam’s.

Before I forget to remind you, the editors and I will be headed down to Panama in a couple weeks for the Total Wealth Symposium. If you can’t join us, you still have a chance to register for the Total Wealth Symposium Live Stream! You’ll be able to hear all the latest and best asset protection tricks to preserve and grow your wealth. For more information, click here.

Regards,
Jocelynn Smith
Managing Editor

P.S. If you missed some of last week’s Sovereign ideas, please see our commentaries below:

The Demise of American Yield
http://thesovereigninvestor.com/diversified-investments/solution-to-americas-low-yield-environment/
Investors who are determined to stay in low-yield government bonds are going to be hurting through 2020 — if not longer. The U.S. debt is too high. Interest rates won’t — or rather, can’t — cross the glorious threshold of 5% we love and miss. But you don’t have to sit back while your wealth stagnates and the dollar inflates. Click here to read how you can generate income in America’s low-yield situation.

An Urgent Warning to Anyone With Retirement Savings or Home Equity ...
Buried deep on page 49 of the recent IMF report is a sinister plan for global wealth confiscation that will rob anybody with even “positive net worth”. Governments around the world are now using this to plot their next move. They’ll plunder retirement accounts and other assets. They’ll act swiftly and without warning so people have no time to flee. To discover the steps you can take right now to protect yourself, just click here.

Is America Becoming a Third World Country?
http://thesovereigninvestor.com/asset-protection/is-america-becoming-a-third-world-country/
Well, it certainly resembles one. Normally, you associate sketchy under-the-radar deals between politicians and corporations as a Third World problem. But America sports her fair share of political corruption. To learn how America has made a mockery of her name, and how crooked institutions like the SEC and Goldman Sachs violate “fair and equal treatment under the law,” click here.

Total Wealth Symposium LIVE
For the first time EVER, The Sovereign Society is live-streaming the 13th Annual Total Wealth Symposium straight to your computer. If you can’t make it to Panama City, you can still sign up for this special live stream and watch every single minute of the presentations. To discover how you can virtually attend the 13th Annual Total Wealth Symposium that’ll stream LIVE from Panama City September 17-20th, click here. But hurry, the opportunity to claim your spot expires soon.

Will There be Another Polar Vortex This Winter?
http://thesovereigninvestor.com/diversified-investments/will-there-be-another-polar-vortex-this-winter-2014/
You bet there will be. But what you may not know … is that we are entering a period that will make this weather cycle a much more common occurrence for many years to come. So get out your snow shovel. Dig that salt spreader out of the garage. Buy yourself a snow plow … and click here to learn about the weather cycle that has returned after being contained in the Arctic for 30 years.

Perverse Trading Trend Exposes Biggest Financial Scandal of All Time

After sifting through hundreds of financial documents — from archives spanning 22 years — this top investigative journalist has uncovered what must be one of the best-disguised paper trails in accounting history. Inside it lays a perverse trading trend which exposes a scandal of such magnitude — it promises to dwarf all those that came before it. To view the evidence he’s uncovered, click here…

Wealth Inequality Threatens Your Safety
http://thesovereigninvestor.com/economic-collapse-2/dangers-of-wealth-inequality-in-america/
You’ve seen it in the news. You’ve probably seen it in your cities, and maybe your public schools. Inequality marginalizes entire segments of society, driving people to do things they ordinarily wouldn’t, threatening your personal safety. This is the face of crime and violence in America, and as the gap in income inequality continues to spread, the economy will continue to weaken, and the masses will grow more desperate. Click here to read about what is happening in America.

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How to profit from Tsar Putin's grand plan for New Russian empire:

As drafted, the Putin ceasefire plan hands over much of southeast Ukraine to the rebels. Surprise, surprise.

I don't see how we stop those majority-Russian regions from breaking away. And maybe we shouldn't. After all, consider...
Tens of thousands of Russian troops are massed on the Ukrainian border. Ukraine is a short hop for Russian troops and planes; it's a long journey for U.S. forces.
The European Union has shown no stomach for standing up to Russia.
The crisis is a violent civil war in all but name. A cease-fire would at least stop the immediate suffering.
Except for one thing. Putin probably isn't going to stop with Ukraine. And that brings us to his long-term goal.

Long-Term Goal: Gobble up energy-rich former Soviet republics.

Andrey Illarionov is Putin's former top economic advisor and also served as Russia's representative to the G-8 group of industrialized nations. Months ago, he told the Swedish press that Putin has a grand plan. The scheme is to grab land in Ukraine and keep going.

Illarionov says Putin wants to retake Belarus. Then, he'll go on to grab the Baltic states of Latvia, Lithuania and Estonia, small nations along the Baltic Sea that were annexed by the Soviet Union in the 1940s.



The Baltic countries became free after the Soviet Union fell. All of them are home to large Russian populations.

Would Putin actually dare to do this? Well, we know that he feels threatened by NATO. You can see how he might want to create pro-Russian buffer states along the border.

And in the process, he can expand Russia's empire of energy. Belarus has energy resources and is a major transit route for Russian oil and gas exports. Lithuania sits on huge shale reserves. Latvia has potential oil deposits off its coast. And Estonia has huge oil shale deposits.

Estonia, Lithuania and Latvia joined NATO in 2004. And just recently, Estonia's president called for a permanent NATO base in his country. Meanwhile, President Obama visited Estonia to send the Russians a message.

And in a public speech, he warned that the U.S. and NATO would defend the Baltic states. Then again, that's what he said about Ukraine.

How to Profit From This Russian Land Grab

You can protect your portfolio and potentially profit from the brewing crisis.

One way is to invest in U.S. domestic oil and gas. After all, the Energy Information Administration reported U.S. oil output through June topped 8.5 million barrels per day for the first time in 28 years. That's a surge of 18% year over year.

So, there are fortunes to be made in U.S. oil and gas fields. Doubly so, if Russia presses another attack and Western powers slap it with sanctions.

And specifically, there is probably a bright future in liquefied natural gas (LNG). Europe imports 30% of natural gas from Russia. The good news is that U.S. companies are pushing ahead with plans for LNG export terminals. The U.S. could become a major natural gas supplier to Europe... and the world.

Sit tight - our relationship with Russia could be headed down a rocky road. But there will be plenty of ways to profit along the way.

All the best,

Sean Brodrick
for Free Market Café

[RichyRich]

25 - HSBC, United Kingdom

Well that's great, only one out of my three banks are on the list

Deutsche Bank and Raiffeisen are nowhere to be seen

[Manny]

Andrey Illarionov is Putin's former top economic advisor and also served as Russia's representative to the G-8 group of industrialized nations. Months ago, he told the Swedish press that Putin has a grand plan. The scheme is to grab land in Ukraine and keep going.

Illarionov says Putin wants to retake Belarus. Then, he'll go on to grab the Baltic states of Latvia, Lithuania and Estonia, small nations along the Baltic Sea that were annexed by the Soviet Union in the 1940s.

I'd like to see a link to any of that. Coz its all bollocks.

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http://finance.yahoo.com/news/map-ukraine-conflict-alarming-112109766.html

This is from BI not a partisan outlet... just reporting on Business Opportunities within the Chaos...

The Andrey Illarionov quote was in a news letter email so no web link otherwise I would have posted it as is my usual m.o. to share the sources of my information so we can all analyze from our own natural cynic's experiences.  I will try to dig it up and report the source... not a flaming partisan source to be sure just a business investments newsletter...  I posted it because it was in fact contrary to my own analysis that Belarus, all of the Stans, Azerbaijan and Georgia and the remainder of east Ukraine are much more attractive as potential annexation for RU than Estonia and Lativia and Lithuania which are more valuable as friendly business gateways to the EU...  The EU being one of Russia's largest customers for both energy and metals/commodities products in support of EU's advanced industries.

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Andrey Illarionov is Putin's former top economic advisor and also served as Russia's representative to the G-8 group of industrialized nations. Months ago, he told the Swedish press that Putin has a grand plan. The scheme is to grab land in Ukraine and keep going.

Illarionov says Putin wants to retake Belarus. Then, he'll go on to grab the Baltic states of Latvia, Lithuania and Estonia, small nations along the Baltic Sea that were annexed by the Soviet Union in the 1940s.

I'd like to see a link to any of that. Coz its all bollocks.

http://freemarketcafe.com/2014/09/profiting-from-russias-land-grab-oil-and-gas-investing/

See graphic about deep water license areas off of Crimea.

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http://freemarketcafe.com/2014/02/the-hidden-oil-kingdom/

Take Aways:

HOW YOU CAN DRILL FOR YOUR OWN PROFITS

There are a number of things you can do to get your slice of the Texas oil boom.

Invest in Oil Wells. Uncle Sam offers a tax break for this. President Obama keeps talking about taking this tax break away, but his chances of success are small. In any case, the tax break exists now. Investing in oil wells carries more risk than other investments, and it’s not for everyone. Still, for qualified investors, it can be very worthwhile.

Invest in Companies Drilling in Texas. There are a bunch of these companies. Some of the leaders include Pioneer Natural Resources (NYSE: PXD), Anadarko Petroleum Corp. (NYSE: APC) and Marathon Oil Corp. (NYSE: MRO). All three of these companies are experiencing solid production growth thanks to their Texas holdings.

Invest in Companies With Texas Pipelines. Once oil and natural gas are produced, they need to move out of Texas, or at least to a refinery. A short list of leading pipeline companies would include Kinder Morgan Energy Partners (NYSE: KMP), Magellan Midstream Partners (NYSE: MMP) and NuStar Energy (NYSE: NS). These companies pay nice dividends, too.

Do your own due diligence before buying anything. But whatever you do, don’t ignore the boom happening right now in Texas.

All the best,

Sean Brodrick
For Free Market Café

[MrMann]

He made the comments in an interview with Svenska Dagbladet.

Here's the Independent's re-reporting of it.

Whether or not it turns out to be true it's only speculation as Illarionov resigned in 2005.

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This weeks newsletter articles from:

The Sovereign Investor <info@thesovereigninvestor.com>

Robots: A New Defense Against Higher Wages

By Jocelynn Smith, Managing Editor

Dear Sovereign Investor,

Bad timing, fast-food strikers!

 At the start of September, fast-food workers in more than 100 cities staged protests demanding a $15 minimum wage.  While it is understandable that everyone wants to earn a livable wage, the timing of the strike couldn’t have been worse if they want to actually hold onto their jobs.

 More robots are replacing humans in the service sector around the globe. A restaurant in China is using more than a dozen robots to cook and deliver food, while the noodle robot can make twice as many noodles as a human chef and costs less than half the human chef. In Russia, the pizza drone is completing unmanned pizza deliveries. And our very own Jeff Opdyke has encountered self-service machines at a McDonald’s in Madrid, Spain. 

 And in the U.S., Momentum Machines announced that it has created a robot that can produce roughly 360 hamburgers in an hour.  That’s a hamburger every 10 seconds!  What’s more, the robot can slice the toppings just before serving it, creating an incredibly fresh sandwich. It will even drop your burger in a bag when it’s done preparing it, so it’s immediately ready for the customer.

 Want a “custom meat grind”? Momentum Machines reports that the next generation will offer custom patties.  How about a burger that’s 1/3 beef and 2/3 bison?  The robot will be able to do that, too.

 The robot isn’t enormous either. It takes up only 24 square feet — that’s smaller than the majority of assembly-line fast-food operations. (Look! They even save space!)

 Don’t forget, the robot is more sanitary and consistent. These robots don’t require health insurance or a career plan. They don’t get sick, need to leave early to pick-up kids or take a vacation.

 Raising wages significantly will have a ripple effect that will impact everyone and not for the better.  Prices will rise for all the goods we buy as owners cover the costs of those higher wages. And one of the quickest and potentially easiest ways for restaurant owners to save money will be to make a one-time payment (plus maintenance) to bring in a robot.

 In the long run, many workers will be squeezed out of a paycheck. Unless those let go can rely on or learn another set of skills — potentially even to work on the robots — unemployment will increase across the country, leaving more Americans dependent on a deeply indebted government … which will only become more desperate to snatch up funds from wherever it can find money.

 Attempting to artificially raise wages is never a good thing, because there’s always someone waiting to do the same job cheaper.  And this time, that someone just happens to be a robot.

 Regards,

 

 Jocelynn Smith
 Managing Editor

P.S. If you missed some of last week’s Sovereign ideas, please see our commentaries below:

Next Week’s Fed Meeting Could See a Rise in the Dollar
http://thesovereigninvestor.com/diversified-investments/next-weeks-fed-meeting-see-rise-dollar/
 The investment world will be on the edge of its seat next week as the Federal Reserve meets behind closed doors to discuss the end of Quantitative Easing next month and the upcoming rise in interest rates. It’s very possible they may announce the beginning of the interest rate hike, and with the EU suppressing their rates to bring strength to the European economy, we will likely see a momentary rise in the dollar. Click here to learn more.

How Will Obama React?

You are about to see a controversial video that shows details of what will soon become the biggest political scandal of the Obama administration. Once it hits the mainstream media, millions of unprepared Americans will hit rock bottom. How will Obama react? We're not sure. Maybe you can tell us what you think once you see it for yourself.

Ireland’s New Data Protection Commissioner is Responsible for Your Online Privacy
http://thesovereigninvestor.com/asset-protection/ireland-sets-big-tech-internet-privacy-policies/
Funny thing about Ireland — and the even funnier thing about national borders — is that the online privacy of much of the world is determined by policies set … in Ireland. And with the selection of a new Data Protection Commissioner just this past Wednesday, who knows how our online privacy is going to be affected. Click here to find out why this tiny country holds influence over your digital privacy.

An End to Organ Waiting Lists?
In a must-see interview, child prodigy and genius Dr. Heath King reveals the “Zenith Stock” that has the potential to completely reshape the healthcare industry. The potential to profit from this creative destruction is huge. Click here to learn more in this exclusive interview...

Elections in Sweden Could Destroy 20 Years of Progress
http://thesovereigninvestor.com/economic-collapse-2/swedish-general-election-could-destroy-progress/  Keep your eye on Sweden this weekend! On Sunday, the Swedes are holding their general election. Recent polls show the social democrats are the popular party … and a victory for them could mean Sweden goes back to being the social welfare state it was for most of the 20th century — you know, the same social welfare state whose economy collapsed on itself because, turns out, providing an entire country with a middle class life isn’t sustainable. Click here for the full story.

An Urgent Warning to Anyone With Retirement Savings or Home Equity...

Buried deep on page 49 of the recent IMF report is a sinister plan for global wealth confiscation that will rob anybody with even “positive net worth.” Governments around the world are now using this to plot their next move. They’ll plunder retirement accounts and other assets. They’ll act swiftly and without warning so people have no time to flee. To discover the steps you can take right now to protect yourself, just click here.

Trending in China: Two Reports, One Truth
http://thesovereigninvestor.com/commodities/china-releases-conflicting-reports-on-crop-production/
There are never any straight answers with China — so why should their weather reports be any different? In August, the official Chinese media released two reports saying that their agricultural output would be the worst it’s been in fifty years, and another saying it would be the best … ever. Maybe they’re just yanking our chain, or maybe they’re just being entirely unclear about an important matter that affects the entire world market. Click here to get our take on the matter.

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I noticed in the Ukraine Press discussions thread a comment bantied about the USA being on the verge of financial collapse...

http://www.forbes.com/sites/matthewherper/2014/09/10/medicines-manhattan-project-can-the-worlds-richest-doctor-fix-health-care/

I found this to be a fascinating article as I do cybersecurity and in both the financial, manufacturing, energy and healthcare sectors and this is simply an amazing story at how one Korean - South African MD came to the USA and in California has sold two companies for more that $4 Billion USD and is now revolutionizing both healthcare and cancer treatments worldwide with both rapid advances in genomics analysis and diagnostics (now treatments can be cusomized to your genome and individual cancers in a day or less with the Dr. Patrick Soon-Shiong, MD companies technologies - his currently privately held companies are valued at $7.7B and his net worth is estimated at over $12B USD and no one has ever heard of him outside the medical community...  in the late 90's I used to work for Dr. John Hamlamka mentioned in the article at CareGroup.Harvard.edu Harvard Longwood medical centers.

An excerpt follows - the entire article link above is a fascinating read...

On a typically perfect summer day in Los Angeles, Patrick Soon-Shiong, the richest doctor in the history of the world, is bunkered inside his clandestine headquarters (nestled behind a security gate so unobtrusive that Uber cars consistently miss it), ready to show around a kindred spirit. T. Denny Sanford, who made a $2.8 billion fortune selling high-interest-rate MasterCards to people with bad credit scores, is now in philanthropy mode, giving away most of his fortune to children’s charities and hospitals. And he’s come to see what’s been touted as the future of medicine.

So the point is with the world's very best and brightest coming to the USA and able to see their visions through to successful completion creating mega billions in new wealth as a result of and inspite of the incompetently rolled out Obamacare - well the financial collapse of the United States is just pure fantasy for those building their fortunes here...  like Mr. Charlie Ma;

"Charlie Ma's" "Alibaba" is about to raise over $20 Billion+ USD (The most actual cash proceeds ever raised in ANY IPO) this week selling IPO shares to the less than transparent "BABA" Cayman Islands Holding corp which will see a revenue share (but not share ownership of his IP) of Charlie Ma's 120+ web properties in his Alibaba/Taobao empire with over 280 Million Chinese users and poised to give Amazon a real run for its money - Alibaba-Taobao revenues currently exceed both Amazon and Ebay world wide...  (Yahoo is due to see a major pop as it was one of Ma's early investors). The new NYSE issued shares will "share" in the revenues however all licenses to operate all the web properties will remain in "Communist Red" China - yet every institutional investor is desperate to get a long term foothold into China so shares expected to bounce on the IPO this week...   Priced at approx 30 times forward earnings it is actually considered cheap as Amazon is currently at approx 70 times forward earnings by comparison. Curious how many members of the Beijing Politburo and their wives and daughters got in on the pre-ipo friends and families lists...

Only in America...

The Obamunists anti-constitutional crimes and severe overreaching have all but guaranteed a midterm conservative landslide in November 2014 and an Indy/Conservative regime change in 2016.

Quote from: d672 on September 14, 2014, 08:56:11 AM
Quote from: Manny on September 13, 2014, 10:23:35 PM


Yet. Another attempted colour revolution will come soon enough. Putin's recent comments shows he sees that too. He isn't dumb. The American foreign policy dream is for Putin to be overthrown, probably killed like Gaddafi and Hussein, and Russia dismantled and looted.


 Makes perfect sense! America is on the verge of financial collapse and they are going after Russia who has had over 20 years to recover and become a world power again.... instead of doing it in the 90's when Russia was on it's knees and the American economy was booming. Is this what you are trying to tell us?   

 C'mon Manny, America had plenty of opportunity to loot Russia when they were weak, it makes absolutely no sense to go after them now. You poor innocent victim Mr Putin is just doing what he is best at... deflecting people's attention so he can take what he wants from Ukraine. Pity so many people fall for it!

I think the article I just posted points out why now.

As for America being on the verge of financial collapse, that doesn't stop war.

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Mink...

Brilliant

http://www.businessinsider.com/grace-choi-mink-2014-9

However she has problems with authority figures and railed at the VCs when they dared to suggest she sell a mink makeup printer along with premium supplies (Great biz model has worked for HP for decades now)...  instead she insisted on giving away her solution for free on youtube and teaches other girls how to convert their own printers over for mink like results...

Here is a concept begging to be reverse engineered and perfected...

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The latest from the Wealth Creation epicenter of the universe:

http://www.businessinsider.com/7-new-startups-san-francisco-cant-stop-talking-about-2014-9

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Who to believe?

Monetary Sovereignty advocates that the USA with its modern electronic money systems can NEVER run out of money nor ever go broke;   http://en.wikipedia.org/wiki/User:Rodgermitchell

http://mythfighter.com/2014/08/13/debt-and-inflation-the-data-is-right-in-front-of-our-eyes-but-its-the-wrong-data/

http://mythfighter.com/2014/09/05/that-other-rich-guy-lie-you-often-hear-but-seldom-hear-about/

OR;

Doom and Gloom that America is circling the Drain with the Obamunists about to seize your last dollar dime and pennies...

The Truth About America’s Economy
By Erika Nolan, Executive Publisher of The Sovereign Society

Dear Sovereign Investor,

The people of Scotland are poised to regain control of their country and their future when they step into the voting booth on Thursday. By becoming an independent country again after three centuries of union with the United Kingdom, the Scots will have tighter control over how their taxes are used, with the hope that their money will actually address the needs of their people.

Americans are longing for that same sense of control. It seems as if each trip to the voting booth has left us with fewer rights and more debt. Each day, we are faced with new evidence of why we should fear the police, fear the spying of our government, fear the whims of our elected officials and fear for our ability to create a sustainable living.

Yet, while America slowly circles the drain, we’re not without options to take back our privacy and to protect our hard-earned wealth. That’s why I’ve flown to Panama this week …

The Number Says It All

Wall Street’s talking heads have been quick to announce that America’s economy has turned a corner and that we’re looking at smooth sailing ahead. They love to boast that our GDP grew by 4.2% in the second quarter after shrinking 2.1% in the first quarter. They point out that the unemployment rate has dropped to 6.1% from a peak of 10% in 2009 — never mind the fact that millions have dropped from the labor force simply because they couldn’t find a job.

In truth, the health of the United States can be summed up in one number:

$17.3 trillion.

How can the U.S. have any real hope of recovery when we have more than $17.3 trillion in debt? As a country, we owe more than our combined wealth!

What’s more, the $17.3 trillion doesn’t include our unfunded liabilities such as Social Security and Medicare — obligations that are still growing.

The fact is that our country cannot take positive steps forward until we finally climb out beneath this massive accumulation of debt. But the government is running out of options. They’ve tried devaluing the dollar so that it becomes nearly worthless paper, and we’ve seen that they can’t effectively trim the budget.

And that $17.3 trillion debt isn’t going anywhere.

But Washington still has one trick up its sleeve: A massive one-time wealth confiscation tax.

You Have a Choice

Despite some pretty GDP and employment numbers, America is in rough shape. Washington has been making some careful calculations. It knows what is in your bank and retirement accounts. A quick, one-night money grab from every account would help to get America’s debt down to manageable levels.

But you don’t have to allow the government to snatch up a portion of your wealth. You have a choice about how your wealth is spent and who is spending it.

That’s why I’ve come to the 13th Annual Total Wealth Symposium in Panama City, Panama. To survive the threat of confiscation as well as the attacks on our rights, we must release the security of doing what is familiar to us, so that we can grasp the opportunity to create even greater security in the new world that is emerging.

I have pulled together some of the greatest experts I have met over the years to discuss some of the most lucrative (and little-known) investments that are ripe for the picking. Attendees will learn how to tap into investments that are forbidden to most Americans, distance themselves from what’s quickly becoming a “federal police state” and experience a new and exciting life adventure.

You can choose to take control of your wealth and your rights. And the first step is understanding what options are available to you by looking beyond America.

To keep you up to date on all that’s happening at the Total Wealth Symposium, we have brought along Jocelynn Smith, Managing Editor for The Sovereign Investor Daily. Jocelynn will be sending back daily dispatches from the various sessions in Panama as well as posting regular tweets on our Twitter account and updates on Facebook. She’ll share the same secrets that attendees will be learning at the various sessions, so you won’t want to miss it.

Escape the Noose

Scotland’s upcoming vote is a harsh reminder that the voice of Americans has been muted. In the face of the growing debt, our government has attempted to tighten the noose around our necks, trapping our money and limiting our rights in the name of security.

But we still have a choice. We can still take control of our wealth and our future. Insights from the Total Wealth Symposium all week will put you on the right path to keeping your wealth out of the government’s hands and give you excellent ways to increase it over the next several months.

In Wealth & Prosperity,



Erika Nolan
Executive Publisher, The Sovereign Society

P.S. Understandably, Jocelynn won’t be able to include every secret, tip and trick she hears at the Total Wealth Symposium, but you don’t have to miss a single minute. The Confiscation Survival Kit includes all the videos and PowerPoint presentations so you can learn everything that the conference attendees learned. Catch every offshore investment tip, learn new ways to protect your assets, and discover great new opportunities to grow your wealth. For more information about the Confiscation Survival Kit, click here ...
https://orders.sovereignsociety.com/TWS2014KIT/E190Q966/index.htm?pageNumber=2

The Sovereign Investor Daily
55 NE 5th Avenue, Suite 200
Delray Beach, FL 33483

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From the Sovereign Society Total Wealth Conference going on in Panama City Panama right now:

The Battle to Defend Your Freedom

By Jocelynn Smith, Managing Editor of Sovereign Investor Daily

Dear Sovereign Investor,

A police siren woke me.

 As I lay there in bed, listening to the alarm, my first thought was: “Will this be the sound that constantly fills the air when America comes tumbling down?”

After a long day of talking to Total Wealth Symposium attendees, taking notes, answering questions and posting on Twitter, I passed out cold when I finally returned to my room late last night. But apparently the warning words from Jeff Opdyke, Erika Nolan and the other speakers were still ringing through my head as I slept.

 Most Americans are too frightened to consider what would happen if the economy crumbled, or if the government resorted to drastic measures to make up for its hideous errors.

 But the United States is slipping deeper into a crisis that it can’t escape without resorting to a massive wealth confiscation. And while police sirens may shatter the quiet night air many times in our future, there are still several ways you can protect yourself so that you can still sleep ...

Advertisement

Massive Asset Seizures Expected Imminently …

Whispers around the beltway are that President Obama could begin confiscating wealth from Americans of all income levels very soon.  Immediate action may be necessary to protect your hard-earned money from a cash grab the likes of which we haven’t seen in over 80 years. Full details available here …

The Total Wealth Symposium has had some insightful speakers discussing the various ways you can protect your assets from the wealth confiscation tax that is coming to America. Since beginning with The Sovereign Society just under a year ago, I’ve read Jeff’s advice on purchasing gold, coins, real estate and stamps as a way to preserve, protect and grow your wealth. 

 So speaker Stephen Hofer from P.G. Service caught me by the ear when he suggested another hard asset, easy to carry and easy to hide — colored diamonds. 

 Mr. Hofer, an expert in colored diamonds, explained that colored diamonds are more valuable on a per carat basis than pure, colorless diamonds.

 But the competition for these rare and unique gems is fierce, as you can probably imagine. You see, the supply of high-quality colored diamonds is extremely small and getting smaller all the time. What’s more, as the most concentrated form of wealth in the world, colored diamonds are viewed by the wealthy as the ultimate status symbol, so demand is very high for these precious stones.

 But while many large colored diamonds sell for millions of dollars, there are many small stones with unique, brilliant colors that can be found for only thousands, allowing even amateur collectors an entrance into the diamond market. Mr. Hofer did warn that a collector needs to have patience, be persistent, and have a bit of luck on his side. 

 Collecting colored diamonds might not be as easy as picking up a few hundred shares of a company or even a handful of gold coins, but the end result is owning one-of-a-kind gems that are positively exquisite, easy to keep track of, and undoubtedly bound to retain their value.

 Mr. Hofer went on to explain in more detail which of the 14 color varieties are rarest and in high demand, but I didn’t have a chance to get down all the details.

Freedom Insurance

Another speaker that presented some eye-opening information was Daniel Perron, a Managing Partner of Henley & Partners Canada Ltd. Mr. Perron brought up a thought-provoking rationale for having a second residence.

 You insure your car. You insure your home. You even insure your life.

 But have you taken any steps to insure your freedom?

 This isn’t a concept that many Americans think about, but our passport is a reflection of the freedoms we have. It allows us to travel in and out of countries with minimal disruption, and most of the time without a visa. How many countries in the world allow their citizens to do that?

 But what if the financial collapse America has been hovering over finally happens? Do you think those freedoms that we’ve enjoyed for so long will go untouched?

 Probably not.

 Mr. Perron pointed out that Russia recently passed a law that requires any citizen with a second residence or passport to report it — a law so drastic and severe that it raises the ugly specter of further restrictions to come that will be imposed on those people.

 Now, Russia is always a frightening example, but it points out that freedoms given can just as easily be snatched away.

 However, a second passport is insurance that the freedoms you enjoy remain protected.

 Mr. Perron explained that Henley & Partners specializes in helping people acquire a second residence through a variety of residence programs around the world.

 One example he gave was Malta’s residence program. It is viewed as a type of premiere passport because it would also allow you to live and work in the EU, as well as travel to many countries without needing a visa.  But there are many other options for you to consider.

Pages and Pages of Notes

I have pages of notes that I’m sorting through from yesterday and even more notes from great speakers today. The fact is, I can’t get it all down fast enough to share with Sovereign Investor Daily readers.

 But I don’t want you to miss out on the incredible advice our experts have shared with the Total Wealth Symposium attendees. 

 You can still get all the great information with the Confiscation Survival Kit. Watch all the presentations, plus get their PowerPoint presentations so you can look through each slide at your own pace.  For more information on the Confiscation Survival Kit, please click here.

 Also, I’ll keep you updated through the day on the Sovereign Twitter account under the hashtag #TWSPanama.

 From your conference insider,

 Jocelynn Smith
 Managing Editor, Sovereign Investor Daily

P.S. Order the Confiscation Survival Kit now before the offer ends on Tuesday! You don’t want to miss your chance to get inside information on the best overseas investments, asset protection techniques and other unique investment opportunities. For all the details, click here.

https://orders.sovereignsociety.com/TWS2014KIT/E190Q996/index.htm?pageNumber=2

[PBRstreetg]

However, a second passport is insurance that the freedoms you enjoy remain protected.
 
 
I second that. Cufflinks warned us and maybe this is the fall, not on my watch brothers

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Even though the ISIS and Kremlin may hate the USA equally our salvation may in fact be the People of China themselves - they love our Universities - Boston looks like Shanghai east with the wave of new money students being from Mainland China... here more to study rather than Party like their Euro-kids counter parts...

Alibaba's IPO surged from $68 to $99 today with reports of over 40 institutions over subscribing at $1Billion each - and everyone making money across the board - they will be taking dead aim at faceyspace and ebay and amazon ...  Facebook's market cap up to $200B and now Alibaba worth more than facebook, Amazon and Ebay at $244B - Silicon Valley and NYSE booming...

The big winner today is Yahoo which held 22% yesterday and 16 percent after cashing in has seen its net worth soar today by some $40 Billion makes the founder of Yahoo who was an early backer of Charlie Ma look like a real genius and alibaba growth just beginning according to Wall Street analysts - Morgan Stanley was badly burned by their bungled facebook IPO greedfest - learned their lesson and everyone from Beijing and Shanghai to San Jose and NYC smiling this time.

(Reuters) - Alibaba Group Holding Ltd's (BABA.N) shares rose as much as 46 percent in their first day of trading on Friday, lifting the Chinese online retailer's value to $244 billion.

The company's initial public offering, on track to be the biggest ever if underwriters exercise their option to sell more shares, will help fund Alibaba's expansion in the United States and elsewhere.

The sale raised more than $8.2 billion for the company after fees for underwriters, and about $13 billion for major shareholders.

Alibaba's shares were trading at $99 on the New York Stock Exchange at 11:58 a.m. ET, versus the IPO price of $68.


(Reporting by Tanya Agrawal; Editing by Saumyadeb Chakrabarty)

Now for the real good news Chinese direct private investment up this year to over $14 Billion with the Alibaba IPO manufacturing wealth not just for Alibaba but the millions of Chinese manufacturers using the platform to expand their businesses:

I might just sign up for that GOLD Alibaba account they keep sending me emails on...

Why Chinese money is flooding American markets
CNBC.com
September 17, 2014 9:56 AM

https://homes.yahoo.com/news/why-chinese-money-flooding-american-135600376.html

Over the past few years, there's been an influx of Chinese money into the U.S., increasing from about $58 million in 2000 to $14 billion in 2013.

The Chinese are interested in acquiring everything American, from companies to commercial and residential real estate. Their motivation is straightforward: They feel their assets are much better protected in the United States. Just this week, Beijing-based studio Huayi Brothers Media Corp. said it planned to spend $130 million in the U.S. to create a subsidiary to distribute movies and TV shows.

Experts use terms such as "safe haven" and "stash pad" to refer to Chinese acquisitions and investments in the United States. Including last year's $14 billion and money coming to the U.S. so far this year, Chinese foreign direct investment in the U.S. since 2000 now totals nearly $40 billion, according to the Rhodium Group.

"There is much more trust (felt for) the United States and the U.S. government that those assets will be protected by the government, compared to the assets here in China, which could be taken away tomorrow," said Michael Godin, vice president of Real Estate Global Partners, who pairs Chinese investors with brokers in the U.S.

But the money is safe only if it actually makes it to the United States. Because Chinese law prohibits any more than $50,000 U.S. dollars leaving the country per person per year, Chinese investors and companies are getting increasingly creative when it comes to getting their money out of China and into the United States.

Read More Chinese millionaires plan to leave in droves: Report

Though the rule is not heavily enforced, it is pushing some investors to resort to methods such as going to the Chinese city of Shenzhen, which is on the border of Hong Kong , and transferring money in the millions from China to Hong Kong.

Because Hong Kong does not have the same outbound currency limits in China, investors can then take that Chinese money from Hong Kong to the U.S. In fact, Chinese yen deposits in Hong Kong have increased significantly in the last four years.

Some companies use international banks that have branches in both China and the U.S. They deposit assets in China and then take out a loan in the U.S. branch.

Watch: Wealthy Chinese after US investor visas

The Chinese also represent more than 85 percent of investors who have applied for EB5 Visas, mostly putting their money into the asset they consider to be the safest: U.S. real estate.

Negative consequences

Juwai Limited, a company that helps Chinese investors find properties in 58 countries, says it has helped to facilitate the sale of about 2.5 million properties, sending brokers leads of over $2.5 billion.

Juwai co-founder and CEO Simon Henry told CNBC that the U.S. is the top market for his clients. New York and California represent the first big phase of Chinese investment in U.S. real estate; however, Juwai's statistics show significant interest in Michigan, Florida, Texas and Washington, as well.

"Chinese buyers spend more than twice the market average. The Chinese spend an average of $590,826 per property, while the average price in the U.S. market overall is $247,417," Henry said.

The president of the U.S. China Real Estate Association, Bill Seto, said there is a fear that the Chinese are pricing the middle class and even some wealthy Americans out of certain markets, especially when it comes to housing.

"They don't like to haggle. Reputation is very important; they like to pay high prices so they could outbid the other competitor, and that's the way it is."

Wealthy Chinese who are putting their money into America come from all walks of life, from multibillionaires to the upper and middle class to the Chinese workers who toil in mines.

Read More China creates 40,000 millionaires

"A person that's working all their life…and all of a sudden, they're multimillionaires," Seto told CNBC.

Positive impact

Steve Orlins, president of the National Committee U.S.-China Relations, said that all this Chinese interest and investment in the U.S. could benefit American workers.

"The relationship between the United States and China, even though it goes through all this kind of turmoil, will become stronger because of the Chinese investment in the United States," he said.

Orlins said the U.S.-China Council estimates that China has created about 75,000 jobs through its investment in the U.S..

"As this investment really begins to ratchet up, we'll see that go from 75,000 to hundreds of thousands…. They have about a billion dollars in contracts, and less than 10 percent of their workers are Chinese. More than 90 percent of their workers are American. If you go to the Wanxiang plants, the other plants around the United States, they're substantially employing Americans," Orlins told CNBC.

Why this is happening now

"A lot of Chinese people are not trusting, neither the government nor businesses. So, whenever they consider an investment opportunity, they are looking at the fastest way possible to get out," said Godin of Global Real Estate Partners.

Read More Shangri-La: Chinese still want luxury despite crackdown

There's also a crackdown on corruption by Chinese President Xi Jinping , with some calling it the most extensive effort to root out ill-gotten gains.

"I think that is one of the drivers of investment in real estate in the United States, that people have become concerned about: Is the anti-corruption going to reach them? And they are worried about political instability," Orlins told CNBC.

"They think a diversification of assets in the form of investing in real estate in the United States is a great idea…. So some of that flow is based upon the anti-corruption effort."

CNBC put in several interview requests with Chinese businessmen, particularly from the multibillion dollar conglomerates like Fosun.

Experts told CNBC that most Chinese refuse to speak out because they are afraid of the backlash that may ensue from the government back home.

How to profit

So how can American investors benefit from the influx of Chinese money and people?

Jing Gussin, co-founder of Silver Bridge Capital, which is focused on Chinese cross-border investments, is betting on Chinese tourism to the United States.

Her fund, Silver Bridge Capital along with China Travel Service Holdings, are planning to raise $1 billion to build hotels globally that will specifically accommodate the Chinese population.

Read More How China is chasing business to Singapore

She and other investors are convinced that huge capital flowing from the Chinese tourism sector could benefit everyone, from hotel developers to service industry workers to real estate agents.

It may be a safe bet considering the number of Chinese visitors to the United States has increased over 460 percent in the past seven years, according to the U.S. Dept. of Commerce.

"To me, I think this is just the beginning. ... Anything you buy here, they feel that it's better than China," Gussin told CNBC.

The Chinese are sending their kids to U.S. schools, coming here to visit and betting on American property and companies.

As for the future?

"I can see from numbers and I can see it from my eyes, that the interest in going to the United States—if it's for traveling or for investment, for business or education—is rapidly increasing. This is definitely going to be continuing over the next couple of years," Godin said.

—By CNBC's Dina Gusovsky. CNBC's Evelyn Cheng contributed to this report

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http://finance.yahoo.com/news/next-alibaba-biggest-bank-ipo-151033504.html

Looks like RBS cashing in on the USA markets as well - welcome to the party mates blokes and guvnas...

Investors will get a little time to catch their breath after Friday's record-breaking Alibaba trading debut, but not too long.

On the heels of what is the largest initial public offering on record, Wall Street will be asked to digest what could be the largest bank or thrift IPO ever-the expected $3.36 billion offering from Citizens Financial Group.

The Citizens IPO should price the week of Sept. 22, and while flying below the radar thanks to all the hype over e-commerce superstar Alibaba , it has substantial market implications.

Tech has dominated the offering landscape so far in 2014 with $11.4 billion worth of deals-not including Alibaba, which by itself is expected to generate $22 billion-but finance has been a surprisingly close second at $11.2 billion, according to Dealogic. Total IPO deals including Alibaba have raised $67.1 billion, a 103 percent jump from 2013, according to Thomson Reuters.

Investment banks have noticed and are flocking toward the sector. The Citizens IPO has drawn 21 underwriters, with Morgan Stanley (MS) landing the lead spot and Goldman Sachs (GS) on board to serve as joint global coordinator with Morgan, according to SNL Financial:

To lead the execution of the blockbuster deal, Citizens Financial has chosen investment banks with broad reach. Morgan Stanley not only brings a large institutional investor book but also a vast retail distribution network, while Goldman has a strong brand reputation with institutional investors.

The two firms have been busy in assisting deals lately, helping Royal Bank of Scotland sell up to 28.8 percent of its Citizens Financial ownership position. The two also were involved in helping RBS deal ownership stakes in several other companies over the past several years.


Recall that Morgan's brand took a hit on its handling of 2012's disastrous Facebook (FB) IPO. But the recent spate of activity helps end a relatively dry spell for both Morgan and Goldman, according to SNL's Joe Mantone.

The Citizens Financial IPO will certainly serve as another prominent transaction for Morgan Stanley and Goldman, and it will help end a U.S. bank IPO drought for them. Morgan Stanley's most recently completed U.S. bank IPO was the BankUnited deal, which closed in January 2011. Goldman's two most recent bank IPO deals - Capital Bank Financial Corp.'s offering and National Bank Holdings Corp.'s offering - both were completed Sept. 19, 2012.

Still, even though it has been a while since Goldman and Morgan Stanley have been on an IPO in the space, this deal should put both of them in a high position on the 2014 bank and thrift IPO league tables.

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Meanwhile cold winds are blowing in Moscow - Yukos Redux Two;

http://www.bloomberg.com/news/2014-09-19/russia-stocks-retreat-for-third-day-as-sistema-bashneft-decline.html?cmpid=yhoo

Russia Stocks Post 2nd Weekly Decline After Evtushenkov Arrest

By Ksenia Galouchko  Sep 19, 2014 11:43 AM ET   2 Comments    Email  Print   

Russian stocks posted the biggest weekly drop this month after the arrest of AFK Sistema’s billionaire owner in a probe into alleged money laundering.

The Micex Index (INDEXCF) retreated 1.2 percent to 1,431.58 by the close in Moscow, taking this week’s loss to 1.9 percent. Sistema rallied as much as 20 percent today after Chief Executive Officer Mikhail Shamolin said that Vladimir Evtushenkov, the chairman, was freed from house arrest. It trimmed gains to 5 percent after RIA Novosti cited the billionaire as saying he wasn’t let go.

“The risks from the investigation continue to weigh on the market, we’re seeing contradictory news” Anvar Gilyazitdinov, who manages $10 million in Russian stocks at Rye, Man & Gor Securities, said by phone. “What’s positive is that there seems to be a conversation about freeing Evtushenkov and that he’ll be able to return to the companies’ operational activities. But this news is not enough to lift the market.”

Evtushenkov’s arrest Sept. 16 battered equities already reeling from sanctions imposed by the U.S. and European Union against Russia over the crisis in Ukraine. Sistema shares tumbled 34 percent this week, the most since the period ended Oct. 26, 2008, while the company’s oil unit OAO Bashneft lost a record 26 percent in the five days.

Criminal Charges

Russian stock funds posted $78 million of outflows in the week to Sept. 17, Sberbank CIB said in an e-mailed note, citing EPFR Global.

The case against Evtushenkov stems from a probe into Bashneft, acquired by his holding company Sistema in 2009, the Investigative Committee said on Sept. 16. Evtushenkov is the wealthiest Russian to face criminal charges since Mikhail Khodorkovsky, the former Yukos boss who was arrested in 2003 and released last year.

Seventy-two percent of Micex stocks traded above their 50-day moving average yesterday, up from 68 percent the day before, data compiled by Bloomberg show. The gauge is valued at five times estimated earnings, compared with a multiple of 11.2 for the MSCI Emerging Markets Index.

“Investors trade on headlines and Evtushenkov was freed on a travel ban, which means that the criminal case continues,” Alexander Losev, the chief executive officer at Sputnik Asset Management in Moscow, said by e-mail. “The safety of private property and objective courts are key points based on which the investment climate is judged.”

Yandex NV dropped 1.3 percent to 1,148.50 rubles. Russia plans next week to discuss contingency measures to cut the country off from the global Internet in what the Kremlin called a necessary step to shield the nation from the U.S.-controlled worldwide Web.

To contact the reporter on this story: Ksenia Galouchko in Moscow at kgalouchko1@bloomberg.net

To contact the editors responsible for this story: Wojciech Moskwa at wmoskwa@bloomberg.net Zahra Hankir, Chris Kirkham

Whoa Duke no more skyping hot honies in the frozen reaches of Putin & Co., what is happening to freedom in Roosiya?

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Fascinating video from The Death of Money author, basically how Russia and China have teamed up to crush Obama and the entire US financial system...

http://moneymorningtv.com/rickards/ocho.php?pub_id=454975&s1=gdnmmp3

Their reports...

https://purchases.moneymappress.com/MMRBSSH39/PMMRQ939/index.htm?pageNumber=2&h=true

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http://nomadcapitalist.com/2014/09/15/economic-collapse-land-of-the-setting-sun/

Empires come and go, and after a brief flirtation with economic world domination, Japan has been mired in a economic malaise for two decades now.

Today, Japan faces a serious economic and demographic disaster. It’s a sad reality for a genuinely gracious culture that has innovated a lot over the years.

But as we’ve seen throughout history, the decline is hard to stop.

Just checking the front page of this morning’s newspaper is just the latest reminder that the economy here in Japan is in total despair.

Imagine waking up to this headline: “GDP plunges 7.1%”.

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Beware Dick Durban's bearing gifts...

New post on #Monetary Sovereignty - Mitchell

Fools, damn fools and Durbin/Brown
by Rodger Malcolm Mitchell

http://mythfighter.com/2014/09/24/fools-damn-fools-and-durbinbrown/

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell
Mitchell’s laws:
●Liberals think the purpose of government is to protect the poor and powerless from the rich and powerful. Conservatives think the purpose of government is to protect the rich and powerful from the poor and powerless.
●The more federal budgets are cut and taxes increased, the weaker an economy becomes.
●Austerity is the government’s method for widening the gap between rich and poor, which ultimately leads to civil disorder.
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
●To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The penalty for ignorance is slavery.
●Everything in economics devolves to motive, and the motive is the gap.
=================================================================

Two points:
1. The U.S. federal government (unlike state and local governments) is Monetarily Sovereign. This means has the unlimited ability to create its sovereign currency, the U.S. dollar.
It never can run short of dollars, and never needs to ask anyone for dollars -- not you, not me, not China. Even if all federal taxes fell to $0, the federal government could continue paying its bills, forever.
2. Every dollar in federal taxes collected comes out of the private sector, thereby impoverishing the private sector. When millions of American individuals and companies pay taxes, there is less money available for growing the economy. When you pay federal taxes, you have less money left to buy goods and services. It's that simple.
Keep those two points in mind as you read these excepts from an article that appeared in the September 23, 2014 Chicago Tribune:

Illinois firms keep $100 billion in foreign profit from U.S. tax man
Becky Yerak
Six of Illinois' biggest companies hold a combined $100 billion in profits overseas, a strategy that keeps those earnings from being subject to U.S. corporate income taxes.
The tax-trimming move by those and 44 other U.S. companies with global operations was put in the spotlight Friday when U.S. Sen. Dick Durbin proposed a bill that would penalize companies that moved their headquarters overseas.
U.S. corporations face income taxes as high as 35 percent on income earned both domestically and abroad. However, there is one important caveat: Companies aren't required to pay the U.S. taxes on foreign profits that they say are "indefinitely" reinvested overseas and not brought back, or repatriated, to the U.S.
Translation: The U.S. government, not needing tax dollars, unnecessarily taxes companies as much as "35 percent on income earned both domestically and abroad." There is no reason whatsoever for this tax.
The amount of such earnings for corporations in the Russell 1,000 has grown by 93 percent to $2.12 trillion, said the Sutton, Mass.-based researcher of public companies.
In addition, the number of firms reporting indefinitely reinvested earnings has risen by 12 percent from 2008 to 2013, to 547 companies, Audit Analytics said.
On Friday, (Sen. Dick) Durbin, an Illinois Democrat, and Sen. Sherrod Brown, D-Ohio, announced legislation that would require U.S. corporations that relocate to a foreign country to pay taxes on any overseas profit they were holding before their move took effect.
Translation: Rather than reduce or eliminate a wholly unnecessary tax -- a tax that comes out of the private sector's pockets, a tax that makes U.S. corporations less competitive with foreign corporations, thereby cutting U.S. employment and economic growth -- Durbin and Brown wish to increase it.
In their announcement, they listed 50 U.S. companies that were, as of 2013, "indefinitely" reinvesting billions of dollars in earnings in their overseas operations. Few of the companies, however, have announced plans to move their headquarters overseas.
Translation: This all began with Durbin's "shock" that Walgreen considered moving its headquarters address out of the U.S., an event that would have had zero effect on the U.S. or Illinois' economy.
Durbin warns of customer boycott if Walgreen moves HQ to Europe

Crain's Chicago Business
The U.S. Senate's No. 2 Democrat today ramped up his opposition to tax-driven corporate headquarters relocations another notch, suggesting that customers of Walgreen Co. may defect if the drugstore chain proceeds with a rumored HQ move to Europe.
Mr. Durbin conceded that Walgreen could "dodge" an estimated $4 billion in U.S. taxes over the next five years by moving its headquarters to Switzerland. "I recognize that potential windfall is an attractive option for shareholders," he wrote.
However, he continued, "customers have many choices about where to shop and where to have their prescriptions filled. I believe you will find that your customers are deeply patriotic and will not support Walgreen's decision to turn its back on the U.S."

Translation: A corporation providing more money to shareholders, while building its business and employing more people, is "unpatriotic" and a "dodge." It would be far better for that corporation to send more dollars to the federal government (which neither needs nor uses tax dollars), while cutting business growth and employing fewer people.

Similarly, if you the reader, wish to be a patriot, you should pay more taxes. Never mind your family's needs. Never mind food, clothing, housing, health and education. Divert all those dollars to the federal government, which has no need for them.

Mr. Durbin is a candidate for re-election. His GOP opponent, Jim Oberweis, responded, "There is nothing 'patriotic' about a career politician bullying a job-creating Illinois company for legally using the tax code he helped create. Instead of haranguing companies that employ thousands of Illinoisans, Dick Durbin ought to do his job and reform our tax code, which includes the highest corporate tax rate in the world."

Amen, brother.

Durbin is counting on the public's ignorance of basic economics. Paying federal taxes helps no one. The federal government (unlike state and local governments) has no use for tax dollars. It creates dollars, ad hoc, when it pays bills. It never can run short of dollars. Federal taxes are a net loss for the economy and everyone in it.
And Durbin knows it.
Durbin merely needed an nice, safe issue to demagogue, in advance of the election. With this phony issue, he can portray himself as a great patriot and protector of America.
He is neither.

Rodger Malcolm Mitchell
Monetary Sovereignty
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Ten Steps to Prosperity:
1.   Eliminate FICA (Click here)
2.   Federally funded Medicare — parts A, B & D plus long term nursing care — for everyone (Click here)
3.   Provide an Economic Bonus to every man, woman and child in America, and/or every state a per capita Economic Bonus. (Click here) Or institute a reverse income tax.
4.   Free education (including post-grad) for everyone. Click here
5.   Salary for attending school (Click here)
6.   Eliminate corporate taxes (Click here)
7.   Increase the standard income tax deduction annually
8. Tax the very rich (.1%) more, with higher, progressive tax rates on all forms of income. (Click here)
9. Federal ownership of all banks (Click here)
10.   Increase federal spending on the myriad initiatives that benefit America's 99% (Click here)
The Ten Steps will add dollars to the economy, stimulate the economy, and narrow the income/wealth/power Gap between the rich and the rest.
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10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt
 
No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
Two key equations in economics:
1. Federal Deficits - Net Imports = Net Private Savings
2. Gross Domestic Product = Federal Spending + Private Investment and Consumption - Net Imports

[cufflinks]

Truly an amazing stat:

http://finance.yahoo.com/news/jack-ma-alibaba-becomes-chinas-richest-person-053452299.html

Shanghai (AFP) - The largest stock offer in history has made Jack Ma, founder of e-commerce giant Alibaba, China's richest person with a fortune of $25 billion, an annual wealth ranking in the world's second largest economy showed Tuesday.

"It has been an amazing year for China's best tycoons despite the jitters about the Chinese economy," said China-based luxury magazine publisher Hurun Report in its annual rich list.

Ma reaped more than $800 million selling shares in the company he set up 15 years ago as Alibaba listed on the New York Stock Exchange Friday, based on company filings, with the value of his remaining stake of 7.8 percent surging to more than $17 billion by Monday.

Last year, the estimated wealth of the former English teacher turned Internet entrepreneur was just over $4.0 billion, which did not even place him in the top 20.

Alibaba's listing raised a total of $25 billion.

China's real estate and infrastructure industries have been hit by the slowing economy.

The economy grew an annual 7.7 percent in 2013, the same as in 2012 -- which was the slowest rate of expansion since 1999. Gross domestic product growth was 7.5 in the second quarter this year.

Still, Hurun Report said the number of US dollar billionaires in China hit 354 this year, up 39 from last year.

Think about it 39 to 354 in one year - more than in Russia and UA and Stans combined - amazing growth rate no wonder the Boston Universities are crawling with the scions of all this newly minted Chinese wealth.

[Chris]

Shanghai (AFP) - The largest stock offer in history has made Jack Ma, founder of e-commerce giant Alibaba, China's richest person with a fortune of $25 billion, an annual wealth ranking in the world's second largest economy showed Tuesday.

Not a bad days work 

[andrewfi]

Shanghai (AFP) - The largest stock offer in history has made Jack Ma, founder of e-commerce giant Alibaba, China's richest person with a fortune of $25 billion, an annual wealth ranking in the world's second largest economy showed Tuesday.

Not a bad days work 

Except that apart from any shares he sold post IPO he got no cash. That's just a valuation of his stake in the firm.
If all the shares were to be sold tomorrow the price per share would plummet.

It's kinda like thinking oneself rich because of the equity in one's home. The equity can be tapped only by selling (in which case the value is only what the market says at the time of the sale) or by borrowing, which is not an increase in wealth.

If as, has been suggested, the sale marks a peak in the market then the next stop will be downward.

By the way, it seems that the shares sold were not shares in AliBaba but in a holding company: http://www.csmonitor.com/Business/Latest-News-Wires/2014/0901/Alibaba-IPO-Why-investors-won-t-get-actual-Alibaba-stock
Nice trick. I understand the legal reasoning for doing it but what guarantee is there that legislative changes (or cupidity of the real owners) won't de-couple the two entities leaving shareholders with worthless paper in a business with no 'business'?