Saturday, March 13, 2010
Our Leading Export? Healthcare Reform... It's a go with NEOP...and other investment ideas Who Can You Trust?
Our Leading Export...
Interesting news in China this week as the Finance Minister is reconsidering China's policy of pegging the Yuan to the U.S. dollar. While most Americans have cried foul all-along, China's revelation shows in many ways, its "sure-bet" policy to own massive amounts of U.S. debt from y.o.y. trade imbalances as the best way to build China. Now, more pressure from the Obama administration puts China is a position where they have may "have to" absorb some of the world's economic crisis. This move in Chinese currency rates could in-fact make this week's FOMC meeting anti-climactic at best... No changes in the current U.S. rates, with China treated more as a whipping boy in this deal. Still though, the Euro as wel as the dollar could feel a jolt if and when China modifies its purchase policy of T-bills. This appears to be an almost inevitable outcome. Forbes also suggests that gold could see a sell-off as a result, with oil being neutral to bearish. See Barons
What Health Care Reform?
In a recent interview on NPR David Walker from the Peter G. Peterson Foundation Foundation and chief achitect of I.O.U.S.A. cut right to the point:
"Which budget item soaks up most government spending?"
A. Discretionary Programs
B. Mandatory Programs
The Mandatory Programs which Walker refers to as Structural Debt will exist long-after the current recession is over. Walker (who is a conservative) cited both Congressional parties as the culprits of this great undoing, he specifically criticized the G.W. Bush Administration as reckless. However, Walker's concern is that the current administration might even double Bush's mark.
More importantly, Walker believes the current Healthcare Reform Bill, as appropriate but it does not meet four critical criteria:
It pays for itself over 10 years. It does not add to deficits beyond 10 years. It results in a significant reduction in the tens of trillions of unfunded obligations we already have, and it results in lower health care cost as a percentage of the economy after the passage of the bill than we would have with no bill.
The legislation does not meet those four tests.
1. It does not pay for itself over 10 years.
2. It will add to deficits in 10 years.
3. It does not result in the reduction of trillions of dollars in current unfunded liabilities.
4. It does not result in healthcare cost as part of the overall economy.
Finally, let us realize the death grip that the American Medical Association has as a collective lobbying group as well as a preveyor of public health policy. The United States is the ONLY industrialized country that has an OPEN BUDGET on health care expenditures. We'll talk about a few remedies in our next blog.
NEOP and other investments
I am hot on the trail of NEOP. Most of my investments have been "fun", and others not too "fun" at all. It is never an investment objective to have fun, but to increase wealth. NEOP has provided me with a wild ride thus far. For instance, it spiked .22 cents on Thrusday before it closed up only .02 cents. The ultra-conservative CEO BUPP has suggested that LYMPHOSEEK is in the final stages of getting FDA approval. Should this Phase Three approval come to fruition, it could mean a siginificant move in share price. Other products in development include RIGGS. For more information click this link.
I placed few orders for 1 then 9 HBAN calls and 1 then 9 C calls to no avail. I am low-balling as my previous experience has suggested punishment for "chasing" shadows. With Dodd's version of a financial "overhaul" and the Republicans with their version we can easily agree that regardless with which bil is passed, the fixs is in on both versions... that much we can "bank" on.
My CLWR calls are shoing signs of life and the stock moved approximately 15 percent in price this week. I bought January 12.5s for cheap and watching development with considerable interest.
Last, Domionion Natural Resources has time and time again been the turtle in the turtle v. the hare race. Still though, it is crossing back into teh 40s range. My hope is that this is not a "channeling stock" and that it is able to hold. Word on the street is that D will use cash reserves to up its stock repurchase program.
Who Can You Trust?
I can most assuredly tell you that you cannot trust an American-Muslim in Yemen. With Al-Quaida links this leovely was caught via a security sweep. While in captivity, he talked one of his jailers into removing his handcuffs for ritual prayers. Once the jailer turned his back, the American-Muslim lifted his jailer's gun and sent him to meet Allah earlier than he had anticipated.