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 Featured Video
The Push to Audit the Fed
A congressional plan to audit the Federal Reserve's decision-making
process poses a serious threat to the economy, former Fed official
Frederic Mishkin said. In a live interview on CNBC, Mishkin disagreed strongly with a plan
being pushed by Rep. Ron Paul, a Texas Republican and leading Fed
critic.
Whose side are you on?
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Dear Members,
Back on November 15, 2009, we issued a featured report
on a silver company that was trading at $0.32.
Since that time, the Company's share value has
climbed to a high of $0.50 (currently trading at $0.495). Not only that, the
streams of news from them has been nothing short of impressive. More on that in
a bit.
Over this last year, we have been discussing topics
related to the devaluing of the US Dollar and why we expect precious metals to outperform
in the long-term. (see A New World Currency? What the US Goverment Doesn't Want You to Know")
But this topic brings along with it a lot of
financial practices that many are still not familiar with yet. So to end the
year off, let's go over the realities of how our financial system works.
Every day we hear about the US printing more
money; that this will lead to inflation. But this isn't exactly what's happening.
The US Doesn't Print Money. It Borrows it.
Although in its simplest form this is true, we need
to remember the US doesn`t actually print the money on its own printing press.
It borrows it. And lots of it.
It's
no secret the United States has decided to tackle their economic problems and
crumbling banking system by throwing trillions of dollars at it. Just two weeks
ago, in our newsletter titled, "The Impressive News Release," US debt
sat at roughly $12,080,600,000.
At the time of this writing, its already higher than $12,138,000,000.
It's no wonder the former U.S. Federal Reserve Chairman
Alan Greenspan has called
for politicians to put party differences aside and formulate a joint plan to
tackle the debt this week. The economic guru warned that the country faced an unprecedented 'fiscal crisis' because of
the record
red ink from America's debt mountain.
To
service this debt, the US must pay hundreds of billions of dollars every year
on interest alone. For the 2009 fiscal year, the US will have paid over $383
billion dollars in interest.
To make
matters worse, this debt is expected to spike dramatically as the Obama
administration attempts to reform health care and social security.
But they're
not finished.
Remember
TARP? There's been a lot of talk regarding the banks repaying their TARP funds which should lead us to believe it will lessen the debt load. But Treasury Secretary Timothy Geithner has decided to extend the TARP program until next October - it was supposed to have ended at the end of this year.
Shortly after that, the US House passed a $154
billion economic-aid package (of which half will be funded by the remaining TARP funds)
and added a $290 billion increase in the legal limit on
government borrowing.
As the US administration is clearly demonstrating, they are not done spending. Not even close.
But where
does all this money come from? How and where does the US borrow all this money from?
The Golden Question
The
money comes from many different places.
Mutual
funds. Foreign governments. Individual investors. Pension funds. Hedge funds.
But more importantly, The Federal Reserve.
Before
we get into that, we know that China is one of the largest foreign government holders
of US debt and the largest foreign holder of US dollar. Fed chairman Ben Bernanke
recently stated that China will likely continue to buy US debt because their
currency is so strongly tied to the Greenback. But that's the reason why China
so very much wants to diversify their incremental reserves into Euros, Yen, other
currencies, plus assets such as gold:
"Gold is definitely an alternative, but when we buy,
the price goes up. We have to do it carefully so as not to stimulate the
markets" - Cheng Siwei, former vice-chairman of the Standing Committee.
As we stated in past newsletters, this suggests that China
has become the driving force in the gold market and can be counted on to buy
whenever there is a price dip, putting a floor under any correction. Yet another reason why we remain bullish on gold in the long term.
Now back to the Federal Reserve.
The Federal Reserve
First of all, we need to understand that the Federal
Reserve is NOT owned by the US government. It is a private bank created, owned,
and controlled by the richest well-known families in the world (although their
board of governors says otherwise) to ensure their families will remain rich
forever.
And they are doing a fine job at that.
The Biggest Lender
 The Federal Reserve is one of the biggest lenders to US'
insatiable appetite for borrowing. This past March, they printed $1.2 trillion
and lent it to the US. (see video from March 2009 >>>>)
The US will not default on payments of their loans - that we
know.
This means anyone who is lending the US money, will make a sure-fire bet
on their return. Think about how much money the Federal Reserve will be making
alone on their $1.2 trillion loan that's guaranteed to be repaid? And guess
what? It costs them nothing. Zilch. All they do is print it. There's no such thing as a FED audit.
So while the same private bankers who control the world's
financial systems continue to lend the US money, the average US citizen will be
busy paying back the interest on those loans.
The Rich Get Richer, and the Poor Get Poorer
Wouldn't it be nice if we could print some money and lend
it to the US? Obviously, we can't. Most of us do not belong to the banking families that control the world's wealth.
And we certaintly do not recommend trying to beat or expose their monetary policies and activities because they are an extremely powerful group you do not want to mess with.
The truth is, there is nothing we can do about it. Except for one thing.
Invest in precious metals
The smart money knows what's really going on. It's the reason they have been pouring
their funds into precious metals-backed assets such as silver and gold. It's
the only valuable asset that remains tangible.
That's why we remain bullish on precious metal plays and why
we have been featuring nothing but precious metal juniors.
Two Signicant Announcements
This past week, our featured silver company Silvermex Resources (TSX-V: SMR) made three significant announcements.
They announced that Michael
Callahan has now become the new President and Arthur Brown, effective January
1, 2010 will be the new Chairman of the Board.
To put this into perspective, let's take a look at their
credentials.
Michael Callahan
Mr. Callahan served as Vice President of Hecla Mining Co. (NYSE: HL) and President of Hecla's Venezuelan Operations from 2006 to 2009. He
served as Vice President, Corporate Development from 2002 to 2006. He served as
President of Minera Hecla Venezolana, a subsidiary of Hecla Mining Co., from
2000 to 2003. Mr. Callahan joined Hecla Mining Co. in 1989 and held a variety
of positions including Director, Accounting & Information Services and
Senior Financial Analyst before being named Vice President. From 1997 to 1999,
he served as Financial Manager of Silver Valley Resources.
Arthur Brown
Arthur Brown, retired in 2006 as Chairman of Hecla Mining Company (NYSE: HL), headquartered in Coeur d'Alene, Idaho. During his 39 year
tenure at Hecla, he held several senior operating positions within the Company,
he became President of Hecla in 1986 and was named Chairman and Chief Executive
Officer in 1987. He graduated from Witwatersrand Technical College, South
Africa, as a mining engineer in 1961. Following his graduation, he worked at
Cementation Co. in Canada until 1967, when he began his career with Hecla
Mining Company as an industrial engineer. Mr. Brown serves as a director on the
boards of AMCOL International Corporation (NYSE: ACO) and Idaho Independent
Bank. He is a former Director of the National Mining Association and served as
a Director of The Gold Institute and The Silver Institute (Past President). He
is past president of the Idaho Mining Association. He is also a Trustee for the
University of Montana Foundation (Past Chairman). He is a member of the audit
and compensation committees of Amcol International.
Why would Arthur Brown, ex-Chairman and CEO of Hecla Mining, want to become Chairman of this relatively unknown silver junior?
We'll
let you be the judge of that.
One of the reasons we selected Silvermex Resources (TSX-V: SMR) as a featured
company (aside from their properties and recent acquisitions) was the new group
of directors they acquired with top executives from two of the world's foremost
silver producers: Silver Standard and Hecla Mining.
In addition to the management additions, they released on Friday some underground sampling assays with highlights including 2m of 41.0 g/t Gold, 123.0 g/t Silver and 6.4% Base Metals. Take a look at the news release by clicking here.
With their new team in place and recent acquistion, we are looking forward to
what Silvermex Resources (TSX-V: SMR) has in store for us next year.
Until next year, happy holidays!
Questions?
Call Us Toll Free: 1-888-EQUEDIA (378-3342)
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What Likely Lurks Around the Corner
By Jeff Clark, Editor, Casey's Gold & Resource Report
 Doug Casey and the editors at Casey Research are very skeptical that we
are experiencing any sort of economic recovery. In our opinion, too
many economic indicators are based on faulty data and optimistic
assumptions. Our research suggests that a recovery isn't sustainable
yet. And with that, we lack the foundation needed to support the
rapidly rising stock markets.
Among the many reasons for our doubt is this standout:
Over
the next two years, the so-called Alt-A and Option ARM loans face
massive resets. Even with today's low mortgage interest rates, most of
these home loans, currently enjoying ultra-low teaser rates or
pick-your-own-monthly-payment schemes, will see their monthly payments
adjust higher - far higher. The result: loan losses and write-downs
will balloon for banks, and mortgage holders will get hit with another
wave of homeowner defaults. We just don't see any way for the economy
and markets to escape the fallout.
Even the Fed's perpetual
public smiley face can't hide what's happening. In their own statement
last month, they said, "Household spending appears to be expanding but
remains constrained by ongoing job losses, sluggish income growth,
lower housing wealth, and tight credit." A clear and present danger
remains in the system.
What does this mean for our favorite sector?
Click Here to Continue Reading
More Casey Research Articles
> The Eye of the Storm
> What Does Global Warming Have to Do with Energy Stocks?
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Technical Trading with Harry Boxer
 Harry Boxer has more than 40 years of Wall Street investment and
technical analysis experience, including eight years on Wall Street as
chief technical analyst with three brokerage firms.
Watch the video as he walks you through his technical analysis on A Power Energy, Sourcefire, MGP Ingredients, Netlist, China Agritech, and a whole bunch of other stocks. To see more videos, Click Here. Like his analysis?
Click Here to receive a Free
15-Day Trial to Harry Boxer's Real-Time Technical Trading Diary for Equedia
members.
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Equedia's Newest Feature - Embed Videos
Is there a video on Youtube or another website that you want to post without uploading it through our technology?
With our new Embed feature enabled, you can now upload and embed any object or video into your blog post. Many of our users are already embedding videos from Fox, Youtube, and CNBC and sharing them with our users.
Embedding is simple. Just copy and paste the embed codes from another website ino the main blog section of your post (not the exceprt).
Where do you find these embed codes?
Embed codes for videos are usually right beside a video.
Here is an example of where the code is on Youtube, highlighted in yellow:
So share what you find with everyone! To learn more, feel free to email or call us at 1-888-EQUEDIA
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Equedia Tips - The Markets Tab
Using the search function at the top right corner of the website, search for any company. Let's use Research in Motion as an example. Once you reach their profile page, click on the MARKETS TAB. You should now see 12 seperate tabs underneath their logo. Try clicking on them and you will find in-depth information such as:
Detailed Quotes - Depth/Level II - Options - Java Charts - News - Profile - Financials - Insiders trades - Filings - Analyst Consensus - Earnings - Historical Data (Highs/Lows, Volumes, Closing/Opening Prices) |
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Build You Network and Invite Your Email Contacts
You can invite your friends to automatically join your network using your email contacts from:
Hotmail, Live, Yahoo! Mail, AOL mail, Gmail, msn, and many more!
or
You can manually add your friends' email addresses by typing them in (or copy and pasting from any text documents)
Just log in with your username and password and click here:
So whether you are a media user or investor, invite your friends now and build your network of investment traders and professionals. Here are some obvious benefits to having a large network:
- Improved credibility to your work and news feeds - the more friends and people you have in your investment network, the more likely you will attract new friends and followers
- Media users with a large network will gain more exposure for their services and attract more potential investors or corporations to their services
- Access more knowledge and information through your feeds
- See your friend's buy, sell, and hold ratings and the companies they have an interest in
Of course, there are many more benefits to inviting your friends but should you give it a try yourself.
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Additional Features (you may not know)
Equedia has many features (you may have overlooked) that will help you manage your investment life and ensure a more enjoyable and useful experience.
Here are just a few of them:
Calendar subscriptions: Keep track of your business events, subscribe to other events, and have access to your online calendar from anywhere in the world. In the near future, we will be working with public companies to add their events to the calendar so that shareholders will never miss an important event again. So call your companies and get them to participate!
Tagging companies to videos and images: Did you know that all of your videos and images can be tagged to public companies? Do you have a video about Google? How about a blog with an image? How about just a blog? Tag it to Google in your blog post, so that anyone searching for Google's quotes and finances can find your coverage!
Buy, Sell, and Hold Ratings: Once you log in, you can submit your buy, sell and hold ratings on the ratings tab so that other shareholders can see what YOU think. You may also access your associates' ratings and see what they think of the shares you hold.
Blog feed subscriptions: Once you add someone as an associate, you will have access to all of their blog posts through your blog feeds. Simply go to your "blog feeds" tab once you log in!
Search function: By far one of the most overlooked but important functions on Equedia. Using the top right hand corner search function, you can find and add any corporations, media users, or investors to your network.
Markets Tab: Under any corporate profile, you will find this tab. Under this tab, you can find the company's news, level 2 depth (delayed), options, charts, profile, financials, insider trades, filings, analyst overviews, earnings, and historical data (these may not be available for all companies)
There are many more useful features on Equedia.com but we think its better if you experience them for yourself. The more associates you have, the more useful Equedia will become for you. So use the new "invite my contacts" function and get started!
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Forward-Looking Statements
This Newsletter and report contains forward-looking statements. Forward looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans, "anticipates", believes", "estimates", "predicts", "potential", or "continue or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements.
While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect out current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggests herein. Except as required by applicable law the companies in this report do not intend to update any forward-looking statements to conform these statements to actual results.
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Companies Under Evaluation
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Disclaimer and Disclosure
Regarding Historical Data: All resource estimates presented in this report for Silvermex other than their San Marcial project are historical and were prepared before the introduction of National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").
Historical resource estimates may not be relied upon until they are confirmed using methods and standards that comply with those required by NI 43-101. The potential for the exploration target to replicate the historical resource, or to reach the indicated range of tonnages, is conceptual and is based on historical reports, which cite approximately lengths, widths, depths, grades and projections of the historical resource. Readers are cautioned that a qualified person has not completed sufficient exploration, test work or examination of past work to define a resource that is currently compliant with NI 43-101 for historical resource estimates in the Silvermex Reports. We further caution that there is a risk that exploration and test work will not result in the delineation of such a currently compliant resource. Neither Silvermex nor its personnel treat the historical resource estimate or the historical data as defining a current mineral resource, as defined under NI 43-101, nor do they rely upon the estimate or the data for evaluation purposes; however, these data are considered relevant and will be used to guide exploration as the Company develops new data to support a current mineral/resource estimate in accordance with the requirements of NI 43-101.
For more information on Silvermex Resources, investors should review the Company's registered filings that are available at www,sedar.com.
Equedia.com & Equedia Network Corporation bears no liability for losses
and/or damages arising from the use of this newsletter or any third party
content provided herein. Equedia.com is an online financial newsletter owned by
Equedia Network Corporation We are focused on researching small-cap and
large-cap public companies. Our past performance does not guarantee future
results. Information in this report has been obtained from sources considered to
be reliable, but we do not guarantee that it is accurate or complete. This
material is not an offer to sell or a solicitation of an offer to buy any
securities or commodities.
Equedia.com has been compensated to perform
research on specific companies and therefore information should not be construed
as unbiased. Each contract varies in duration, services performed and
compensation received. Equedia.com is not responsible for any claims made by any
of the mentioned companies or third party content providers. You should
independently investigate and fully understand all risks before investing. We
are not a registered broker-dealer or financial advisor. Before investing in any
securities, you should consult with your financial advisor and a registered
broker-dealer. The information and data in this report were obtained from
sources considered reliable. Their accuracy or completeness is not guaranteed
and the giving of the same is not to be deemed as an offer or solicitation on
our part with respect to the sale or purchase of any securities or commodities.
Any decision to purchase or sell as a result of the opinions expressed in this
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authorizing such transaction.
Please view our privacy policy and
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and are based on information that we have received, which we assumed to be
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expect, and any comparisons we have made to other companies may not be valid or
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dissemination of material and the companies featured do not have to meet any
specific financial criteria. Equedia Network Corporation., owner of Equedia.com
has been paid $7,500 Canadian dollars plus gst per month for 3 months of advertisement
coverage on Trueclaim Exploration Inc. We have been paid by the company. We have
also been compensated 30,000 shares of Trueclaim Exploration by a third party
for other marketing services. These services includes but is not limited to the
creation and distribution of reports such as this one written by Equedia.com.
Equedia.com and its affiliates may purchase more shares in the company and
sell them for our own profit, without notice to our subscribers. We have also been paid by Silvermex Resources Ltd. $8000 for a thirty day marketing/consulting contract which commenced on December 15, 2009. Equedia.com and its affiliates may purchase more shares in the company and
sell them for our own profit, without notice to our subscribers. The companies
represented by Equedia.com are typically development-stage companies that pose a
much higher risk to investors. When investing in speculative stocks of this
nature, it is possible to lose your entire investment over time. Statements
included in this newsletter may contain forward looking statements, including
the Company's intentions, forecasts, plans or other matters that haven't yet
occurred. Such statements involve a number of risks and uncertainties. Further
information on potential factors that may affect, delay or prevent such forward
looking statements from coming to fruition can be found in their specific
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Neither Equedia Network Corporation nor any third-party provider of information
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