AN INVESTMENT STRATEGY FROM A BILLIONAIRE
[To The Point is honored to have legendary investor Robert Agostinelli tell us his investment strategy in what he calls "Obambi Land."] With the zealot flame of blind activism taking advantage of the dislocation in the banking and real estate markets, we are faced with near unprecedented conflagration in the global markets that we all rely on to manage our wealth. Absent this opportunist attempt to "melt" down the free market system and impose a social democrat's illiberal and centralized dream on all Americans, my advice would be more measured. However this is not the reality with which we are confronted. Thus, here are my thoughts on investing in Obambi Land for my friends at To The Point.
$4 GAS COMING SOON COURTESY OF WASHINGTON
The price of oil soon will soar again. The present price of a barrel of oil, $50 or so, is below the price needed to meet current demand for a sustained period of time, and it is well below the price needed to meet global demand as the world economy rebounds. In addition, with the U.S. Federal Reserve System greatly expanding the money supply - which will continue because of the explosion in government spending - the dollar is falling against other currencies; and given that global oil is priced in dollars, the price of oil will rise in dollar terms, just as it did two years ago. Given that many in the political class seem to think the long run is the next five minutes, they do not see or want to see this tsunami coming. Of course, they will blame anybody but themselves.
A FOREIGN POLICY OF ARROGANT COWARDICE
America's enemies smell blood and it's type "O." All new administrations stumble a bit as they seek their footing. But President Obama's foreign-policy botches have set new records for instant incompetence. Contrary to left-wing myths, I wasn't a fan of the Bush administration. (I called for Donald Rumsfeld to get the boot in mid-2001.) But fair's fair. Despite his many faults, Bush sought to do good. Obama just wants to look good. Vice President Dick Cheney was arrogant. Vice President Joe Biden is arrogant and stupid. Take your pick. Don't worry about the new administration's ideology. Worry about its terrifying naïveté. And ask: At what point does naïveté become cowardice?
LOWERING YOUR BLOOD PRESSURE IN THE AGE OF ZERO
Living in the "Age of Zero," where every action of Congress and the White House seems designed to ruin our economy and expand government control, can definitely raise your blood pressure. It turns out that there may be a very simple and very inexpensive way to reduce (often dramatically) your blood pressure - and much more. Studies of potassium bicarbonate supplements in humans report: *Reduced Blood Pressure *Increased Muscle Mass *Decreased Bone Loss *Reduced Risk of Stroke *Improved Endothelial Function *Reduced Dietary Acid Load Our diet has changed radically from what our ancestors ate 50,000 years ago, and not all of these changes have been for the good. Our modern diets are likely to contain far less potassium, far more sodium, more acid forming nutrients, and less base forming nutrients than those enjoyed by our ancestors when our species evolved. Fortunately, an inexpensive potassium bicarbonate dietary supplement can help you to eat more like a Caveman without all that Stone Age food hunting and gathering work.
HALF-FULL REPORT 03/20/09
Let's have cup of coffee and talk. The HFR Saloon is closed for the week after too much toasting the greatest Irish-American in our history - Ronald Reagan - on St. Patrick's Day. So we'll go next door to the HFR Coffee Shop. I'm sure you've seen the news reports on how President Teleprompter thanked himself due to his teleprompter foulup. Note, however, while the media of course videoed the gaffe - it is nowhere to be seen, not on YouTube or anywhere else. Not only has the video of "Obama thanks himself" vanished, but try clicking on any website claiming to have it. Up will come a security alert trying to gain access to your computer. This happens not just on US websites, but world-wide. And it happens with search engines world wide, not just Google. The video of Zero thanking himself would go instantly viral once posted on the Web. But not only has its posting been prevented, they will try to damage your computer as well. Zero can't stand to be laughed at, and will try to hurt you if you do. Fortunately, not even he can stifle Gutter Ball gaffes when they are made with Jay Leno. Speaking of gaffes, did Secretary of Homeland Defense Janet Napolitano call the President of the United States a terrorist?
A YEAR OF ANNIVERSARIES MAY CATALYZE FREEDOM IN CHINA
2009 may be a year of "interesting times" for China's communist rulers, for it is the: 90th anniversary of the student-led revolt against imperial rule (the model for the Tienanmen Square student protest). 60th anniversary of the establishment of Communist seizure of power. 50th anniversaries of the Tibetan Revolt against Chinese occupation and the Dalai Lama's flight to India. 20th anniversary of the Tienanmen Square massacre of students protesting for democracy. 10th anniversary of suppression of the Falun Gong nonviolent spiritual movement. What might happen? Let's start with Tibet.
THE EVIL OF ZERO
Is Zero a fascist dedicated to destroying the life savings of Americans, or is he criminally incompetent? The answer is yes. So let me tell you about Gao Xiqing (gow shee-ching). He's one of the smartest Chinese you'll ever meet (and that's saying something). Graduate of Duke law school, worked at a major Wall Street law firm, returned to his native China to direct the CIC, China Investment Corp., the Chicoms' trillion dollar sovereign wealth fund. In other words, he's the guy who owns $700 billion of US Treasurys, the guy who Zero is depending on to keep buying. Should he not show up at the next Treasury auction, the dollar disintegrates the next day. A friend of mine has gotten to know him (don't ask me how). "Gao is super-smooth, sophisticated, speaks English as good as you or me, and knows America inside and out," he says. "He can talk the language of high finance and international capitalism as good as anyone - yet he is a hard core Chinese Communist who regards America as China's enemy. He despises Obama as the epitome of American weakness." Gao also thinks that gold is going to $5,000 an ounce and that the dollar's goose is cooked.
GETTING IT ALL WRONG
Did you notice that the major economic forecasters, both private and government, totally missed the global credit crisis and size of the recession? The mainstream consensus economic forecasts made in December 2007 for the year 2008 for the United States, Europe and Japan predicted roughly twice as much growth as actually occurred. You may recall that a year ago, when oil prices were racing toward $147 per barrel, the high-paid wizards at Goldman Sachs were projecting it to go over $200 per barrel - it's now below $50. The foreign policy/political forecasts were even worse. Just as those regarding global warming. Why is this?
JUST ANOTHER CORRUPT POLITICIAN
American International Group, an insurance company that has received about $180 billion in taxpayer funds, last week paid $165 million in bonuses to executives whose bad judgment is largely responsible for the financial mess we're in. Sen. Chris Dodd (D-CT), the Chairman of the Senate Banking Committee, wants the government to take back the bonuses. This is a change of heart for Mr. Dodd, because it was he who inserted in the "stimulus" bill an amendment which specifically protected from restrictions on executive compensation "contractually obligated bonuses agreed on or before Feb. 11, 2009." The amendment applied principally to AIG. Why might Sen. Dodd have been so solicitous of the welfare of the AIG execs? Perhaps because last year he was the single largest recipient of contributions from American International Group's political action committee and its employees: $103,100, according to opensecrets.org, which derived the information from Federal Elections Commission records. The second largest recipient of AIG largesse? Barack Obama, $101,332. Chris Dodd is just another corrupt politician. The One was supposed to be different. Now we are discovering he isn't.
HALF-FULL REPORT 03/13/09
I plopped onto a barstool at the HFR Saloon and ordered a Maximus. "So you're into Double IPAs, eh?" noted the bartender as he served it in a frosty mug. "Best beer in America," was my response. "Well, you look like you need a best of something," he observed. "What I need is a refuge from insanity. That's why I come here - the HFR Saloon is a refuge from the insane asylum America is becoming. Just today, the big headline in my paper [The Washington Times] is "Obama Vows to Get Tough on Earmarks." He said this as he was signing legislation that had 9,000 earmarks. If the nation doesn't laugh itself silly over that, then we have a nation of retards. "But maybe the whole world is going insane. Again today, the guy who runs Blackstone declares that "45% of the world's wealth has been destroyed" in this global economic meltdown. What does that mean? That close to half of all the homes, cars, commercial buildings, all the gold and silver in bank vaults, all the stuff that everybody owns in the world has been demolished? Is this guy nuts? And yet it makes headlines. I paused to quaff my Maximus. I was beginning to draw a crowd.