Archive for February, 2014
On January 25, 1945, Grand Rapids, Michigan became the first city in the U.S. to intentionally fluoridate its drinking water. Today, almost 70% of the U.S. population drinks it from public water systems.
But here’s the latest catch…
New research from Harvard says the fluoride added to public water systems directly contributes to both mental and behavioral disorders in children. It obstructs brain development… and can lead to autism, dyslexia, attention-deficit disorder, and other health conditions.
Are we really surprised?
Our colleague, Dr. David Eifrig, MD, MBA, editor of the Retirement Millionaire advisory, has been warning readers about the dangers of fluoride for years…
“Trust me; the fluoride is a toxic waste. The actual compound added to our water is called fluosilicic acid and is made as a sodium salt. The salt, sodium fluosilicate, is also used to make rat and insect poisons, gasoline, light bulbs, plastics, and more.”
What can you do? Do what “Doc” does…
1. I no longer use fluoride toothpaste. My last visit to the dentist was the first time without a cavity… My dentist even asked me if I was using a special treatment because my teeth looked so strong. Ha!
2. I use a mouthwash (fluoride-free) and then brush my teeth. Sometimes I’ll even use baking soda as my toothpaste.
3. I’ll never let a dentist use fluoride on my teeth again. (Children have died from fluoride treatments in the dentist chair!)
4. I use hydrogen peroxide three to four times per week to brush my teeth.
5. I am decreasing the amount of tap water I drink.
6. I am drinking bottled water and filtered water without fluorine.
More on fluoride:
Most entrepreneurs make the same mistake… they spend countless hours tweaking a product before making a sale. Their hard work goes down the drain because they didn’t test the market.
Every entrepreneur knows products change hundreds of times. It’s more important to see what the market wants, then produce it… not vice-versa.
In this episode of The James Altucher Show, James speaks with Lewis Howes, an accomplished entrepreneur who didn’t even know how to read in college. (In case you’re wondering, he got into college on a football scholarship.)
But Lewis isn’t your average jock… He’s an amazing businessman who left professional athletics to create businesses and inspire other entrepreneurs.
In this clip, Lewis discusses the importance of selling before creating…
The entire episode is packed with actionable information for budding entrepreneurs. You can access the entire podcast by clicking here.
Crux note: The James Altucher Show is filled with insights from the world’s most successful and interesting people. We guarantee it’s like nothing you’ve ever heard. In just a few short weeks, it’s already catapulted to the top of iTunes. To see what the buzz is all about, click here to subscribe for free.
The Department of Defense (DoD) has given away $4.2 billion worth of military surplus since 1990. What’s $650 million more?
In the past decade, the DoD has built 28,000 Mine-Resistant Ambush-Protected (MRAP) trucks. And since the U.S. has started drawing down American troops overseas, the DOD is left with billions of dollars’ worth of military surplus… MRAPs included.
Some surplus was left in Iraq or Afghanistan… but somehow 13,000 MRAPs will be coming soon to a local police station near you.
Don’t get too wrapped up about the wasted tax dollars… the 20 ton, 5 mpg, improvised-explosive-device-proof military vehicle patrolling your neighborhood is the thing to really worry about.
Stay tuned. Let’s see what’s to become of this…
More government insanity:
Almost half of the U.S. is dependent on this commodity… And prices have plummeted over 25% in the last few days
Natural gas futures fell to a five-week low in New York, heading for the biggest weekly drop in 17 years, after a government report showed a U.S. stockpile decline that was less than forecasts.
Gas has tumbled 26 percent this week, heading for the biggest one-week slump since 1996. The Energy Information Administration said inventories fell 95 billion cubic feet in the week ended Feb. 21 to 1.348 trillion. A survey of Bloomberg users predicted a decrease of 98 billion. Commodity Weather Group LLC expects normal or warmer-than-average weather for parts of the Great Plains and West March 9 through March 13.
“We have some warm weather coming and that’s what the market needs to move lower,” said Kent Bayazitoglu, an analyst at Gelber & Associates in Houston. “The storage number was pretty close to expectations and the selloff had actually occurred earlier this week.”
Natural gas for April delivery fell 3.9 cents, or 0.9 percent, to $4.502 million British thermal units at 12:01 p.m. on the New York Mercantile Exchange after dropping to $4.441, the lowest price since Jan. 22. Volume for all futures traded was 2.4 percent below the 100-day average. Prices are down 26 percent this week, heading for the biggest one-week drop since December 1996.
April gas traded 3.7 cents above the May contract, compared with 7.7 cents yesterday.
April $2.90 puts were the most active options in electronic trading. They were 0.2 cent higher at 0.3 cent per million Btu on volume of 8,615 contracts at 12:03 p.m. Puts accounted for 87 percent of trading volume.
The stockpile decrease was smaller than the five-year average decline for the week of 125 billion cubic feet, department data show. Analyst estimates compiled by Bloomberg showed a withdrawal of 102 billion. A deficit to the five-year average widened to a record 34.5 percent from 33.9 percent the previous week. Supplies were 40.2 percent below year-earlier inventories, compared with 40.3 percent in last week’s report.
“This marks only the third week since December in which a draw clocked in smaller than the five-year average,” Mike Tran, an analyst at CIBC World Markets Inc. in New York, said in a note to clients. “The temporary reprieve and widespread warmth last week resulted in U.S. demand falling.”
Stockpiles at the end of March, when the heating season draws to a close, will drop to 1.33 trillion cubic feet, the lowest level since 2008, the EIA said Feb. 11 in its monthly Short-Term Energy Outlook.
The low in Des Moines, Iowa, on March 10 may be 29 degrees Fahrenheit (minus 2 Celsius), 1 above normal, according to AccuWeather Inc. in State College, Pennsylvania. Temperatures in Omaha, Nebraska, may fall to 32 degrees, 6 above normal.
About 49 percent of U.S. households use gas for heating, according to the EIA, the Energy Department’s statistical arm.
Marketed gas output in 2014 may climb 2.2 percent to a record 71.76 billion cubic feet a day, gaining for a ninth consecutive year, according to the EIA.
Japan’s Osaka Gas Co. (9532) and Chubu Electric Power Co. will invest $600 million each for half of the equity of the first unit of Freeport LNG Development LP’s planned liquefied natural gas export plant in Texas, the utilities said in a statement today. The terminal is scheduled to begin operating in 2018.
To contact the reporter on this story: Christine Buurma in New York at email@example.com.
To contact the editor responsible for this story: Dan Stets at firstname.lastname@example.org.
More on natural gas:
From Chris Hunter, Editor-in-Chief, Bonner & Partners:
Today, we turn our attention to the reader mailbag. Diary reader Jerry writes:
As Yogi Berra might have said, “When the price of something goes up, it gets too expensive.”
If you guys are so smart, tell us when that’s going to happen to gold.
The short answer is “no.”
There is no such thing as perfect foresight. ALL investment decisions are made in the face of uncertainty. Otherwise, there would be no need for markets. All prices would simply be a reflection of already known outcomes.
But as I’ve written about recently, it looks as though gold formed a bottom at the end of last year.
And the action so far in the gold market is certainly encouraging. As the chart above shows, gold is now trading above its 200-day moving average – a “line in the sand” between a bear and a bull market.
If it can continue to trade above this level of support, it’s very bullish indeed.
That said, neither Bill nor I believe in trading in and out of gold. Gold, after all, is “real wealth.” When you sell, you are compensated in dollars. You then hold a position in a paper currency, and have exited your position in a long-term store of wealth.
What’s more, you have exited a position in an asset whose supply is relatively stable… and entered a position in an asset whose supply is relatively elastic. (The quantity of money, after all, is largely determined by bank lending.)
This makes little sense in our view…
Our advice: Buy gold when most of the selling momentum from the recent correction has been exhausted (and we believe that time has come)… and hold for the long term.
Crux note: Longtime readers know we recommend everyone own some gold and silver. Not as an investment… but as a form of savings, and diversification from the U.S. dollar and other paper currencies.
But if you’re looking to make some serious money from gold, there’s something you should see.
We recently learned about a completely different way to profit from the gold sector. In fact, this strategy can return up to five to 10 times as much as other gold investments, no matter what happens to the price of gold along the way. It has nothing to do with stocks or bullion, and doesn’t involve ETFs, mutual funds, or bonds. Click here to get all the details on this strategy for yourself… straight from the veteran gold trader who developed it.
More on gold:
Over 360 million hacked and abused email addresses and passwords… 1.25 billion email addresses for sale on black market websites. The accounts are from the largest email providers… AOL, Google, Microsoft, Yahoo, and almost all Fortune 500 companies.
Cyber-security firm, Hold Security, found this cybercriminal “treasure trove” over the first three weeks of February. The hackers used multiple attacks… stealing 105 million records in a single attack. That makes this the largest breach of all time.
“These breaches are on the rise,” a cyber-security analyst said. “They can get access to your bank account. That is huge.”
Theft of email addresses and passwords could be far more dangerous than the credit card hack at Target stores last December. All too often, people use the same email address and password for multiple accounts. It’s a back door for hackers to access bank accounts, corporate networks, health records, and any other accounts you have online.
It’s more important now than ever before to safeguard your information online. If you’re not sure how to properly do this, our colleague Dr. David Eifrig, MD, MBA, can help. Doc’s special report reveals where our digital lives are most vulnerable to cyber criminals… and shows you the best ways to protect your privacy. To learn more – including how to create a near “hack proof” password – click here.
More on privacy and security:
Forget what you’ve heard about Tesla’s expensive cars. The real story here could transform the U.S. economy.
Tesla Motors Inc. (TSLA)’s plan to build what co-founder Elon Musk bills as the world’s largest battery factory could not only shake up the power industry but trigger a bidding contest between states eager for the 6,500 jobs the $5 billion investment could create.
The luxury electric-car maker announced yesterday that it’s selling at least $1.6 billion of convertible notes to finance the project and exploring locations in Texas, Nevada, Arizona, and New Mexico for a 10 million-square-foot facility. Tesla declined to comment on whether any negotiations had begun.
“This would rank as the most attractive industrial project out there,” said Dennis Cuneo, president of DC Strategic Advisors LLC and a former Toyota Motor Corp. executive who helped that carmaker select manufacturing sites.
Tesla has dubbed the project the “gigafactory,” and it would make Musk a force in both U.S. manufacturing and electric power. The plant he envisions would have more capacity than any other to make lithium-ion batteries.
“This has a huge impact beyond Tesla,” said Harley Shaiken, a labor economist at the University of California, Berkeley. “It gives enormous legitimacy to battery production and the future of the electric car because that lies in the battery. It’s high stakes, high technology.”
Tesla plans an investment of $4 billion to $5 billion by 2020 and will fund about $2 billion of the total, the Palo Alto, California-based company said in a statement. It said the convertible bond offering could grow to $1.84 billion.
Musk said in the statement that the plant is key to Tesla becoming a mass-market automaker capable of producing 500,000 or more electric vehicles a year. The company’s cheapest model, the Model S, starts at $71,000.
The 42-year-old billionaire could also get closer to achieving his goal of being a leader in the power-storage industry in the U.S., as utility customers continue to turn to batteries and solar panels to reduce electricity bills.
The scale of production at the planned factory would be so immense that Tesla estimates it would drive down lithium-ion battery costs by at least 30 percent.
That possibility for batteries capable of storing large amounts of electricity from wind, solar, and other renewable sources is what makes the project appealing, said James Albertine, an equity analyst with Stifel Nicolaus & Co., who rates Tesla a hold. Tesla rose 2 percent yesterday in New York to end at a record $253.
“On the vehicle side, I am pretty steadfast in my skepticism at $200 or above. I’m a bear,” Albertine said. “My bull case is in the case that the cars become ancillary.”
Tesla, he said, would essentially become a power storage company. That would benefit SolarCity Corp., which is partly owned by Musk and may be a partner in the factory.
Musk said last week that Panasonic Corp. (6752) – now the biggest supplier of lithium-ion cells used in Tesla’s batteries – may also be involved. Panasonic’s participation is “not 100 percent confirmed,” he said in a Bloomberg Television interview.
While Tesla identified only four states as potential hosts, “it’s going to draw interest from many others,” Cuneo said. He predicted a “robust competition” where “incentives are probably going to be a big factor.”
A slide-show on the Tesla website includes a rendering of the facility in a desert landscape, with adjacent solar and wind farms to supply electricity. Construction could begin as early as this year, according to the presentation.
“Without question there will be a very intense bidding war – $5 billion is a breathtaking figure,” Shaiken said. States want the jobs and “also the research and development related to this. That’s going to be very significant.”
Tesla announced the fundraising and plans for the gigafactory after the shares closed at their highest since the company’s IPO in June 2010. They’ve gone up sevenfold in the past year.
The company will offer $800 million of notes due 2019 and $800 million due 2021. The company plans to grant the underwriters a 30-day option to purchase as much as an additional $120 million due 2019, and an additional $120 million, due 2021, bringing the offering to as much as $1.84 billion. The coupon, conversion rate, and other terms of the notes haven’t been determined, according to the statement.
Goldman Sachs Group Inc., Morgan Stanley, JPMorgan Chase & Co., and Deutsche Bank AG are jointly managing the offering, the company said.
Proceeds from the note sale will also be used to produce a “Gen III” vehicle that’s cheaper than the Model S sedan. The offering will also accelerate growth of Tesla’s business in the U.S. and overseas, as the company prepares to enter China next month.
The fundraising move echoes Tesla’s sale of $1.08 billion of new shares and notes in May 2013 amid a previous surge in the company’s shares.
“Obviously, they understand the need to strike while the iron is hot,” said Alan Baum, an analyst at Baum & Associates in West Bloomfield, Michigan, who tracks alternative-powertrain technologies. “What they are doing is taking advantage of being looked at as a different kind of company.”
To contact the reporter on this story: Alan Ohnsman in Los Angeles at email@example.com.
To contact the editor responsible for this story: Jamie Butters at firstname.lastname@example.org.
More on energy technology:
So many Americans squander so much money playing the lottery…
The allure of instant riches is just too powerful to resist. Over half of the U.S. population played the lottery at least once last year, according to the North American Association of State and Provincial Lotteries. Some 20% – about 66 million Americans – buy tickets on a regular basis.
Have a look at your odds of winning “the big one” in the infographic below… the data may make you change your mind the next time you’re in the checkout line.
Still, if you must enjoy the “cheap thrill” that hoping to win big brings… do yourself a favor…
Buy one (1) ticket.
Buying ten or twenty tickets (or even hundreds through an office pool) makes no appreciable statistical difference. Your odds of winning are not improved.
There is a legitimate route to riches out there for people… and it can take as little as five years. And the best part is… it’s not left up to chance. Click here to learn how.
More common sense:
From Nick Andrus at Stansberry & Associates:
China’s recent actions in the gold markets may spell the end of the U.S. dollar as the world’s reserve currency—and pave the way to a gold-backed Chinese currency.
In October 2013, CNBC reported China’s frustrations with the budget showdowns in Washington, saying “it was time to consider a de-Americanized world order.”
Perhaps this was not the beginning of China’s strategy, but it was the first time it was made so public.
Even more startling are recent developments which may show China is much closer to making that “de-Americanized world” a reality.
The Examiner recently reported a Bank of China official stating: “Now would be a good time to convene a new ‘Bretton Woods’ conference with the intention of creating and implementing a new gold backed reserve currency to replace the dying dollar.”
Dr. Jim Willie, financial analyst and statistician, believes that this has all been done in preparation to a move away from the dollar, to a gold backed trade note.
On December 26, 2013, he wrote:
“The biggest shock waves will come from the currency reset followed by the introduction of the Gold Trade Settlement. The return of the Gold Standard is near, but it will arrive on the trade vehicles, not the FOREX currency or SWIFT bank platforms. It will feature the Gold Trade Note, used as letter of credit.”
And one of the most compelling signs has come just this month, with the publication of China’s gold consumption data.
On February 11, 2014, CNBC reported a huge 500 ton gap in the gold consumption data coming out of China. This could possibly mean the country is increasing its holdings of the precious metal.
Increasing gold reserves would be the logical step to prepare for an end to the dollar and the adoption of a gold backed trade note.
Rather than just creating a new “trade note,” however, China could easily shift towards backing their own currency, the yuan, with gold. Then, their currency would be the standard “trade note” that all nations could use.
In effect, China’s yuan would become the new world reserve currency, and could replace the dollar.
Stansberry & Associates has been warning of such a development.
In fact, Dr. Steven Sjuggerud, editor of True Wealth, recently said:
Specifically, we learned this week that the Chinese government shrank its holdings of U.S. government debt by $47.8 billion in December 2013, the most in two years. One message from this is that the Chinese government doesn’t want to hold any more dollars than it has to.
In separate news, China imported, consumed, and produced more gold than any other country in 2013.
China overtook India to become the world’s largest importer and consumer of gold, importing over 1,000 metric tons of gold that year (a truly massive amount).
China is also the world’s largest producer of gold… nobody else comes close. Amazingly, China’s gold production is still increasing… while the countries in the next three places (Australia, Russia, and the U.S.) are comparatively stagnant in their production.
One of S&A’s other editors, Matt Badiali, has prepared a full presentation on China – including the startling revelation that China may be preparing to make an announcement in the coming months about a secret financial weapon that could bankrupt millions of Americans.
This announcement has been a decade in the works, and could disrupt nearly every aspect of normal American life, with potentially devastating results. Learn what you absolutely must do now to prepare and protect your family… check out the presentation here.
More on China:
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