Wednesday, June 19, 2013

Man Who Oversees $150 Billion Warns Of Hyperinflation / June 18, 2013
Today the man who oversees more than $150 billion warned King World News about the high likelihood of a coming great inflation, or worse yet the possibility of a hyperinflationary collapse.  Rob Arnott, who has won an unprecedented six Graham & Dodd Awards and is also Chairman of Research Affiliates, also warned KWN about the dangers of what the Fed and other central planners are engaging in as they lead us into a reckless and potentially game-ending and destructive “Hyper-Keynes” policy.
Arnott:  “The Fed has painted itself awfully far into a corner and there is no graceful way out.  When you reach a point where talk of ‘tapering’ causes markets to tremble with fear, that’s not a good place to be because it means that you’ve really got the markets addicted to the newly printed money.
And the only way to get the markets attention is to give it more (freshly printed money).  It’s just like a crack addiction.  This is not healthy and doesn’t play out nicely, and you do have asset bubbles fueled by central bank profligacy all over the world.  That also sows seeds of risk because as the Fed backs off from the quantitative easing you wind up creating risks of pretty sharp and adverse market reactions….
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KBR, Inc. operates as an engineering, construction, and services company worldwide. The company's Hydrocarbons segment designs and constructs liquefied natural gas and gas-to-liquids facilities; and delivers onshore and offshore oil and natural gas production facilities, including platforms, floating production and subsea facilities, and pipelines. Its Infrastructure, Government, and Power segment offers base operations, facilities management, border security, engineering, procurement, construction services, and logistics support to industrial commercial, defense, and governmental agencies; and project management, construction management, design, and support services for aviation, road, rail, maritime, water, waste water, building, and pipeline projects. The company's Services segment provides construction, construction management, fabrication, operations/maintenance, commissioning/startup, and turnaround services for the oil and gas, petrochemicals processing, mining, power, alternate energy, pulp and paper, industrial and manufacturing, and consumer product industries. Its Other segment includes the ventures business that invests in defense equipment and housing, toll roads, and petrochemicals projects.
To review KBR's stock, please take a look at the 1-year chart of KBR (KBR, Inc.) below with my added notations:
1-year chart of KBR (KBR, Inc.) KBR had been trading primarily sideways since September of last year. While doing so, the stock continually bumped up against $32 as resistance (blue), which was also a 52-week high resistance. After KBR finally pushed above that resistance back in the middle of May, the stock appears to be pulling back to the original breakout point of $32.
The Tale of the Tape: KBR broke out to a new 52-week high and is now pulling back. A long trade could be made at $32 with a stop placed below that level. A break below $32 would negate the forecast for a continued move higher.
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Asia Currency Sell-Off Goes From Bad to Ugly

by Rajeshni Naidu-Ghelani

Asian currencies have been battered lately by talk of the U.S. Federal tapering its massive stimulus program and analysts expect the pummeling to continue as other major drivers that led the currencies to appreciate now face pressure.
On top of funds flowing out of Asia on worries about the Fed unwinding its asset-purchase program, Citi Research expects sovereign risk re-assessment, weakness in the Japanese yen, and deteriorating current-account deficits to weaken regional currencies further in the months ahead.
“We think there is more weakness to come for most currencies as some of the major drivers of Asia FX (forex) appreciation since the global financial crisis are less supportive,” Johanna Chua, chief Asia economist at Citi said in a report.
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Real Estate Investing Success Stories

from Financial Survival Network
Our sponsor, Jason Hartman, joined us today to discuss a number of real estate investor success stories. Understand that while he may be “talking his book,” he’s been at this game for a long time and has helped a number of people capture over-sized returns. Of course there are risks and pitfalls, as there is in any type of investing. However, Jason has the proof, which is thousands of satisfied clients. While there are no guarantees in life or investing, there are ways to reduce risk to tolerable levels. And if the economic collapse continues at its near glacial pace of late, then real estate investing could be a good bet.
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Why Are There So Many US Dollar Bulls?

This is something we’re noticing that isn’t getting talked about much. Why are so many speculators piling on to the long US Dollars trade? And why is this breakout in the Euro happening so quietly? Last week we saw the highest levels in $EURUSD since February. I bet if it was the other way around and Euro was hitting 4-month lows we would certainly be hearing about it. But it’s the US Dollar hitting fresh lows. And this is all while small speculators have their largest net long positions in a decade.
Here is the US Dollar running into resistance last month up near last year’s highs. We’re noticing similar characteristics in both dollars and euro that we saw last summer (see here and here). As the dollar index made new highs in May, momentum was already rolling over and making lower highs:
6-17-13 dx
And this is all coming while the commitment of traders report is showing that speculators have big bullish expectations. Not a good combination if you ask me. Let’s see what happens.
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European Car Sales Drop To 20-Year Low, Germany Clobbered / By Tyler Durden / June 18, 2013, 07:54 -0400
When the S&P, always so conveniently ahead of the curve, yesterday revised its forecast for Europefrom growth in the second half of 2013 to 2014 one couldn’t help but golf clap, as well as wonder if they finally started looking at the fundamental depressionary reality on the ground instead of the rating agency’s infamous “models.” A depressionary reality confirmed by the latest car sales number for May which just hit a fresh 20 year low.
From AP:
European car sales hit their lowest level for the month of May in 20 years as the region’s recession dragged on, the European automakers’ association said Tuesday.
They meant depression instead of recession, but it’s an honest mistake.
Passenger car sale demand for May dropped by 5.9 percent on the same month last year in the 27-country European Union to 1.042 million units, the lowest level since May 1993, when sales dropped below 1 million, according to new figures released by ACEA. For the first five months of the year, sales dropped 6.8 percent to 5.07 million.
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