Showing posts from 2011

Will Oil Shoot the Moon? the Coming War with Iran

Will Oil Shoot TheMoon? The Coming War With Iran BOOM! Hear that explosion? That’s black gold’s rocket ship thrusting off earth’s surface headed to the moon as the first Israeli bomb hits a clandestine nuclear facility. PHHWWTT! That’s the sound of 2.3 million barrels of daily Iranian production immediately sucked out of the market. SQUEEZE! Feel that? That’s Iran sealing off the Strait of Hormuz (a strategically important waterway for tankers.) WAAAAA!!!! Hear that? That’s panic in the oil pits as traders hit the buy button as they so “rationally” hit the buy button circa 1999 when Internet stocks with no profits were valued at a bazillion times earnings, now sending crude’s price into orbit. OUCH! Feel that sting? That’s you at the gas pump as you decide to cut back on groceries. How likely is this scenario? Sadly, getting more and more so. Israel has recently ratcheted up their Iranian nuclear rhetoric. Certainly there is a political element here, as they desperately try to get…

Google is David to Facebook's Goliath

Google (GOOG) is one of the world’s most successful companies, its name a verb synonymous with search, adopted by all the world’s languages, its coffers overflowing with cash, and regulators in the EU and America seeking to describe its dominance as a "monopoly."
So how in the world can mighty Google be considered an underdog? Well, in taking on King Goliath (Facebook) in the social media realm, Google enters the arena as David. When I first upgraded to my Android Phone, I found myself surprised to be registering for a new gmail account (which I found vastly superior to Yahoo (YHOO)), and using the Google search engine on an even greater frequency (like 100% where before I interspersed Yahoo/Bing). I came to love the phone, and became exactly the type of consumer Google was trying to capture by giving away the Android operating system to phone-makers. My life became so “Googlefied” I felt compelled to purchase the stock. Now Google branches out to social media, in what is a …

Pop Goes The Gold Bubble

Is Gold the new Bubble? - The Case Against Gold Gold today is hitting record levels, primarily due to the uncertainty surrounding world currencies, debt, and central banks around the world printing money to support their government spending (USA) and over-leveraged banks (Europe.) This will eventually have inflationary effects on commodities which have a real intrinsic value. What do I mean by “intrinsic value”? In the case of apples, I can eat the tasty fruit to survive, in the case of gas, I can use it to power my car, to heat my food and house. These commodities have value for all of humanity. Does gold have intrinsic value? Absolutely. Throughout history everyone from the Incas, to the Chinese, to the Europeans recognized the shiny metal’s beauty. It was used as a store of value. You could buy things around the world with gold. Today you can also use it as crown for a tooth, as well as a few industrial uses. So I’m not debating that gold has value, I’m trying to make to decide whethe…

The World Catches Up To The Bush League Economy

The Bush League Economy

Look, let me be clear here when discussing Bush- if I met him at a party, chances are I would like him. I don't believe he is an evil or bad person, but as a leader, he was an absolute failure ....

America already had a big deficit prior to Bush, but with with the help of a catalyst named Osama Bin Laden, El Presidente implemented ruinous policies to American might and economic well being.

9/11, courtesy of Osama. Damage to American economy- trillions. Not only the immediate obliteration of the Trade Centers, planes, lives lost, etc. but the added mega-billions of dollars a year we spend on Homeland Security, time lost at airports, and the action we had to take in invading Afghanistan.

Sadly, W uses "terror" as an excuse to invade Iraq and depose Sadaam Hussein. Who benefited? The military industrial complex, big oil, Al Quaeda (til the Muslim world soured on their continued unjustifiable violence) and the Shiites now in control of Iraq; at the ex…

America-- Sliding Down A Slippery Slope or Free Falling?

"The United States is living like parasites off the global economy and their monopoly of the dollar."

Vladamir Putin- August 1, 2011--
says the man worth 40 billion dollars from peddling political influence, bribes, and taking controlling stakes in Russian companies, simply, because he has can ...-----------------------------------------------------------------------------------------------
As I promised a follow up to the US financial debacle going on right now, I want to discuss why the US is slipping from it's position of King Of The Hill, both how we got to the top of the mountain, and why we are losing our grasp of the peak.
I'll also be addressing Mr. Vladamir.

Onto The Show ...
While Europe was largely settled in the 1800's, the US was still largely vast swaths of uncharted territory. While Europeans of two centuries ago worked like slaves to keep their meager salaries, owners of American businesses couldn't put a complete stranglehold on the labor mark…

US Debt Downgrade and What It means for Your $$

Downgrading Your $$

On Friday, the S + P downgraded US Debt a notch, from the top rating of AAA to AA+ ... Let's examine what that means, and why it is important.
So a rating agency, which was unable to predict the 2008 financial crisis, says USA just slightly slightly riskier than before ...
None other than Warren Buffet retorted in an interview with Fox News shortly after the downgrade, stating that S+P is dead wrong, that he would give the US a quadruple A rating if there were a rating above 3 A's ...
I plan to commit investor sacrilege and challenge The Oracle of Omaha (Buffet) here as well.

First of all what does it really mean, the "downgrade?" In real terms, not much. Buffet is absolutely correct when he says there is little chance at a "default."

** But Rich! You said you were going to challenge Buffet. Now you agree with him?**

Did you notice that I put "default" in quotes. Yes, the US has a printing press, and they can easily print more …

Your Money and the US Debt Crisis

Fact: we continue to spend far more than we take in revenue.

Fact: if this was a private individual, eventually people would stop supplying them with credit.

Fact: Giving warring political factions, unable to make sacrifices that would affect their chances of re-election, but being fully willing to ask others to do such, how much is the US Legislative Branch really committed to cut spending.

Prime Example: Ethanol subsidies-- It takes as much energy input to produce corn ethanol as you get out of it, thus turning corn into fuel merely takes food off the world's table, creating higher commodity prices, while having no effect on the price of oil, and money out of taxpayers' hands ... A bill to remove ethanol subsidies passed the house, but didn't pass in the Senate because of some two faced explantions by both Republican's and Democrats that, "now is not the time to make America less energy independent." Then they turn around and vote against money for real en…

Buy Google Stock Dammit. Buy it Soon.

WHY BUY GOOGLE (ticker symbol- GOOG)-- by Rich Birecki

Okay, it has been a long time since I have made a financial pick. last year I purchased Google (GOOG) at 450 for a client's account I am managing, and sold it 597. I will go over the reasons I bought it then and am recommending it now.
The original why: Simply put, my life was becoming Googlefied. Having purchased an Android phone, I found it Vastly superior to the Palm phone that it replaced. To download email in real time on it, I set-up a gmail account which I found to be, infinitelysuperior to yahoo. I likely would not have set-up gmail had I not purchased the smart-phone. To search the internet on my phone, I merely speak into it, it decodes the sound waves, and gives me very reliable results via the Google search engine. My schedule, done by Google. Heck, i am even writing this blog powered by google blogger, with google ads around it, so when you click one after you read this, Google and my company split a few cents.