Thursday, October 25, 2012

Dollar Sell-off and Hyperinflation by 2014 – John Williams

by Greg Hunter, USAWatchdog:
Economist John Williams says the latest round of “open-ended” QE has set the table for a global “dollar sell-off” and “hyperinflation” no later than 2014. Williams says, “There’s no way the consumer can fuel the economic recovery, and there is no way we’re going to see one in the near future.” Williams predicts, “The Treasury is going to have funding problems, and that means the deficit gets a lot worse.”

Now, there is talk the Fed might increase the money printing. Williams charges, “The Fed’s primary concern is to keep the banking system afloat, and they’re not doing so well with that.” Williams contends there is 12 trillion in liquid dollar assets held outside the U.S. Williams says it is only a matter of time before all the Fed money printing will “trigger a sell-off . . . and that will provide the early start of the hyperinflation.” You think the U.S. is better off today than it was in the last meltdown? Not according to Williams, he thinks, “. . . things have gotten a lot worse.” Join Greg Hunter as he goes One-on-One with John Williams of
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“The Market Isn’t as Bad as You Think” – Rick Rule

McAlvany Weekly Commentary

A Meeting With the Brightest Minds

- What happens if interest rates stay low for years?
- What does oil inflation look like?
- With gold it’s all about low supply and high demand.
Read | Subscribe@iTunes

This 464% Gainer Still Has Plenty of Room to Run: DPZ

Back in 1960, this Michigan-based company was purchased for $500. Today, it's worth billions. Over this same period, the company has grown from one store to thousands across the United States.
Today, Domino's Pizza (NYSE: DPZ) is the second largest pizza chain in America, behind only Pizza Hut, which is owned by Yum! Brands (NYSE: YUM).
Domino's also has a strong -- and growing -- international presence. It currently operates over 10,000 franchised and company-owned stores in 60 countries. In the most recent third-quarter, Domino's opened 121 new international stores. By the end of this year, management plans to open 500 new overseas locations.
In addition to international expansion, continual product innovation is helping drive growth. In 2011, the company changed its primary pizza recipe, adding a sweeter tomato sauce, higher quality cheese and a garlic-seasoned crust. This September, Domino's began offering deep dish pizza. According to Domino's CEO, 20% of U.S. pizza sales are deep dish, so Domino's is tapping into a large market -- one that not a lot of other pizza chains cater to. Online sales are also helping spur growth with over 40% of sales now taking place online.
All of these factors are helping drive the stock price up.
DPZ Chart
Shares have been on a major uptrend for the past three years, rocketing over 464%, from their November 2010 low of $7.09, to the current share price near $40. And the stock shows no signs of slowing down here.  (more)

Richard Russell – The Bear Is Angry & Bernanke Wants Out /

Today the Godfather of newsletter writers, Richard Russell, writes, “Friends of Fed chief Ben Bernanke say that Bernanke may not want a second term as Fed head.  The Russell opinion is that Bernanke realizes that he is losing his war against the primary trend, and that he has had enough.”  Right into the teeth of Bernanke’s troubles, Russell added, “I believe the bear is angry and is re-establishing himself.”

In his latest note to subscribers, here are Russell’s thoughts: “Many subscribers think that Richard Russell is a perpetual bear and that nothing will turn him bullish.  They could not be more wrong.  I call ‘em the way I see ‘em.  In 1957 I built my business on my lone bullishness, and I wrote a bullish article for Barron’s in late 1957 which sought to prove that a bull market was still in force, despite almost universal bearishness at the time (the nation was in the throes of a severe recession at the time).”

Richard Russell continues:
“Back in late 1974, I stood alone as probably the only bullish analyst in the business.  What I mean to say is that I call it the way I see it, based on my own reading of the market, and regardless of what the popular opinion is at the time.  Frankly, I would love to be bullish today, for the sake of my business and for the sake of my five children and for the sake of the United States, the land that I love.
I’ve stated that a primary bear market started in October 2007, with the Dow at 14,164, and that the same primary bear market is still in force.  The period of 2009 to its recent high was an upward correction, a ‘breather’ that came within the confines of the continuing bear market.

As I write this, I believe that the bear market is resuming.  The ‘breather’ convinced many experts and name analysts that a new bull market had arrived.  I disagreed.  The Bernanke Fed came in with their QE4 to infinity, and that further convinced many analysts that the worst was behind us and that the Fed had the situation well in hand.

Peter Grandich: Precious Metals is in the Mother of All Bull Market

Wall St for Main St interviewed former Wall St trader and analyst Peter Grandich. We asked him about the lack of quality education in the U.S. and student loan bubble, why gold and silver will continue to outperform the rest of the market, the bond market and Americans personal finance attitude and behavior.

Gasoline Losing Streak Hits Longest in 26 Years on Supply

Gasoline fell for a 10th consecutive day, extending a losing streak to the longest since the start of New York futures trading in 1986, as fuel supplies surged to the highest level in almost two months.

Futures slipped after the Energy Department reported stockpiles rose 1.44 million barrels to 198.6 million, the highest level since Aug. 31. The median forecast by 11 analysts surveyed by Bloomberg called for an increase of 500,000 barrels. The fuel is down 22 percent this month as refineries, including Delta Air Lines Inc. (DAL)’s Trainer plant, started units.

“We’ve seen the restart of the Trainer refinery and restart of a number of other units that could supply the East Coast, so the supply situation has improved,” Andy Lipow, president of Lipow Oil Associates LLC, an energy consulting firm in Houston, Texas, said by phone. “In conjunction with the supply improvement, this is the time of year we expect this type of pressure on gasoline.” (more)

Chart of the Day - Harley-Davidson (HOG)

The "Chart of the Day" is Harley-Davidson (HOG), which showed up on Tuesday's Barchart "3-Month High" list. Harley-Davidson on Tuesday posted a new 3-1/2 month high and closed +7.72%. TrendSpotter has been long since last Thursday at $44.53. In recent news on the stock, Harley-Davidson on Tuesday reported Q3 EPS of 59 cents, slightly above the consensus of 58 cents. JP Morgan on Oct 19 upgraded Harley-Davidson to Overweight from Neutral and raised its target sharply to $56 from $38. Goldman Sachs on Oct 18 upgraded Harley-Davidson to Buy from Neutral with a target of $54 based on valuation, an acceleration in motorcycle registrations, and expectations for an improvement in construction employment. Harley-Davidson, with a market cap of $10 billion, is an American motorcycle manufacturer.