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Welcome to Money Morning - Only the News You Can Profit From.


How to Rent a Fortune

With a 37% gain in The Blackstone Group LP (NYSE: BX) since late July, we’ve done really well with our targeted investment in real estate.

And with very quick gains of 9% in Brazilian-food processor BRF SA (NYSE ADR: BRFS), 5.2% in South American agricultural play Adecoagro SA (NYSE: AGRO) and 1.6% in high-tech agribusiness player  Neogen Corp. (NasdaqGS: NEOG), we’re doing well with our plays on (pockets of) accelerating U.S. inflation.

Today we’re going to combine the two concepts and employ a very simple formula we believe will add to your profits…

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  • What's So "Open" About the Federal Open Market Committee?

    Don't you just love how some things are named?

    Like the Federal Reserve System, for instance. It's a central bank that was conceived in the private study of a private hunting lodge on a private island by a bunch of private bankers who didn't want to use the word "bank" in its name to fool taxpayers who thought it was a "system" to safeguard the public... from the very bankers who conceived it.

    I don't know about you, but the feeling of safety I have is just overwhelming... NOT.

    Then there's the Federal Open Market Committee (FOMC). That's a committee of top plotters that meets in private to discuss what's going on in "free" markets so they can figure out how to manipulate them.

    The Open Market Committee, or the Old Boys Club (they have a woman on the committee, but she's just a token "dove" who plays "Follow the Beard"), meets today and Wednesday to check on how their manipulations have stopped unruly free markets from sinking the banks that secretly run the Fed (you know it's not a secret, but there are a whole lot of taxpayers who don't).

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  • Keith Fitz-Gerald: "Big Buying Opportunities" Created By This Week's Fed Meeting kfg_CNBC_world

    All eyes are on this week's Fed meeting, set to be accompanied by a Bernanke news conference as well as updated economic projections for 2013-2015.

    In the accompanying video, CNBC World asks Money Morning Chief Investment Strategist Keith Fitz-Gerald to weigh in on investment opportunities that may arise out of the Fed's actions.

    Check it out for Keith's foretelling predictions on the "big buying opportunities" that you won't want to miss out on.

    Keith also discusses how healthcare investments might be affected by the implementation of Obamacare.

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  • Stock Market Today Reflects Strong Reliance on FOMC Meeting

    The stock market today opened on an optimistic note as worries abate about the Fed indicating an end to quantitative easing after this week's Federal Open Market Committee (FOMC) meeting.

    Shortly after the opening bell, the Dow Jones Industrial Average surged 172.02, or 1.14%, at 15,242.20. The Standard & Poor's 500 Index soared 16.43, or 1.01%, at 1,643.16. The Nasdaq jumped 40.11, or 1.17%, at 3,463.67.

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  • Do We Really Need the Federal Reserve System? video-keithfitzgerald-federal-reserve-system

    Abolishing the Federal Reserve System might seem like a drastic idea, but not when you get the full story...

    You see, Congress created the U.S. Federal Reserve System to restore public confidence, provide the banking system a source of liquidity that would prevent its collapse and protect the public against inflation.

    A century later, the banking system is so big its risks dwarf the Fed's liquidity capacity, and what cost a buck back then now will set you back $21.

    That's why we asked Money Morning Chief Investment Strategist Keith Fitz-Gerald to explain how the Federal Reserve System actually helps a country's economy.

    Most importantly, we wanted to know if the United States - or any country - even needs the Fed anymore.

    Just listen to Fitz-Gerald's answer in the following interview.

  • What You Absolutely Need to Know About Money (Part 8) isolated toy abacus Shah Gilani explains how the "extend and pretend" game became an institutionalized national treasure... Read more... Read More...
  • What You Absolutely Need to Know About Money (Part 7) By the start of the 1960s, banking in America was in a state of flux. And as Shah Gilani explains it got ugly fast. Read more... Read More...
  • The New Crisis Warning Just Issued to the Federal Reserve Bubble

    Before the housing market crash, economists warned that record low-interest and mortgage rates were fueling a housing bubble.

    Unfortunately, those fears were both overlooked and underestimated.

    Now, an advisory council to the U.S. Federal Reserve is warning the Fed that its record $85 billon-a-month stimulus and ultra-low interest rates are fueling new bubbles in student loans and farmland.

    "Recent growth in student-loan debt, to nearly $1 trillion, now exceeds credit-card outstandings and has parallels to the housing crisis," according to minutes of the council's Feb. 8 meeting.
    In addition, "agricultural land prices are veering further from what makes sense," the council said. "Members believe the run-up in agriculture land prices is a bubble resulting from persistently low interest rates."

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  • What You Absolutely Need to Know About Money (Part 6) How did stodgy traditional banking morph into “casino banking” on a global scale? Shah Gilani explains the crooked path to where we are today… Read more... Read More...
  • FOMC Meeting Message: Don't Blame Us for Sluggish Economy Fed logo

    The Federal Open Market Committee (FOMC) meeting concluded today (Wednesday) with one clear message to Washington: Thanks for the lousy economy.

    Central bank members cited only "moderate" expansion in economic activity and a slow improvement in the stubbornly high unemployment level.

    Acknowledging the economy is moving at an unhurried pace, the FOMC members pointed an accusing finger at Capitol Hill.

    "Fiscal policy is restraining economic growth," the statement read. That remark was in direct reference to a deadlocked Congress, sequestration and its far-reaching impact.

    A spate of fresh economic reports back that sentiment:

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  • FOMC Meeting Minutes Signal These Investment Moves to Make Now One, Two, Three

    It's clear from the leaked Federal Open Market Committee (FOMC) meeting minutes that the Fed isn't taking away the punchbowl quite yet - but investors can take steps now to be prepared for an eventual sign that quantitative easing will end.

    The FOMC meeting minutes show the central bank remains divided on when to end QE and raise interest rates.

    The Fed's current policy of buying $45 billion in Treasuries and $40 billion in mortgage-backed securities monthly will remain in place at least through midyear. Near-zero interest rates also look safe until 2015.

    The Fed has held short-term rates at historic lows since 2008, with a goal of juicing the anemic U.S. economy. The Fed minutes reiterated that Bernanke and company will keep rates super low until the unemployment rate dips below 6.5% or inflation rises above 2.5% a year.

    The monthly March jobs report, released after the March 19-20 Fed meeting, showed a significant slowdown in job creation. While the unemployment rate ticked down to 7.6% from 7.7%, the rate decreased largely because a huge number of people stopped looking for work.

    The glum employment data could even extend the Fed's 2015 date to raise interest rates.

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  • What You Absolutely Need to Know About Money (Part 5) Ever wonder where the Federal Reserve came from? Shah Gilani explains the little-known history behind the “The Creature from Jekyll Island." Take a look. Read More...
  • FOMC Meeting: The Fed's Latest Plan

    As expected, the U.S. Federal Reserve decided on Wednesday to keep interest rates at historic lows and to continue with its $85 billion in monthly bond-buying stimulus, despite a more optimistic labor outlook.

    It was a near-unanimous 11-1 vote in favor of the decision, announced at the conclusion of the two-day FOMC meeting. Kansas City Fed President Esther George was the sole holdout.

    The Fed said that while fresh information since the January FOMC meeting suggests "a return to moderate economic growth following a pause late last year, fiscal policy has become somewhat more restrictive."

    In defense of its ongoing bond buying, the statement read, "To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee decided to continue purchasing additional agency mortgage backed securities at a pace of $40 billion per month and longer-term Treasury securities at a pace of $45 billion per month."

    The aim remains the same: "to maintain downward pressure on longer-term interest rates, support mortgage markets, and help to make broader conditions more accommodative."

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  • FOMC Meeting: Can Bernanke Control the Market Reaction? People Bernake

    Financial markets have sometimes been turbulent after the release of the Federal Open Market Committee (FOMC) meeting statement.

    For example, when the U.S. Federal Reserve announced on Aug. 9, 2011 to keep interest rates at a record low, the Dow plunged 205 points. Then before market close it turned around and closed 429.92 points, or 4%, higher.

    According to former Fed governor Laurence Meyer, FOMC meeting statements on monetary policy are the second biggest market-moving events. FOMC meeting minutes releases are the first.

    But the Fed is trying to change that.

    In fact, the Fed will now issue its statement at 2 p.m., to give Chairman Ben Bernanke an opportunity to better control the message it sends to financial markets. Usually there are a couple hours that pass between the statement release and Bernanke's press conference.

    "They probably did some research and said the market has periods of increased volatility right after the announcement," Robert Pavlik, chief market strategist at Banyan Partners, told the Associated Press. "Well, of course there's going to be. That's the way it works."

    The Fed hopes the decreased time lapse will allow chief Bernanke to shed more light on Fed policy and prevent wild market swings based on speculation or concern.

    "They are trying to be more open and work with the market to some degree. It's probably a good thing," said Pavlik. "You don't want to give away the store but to try to get their message across so that people can understand it in real time makes a lot of sense. Maybe, if they could put it in language that the average man can understand, instead of double-Fed-talk, it would probably make even more sense."

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  • What Every Investor Should Know About the End of QE Equity markets around the world Wednesday expressed their distaste for the possible end of the Federal Reserve's quantitative easing (QE) policy. Share prices tumbled from New York to Tokyo. Here's what every investor needs to know. Read More...
  • FOMC Preview: Will the Fed Continue its $85B/Month Bond-Buying Program?

    Investors will be looking to the Federal Reserve Wednesday for clues about how long it might continue its bond-buying program aimed at pushing interest rates down.

    The Federal Open Market Committee is expected to release a policy statement at 2:15 p.m. Wednesday, the second day of its two-day meeting.

    In keeping with a practice it began last January, the first meeting of the new year will highlight the FOMC's long-term goals and monetary policy.

    The Central Bank likely will reiterate the goal it has maintained all of last year: boosting the stagnant U.S. economy.

    The Fed's first meeting of 2013 comes after an extraordinarily busy year, capped by two key moves in December.

    That's when the Fed said it would continue spending $85 billion a month on bond purchases to keep interest rates low. At the same time, the Fed set unemployment and inflation "thresholds" instead of a date when the central bank expected to be able to raise interest rates.

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