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You Just Pocketed 89% From Our Recent Inflation Warning

We’ve been telling you folks for months that the pesky surge in prices we know as “inflation” has been showing up in different spots within the U.S. economy.

In early April, Shah Gilani – editor of our Capital Wave Forecast and Short Side Fortunes advisory services – told us that food prices were spiking. And he even re-recommended an “old friend”.

Folks who acted on that advice have pocketed a 27% gain in less than four months…

  • The Eurozone Hangs On By a Whisker Four days after the Italian elections, only one thing is really clear: A majority of Italian voters have rejected austerity.
    The problem is, their victory came up short by the slimmest of margins.
    0.36%.
    That's the difference between a firm new government that could move Italy out of the Eurozone and the constitutional logjam Italian voters woke up to the next day.
    Here’s why that's likely bad news for us all... Read More...
  • The Next Phase of the Eurozone Debt Crisis Today (Monday), as we digest what happened in Europe, the obvious question arises: What comes next for the Eurozone debt crisis?

    For starters, the heads of state coming out of the Council of Europe meeting last week pledged to have the new structure by July 9, even though the new stabilization mechanism will take longer to phase in.

    For the first time, there will be a greater accountability (and control) over continent-wide commercial banking and access to some underwriting of debt coverage. It also means that national banking systems will need to relinquish some oversight to the European Central Bank (ECB).

    For months, a number of people (myself included) have insisted that the solution to th e Eurozone debt crisis requires greater financial integration. The shortcoming seemed rather straightforward.

    The EU had ushered in a more centralized monetary system (single currency and all that) but had no centralized fiscal system to parallel it. Simply put, that required adherence to currency rules without any ability to coordinate the credit and fiduciary end of the spectrum.

    Well what came out of the Council in the early hours of Friday will not solve the debt problem in Spain , Italy , Portugal, or Greece. There is no magic short -term fix. But it might just provide the underpinnings for a credit system that may begin to operate.

    The banks are the problem right now.

    Read More...
  • The Eurozone Crisis is Far From Over The Greek election last weekend has brought us a brief reprieve. The nation and the Eurozone have stepped back from the brink.

    But the larger truth is that little has changed.

    Yes, the Eurozone has survived its latest test, yet there is little indication where it will go from here. Considerable continental support for the common currency remains, and EU officials will soon introduce initiatives to consolidate banking and financial policy in the European Union.

    Still, the problems keep mounting, and there is very little resolve to fix them.

    At this point, a lot of actions (or lack of actions) could still upset the entire apple cart.

    To continue reading please, click here...

    Read More...
  • The Gloss is Coming Off the Eurozone Europe, Europe, Europe...

    I know, you're sick of hearing about problems in the Eurozone.

    But the problem with Europe is that it won't go away. And if it does go away, we'll have even bigger problems. What a mess.

    Of course, I'm talking about the Euro-currency zone and the European Union, not Europe itself.

    I love Europe. I love every country in Europe. I love the different cultures. I love the different languages. I love the different societal models. I love the history of Europe.

    And no doubt all the Europeans love all the same things about their Europe - except maybe some of their history.

    But even more than loving Europe, Europeans love their own countries. Why? Because they have different cultures, languages, societal models, and differing views of their history. Vive la diffrence!

    So, whose bright idea was it to gloss over (with shiny promises and, later, a shiny new currency) thousands of years of differences and shove all Europeans into a funnel in the hopes that they'd all come out the other end as one homogeneous mass of humanity?

    Oh, that would be the bankers and financiers who wanted a United States of Europe so that the free flow of goods and services payable with a common currency would make everyone better off, and make themselves better, better off, by a lot of betters.

    And now, what a surprise! There are differences all across Europe about, well, Europe and what it has become and where it has to go to get out of the mess it's created for itself.

    How that's going to end is playing out right before our eyes.

    To continue reading, please click here... Read More...
  • The Fate of the Eurozone Hangs on Sunday's French Elections It now looks as though Nicolas Sarkozy's days are numbered. In the balance lies the fate of the Eurozone itself.

    It appears Socialist Francois Hollande will win the French election runoff on Sunday and that June's legislative elections will give the Socialists a powerful position in France's parliament.

    Added to these developments is the good chance that both the major existing parties in Greece's parliament, which had jointly agreed to the bailout deal, will be voted out of office on Sunday as well and replaced by a motley set of far-lefties.

    So while the Eurozone has been quiet this week, the calm is deceptive with the elections on Sunday.

    Meanwhile, most of the worry in the Eurozone centers on Spain - which is quite foolish.

    Spain recently elected a center-right government with a large majority, which is clearing up the mess left by its predecessors. The country does have a 25% unemployment rate, but that's a function of Spanish labor law and excessive welfare payments, both of which the current government is addressing.

    Spain's budget deficit is also smaller than France's, as is its debt level. In fact, Spain's debt and deficit burdens are lower than both Britain and the United States. Spain is not the issue.

    Considerable Danger in the Eurozone

    As for Greece, it is a shambles.

    The truth is it should have been chucked out of the Eurozone two years ago, when it was first revealed that its governments had been consistently lying about its budget numbers.

    Had that happened, the new drachma would have sunk to about a third of its former value, and Greek living standards would have reduced by half, all without anything but market forces to be blamed.

    Now hundreds of billions of euros have been poured into the country, and its ungrateful electorate is determined to elect every nut-job it can rake up. The whole Greek rescue project has been a complete waste of time and money, and should be ended forthwith.

    Fortunately, throwing Greece out of the Eurozone will not destroy the euro - after all, nobody was relying on the strength of the Greek economy in their calculations of the euro's value.

    However, France is a different matter entirely.

    Unlike Greece, if France gets into serious trouble, the remaining "solid" euro economies led by Germany are not big enough to save it.

    And, led by Hollande, France looks to be in considerable danger.

    To continue reading, please click here... Read More...