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Obama Sanctions 7 Russian Officials. Putin Seen On The Floor Laughing

In an retaliatory show of force, President Obama slammed sanctions against 7 of “Putin’s Irrelevant Officials”. Not Putin himself……..of course. Not being sure how to react, Russian officials witnessed Mr. Putin fall to the floor in laughter. Yet, this is just the beginning. The US Government is expected to debate further sanctions against Russia starting next week……after their well deserved week long vacation.

On a more serious note, this is incredibly painful to watch. I have argued for some time that neither the US nor the EU should have any business in Ukraine. It is hard to win a conflict when the other side (Russia) is ready to go to war over Ukraine. As a matter of fact, it is impossible to win in a situation like that until and unless the US is willing to lay out a military option on the table. If the US wants to stop Putin running in circles around it’s credibility, there is only one thing left to do. Forget about Ukraine. 

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Obama Sanctions 7 Russian Officials. Putin Seen On The Floor Laughing Google

 

US announces sanctions against Russian officials

WASHINGTON (AP) — President Barack Obama on Monday imposed sanctions against Russian officials, including advisers to President Vladimir Putin, for their support of Crimea’s vote to secede from Ukraine.

The White House also announced that it is working to identify and target the assets of other individuals who aren’t government officials but are supporting them. The Treasury Department also is imposing sanctions on four Ukrainians, including former President Viktor Yanukovych, a former top Ukrainian presidential adviser and two Crimea-based separatist leaders.

“Today’s actions send a strong message to the Russian government that there are consequences for their actions that violate the sovereignty and territorial integrity of Ukraine, including their actions supporting the illegal referendum for Crimean separation,” the White House said in a statement.

“Today’s actions also serve as notice to Russia that unless it abides by its international obligations and returns its military forces to their original bases and respects Ukraine’s sovereignty and territorial integrity, the United States is prepared to take additional steps to impose further political and economic costs,” the statement said.

The U.S. announcement came shortly after the European Union announced travel bans and asset freezes on 21 people they have linked to the unrest in Crimea.

The sanctions were expected after residents in Crimea voted overwhelmingly Sunday in favor of the split. Crimea’s parliament on Monday declared the region an independent state.

Raw: Pro-Russia Demonstrators Clash With PolicePlay video

The United States, European Union and others say the action violates the Ukrainian constitution and international law and took place in the strategic peninsula under duress of Russian military intervention. Putin maintained that the vote was legal and consistent with the right of self-determination, according to the Kremlin.

Did The US Navy Land Malaysia Airlines Flight 370 At It’s Diego Garcia Base In The Indian Ocean?

World would be a boring place without a good “conspiracy theory” here and there. The disappearance of Malaysia Airlines Flight 370 is without precedent. How does a plane vanishes into thin air in today’s environment and under proposed circumstances? That’s impossible. When I first saw the report below, shortly after plane’s disappearances, I dismissed it as a bunch of “crazy crap”. However, with recent media coverage, plane’s supposed arc of travel and numerous other facts pointing in this direction (ex: jet flying under 5,000 ft), it tend to give this possibility a lot of credence. One thing is for sure, it’s a fascinating story.  I will let you read the report and decide for yourself. 

REPORT

malaysia airlines flight 370

“A new report circulating in the Kremlin today prepared by the Main Intelligence Directorate of the General Staff of the Armed Forces (GRU) states that Aerospace Defence Forces (VKO) experts remain “puzzled” as to why the United States Navy “captured and then diverted” a Malaysia Airlines civilian aircraft from its intended flight-path to their vast and highly-secretive Indian Ocean base located on the Diego Garcia atoll.

According to this report, Malaysia Airlines Flight 370 (also marketed as China Southern Airlines flight 748 through a codeshare) was a scheduled passenger flight from Kuala Lumpur, Malaysia, to Beijing, China, when on 8 March this Boeing 777-200ER aircraft “disappeared” in flight with 227 passengers on board from 15 countries, most of whom were Chinese, and 12 crew members.

Interesting to note, this report says, was that Flight 370 was already under GRU “surveillance” after it received a “highly suspicious” cargo load that had been traced to the Indian Ocean nation Republic of Seychelles, and where it had previously been aboard the US-flagged container ship MV Maersk Alabama.

What first aroused GRU suspicions regarding the MV Maersk Alabama, this report continues, was that within 24-hours of off-loading this “highly suspicious” cargo load bound for Malaysia Airlines Flight 370, the two highly-trained US Navy Seals assigned to protect it, Mark Daniel Kennedy, 43, and Jeffrey Keith Reynolds, 44, were found dead under “suspicious circumstances.”

Both Kennedy and Reynolds, this report says, were employed by the Virginia Beach, Virginia-based maritime security firm The Trident Group which was founded by US Navy Special Operations Personnel (SEAL’s) and Senior US Naval Surface Warfare Officers and has long been known by the GRU to protect vital transfers of both atomic and biological materials throughout the world.

Upon GRU “assests” confirming that this “highly suspicious” cargo was aboard Malaysia Airlines Flight 370 on 8 March, this report notes, Moscow notified China’s Ministry of State Security (MSS) of their concerns and received “assurances” that “all measures” would be taken as to ascertain what was being kept so hidden when this aircraft entered into their airspace.

However, this report says, and as yet for still unknown reasons, the MSS was preparing to divert Flight 370 from its scheduled destination of Beijing to Haikou Meilan International Airport (HAK) located in Hainan Province (aka Hainan Island).

Prior to entering the People Liberation Army (PLA) protected zones of the South China Sea known as the Spratly Islands, this report continues, Flight 370 “significantly deviated” from its flight course and was tracked by VKO satellites and radar flying into the Indian Ocean region and completing its nearly 3,447 kilometer (2,142 miles) flight to Diego Garcia.

Critical to note about Flight 370’s flight deviation, GRU experts in this report say, was that it occurred during the same time period that all of the Spratly Island mobile phone communications operated by China Mobile were being jammed.

China Mobile, it should be noted, extended phone coverage in the Spratly Islands in 2011 so that PLA soldiers stationed on the islands, fishermen, and merchant vessels within the area would be able to use mobile services, and can also provide assistance during storms and sea rescues.

As to how the US Navy was able to divert Flight 370 to its Diego Garcia base, this report says, appears to have been accomplished remotely as this Boeing 777-200ER aircraft is equipped with a fly-by-wire (FBW) system that replaces the conventional manual flight controls of an aircraft with an electronic interface allowing it to be controlled like any drone-type aircraft.

However, this report notes, though this aircraft can be controlled remotely, the same cannot be said of its communication systems which can only be shut down manually; and in the case of Flight 370, its data reporting system was shut down at 1:07 a.m., followed by its transponder (which transmits location and altitude) which was shut down at 1:21 a.m.

What remains “perplexing” about this incident, GRU analysts in this report say, are why the American mainstream media outlets have yet to demand from the Obama regime the radar plots and satellite images of the Indian Ocean and South China Sea regions as the US military covers this entire area from Diego Garcia like no other seas in the world due to its vital shipping and air lanes.

Did The US Navy Land Malaysia Airlines Flight 370 At It’s Diego Garcia Base In The Indian Ocean?

Warning: Is Federal Reserve Out Of Ammo?

As the article below indicates, absolutely. There is very little they can do going forward. With real interest rates being in the negative territory and QE losing it’s credit velocity, there very little the FED can do to aid our financial markets and the US Economy. Particularly, with the onset of the bear market of 2014-2017 the FED will be powerless to “re-inflate” our markets and the economy as fast as they did at 2009 bottom. If at all.

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Warning: Is Federal Reserve Out Of Ammo?  Google

The Federal Reserve gets a lot of credit for what passes as an economic recovery. Whether it deserves that credit, going forward the Fed has very little power to influence events because it is essentially out of ammo to further ease. The economy, meanwhile, is still lackluster, despite the central bank’s unjustified optimism.

The Fed cast a warm and fuzzy glow in January, when it predicted a pickup in economic growth, which it cited as its rationale for tapering its bond buying campaign, called quantitative easing (QE). And if that acceleration doesn’t happen in the near future?

Don’t worry: Wall Street will just shift its predictions for a growth resurgence to the second half of the year, as it’s done every year since about 2005 — if memory serves correctly. At this time of year, the Street always says that things will get better in the second half.

The revision of fourth-quarter 2013 gross domestic product growth of 2.8% is not enough of a reason to reverse the Fed’s QE policy, which seems to have less and less effect on the real economy, according to the central bank’s own research. The Fed says it will gradually taper its monthly bond buying, most likely ending it altogether late in the year. But the Fed’s new chief,Janet Yellen, adds that it reserves the right to change course and increase the purchases if the economy dips.

If the current first quarter does end up with say, 1.5% GDP growth, the bad weather in much of the nation will be a factor. But the weather effect is still amorphous enough not to reverse course. Once winter fades, there will inevitably be a rebound effect, so the bank may have to wait until the third quarter before it feels comfortable saying anything about the true core rate of growth (although it probably will cut its 2014 forecast by the June meeting).

Keep in mind that the only easing tools the Fed has left are forward guidance – its practice, through issuing forecasts of its policy intentions, of influencing market behavior – and more QE. It can’t run about ramping up money printing for every bump in the road. Its bond purchases succeeded in raising asset prices by progressively upping the ante each time; that option isn’t available anymore, not when the price tag is the Fed’s bloated balance sheet already on its way to $5 trillion. Also, 2014 is a mid-term election year, and I suspect that the Fed governors would really like to be out of the program entirely come November.

Finally, as dovish as Yellen and the others may want to be, there are a couple of realities confronting the bank. One is the lack of ammunition for any crisis that might pop up before the current QE program is back to zero again. QE is partly a psychological effect, and backing out of tapering it in mid-stream is likely to induce considerable anxiety after the initial euphoria wears off.

The other is the nature of the Fed’s charter. Quantitative easing was predicated from the beginning on improving employment, a goal handed to the bank in the 1970s by the Humphrey-Hawkins Act. The unemployment rate, now 6.6%, is unlikely to rise anytime soon, given that unemployment is a lagging indicator. So far as the business cycle goes, it is one of the last parts to decline. A resumption of QE after a weak GDP report and a Fed prediction that unemployment might worsen would be politically lethal – the central bank is only as independent as Congress says it is.

The economy hasn’t shown any signs whatsoever of accelerating to a sustained 3% growth rate. The recovery from the Great Recession has been choppy, with one quarter’s surge followed by a weaker performance. Fourth-quarter 2012 growth slipped to a mere 0.1%, for example. Temporary growth surges sometimes occur, due to sporadic influences like the inventory-restocking episode from last year, when this sudden and unexpected increase helped propel the third-quarter gain to 4.1%.

I couldn’t believe my ears on Thursday when I saw a fellow on CNBC say with a straight face “well, the economy really is getting better this year.” The economy is only getting better on the same basis it’s gotten better the last five years – somewhere over the rainbow.

The current stock market rebound is getting stretched: The Standard & Poor’s 500 has nearly reclaimed its January peak, while the Nasdaq is making new post-2000 highs. All of that in spite of some pretty weak data recently, such as the housing sector’s downbeat results. The National Association of Realtors says January existing home sales slumped 5.1%, which it ascribed to poor weather, and rising home prices and mortgage rates.

That said, equities could still squeak out mild gains ahead, after a breather here and there. I’ve talked about a first-quarter top for stocks since the beginning of the year, and my prediction is still intact. But it still appears to me to be a top to sell, not to buy.

Why Russians Love Putin

As predicted on this website, Putin scored a major victory over the weekend in Crimea. While the US and the EU will continue it’s huffing and puffing, pounding the table and threatening sanctions, Putin was able to regain Crimea as Russian territory. The remaining legal stuff is nothing but a  formality now. Yet, most Americans are dumbfounded by the fact that Putin’s approval rating surged to 72% while Obama’s hit a new low at 41%.  Here is why….

  • In Russia, Crimea is seen as a Russian territory and most people (in both Russia and Crimea) believe that it should be part of Russia again. 
  • Most Russians are fed up with the West. Putin is seen as a powerful leader who is able to stand up to powerful Western interests and people eat that stuff up. 
  • Russians are starting to feel as if they are getting their old “Soviet Union” power back. 

 Despite all of the above, Western powers continue with their support of radical elements within Ukraine. Playing right into Putin’s hands.  

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Why Russians Love Putin  Google

 

Putin Is No Mad Man to Russians as Power Play Trumps Economy

Western leaders may think Vladimir Putinis crazy for threatening to annex Crimea and invade other areas of Ukraine. Most Russians, still bitter about the Soviet Union’s demise more than two decades ago, couldn’t be prouder.

Putin’s approval rating, bolstered afterRussia hosted its first Winter Olympics last month, reached a three-year high as he poured troops into Crimea amid the overthrow of the Kremlin-backed government in Kiev. The tensest showdown with the West since the fall of the Berlin Wall has proved to be good for the business of governing in Moscow.

“Putin is just defending his country’s interests,” said Yaroslav Batashev, 32, a manager at a Moscow-based trader of consumer products who says he isn’t necessarily a fan of his president. “Crimea is historically important for Russia and it’s Russian.”

Since overcoming the biggest protests of his 14-year-rule to win a third term in 2012, Putin has reasserted his power at home and abroad. Even at the risk of sanctions that could tip the economy into recession for the second time in five years, Russians see his defiance of the West over Ukraine as a sign of strength, reinforcing his image as a leader who restored his country’s greatness from the post-Communism chaos of the 1990s.

Putin’s Backing

Seventy-two percent of Russians approve of the work Putin is doing as president, the independentLevada Center said March 13, citing a survey of 1,603 people that had a margin of error of 3.4 percentage points. A March 8-9 poll by the state-run All-Russia Center for the Study of Public Opinion, known as VTsIOM, also gave Putin 72 percent.

“The involvement of the U.S. in a situation with which it has nothing to do with is very irritating,” said Ilya Knyazev, a 31-year-old sales director at a food distributor in Moscow. “I support Crimea joining us because otherwise NATO would be in Ukraine, hurting Russia’s security.”

Part of that support has been drummed up by the attacks by Putin’s vast media apparatus on the “fascists” who took power in Ukraine and the portrayal on state-run television of the protests that led to the ouster of President Viktor Yanukovych.

“Russians were deeply astonished by the pictures they saw on TV from Independence Square in Kiev — the shootings, killings, burning tires,” Alexander Oslon, head of the Public Opinion Fund, said by phone yesterday.

‘Overwhelming Support’

“Those pictures created the fear that it may happen in Crimea, where the majority of the population is Russian,” Oslon said. “Now Putin has the overwhelming support of the majority of the population.”

Putin, who came to power in 1999, the year after Boris Yeltsin defaulted on $40 billion of domestic debt, averaged economic growth of 7 percent a year in his first two presidential terms as oil prices and output surged. The former KGB colonel reasserted state control of the economy and media and gained popularity as he reined in the oligarchs — men who became billionaires overnight by acquiring some of the country’s most valuable assets at rigged auctions. He jailed the richest of them, Mikhail Khodorkovsky.

Crimea has been home to Russia’s Black Sea Fleet since its founding by Catherine the Great in 1783, after the Ottoman Empire ceded the peninsula. It was part of Russia until Soviet leaderNikita Khrushchev gave it to the Ukrainian Socialist Republic in 1954, when Putin was 14 months old.

Leaving Ukraine

A total of 96.8 percent of voters in the Black Sea peninsula yesterday backed leaving Ukraine to join Russia, the head of the election commission, Mikhail Malyshev, told reporters. The results exclude one city, Sevastopol. The U.S. and the EU have both called the vote illegal.

Crimea may be incorporated into Russia by the end of this week, Alexander Ageyev, first deputy head of the Russian State Duma lower house of parliament’s committee for constitutional affairs, said in a phone interview today.

Putin’s focus is already shifting to eastern Ukraine, which is also largely Russian-speaking. The Foreign Ministry in Moscow, which called the overthrow ofYanukovych a “coup” by “fascists,” said March 15 people in eastern Ukraine asked for Russian protection after a series of deadly clashes in Donetsk and Kharkiv.

To be sure, many educated Russians are aghast at Putin’s policy over Ukraine. Organizers of a peace march against Russian actions in Ukraine drew tens of thousands of people to central Moscow on March 15, according to organizers and media reports. Police put the number at 3,000.

‘Aggressive Quest’

“Moscow’s aggressive quest for its ‘near abroad’ has become an ideological mission to fight the West, one that has left all rational grounds and that ignores all costs and consequences, including those to Russia itself,” Joerg Forbrig, a senior program officer at the Berlin bureau of the German Marshall Fund of the U.S., said by e-mail.

Ukraine in general and Crimea specifically represent the latest and, for Putin, the most crucial step in his crusade to halt what he sees as the West’s relentless encroachment on Russian interests since the end of the Cold War.

Most of the buffer states between Russia and Germany, where millions of people died during World War II, has been absorbed by the North Atlantic Treaty Organization and the European Union since the Soviet Union disbanded in 1991. Sevastopol, home to the Black Sea Fleet, is a symbol of Russian heroism not unlike the Alamo for Americans. The city was under siege by the British and the French during the Crimean War in the 1850s and then by Nazi forces in 1941-1942.

Syria, Iran

In just the past year, Putin has cemented Russia’s role in the Middle East by brokering a deal that averted U.S. strikes on Syria and kept in power President Bashar al-Assad, a Soviet-era ally and buyer of Russian weapons. He’s also encouraged the West to make concessions to Iran over its nuclear program and struck a multi-billion arms deal with Egypt’s new military rulers after the U.S. suspended aid.

Putin, who once described the breakup of the Soviet Union as the biggest geopolitical catastrophe of the 20th century, was named “Person of the Year” in December by the Times of London for the accord over Syria. That effort “propelled the president back into the front ranks of effective world statesmen,” the Times said.

For now, most Russians are shrugging off Putin’s crackdown on what’s left of independent media, which includes forcing out the longtime head of the country’s biggest talk radio station, Ekho Moskvy, and the editor-in-chief of one of its most popular news sites, Lenta.ru.

‘In Ruins’

“The country was in ruins under Boris Yeltsin,” said Batashev, the Moscow trader. “Despite all of Putin’s disadvantages, he’s a tough and uncompromising leader who managed to transform Russia into a better place than it was a decade ago.”

With the presidential term extended to six years from four, Putin, first elected in 2000, may stay in power until 2024 if he runs and wins again in 2018.

Even within the government, some officials are hoping Putin will moderate his response to the crisis, though they are afraid to speak out against what they see as a course already chosen, according to two people familiar with the situation.

Russia retaliating with sanctions against the West could wipe out 10 years of achievements in financial and monetary policy, one of the people said. Such escalation could erase as much as a third of the ruble’s value, another said.

Ruble, Peso

The ruble has slumped about 10 percent against the dollar this year, the worst-performer after Argentina’s peso among 24 emerging-market currencies tracked by Bloomberg.

“I don’t want Russia to be in isolation again and be in the opposition to the rest of the world,” said Anatoly Kapralov, 29, the founder of an advertising agency in Moscow.

That kind of sentiment isn’t likely to sway Putin, said Nicholas Spiro, the managing director of Spiro Sovereign Strategy in London.

 

 

Stock Market Weekly Update. March 15th, 2014. InvestWithAlex.com

Daily Chart March 15, 2014 investwithalex

Weekly Update & Summary: March 15th, 2014

The market sold off throughout the week with the Dow Jones being down -387 points (-2.35%) and the Nasdaq being down -91 points (-2.09%) for the week. Structurally, the market closed a giant gap that was left behind on March 4th, which could be considered as bullish. At the same time, it left no holes on the upside, which is bearish.

FUNDAMENTAL & MARKET ANALYSIS: 

As per our timing and mathematical work below, the market will continue to shift gears from bull market to bear market throughout 2014. Longer term, this bear market will last between 2014-2017 as I have indicated many times before. While it’s internal structure will not be as violent and as steep as the 2007-2009 bear market leg, investors should anticipate the market to lose 35-40% when it’s all said and done.

(If you would be interested in learning exactly when this bear market will start and its internal structure, please Click Here

In today’s report I would like to concentrate on the best way to approaching this bear market and what you can and should be doing. Based on my calculations, the upcoming bear market will last approximately 625 trading days. At the present “Market Energy Level” the market oscillates at approximately 20 points per day. Further, based on my bear market terminal point calculation, at this energy level the market will reach it’s terminal point within 275 days.

If you are confused, don’t be. This simply means the upcoming bear market will not be directional. It will be volatile with lots of ups and downs. As such, you have a number of options if you would like to make money in this market.

Option #1: Just get out and stay in cash or short-term treasury. You won’t make much money, but you won’t lose any either. When the bear market completes, you will be able to come in at the market bottom and buy some great businesses at cheap prices. Plus, you will get a side benefit of sleeping well for over two years.   

Option #2: Go short and forget about it. Again, this is not for the faint of heart. The market will be very volatile. Yet, if you can hold on to your position you will be able to walk away with a 30% or so gain when it’s all said and done.

Option #3: Based on my calculations the market will offer up a total of 10,000-12,000 points over the next 2.5-3 years. That includes both, bull and bear legs. Theoretically, if one trades in and out of the market at the right spots (what we are trying to do here) one should be able to walk away with a 50-75% return. Yet, this requires a certain skill set and nerves of steel. It is next to impossible to do. With mistakes, I believe a 40% return here is the best case scenario.

Which option is the best one for you? That should depend on your personal investment style and risk profile. If I wasn’t in an active money management and advisory service business, I would most definitely go with option #1 or #2.  Yet, since I am doing what I am doing, I will be concentrating on option #3.

Next week, we will take a look at the best stocks to short in order to maximize returns even more. Plus, some actual short picks. I call them force multipliers.

MACROECONOMIC ANALYSIS:  

Ukraine continues to dominate the news.

It is very difficult to ascertain if the situation is dying down or about to blow up into a full on military conflict between Russia, Ukraine and possibly NATO. There are two possible outcomes here.

Outcome #1:  Crimea will vote to join Russia over the weekend. That is a given and already priced into the market. At this juncture the West huffs, puffs, pounds the table and maybe even implement sanctions. Russia calms down and things will die off over the next couple of weeks.

Outcome #2:  Outcome #1, but Russia decides to continue fighting by “invading” east Ukraine. This opens up a whole another dimension between Russia and the West. Sanctions against Russia at that juncture are almost a guarantee. While the West will not go in, it would be interesting to see if Russia decides to retaliate against the West and where that would lead us thereafter. This scenario is too unpredictable at this stage.

If I had to guess, Russia will walk away with Crimea and call it a day. No sanctions will be implemented. At that juncture, Ukraine will become a proxy playground for the West Vs. Russia where east and west Ukraine continue to clash, possibly escalating into a civil war.  Too bad for the people there. 

TECHNICAL ANALYSIS: 

Long-Term: The trend is still up. Market action in January-February could be viewed as a simple correction in an ongoing bull market. 

Intermediary-Term: Since February 5th, intermediary term picture shifted from negative to positive. Giving us a technical indication that both the intermediary term and the long term trends are up. Yet, that in itself can be misleading as per our timing analysis discussion below.

Short-Term: While the short-term remains bullish as of right now, it might turn bearish if the point discussed in the mathematical & timing section is breached.

Again, with all 3 trends being bullish for the time being, this might be misleading. Please read our Mathematical and Timing Analysis to see what will transpire over the next few weeks.    

MATHEMATICAL & TIMING ANALYSIS:  

(*** Please Note: This time around about 95% of the information contained within this section has been deliberately removed as it contain too much technical information. Particularly, exact dates and prices of the upcoming turning points. As well as trading forecasts associated with them. I deem such information to be too valuable to be released onto the general public.  As such, this information is only available to my premium subscribers. If you are a premium subscriber please Click Here to log in. If  you would be interested in becoming a subscriber and gaining access to the most accurate forecasting service available anywhere, a forecasting service that gives you exact turning points in both price and time, please Click Here to learn more.Don’t forget, we have a risk free 14-day trial).  

XXXX

Hence, I suggest the following positioning over the next few days/weeks to minimize the risk while positioning yourself for a forecasted market action. (This is continuation of our previous positioning).

If You Are A Trader: XXXX 

If No Position: XXXX

If Long: XXXX  

If Short:  XXXX

CONCLUSION: 

An incredibly important week is coming up. Above, I have described two possible scenarios we are working with. I have also described the point force we are looking at and exactly what you should do in each case. With increased volatility, multiple interference patterns and an incredibly important long-term turning point we must be very careful and risk averse here.  Those anticipating the moves and those who can time them properly will be rewarded appropriately.

Please Note: XXXX is available to our premium subscribers in our + Subscriber SectionIt’s FREE to start. 

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Stock Market Weekly Update. March 15th, 2014. InvestWithAlex.com Google

The Extent Of China’s Credit Bubble

The chart below speaks for itself and the extent of Chinese Credit Default time bomb. Please note, this chart doesn’t include China’s so called “Shadow Banking” assets which are estimated to be at an additional $6-10 Trillion. In short, China makes US Credit Infusion by the FED look like child’s play. When China finally blows sky high, it’s defaults will be as massive at the credit expansion below. 

China Bank Assets InvestWithAlex

 

The Extent Of China’s Credit Bubble

How To Avoid Paying Taxes….Through A Legal Loophole…. Of Course (Part II)

Loopholes investwithalexOn Wednesday I published an important article outlining how multinationals have accumulated over $2 Trillion in untaxed (tax deferred) profits. I then showed you a way how you can structure your own life/company as a multinational to avoid paying taxes as well. Legally of course. Click Here To See The Original Article.  

However, I had a brain fart and forgot to mention one very important fact that should piss you off even more. Guess what the multinationals do with that cash? That’s right, they invest it in the US Treasury and collect interest. 

Apple, Cisco Systems, Google, and Microsoft legally hold $124 billion in US Treasury securities and $39 billion in US government agency debt in accounts overseas, allowing them to avoid the 35 percent (maximum) corporate tax rate in the United States, according to Securities & Exchange Commission reports.

So, while the IRS taxes your Income, Welfare and Social Security, multinationals are able to earn tax free profit, then turn around and invest it in the US Debt to earn interest. Rapping the American citizens twice. The thing is, it’s not their fault. The full responsibility lies with the corrupt US Government full of loopholes. 

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Stock Market Update. March 14th, 2014. InvestWithAlex.com

 Daily Chart March 14, 2014 investwithalex

A down day with the Dow Jones down -43 points (-0.27) and the Nasdaq down -15 points (-0.35%). 

The market bounced around at an important resistance/support level today, without being able to go much lower or higher. With weekend Ukraine developments left overhead, the market closed in a worse possible spot. Should Russia invade Ukraine over the weekend, the market might open up with a large gap down…….. or perhaps up. No matter what happens over the next few days, one thing is certain. 

The US Stock Market is incredibly overpriced. With the 5-Year and the 17-Year cycles now pointing down, this market will have a very difficult time going much higher at this juncture. In fact, the bear market of 2014-2017 might already be here. Ushering in much lower stock prices over the next few months/years. If you would be interested in knowing exactly when this bear market will start or resume, as well as it’s internal short-term composition, please Click Here. 

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Stock Market Update. March 14th, 2014. InvestWithAlex.com Google

The US Economy Is On Fire….Quiznos Files For Bankruptcy….Oh

I do have to admit that their sandwiches taste like crap, but that’s beside the point. Quiznos filed for bankruptcy protection for its 2,100 stores today. That comes on top of Sbarro Pizza chain filling for bankruptcy just a few days ago. A coincidence? After all, if you are to listen to Perma Bulls, the FED and our Administrations, the US economy is on fire and about to get better.

What they forgot to mention is that most of economic expansion over the last 5 years has been driven by credit expansion and speculation. This pile of debt is what’s keeping this economy afloat while artificially inflating corporate earnings. Take Quiznos for instance. They have had over $400 Million in debt spread out over 2,100 stores. That’s crazy and no company of Quiznos size can sustain such a heavy debt load. And its not just Quiznos. It’s pretty much everyone outside of massive cash cows like Apple, Google or Goldman Sachs.  

When this credit bubble finally pops, and it will, you will see a line of American companies under heave debt burden filling for bankruptcy. Quiznos and Sbaro where just the first to go. If you would be interested in learning when the bear market of 2014-2017 will start, please CLICK HERE. 

quiznos investwithalex

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The US Economy Is On Fire….Quiznos Files For Bankruptcy….Oh Google

First, Sbarro. Now, Quiznos.

Quiznos has filed for bankruptcy protection, five days after theSbarro pizza chain did the same.

Executives at the restaurant chain, known for its toasted sandwiches, agreed to a restructuring plan that will reduce its debt by more than $400 million, the company said in a statement Friday.

All but seven of Quizno’s 2,100 restaurants in the United States and 30 other countries are independently owned franchises, and will remain open and operating as usual.

CEO Stuart Mathis said the company will take action to help increase sales and profits for its franchise owners going forward. It will look to reduce food costs, invest in local advertising and, in some circumstances, make loans available for restaurant improvements.