A Corporate Debt Crisis Is Underway… And Nobody Cares

A Corporate Debt Crisis Is Underway… And Nobody Cares By Justin Spittler Investors no longer give a damn. That might sound harsh, but when things are this backwards, you have to tell it like it is. You see, I read something recently that disturbed me. I had to pinch myself to make sure I wasn’t dreaming. It was an article I recently stumbled upon in Bloomberg. In it, the author explained how U.S. companies are issuing debt at breakneck speed. You see, U.S. companies have already issued more than $360 billion worth of investment-grade bonds just this year. Corporate America is now on pace to issue the most investment-grade debt in the first quarter since 1999. I don’t have to remind you how that ended… But here’s the really crazy part… Investors are lining up around the block to buy these bonds. If you read yesterday’s Dispatch, you know where I’m going with this. In short, the bond market is unraveling. This isn’t some conspiracy theory. It’s a fact. And yet, investors are buying bonds by the fistful. These people don’t understand how much danger they’re in. Hell, they don’t even know what they’re buying anymore. I’ll explain why in a second. But first, let’s be clear about what “investment-grade” means. • Investment-grade bonds are bonds issued by companies with good credit… They’re the best corporate bonds money can buy. Investors like them because they’re supposedly “safe.” Conventional wisdom says you can own them and sleep well at night. At least, … Continue reading

This Sector Is Set to Deliver 20-to-1 Returns… and That’s Just From the “Bad” Companies

This Sector Is Set to Deliver 20-to-1 Returns… and That’s Just From the “Bad” Companies By Nick Giambruno “It was the single most important financial event of my career.” That’s what my friend Rick Rule of Sprott Global recently told me of his experience in the uranium market. Rick was referring to Paladin Energy, a uranium company that leaped from one penny to $10 per share during uranium’s last bull market. That’s a 1,000-fold increase. In other words, a $1,000 investment could have exploded into $1 million. Even the worst-performing companies in the uranium sector delivered 20-to-1 returns. Uranium can deliver these almost unbelievable returns because of unique supply-and-demand quirks that create colossal bull and bear markets. Here’s a quick rundown… and a closer look at how uranium’s coming bull market could hand you these kinds of life-altering profits. The 1950s Uranium Bull Market Uranium cycled through its first bull market in the 1950s. This bull was mainly driven by the nuclear arms race between the US and the Soviet Union. Back then, the only practical way an investor could get exposure was through uranium exploration companies trading on small regional stock exchanges, like the one in Salt Lake City (which closed in 1986). Those who did made a bundle. The Late 1970s Uranium Bull Market The uranium price increased more than tenfold during this bull market… from $3 to $43. Some uranium stocks shot up by a factor of 100. Greater nuclear power use was the main driver. It … Continue reading

Doug Casey on the Single Wisest Thing You Can Do With Your Money

    Published February 25, 2017 Editor’s note: Over the next two days, we’re featuring timeless wisdom from Casey Research founder Doug Casey. Today, he shares the No. 1 thing you can do with your money to take control of your life and prosper in the years to come.     There’s a great deal more to becoming rich than buying the right investments and hoping for the best. The most important element in your strategy to win the battle for investment survival is your own psychology. You’ve heard that your attitude helps your health and your golf score; it’ll also improve your earning power. It’s not enough to liquidate your past financial mistakes. It’s more important to liquidate counterproductive attitudes, approaches, and methods of dealing with problems. The results that someone gets in life are an indication of how sound his approach toward life is. A sound philosophy of life gives good results. People with chaotic, unproductive, unhappy lives usually don’t have anyone to blame but themselves. They rarely have a strategy for living and thus have no foundation on which to build a strategy for investing. There’s plenty of good advice available on the subject. Marcus Aurelius’ Meditations, Ben Franklin’s autobiography, Norman Vincent Peale’s Power of Positive Thinking, Frank Bettger’s How I Raised Myself from Failure to Success in Selling, and Maxwell Maltz’s Psycho-Cybernetics are all helpful. One of the important things about the Greater Depression is that it will give you a chance to put your philosophy of life to the test. Almost … Continue reading

Northern Dynasty – US Congressional Committee calls on EPA Administrator to withdraw Pebble Project veto

February 22, 2017   Editors Note from Dudley Pierce Baker http://CommonStockWarrants.com This company Press Release is out after the markets close today and after the shares and warrants have been punished badly of late. Perhaps this news will give some relief, we shall see …… February 22, 2017 Vancouver, BC – Northern Dynasty Minerals Ltd. (TSX: NDM; NYSE MKT: NAK) (“Northern Dynasty” or the “Company”) announces that the US House Committee on Science, Space and Technology has called on the new Administrator of the US Environmental Protection Agency (“EPA”) to rescind the federal agency’s 2014 regulatory action under Section 404(c) of the Clean Water Act to pre-emptively veto Alaska’s Pebble Project. A February 22, 2017 letter to EPA Administrator Scott Pruitt from Committee Chairman Lamar Smith states: “The Committee recommends that the incoming Administration rescind the EPA’s proposed determination to use Section 404(c) in a pre-emptive fashion for the Pebble Mine in Bristol Bay, Alaska. This simple action will allow a return to the long-established Clean Water Act permitting process and stop attempts by the EPA to improperly expand its authority. Moreover, it will create regulatory certainty for future development projects that will create jobs and contribute to the American economy.” Since 2014, Northern Dynasty and its 100%-owned subsidiary Pebble Limited Partnership (“Pebble Partnership”) have advanced a multi-prong strategy — including litigation, Congressional outreach, independent investigations, among other initiatives – to encourage EPA to withdraw its unprecedented regulatory action against Pebble. The Congressional Science, Space and Technology Committee has held … Continue reading

Donald Trump, Saudi Arabia, and the Petrodollar

Donald Trump, Saudi Arabia, and the Petrodollar By Nick Giambruno February 22, 2017 Obama pulled out his veto pen 12 times during his presidency. Congress only overrode him once… In late 2016, Obama vetoed the Justice Against Sponsors of Terrorism Act (JASTA). The bill would allow 9/11 victims to sue Saudi Arabia in US courts. With only months left in office, Obama wasn’t worried about the political price of opposing the bill. It was worth protecting Saudi Arabia and the petrodollar system, which underpins the US dollar’s role as the world’s premier currency. Congress didn’t see it that way though. Those up for reelection couldn’t afford to side with Saudi Arabia over US victims. So Congress voted to override Obama’s veto, and JASTA became the law of the land. The Saudis, quite correctly, see this as a huge threat. If they can be sued in US courts, their vast holdings of US assets are at risk of being frozen or seized. The Saudi foreign minister promptly threatened to sell all of the country’s US assets. Basically, Saudi Arabia was threatening to rip up the petrodollar arrangement, which underpins the US dollar’s role as the world’s premier currency. Donald Trump and the Saudis Unlike every president since the petrodollar’s birth, Donald Trump is openly hostile to Saudi Arabia. Recently he put this out on Twitter: Dopey Prince @Alwaleed_Talal wants to control our U.S. politicians with daddy’s money. Can’t do it when I get elected. The dopey prince that Trump is referring … Continue reading

Northern Dynasty | Valentine’s Day Massacre 2017

February 15, 2017 Dudley Pierce Baker http://CommonStockWarrants.com   Northern Dynasty Minerals, NDM.TO and NAK, has treated shareholders and warrant holders extremely well over the last 6 months or so with gains of 500% and much more for the stock warrants of up to 2,000%. That all changed on February 14, 2017, Valentine’s Day. Briefly, due to a hack job by a New York based hedge fund and short seller,  the shares and warrants plunged at one time around 40% before slightly recovering. On February 15th the shares and warrants made some very modest gains. Below, I am sharing with you the analysis of our friends at The Casey Report for the details and particulars of what happened. But first, I found interesting that while the shares were plunging on Valentine’s Day, two of the company’s insiders were actually buying shares in the open market. Insider Reporting: On February 14th, Northern Dynasty Minerals Director Steven Ashby Decker acquired 20,000 Common Shares on a direct ownership basis at a price of US$2.435 through the public market on February 14th, 2017. This represents a $63,763 investment into the company’s shares and an account share holdings change of 18.2%. In addition, Director Desmond Balakrishnan acquired 7,900 Common Shares on a direct ownership basis at a price of $3.000 through the public market. This represents a $23,700 investment into the company’s shares and an account share holdings change of greater than 100%. The question now for investors is whether Northern Dynasty’s shares or stock warrants … Continue reading

How to Double Your Money 94% of the Time…

How to Double Your Money 94% of the Time… By Justin Spittler Editor’s note: Today, we’re taking a break from our usual commentary to share a must-read piece with you. In the essay below, International Speculator editor Louis James pulls the curtain back on a money-making phenomenon. As you’ll see, this strategy has generated average gains of 133%. More impressively, it works almost 100% of the time. This is the first time we’ve shared this powerful secret with our readers. We hope you find this essay as eye-opening as we did. What would you say if I told you of an investment strategy that more than doubled your money within two years, 94% of the time? First, a confession. I’m about to tell you something that’s rather obvious. The phenomenon is well known. Despite that, I never did the math before. To my knowledge, no one has ever bothered, but that’s no excuse. So, while I knew it was a factor—I’ve even made recommendations to profit from it—I didn’t realize just how powerful this approach is at generating maximum gains for minimum risk. Albert Einstein was famous for urging us to question everything. He once said, “I have no special talents. I am only passionately curious.” The strategy I’m about to describe has been “hiding in plain sight.” Doug Casey told me about it when I first started working for Casey Research. But I never asked: “What’s the average gain?” My apologies. Now, let me explain. Do you remember the … Continue reading

Trump and a New Gold-Backed Dollar

Trump and a New Gold-Backed Dollar By Nick Giambruno On August 15, 1971, President Nixon killed the last remnants of the gold standard. Since then, the dollar has been a pure fiat currency, allowing the Fed to print as many dollars as it pleases. Removing the US dollar’s last link to gold eliminated the main motivation for foreign countries to store large dollar reserves and to use the dollar for international trade. At this point, demand for dollars was set to fall… along with the dollar’s purchasing power. So the US government concocted a new arrangement to give foreign countries another compelling reason to hold and use the dollar. The new arrangement, called the petrodollar system, preserved the dollar’s special status as the world’s reserve currency. In short, the US government made a series of agreements with Saudi Arabia between 1972 and 1974, which created the petrodollar. The Saudis would use their dominant position in OPEC to ensure that all oil transactions would only happen in US dollars. And the US would guarantee the House of Saud’s survival. It worked… for a while. The petrodollar filled the void after the US severed the dollar’s last link to gold as the main prop to the dollar’s status as the world’ premier reserve currency. So far, the petrodollar has lasted over 40 years. However, the glue is losing its stick. I think we’re on the cusp of another paradigm shift in the international financial system, a change at least as fundamental as what … Continue reading

Doug Casey on the Coming Collapse of the World’s Biggest Economy

Doug Casey on the Coming Collapse of the World’s Biggest Economy By Nick Giambruno Nick Giambruno: The entire European Union is looking shakier by the day. Donald Trump’s victory—which shocked Europe’s political and media elite—gives Eurosceptic parties, the Continent’s populists, even more political rocket fuel. What’s your take? Doug Casey: The Social Democratic, Christian Democratic, Socialist, Communist, and similar parties have ruled Europe since the end of World War 2. They’re all pretty similar in that they promote massive welfare benefits, strong labor unions, large state bureaucracies, very high taxes, strict regulations, and an atmosphere of Cultural Marxism. Then, every few generations, the voters react and install a “fascist” regime. These keep most of the socialist characteristics, but tend to be supported by, and friendly to, Big Business. That, and they add on nationalism, xenophobia, and militarism. The last time this happened was in the 1930s. In those days it was spurred by the Great Depression. This time it will be spurred by the Greater Depression, plus massive waves of Muslim migrants from the Near East and Africa. So I expect to see more neo-fascist political parties everywhere. Oddly, the Europeans can’t seem to imagine a libertarian alternative of private charities, limited government, minimal taxes, an unregulated economy, and intellectual/psychological freedom. It’s another reason the Continent is a sinking ship. Incidentally, people think of these countries—Italy, France, Germany, and so on—as though they are fixtures in the cosmos. But they aren’t. In their current forms, they’re all newcomers on the stage … Continue reading

This Super Bubble Is About to Burst… Here’s How to Make Huge Profits

This Super Bubble Is About to Burst… Here’s How to Make Huge Profits By Nick Giambruno Italian government bonds are in a super bubble. They are primed to collapse soon. Italy has one of the most indebted governments in the world. It’s borrowed over $2.4 trillion, and its debt-to-GDP ratio is north of 130%. (For comparison, the US debt-to-GDP ratio is 104%.) But the situation is actually much worse. GDP measures a country’s economic output. However, it’s highly misleading. Mainstream economists count government spending as a positive when calculating GDP. A more honest approach would count government spending as a big negative. In Italy, government spending accounts for a whopping 50%-plus of GDP. A more accurate debt-to-GDP ratio would exclude government spending from economic output. I suspect that figure would reveal the Italian government’s hopeless insolvency. I don’t see how it’s possible for the Italian government to extract enough in taxes from the productive part of the economy to ever pay back what it’s borrowed. Yet Italian government bonds are trading near record-low yields. It’s a bizarre and perverse situation. Over a $1 trillion worth of Italian bonds actually have negative yields. That’s completely insane. Given the huge risks associated with lending money to the bankrupt Italian government, the yields on Italian sovereign bonds should be near record highs, not record lows. Source: Zero Hedge Italian government bonds are, without a doubt, in super-bubble territory. It won’t be long before a pin pricks it and… pop. A critical vote in … Continue reading