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  • Four Shipping Stocks To Ride The Dry Commodities Boom [View article]
    Treasury Secratary Hank Paulson (former Goldman Head) & FED Chairman's (now: Uncle Bernie Clause) "emergency" scare tactics convinced Congress that the Global Financial System was in a Crisis, created when capitalism gave way to socialism (new Dictator Designate: OBAMA) where gov't burocrats pick and choose which financial companies including hedge funds & banks become anointed by gov't to succeed and/or even survive...

    The supposed "POCKET BAZOOKA" that supposedly wouldn't need to be taken out to instill "confidence", was, resulting in A HUGE MULTI-TRILLION$ BLANK CHECK, called "TARP", which Hank conveniently gave mega-billion$ to his top banking buddies, then conveniently folded up and took home with him, in something like a bad Charlie Brown re-run where Lucy took the Football home, sadly ending the game. A classic "Bait and Switch" routine, where Hank folded up his TARP, and took it home with him to do as he pleases with his top banking buddies, who incidentally haven't been doing much lending, but instead shored up their balance sheets for the coming wave of bank failures where they will be in a STRONG position to buy up failing institutions for pennies.

    The Designated Dictator (aka President Elect) of the new United Socialists of America, is also using the same scare tactics, proposing that government has to save everyone. What will be the result of all the scare tactics, with unprecedented powers in the hands of very few at the top, supposedly requiring Cranking up the PRINTING PRE$$E$??

    History shows that it always ends up in a flood of Fiat Currency being soon destroyed in ensuing HYPER INFLATION, banana republic style.

    The upcoming COMMODITY BOOM will soon SURGE far beyond the temporary "Commodity Bubble" spike that supposedly "bursted" last summer. OIL PRICES affect the price of almost everything manufactured and distributed in the interconnected Global Economy. OIL PRICES are currently very low, but can not possibly stay low for very long, regardless of so called "DEMAND DESTRUCTION", which will soon give way to DOLLAR DESTRUCTION via HYPER-INFLATION of the Fiat Flood and new Credit Creation at the Top Level (FED), pumping imaginary USD into Central Banks worldwide, to thaw the credit freeze... How do you solve a Global Credit Crisis?? The apparent answer is to Create a FRESH NEW MOUNTAIN of CREDIT$!!!

    OIL is traded in USD globally. OIL and other hard/soft commodities trade inverse of the USD Index, which for now has been riding high.

    What will happen when the inevitable inflation catches up with the flood of new Credit Creation and US Paper Debt Instruments... Fresh USD & the sale of ever escalating US Treasury Debt?? Intrest on Treasury Notes has been extremely and Historically low lately, if it exists at all, in the rush to historic SAFETY of US Treasury Debt Notes... But when the TREASURY BOND BUBBLE BURSTS due to inflation returning less than the original buying power invested in it, there will be a race to anything else, such as COMMODITIES of INTRINSIC VALUE, & REAL MONEY... GOLD & SILVER (which is incidentally in historically low supply now).

    Yes, Shipping Companies will make big profits in the very near future, as they ship the commodities needed for survival, regardless of their prices. Of course, the price of the OIL/fuel needed to ship the commodities will be passed along to the end purchasers/users.

    So, which SHIPPING COMPANIES will profit the most in the near future and thereafter?? The ones with a huge pile of long-term contracts already in place. Which STOCKS will surge the most in the very near term?? Companies with extremely low current and forward P/E ratios...

    That's why I like DRY SHIPPING (DRYS)... Their stock surged again today, even though some government talking heads have been talking on TV again... DRYS will likely surge back up to and above levels it was trading at less than a year ago, and FAST!!!

    Of Course, with all that freshly printed money being dedicated to the new "Stimulous Plan", OIL, Alternative Energy, & Mining Stocks, as well as Agriculture Stocks including Fertilizer (POT & MOS), especially those trading at low P/E ratios, will $urge very soon. I especially like Silver Mining Stocks (due to the quiet Silver Shortage and manipulation of Spot Prices from naked shorts on the COMEX, which may default very soon): SLW & SSRI, both of which are sitting on HUGE STASHES of SILVER, just waiting for the inevitable SURGE as the masses rush away from Debt instruments of paper "MONEY", to the SAFETY of REAL MONEY and INTRINSIC VALUE of COMMODITIES essential to daily living, all of which have to be transported somehow in a Global Economy, primarily by SHIPPING!!!

    One thing is certain... Increasing overall VOLATILITY is the new norm...

    Beware of so called "Expert" Analysts, & do your own investigating...

    Happy Investing!!!

    PS: Speaking of Shipping... What if Pure Liquid Gold, Abundant PETROLEUM, was to be found in ISRAEL, (far away from Dire Straight of Hormuz Persian Gulf bottleneck surrounded by Iran) in the Jezreel/Kishon River Valley, right by the Mediterranean Sea ports, as per Ancient Prophecies?? (((in and around MEGIDDO)))

    The Geopolitical landscape and balance of power in the Middle East & World would change suddenly & shockingly change immediately!!! The exploration & rightsholder company, ZION OIL, is not my own, although my family does own significant stock & warrants in Zion OIL (Amex:ZN).
    Jan 09 12:50 pm |Rating: 0 0
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