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More euro trouble...
Written by Sierra Hancock Subject: Bailouts![](http://www.stansberryresearch.com/secure/images/icon.gif)
As a result [of their failing banking system], Germany, France, and the other euro nations have put together a bailout plan. All the European treasuries will act to save any member state... Total debts owed to foreign investors in the so-called "PIIGS" countries are $2.6 trillion. The bailout package that's been assembled totals $1 trillion. That sounds pretty good... at first.The euro was hammered in early Asian trading today as the market worried Portugal could lose access to the credit markets. The euro hit a four-month low of $1.2860, before recovering to $1.2954 – still below the $1.30 milestone.
But Italy and Spain have pledged $130 billion to the bailout. Where will they get that money? Greece has pledged $12 billion. Ireland, $7 billion. Portugal, $11 billion. Only about half this money will ever be raised and almost all that can be raised will have to come from France and Germany. Sooner or later, the taxpayers in those countries will say "enough" and the whole thing will unravel.
Portugal plans to sell as much as 20 billion euros in bonds this year to finance its budget deficit and redemptions of maturing bonds. And it's starting with a 1 billion-euro auction (of 2014 and 2020 paper) on Wednesday. Portugal already issued 1 billion euros of 2.5-year paper on Friday through a private placement. It won't say who bought the bonds or at what rate... But our guess is China. Europe is China's largest trading partner. Just last week, China said it would buy up to $7.9 billion of Spanish sovereign debt. Needless to say, Europe's collapse would be detrimental to our Far East neighbors.
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And we're not the only ones. According to the Commodity Futures Trading Commission's weekly Commitments of Traders report, hedge funds and other large speculators nearly doubled their bullish bets in natural gas futures – the biggest increase since January 2010. The hedge funds are making a short-term bet on cold weather boosting natural gas demand for heating. S&A Resource Report editor Matt Badiali is taking a more macro perspective...
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As the world consumes more electricity, we'll need more natural gas (the U.S. generates about 24% of its electricity from nat gas). It's the perfect time to buy huge reserves of gas and wait... Eventually prices will climb. And as Badiali says, "right now, the stock market is giving away natural gas."
In his latest S&A Resource Report, Matt recommends one of the largest owners of gas reserves in the world (only majors like ExxonMobil and ConocoPhillips own more). The stock is cheap, shareholder-friendly, and pays a safe and inflation-proof dividend. Its vast portfolio of undeveloped reserves also act as a large "call option" on rising gas prices. Even if gas rises 25% from these levels, the stock will enjoy a huge uptrend. To learn more about this idea, click here...
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Goldsmith comment: This is one of the most common e-mails we receive from new subscribers. Frank, I apologize our customer service team failed to respond to your question in a timely manner. But I assure you... we don't try to hide the fact that Porter was sued by the SEC. In fact, we showcase it to demonstrate how corrupt the government is. We've covered the topic ad nauseam in the Digest. We even created a website dedicated to the facts of the court case. Please click on the "Stansberry SEC Case" header to read Porter's essay, "Why the SEC Sued Me and Why You Should Care." We hope after reading this information you'll decide to stay with us as a subscriber.
Regards,
Sean Goldsmith
Baltimore, Maryland
January 10, 2011
Stock | Symbol | Buy Date | Total Return | Pub | Editor |
Paramount Gold & Silver Corp | PZG | 4/14/2009 | 404.05% | Phase I | Sjuggerud |
Northern Dynasty Minerals | NAK | 3/2/2009 | 243.30% | Resource Rpt. | Badiali |
EnCana | ECA | 5/14/2004 | 188.86% | Extreme Value | Ferris |
Rite Aid 8.5% | 767754BU7 | 2/6/2009 | 177.78% | True Income | Williams |
Exelon | EXC | 10/8/2002 | 142.62% | PSIA | Stansberry |
Alexander & Baldwin | ALEX | 10/11/2002 | 130.06% | Extreme Value | Ferris |
Auex Ventures Inc | XAU-T | 10/28/2009 | 128.62% | Phase I | Badiali |
Amerigas Partners | APU | 2/22/2005 | 119.20% | The 12% Letter | Dyson |
Enterprise Products Partners | EPD | 10/15/2008 | 114.33% | The 12% Letter | Dyson |
Icahn Enterprises | IEP | 6/10/2004 | 109.95% | Extreme Value | Ferris |
Top 10 Totals |
3 | Extreme Value | Ferris |
2 | The 12% Letter | Dyson |
1 | Phase I | Sjuggerud |
1 | Resource Rpt. | Badiali |
1 | True Income | Williams |
1 | PSIA | Stansberry |
1 | Phase I | Badiali |
Investment | Sym | Held | Gain | Pub | Editor |
Seabridge Gold | SA | 4 years, 73 days | 995% | Sjug Conf. | Sjuggerud |
JDS Uniphase | JDSU | 1 year, 266 days | 592% | PSIA | Stansberry |
ATAC Resources | ATC | 313 days | 542% | Phase 1 | Badiali |
Jinshan Gold Mines | JIN.TO | 290 days | 339% | Resource Rpt. | Badiali |
Medis Tech | MDTL | 4 years, 110 days | 333% | Diligence | Ferris |
ID Biomedical | IDBE | 5 years, 38 days | 331% | Diligence | Lashmet |
Texas Instr. | TXN | 270 days | 301% | PSIA | Stansberry |
MS63 Saint-Gaudens | 5 years, 242 days | 273% | True Wealth | Sjuggerud | |
Cree Inc. | CREE | 206 days | 271% | PSIA | Stansberry |
KHD Humboldt Wedag | KHD | 6 years, 7 months, 22 days | 268% | Extreme Value | Ferris |