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Global Markets

Top News

If North Korea Has Nuclear Missiles, Here's the One Stock You Need to Own

For months now, North Korea has been threatening to launch a nuclear missile strike against the U.S. mainland.

However, the Pentagon has been quite confident in its assertions that the reclusive country doesn't have the technology to actually put a nuclear warhead atop a ballistic missile.

And even if North Korea were able to match a nuke with an ICBM, our military leaders said it could never reach the U.S. mainland.

But we knew better than to be so dismissive.

North Korea has sold so many missiles to Iran, Syria, Pakistan and others that intelligence analysts refer to the arms-dealer as "Missiles "R' Us."

That's why – back in February and March, in reports in both Private Briefing and Money Morning – we cautioned that North Korea's weapons technologies were likely much more advanced than the Pentagon would have us believe.

Now it looks like we were right to be so cautious.

Global Economy

Eurozone Debt Crisis: Now It's a Hopeless Game of Whac-a-Mole

The Eurozone debt crisis that was supposed to have blown over long ago instead has become more like an endless game of Whac-a-Mole, with both new and old problems popping up faster than European leaders can bop them.

As Europe's finance ministers gathered in Dublin today (Friday), they faced at least half a dozen major issues threatening the fiscal health of the Eurozone.

Although Europe's leaders, in concert with the International Monetary Fund (IMF), have succeeded in keeping a lid on each successive crisis over the past three years, that streak can't survive in the face of the new and old fiscal woes that have been peppering the Eurozone.

U.S. investors can't let those past successes deceive them into thinking the Eurozone is no longer a worry.

When the Eurozone debt crisis finally implodes – and sooner or later, it has to – it will hammer stock markets around the globe.

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Top News

Why Paul Krugman is Wrong About Margaret Thatcher

As the top Keynesian gadfly, Paul Krugman's recent attack on Margaret Thatcher wasn't very surprising.

In a blog post on the very day she passed, he questioned whether or not Margaret Thatcher had actually made any difference to the performance of the British economy.

Since she had spent much of her career fighting the theories of like-minded economists you can easily understand why Krugman was so quick to take a swing.

But as someone who was actually there, I can tell you the evidence of Thatcher's success is incontrovertible-no matter what Paul Krugman wants you to believe.

What's more, the larger truth is that Thatcher's principles still hold lessons for us today.

Stock Market

This Little-Known Indicator Says Stocks Should Double

With the markets breaking all-time highs last week, it begs the question of just how high they can go.

At 1,569 points the bears would say at this point the S&P 500 is completely overdone. With a sluggish economy and a growing federal deficit, you might be prone to believe them.

But there is a little-known indicator that became very fashionable between 1982-2007 that says something else entirely. Noted for its accuracy over that period, it actually suggests that stocks should double.

It's called the "Fed Model."

Top News

Keith Fitz-Gerald: Cyprus is "The First of the Dominoes to Fall"

With guards outside Cyprus banks Friday and depositors reeling after suffering huge losses, the nation's central bank reassured residents they wouldn't face restrictions on using their debit and credit cards.

But according to Money Morning Chief Investment Strategist Keith Fitz-Gerald, the reverberations and possible implications of the Cyprus bailout extend well beyond the island nation.

Appearing on the FOX Business Network, Fitz-Gerald said Cyprus had "achieved every central banker's dream. They have privatized gains and socialized losses, and this is the first of the dominoes to fall."

He said "any nation in the world is subject to this now that politicians have figured out they've gotten away with it."

To see why it matters and what else Keith had to say, check out the video below.

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Read More…

Global Economy

After the Cyprus Bailout, Here's Where You Should Keep Your Savings Now

Now that the dust has begun to settle in Cyprus, the battered principle of deposit insurance seems to be safe-for now at least.

In the big stare-down with the European Union the final Cyprus settlement did not zap the small depositors.

Instead it simply shifted the burden further up chain. The final deal increased the "haircut" on large depositors in the Bank of Cyprus and Laika Bank from an originally proposed 9.9% to an astounding 40%.

To me, that's highway robbery — even if the Russian Mafia has to bear a big share of the brunt.

As strange as it may seem, even the Russian Mafia has rights!

The lessons here are quite clear…

Top News

Cyprus Bailout Plan: Reaction from the Front Lines

As Money Morning Chief Investment Strategist Keith Fitz-Gerald warned last week, the Cyprus bailout plan is a breach of trust that could derail the entire Eurozone.

Not only does the plan fail to fix the country's economy, it has the potential to seriously damage people's trust in the banking system, making a bad situation even worse.

"Individuals deposit money in banks instead of stuffing it in their mattresses because they believe that their money will be safe there," explained Fitz-Gerald. "Once they realize, or even suspect, that the money they put in the bank is anything but safe, they will take whatever's left and run – and the bank will collapse in spite of the "bailout.'"

To get an idea of what life on the ground in Cyprus is really like right now, Fitz-Gerald recently talked to FOX Business Network's Washington Correspondent Rich Edson. Edson has been reporting from Cyprus as the controversial bailout plan unfolds.

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Eurozone Debt Crisis

Cyprus Bailout Deal Sets Stage For a Bigger Eurozone Blowup

European Union officials voiced relief following an 11th-hour Cyprus bailout deal, but in truth, they have little to celebrate.

Not only will this deal worsen the economic crisis in Cyprus, but the damage to the trust in the banking system also has created a time bomb set to go off the next time a Eurozone country – or especially its banks – get into trouble.

Early Monday morning, Cyprus agreed to consolidate its two largest banks and inflict heavy losses on uninsured depositors. In exchange, Cyprus gets $13 billion in international loans to prevent the total collapse of the island nation's banking system.

"It is a bad deal, but the extreme scenario we had to contend with was worse," Lefteris Christoforou, vice chairman of the ruling Democratic Rally party, told Reuters.

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Global Markets

Is the Latest Ultimatum in Cyprus About to Derail the Eurozone?

You probably know the story by now.

Following riots in the streets and a run on local banks, Cypriot lawmakers voted down a key element of the European Central Bank's (ECB) bailout proposal that would have required the country to impose a one-time 9.9% tax on bank deposits of more than 100,000 euros and a 6.75% tax on bank deposits under that amount.

I can understand why people took to the street – the "tax" was little more than organized robbery under the guise of keeping that country afloat.

Why should you care about what happens in Cyprus?…

Cyprus is not Las Vegas. What happens in Cyprus cannot possibly stay in Cyprus. The world's financial markets are too interlinked. Ultimately, it is a move intended to keep the euro afloat at any cost.

Global Economy

The Cyprus Bailout Exposes a World of Thieves, Cheats, and Liars

Let's talk about the Cyprus bailout, the International Monetary Fund, and the European Central Bank.

Let's call what the IMF and ECB are doing what it really is. After all, it is the ultimate institutional goal. It's thieving.

So let's start with the thieves…

The IMF, on behalf of the big global banks it serves, and the ECB, on behalf of the big European banks it serves, is stealing, without any authority whatsoever (other than under cover of the European Commission, which they jointly own) depositors' money in all the banks in Cyprus.

Because all the banks that lent to the Cypriot banks to keep them in business are now about to get shafted.

Why?

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