As we mentioned in yesterday's Digest, Porter's latest issue – the controversial "Corruption of America" issue – is generating a tremendous amount of feedback from both ends of the mainstream political spectrum.
In the issue, Porter presents some dangerous ideas that could disrupt the everyday lives of millions of people. They could cause fistfights at the family Christmas dinner. They could swing an election. And they are a huge threat to the most entrenched, parasitic institutions in the world.
A huge number of people... backed by colossal political power... want these ideas muffled. But… a small class of people supports Porter's ideas...
Which side do you fall on?
Well, if you're like many of our readers who have worked hard all of their lives, perhaps built a business that has helped you take care of your family, you might come down on the same side as Porter…
If you believe it's not your job to tell everyone around you what to do, you might come down on the same side as Porter…
If you believe that it's not your job to financially support your neighbor, you might come down on the same side as Porter…
If you think paying 50% of your annual income to various federal, state, and local government entities is onerous taxation (after all, the Almighty gets by on just 10% a year), you might come down on the same side as Porter…
If you believe one of the greatest joys a human being can have is learning how to take care of himself, and engage in productive achievement, rather than depend on strangers for his wellbeing, you might come down on the same side as Porter.
If you're a public employee who makes more than $100,000 per year doing the same job private-sector employees are paid $75,000 to perform, you'll probably hate Porter's ideas…
If you're among the congressmen who made millions of dollars over the past decade trading stocks based on insider information, you'll probably hate Porter's ideas…
If you're a career professor, lobbyist, and politician who has never held a job in the private sector or managed a business... whose greatest joy is accumulating political power… you'll probably hate Porter's ideas…
If you're one of the hedge-fund managers who made millions of dollars trading on the illegal "tip" provided to you by former Treasury Secretary (and former Goldman Sachs CEO) Henry "Hank" Paulson, during the 2008 credit crisis, you'll probably hate Porter's ideas…
To help you figure out which side you're on... and to help "spread the word"... we encourage you to follow this link to read Porter's piece.
Please feel free to pass along this link to as many people as you know. The sooner people realize what side the founders of our country would be on... which side helped America become the greatest country in the world… the sooner we can make changes for the better and save the country from an enormous financial crisis.
The problem doesn't stop in America... If you've been reading the Digest for the past year, you're aware of the escalating European debt crisis. You're also aware we believe the Federal Reserve and the European Central Bank (ECB) will eventually work together on a gigantic bailout (in the trillions of dollars).
But consider these stats from Bloomberg... The ECB's balance sheet holds $3.2 trillion in assets, compared to $2.9 trillion for the Federal Reserve. And the ECB is leveraged 30 times, the same as investment bank Lehman Brothers before the subprime crisis.
Despite this huge amount of leverage, European yields are falling today... Spain sold 3.7 billion euros in three-month bonds today for 1.735%, down from 5.11% in November. It also sold 1.9 billion euros of six-month paper at 2.435%, down from 5.227% last month.
Ten-year Italian notes are yielding 6.57%, having fallen from the 7% threshold that sank Portugal, Ireland, and Greece.
We believe this spike in bond prices (lower yields) will be short-lived... Soon, the market will wake up to the ever-increasing leverage on the balance sheet of the ECB, which the world is expecting to save its overleveraged nations.
Along with Europe, we've been following the slowdown in China. A key Chinese manufacturing index fell to 49 in November, down from 50.4 the previous month (a reading below 50 means contraction). And Chinese home prices fell for a third month in November. Construction is 70% of China's gross domestic product (GDP), so real estate is the most important sector to monitor.
Also, earlier this month, noted China bear Jim Chanos updated CNBC on the Chinese real estate bubble…
"[China] has a real estate bubble on their hands," Chanos told CNBC. And recently, a developer missed a $200 million-$300 million payment to another developer – the first hiccup. "You're gonna see more of these surprises," Chanos said.
Bloomberg reported on another indicator of China slowing down – its consumption of the world's best wines...
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Asian buyers have become unwilling to pay ever-higher auction records for First Growths such as Lafite, and they also balked at Bordeaux's ambitiously priced 2010 "en primeur" campaign. The benchmark Liv-ex 100 Fine Wine Index is down 11.4 percent this year. |
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"It feels a lot more than that," Simon Staples, the Hong Kong-based head of sales and marketing at London wine broker Berry Bros & Rudd said in an interview. "Prices for some First Growths such as Lafite '08 have dropped off by more than 40 percent and haven't reached the bottom yet. Our clients are looking instead at Bordeaux Second Growths and the top 10 names in Burgundy." |
Last October, a case of 1982 Lafite-Rothschild sold at auction in Hong Kong for a record $132,700. This year, a case of the same wine sold for $36,100.
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New 52-week highs (as of 12/19/11): short of First Solar (FSLR), short of Salesforce (CRM), Altria (MO).
We received more feedback on Porter's "The Corruption of America" issue than almost any other thing we've ever published. We're featuring some of the best notes in today's mailbag. Once you read Porter's issue (again, you can access it for free here), we'd love to hear from you, too... feedback@stansberryresearch.com.
"Your article 'The Corruption of America' is a very good and well written work of art! It sums up exactly what I have been seeing – and why big government is not good. Keep up the good work!" – Paid-up subscriber Jason
"Your article about the destruction of America was right on. In 1968, after returning from Nam, I got a job covering 8 states out of Chicago. Now, I am just an old country boy from Texas. I flew into Detroit. Right after riots. Said to self, this is a third world. Later in life I spent 4 years in Africa, saw the same I saw in Detroit. This cancer is has spread to the country.
"I had met with a Senator in 67 and asked who ran this country, he never answered. The light went on that Congress nor the president run the country. There are tentacles from every circle getting govt contracts, so we murder 18 year olds so the Islam country can buy F18s and in the future use them on us. We use billion dollar weapons to hit a 75 cent target. Napalm is a lot cheaper and will destroy the will to fight, like Sherman did in the south. But not much profit.
"Ok, have gone on to long. We are surrounded by idiots, and it is the American peoples own fault. Keep up the good work. When you dance sometimes you have to pay the fiddler or dance with elephants the ants get stepped on. Have a great New Year." – Paid-up subscriber Ron Foreman
"Thank you for all the work you did on the 'Corruption of America,' December newsletter. Your conclusions are spot on and you have explained the complicated issues of today in a simple concise manner. People have to understand the political and financial (should I say) terrorists that are running our country and banking world. If people choose not to see the obvious money laundering political parties are taking part in then they are 'hopeless.' Things are about to change on this planet and people have not clue whats coming.
"Thank you for your work and educating me further on these matters. I hope to be one that is not surprised at the events coming and hope to be a help to others that will be devastated both financially and in their trust in politicians and the so called 'elite' running the whole system, taking as much from us before they crash it." – Paid-up subscriber Dan
"Your 'Corruption of America' piece this month is excellent. In the words of Confucius 'the truth must be allowed to flourish, otherwise what is said is not what is meant... if what is said is not what is meant then what needs to be done will remain undone and morals and justice will go astray.'
"I admire the honesty and boldness of your writing and value the distinct perspectives you bring. Such attributes will not make you popular in certain quarters... as I'm sure you're well aware. But I believe your objective is 'to make a difference' and I thank you for doing so." – Paid-up subscriber Ged Shields
"Porter; Your article 'Corruption of America' is unquestionably the best political treatise I've ever read on the subject. You have the talent, intellect, and intestinal fortitude to tell Americans just exactly what has happened to us. I can't tell you how much I appreciate you and your colleagues.
"I make a good living, but have never made a lot of money. That said, I have learned so much from you over the last few years. I feel blessed to be a part of the Stansberry family. You are a very special group of people.
"As one who has just turned 62 years of age, I have seen the changes in our country that you so accurately described. It makes me sad and yet I share your optimism for the future. God bless you and your cohorts for doing what you do. Obviously, you guys don't have to do this. I'm convinced you do it because you want to help those who still believe in hard work, self-reliance and personal responsibility. Thanks for all you do and here's wishing you a very Merry Christmas and a Happy, Safe and Prosperous 2012! P.S. I'm saving my money and will join your lifetime membership as soon as I can." – Paid-up subscriber Bruce
"After reading the December issue of the Investment Advisory, I just have one comment: "PORTER FOR PRESIDENT!!!!!!!!!!!!!!!!!" – Paid-up subscriber Joe Rheinberger
Goldsmith comment: This isn't the first call we've had for Porter to run for public office. But those pushing don't know Porter. His disdain for government you see in the Digest isn't false... He'd sooner give up steak and red wine before taking public office.
"I think it's fantastic and patriotic that you're bringing all this corruption to light. What can concerned citizens do about it? What can we do about Paulson tipping off these hedge fund managers? Who do we complain to? How do we get something done about it? It's unbelievably outrageous?
"And Rattner... it seems like he's on CNBC every other day... like he has all the answers. Writing to our congressmen seems to me to be a total waste of time so what do we do?" – Paid-up subscriber Mark
Goldsmith comment: Mark, I'd encourage you to sign up for our Project to Restore America. It's a nonpartisan movement we began to help politicians wake up, and make the necessary changes to save our country. You can sign up, completely free, here...
Sean Goldsmith and Brian Hunt
New York, New York and Delray Beach, Florida
December 20, 2011
The corruption of America... Porter's research – for free... European Central Bank is getting bloated... China stops buying wine... Cars = wealth... PORTER FOR PRESIDENT!... And other feedback on his latest newsletter...