** 1eddie **

Why Oil Prices Are About to Collapse

By The Oil Drum | Thu, 12 January 2012

All is not as it appears in the global oil markets, which have become entirely dysfunctional and no longer fit for its purpose, in my view. I believe that the market price is about to collapse as it did in 2008, and that this will mark the end of an era in which the market has been run by and on behalf of trading and financial intermediaries.

In this post I forecast the imminent death of the crude oil market and I identify the killers; the re-birth of the global market in crude oil in new form will be the subject of another post.

Global Oil Pricing

The “Brent Complex” is aptly named, being an increasingly baroque collection of contracts relating to North Sea crude oil, originally based upon the Shell “Brent” quality crude oil contract that originated in the 1980s.

It now consists of physical and forward BFOE (the Brent, Forties, Oseberg and Ekofisk fields) contracts in North Sea crude oil; and the key ICE Europe BFOE futures contract, which is not a deliverable contract and is purely a financial bet based upon the price in the BFOE forward market.

There is also a whole plethora of other ‘over the counter’ (OTC) contracts involving not only BFOE, but also a huge transatlantic “arbitrage” market between the BFOE contract and the US West Texas Intermediate (WTI) contract originated by NYMEX, but cloned by ICE Europe.

North Sea crude oil production has been in secular decline for many years, and even though the North Sea crude oil benchmark contract was extended from the Brent quality to become BFOE, there are now only about 60 cargoes each of 600,000 barrels of BFOE quality crude oil (and as low as 50 when maintenance is under way) delivered out of the North Sea each month, worth at current prices about $4 billion.

It is the ‘Dated’ or spot price of these cargoes – as reported by the oil price reporting service Platts in the ‘Platts Window’– that is the benchmark for global oil prices either directly (about 60%) or indirectly, through BFOE/WTI arbitrage for most of the rest.

It will be seen that traders of the scale of the oil majors and sovereign oil companies do not really have to put much money at risk by their standards in order to acquire enough cargoes to move or support the global market price via the BFOE market.

Indeed, the evolution of the BFOE market has been a response to declining production and the fact that traders could not resist manipulating the market by buying up contracts and “squeezing” those who had sold forward oil they did not have, causing them very substantial losses. The fewer cargoes produced, the easier the underlying market is to manipulate.

As a very knowledgeable insider puts it….

The Platts window is the most abused market mechanism in the world.

But since all of this short term ‘micro’ manipulation or trading (choose your language) has been going on among consenting adults in a wholesale market inaccessible to the man in the street, it is pretty much a zero sum game, and for many years the UK regulators responsible for it – ie the Financial Services Authority and its predecessor - have essentially ignored it, with a “light touch” wholesale market regime.

If the history of commodity markets shows us anything, it is that if producers can manipulate or support prices then they will, and there are many examples of which the classic cases are the 1985 tin crisis, and Yasuo Hamanaka’s 10-year manipulation of the copper market on behalf of Sumitomo Corporation.

When I gave evidence to the UK Parliament’s Treasury Select Committee three years ago at the time of the last crude oil bubble, I recommended a major transatlantic regulatory investigation into the operation of the Brent Complex and in particular in respect of the relationship between financial investors and producers, and the role of intermediaries in that relationship.

I also proposed root and branch reform of global energy market architecture, which in my view can only come from producer nations and consumer nations collectively, because intermediary turkeys will not vote for Christmas.

A Meme is Born

In the early 1990s, Goldman Sachs created a new way of investing in commodities. The Goldman Sachs Commodity Index (GSCI) enabled investment in a basket of commodities – of which oil and oil products was the greatest component – and the new GSCI fund invested by buying futures contracts in the relevant commodity markets which were 'rolled over' from month to month.

The genius dash of marketing fairy dust that was sprinkled on this concept was to call investment in the fund a ‘hedge against inflation’. Investors in the fund were able to offload the perceived risk of holding dollars and instead take on the risk of holding commodities.

The smartest kids on the block were not slow to realise that the GSCI – which was structurally ‘long’ of commodity markets – was taking a long term position which was precisely the opposite of a commodity producer who is structurally ‘short’ of commodities because they routinely sell futures contracts in order to insure themselves against a fall in the dollar price; ie commodity producers are offloading the risk of owning commodities, and taking on the risk of holding dollars.

So, in 1995 a marriage was arranged.

BP and Goldman Sachs get Married

From 1995 to 2007 BP and Goldman Sachs were joined at the head, having the same chairman – the Irish former head of the World Trade Organisation, Peter Sutherland. From 1999 until he fell from grace in 2007 through revelations about his private life, BP’s CEO Lord Browne was also on the Goldman Sachs board.

The outcome of the relationship was that BP were in a position, if they were so minded, to obtain interest-free funding via Goldman Sachs, from GSCI investors through the simple expedient of a sale and repurchase agreement - ie BP could sell title to oil with an agreement to buy back the oil later at an agreed price.

The outcome would be a financial ‘lease’ of oil by BP to GSCI investors and the monetisation of part of BP’s oil inventory. Such agreements in relation to bilateral physical oil transactions are typically concluded privately, and are invisible to the organised markets. However, any risk management contracts which an intermediary such as Goldman Sachs may enter into as a counter-party to both a fund and a producer are visible on the futures exchanges.

Due to the invisibility of the change of ownership of inventory ‘information asymmetry’ is created where some market participants are in possession of key market information which others do not have. This ownership by investors of inventory in the custody of a producer has been termed ‘Dark Inventory’

I must make quite clear at this point that only BP and Goldman Sachs know whether they actually did create Dark Inventory by leasing oil in this way, and readers must make up their own minds on that. But I do know that in their shoes, what I would have done, particularly bearing in mind that such commodity leasing is a perfectly legitimate financing stratagem that has been in routine use in the precious metals and base metal markets for a very long time indeed.

Planet Hype

The ‘inflation hedging’ meme gradually gained traction and a new breed of Exchange Traded Funds (ETFs) and structured investment products were created to invest in commodities. In 2005, Shell entered quite transparently into a relationship with ETF Securities which enabled them to cut out as middlemen both investment banks and the futures market casinos, and with them the substantial rent both collect.

Other investment banks also started to offer similar products and a bandwagon began to roll. From 2005 to 2008, we therefore saw an increasing flood of dollars into the oil market, and this was accompanied by the most shameless and often completely misleading hype, and led to a bubble in the price.

There was (and still is) no piece of news which cannot be interpreted as a reason to buy crude oil. The classic case was US environmental restrictions on oil products, which led to restricted supply, and to price increases in oil products. Now, anyone would think that reduced refinery throughput will reduce the demand for crude oil and should logically lead to a fall in crude oil prices.

But on Planet Hype faulty economic logic – the view that higher product prices are necessarily associated with higher crude oil prices – was instead used as justification for the higher crude oil prices which resulted from the financial buying of crude oil attracted by the hype.

You couldn’t make it up: but unfortunately, they could, and they did.

More worrying than mere hype was that a very significant amount of oil inventory had actually changed hands from producers to investors. Only those directly involved were aware that below the visible part of the oil market iceberg lurked massive unseen ‘Dark Inventory’.

Greedy Speculators and Hoarding

The pervasive narrative among people and politicians, and which is spread by a campaigning press, is of ‘greedy speculators’ who are ‘hoarding’ commodities and ‘gouging’ consumers in search of a transaction profit.

There is no better example of this meme than the UK’s Daily Mail scoop on 20th November 2009. Here we saw pictures of shoals of some 54 shark-like tankers loaded with oil and lurking off the UK coast with millions of barrels of ‘hoarded’ crude oil, some of them having been there since April 2009. The Mail’s story was that these tankers were full of hoarded oil whose greedy owners were waiting for prices to rise before gouging the public.

The reality was rather different.

The motivation of the investors involved was not greed but fear. The Fed had been busily printing another trillion in QE dollars to buy securities and the sellers, and other investors aimed not to make a dollar profit but rather to avoid a dollar loss.

So they poured $ billions into oil index funds and similar products and the oil leases/loans which accommodated these funds’ financial purchases of oil had the effect of raising forward prices and of depressing the spot price, thereby creating what is known as a market ‘in contango’.

When the forward price is high enough in a contango market, what happens is that traders will borrow money to buy crude oil now, and sell the oil at the higher price in the future. Provided the contango is high enough, they will cover interest costs and the cost of chartering and insuring the vessel and its cargo, and lock in a profit for the trader at the end.

This is exactly what traders did through the summer of 2009, until the winter demand by refineries for crude oil and a reduction in the flow of QE dollars into the market combined to see the stored oil gradually delivered to refineries and the sharks depart the UK shores.

The point is that the widely held perception of high oil prices being the fault of hoarders and greedy speculators is – apart from very short term ‘spikes’ in the price - entirely misconceived. And even when speculators do dabble in oil markets, they are almost always pillaged by traders and investment banks with much better market information, which is probably what is happening right now.

The Bubble Bursts

In 2008 there was an influx of genuine speculators in search of short term transaction profit. The motivation of inflation hedgers, on the other hand, is the avoidance of loss, which leads to different market behaviour and the perverse outcome that they have been responsible for causing the very inflation they sought to avoid.

The price eventually reached levels at which demand for products began to be affected and shrewd market observers began to position themselves for the inevitable bursting of the obvious bubble. But those market traders and speculators who correctly diagnosed that the price would collapse were unaware of the existence of the Dark Inventory of pre-sold oil sitting invisibly like an iceberg under the water.

Traders who had sold off-exchange Brent/BFOE contracts or deliverable WTI contracts found themselves ‘squeezed’ because title to the crude oil which they thought would be available at a cheaper price to fulfil their contractual commitment had been ‘pre-sold’ to financial investors. This meant that they had to scramble to buy oil at a higher price than they had expected.

The price spiked to $147 per barrel, and then declined over several months all the way to $35 per barrel or so, as many of the index fund investors pulled their money out of the market in late 2008 and joined a stampede to the safety of US Treasury Bills. What was happening here was that the Dark Inventory which had been created flooded back into the market, and overwhelmed the market’s capacity to absorb it.

Convergence and Futures Pricing

The oil market price is – by definition – the price at which title to dollars is exchanged for title to crude oil.

But there is very considerable debate among economists about the effect of derivative contracts on this spot market price, and whether it is the case that the futures market converges on the physical market price or vice versa.

Now, in the case of a deliverable exchange futures contract, a price is set for delivery of a standardised quantity of a particular specification of a commodity at a particular location within a specified period of time. If that contract is held open until the expiry date and time then there will indeed be a spot delivery and payment against documents at the original price. In accordance with the exchange’s contractual terms.

But the key point is that this futures contract will not be held open to the expiry date at the original price unless the physical market price – which is set by physical supply and demand – is actually at that price at that specific point in time. If the physical price is lower or higher, then the futures contract will be closed out through a matching purchase or sale and a profit or loss will be taken.

I managed the International Petroleum Exchange’s Gas Oil contract for six years, which was deliverable in North West Europe, and the final minutes of trading before contract expiry were Europe’s greatest game of ‘chicken’.

Moreover, no IPE broker in his right mind would dream (because the broker was responsible to the London Clearing House for defaults) of letting a financial investor with no capability of making or taking delivery hold a position into the last month before delivery. And if a broker was not in his right mind, it was my job to act under the exchange rules to ensure such positions were liquidated.

In other markets, the ability to own physical commodities – eg. through ownership of warehouse warrants – is much more straightforward for investors. But the logistics of oil and oil products are such that financial investors are simply incapable of participating in the physical market. In my view, the use of position limits for financial investors in crude oil and oil products is of little or no use if the clearing house, exchange, and brokers are doing their job.

Finally, now that the US WTI contract is just the tail on the Brent/BFOE physical market dog, this discussion has moved on, since the ICE Brent/BFOE futures contract is in fact settled in cash against an index based on trading in the BFOE forward market, with no physical delivery. It is simply a straightforward financial bet in relation to the routinely manipulated underlying BFOE physical market price – ie., the question of convergence does not arise.

Anything but Dollars

With interest rates at zero per cent, and with the Federal Reserve Bank printing dollars through QE, a tidal wave of money flowed into equity and commodity markets purely as an alternative to the dollar, and they did so through a proliferation of funds set up by banks.

Note here that the beauty of such funds for the banks is that it is the investors who take the market risk, not the banks, and the marketing and operation of funds has become a very profitable use of scarce bank capital.

So a flood of financial purchasers of oil were looking for producers willing and able to sell or lease oil to them.

Producers in Pain

Producing nations who had massively expanded their spending in line with a perceived ‘sellers’ market’ paradigm where they had the whip hand, were badly hurt by the 2008 price collapse and OPEC took action to restrict production.

But might some OPEC members or other producing nations have gone further than this?

What is clear is that the price rose swiftly in 2009 and then remained roughly in a range between $70 and $90 per barrel until early 2011 when twin shocks hit the oil market. Firstly, there was the supply shock in Libya which saw 1.5m bbl per day of top quality crude oil leave the market, and secondly, the demand shock of Fukushima, which saw a dramatic switch from nuclear to carbon-fuelled energy.

My thesis is that Shell directly, and others indirectly, were not the only ones leasing oil to funds. I believe that it is probable that the US and Saudis/GCC reached – with the help of the best financial brains money can rent – a geo-political understanding with the aim that the oil price is firstly capped at an upper level which does not lead to politically embarrassing high US gasoline prices; and secondly, collared at a level which provides a satisfactory level of Saudi/GCC oil revenues.

The QE Pump Stops

In June 2011, the QE pump which had been keeping commodity and equity markets inflated and correlated stopped, and price levels began to decline. Consumer demand – as opposed to financial demand – for commodities had also been affected not only by high prices, but by reduced demand from developed nations for finished goods. In September 2011, more than $9bn of index fund money pulled out of the markets for the safe haven of T-bills.

What happened as a result was that the regular rolling over of oil leases, and the free dollar funding for producers of their oil inventory ceased. So the leased oil returned to the ownership of the producers, while the dollars returned to the ownership of the funds.

Since the ‘repurchases’ were no longer occurring, the forward oil price fell below the current price, and this ‘backwardation’ was misinterpreted by market traders and speculators. They believed that the backwardation was – as it usually is - a sign that current demand was high and increasing relative to forward demand, whereas in this false market the current demand is unchanged but the forward demand is decreasing.

As in 2008, speculators and traders were again suckered too soon into the market, and this led to profits at their expense to those with asymmetric information, and a ‘pop’ upwards in the price as they were forced to close speculative short positions. My information is that a major oil market trader was successfully able to ‘squeeze’ the Brent/BFOE market on at least two occasions in late 2011 precisely because they were aware of the true situation of inventory ownership, and the rest of the market was not.

As an insider puts it……

You can’t have proper price discovery when half of the inventory is being sold elsewhere at a different price. On exchange physical doesn’t even exist. Futures are converging to physical, but only the physical which is visible for Platts assessment.

….pointing out that transactions in respect of physical ownership of oil do not take place on an exchange, and that there is effectively a ‘two tier’ market. Only a proportion of spot or physical Brent/BFOE transactions therefore actually form the basis of the Platts assessment of the global benchmark oil price.

Enter Iran

In my view, there is little or no chance of military action against Iran, and having been to Iran five times in recent years, and as recently as two months ago, there is much I could write on this subject.

While financial sanctions have been pretty smart, and increasingly effective so far, the medium and long term effect of the proposed EU oil embargo – which will in fact affect only a pretty minimal and easily accommodated amount of demand which is evaporating anyway – is more apparent than real.

While there would undoubtedly be a short term price rise – cheered on by the usual suspects – in the medium and long term the embargo will act to reduce oil prices. This is because Iran will necessarily have to sell oil at below market price to China and others, and since the market is over-supplied, particularly in Europe, this will undercut market prices generally.

Mexico has routinely hedged oil production for years, and Qatar – who are very shrewd operators – began to do the same in November 2011 since they expect the price to fall this year. In the short term the Iran ‘crisis’ is in my view being hyped for all it is worth to entice yet more unwary speculators into the oil market so that other producers may sell their production forward at high prices while they last before the inevitable and imminent collapse.

Current Position

If you believe the investment banks – who all have oil funds to sell to the credulous – Far Eastern demand is holding up, supplies are tight, and stocks are low, so prices are set to rise to maybe $120 or above in 2012, even in the absence of fisticuffs involving Iran.

I take a different view. I see real demand – as opposed to financial demand and stock-piling, such as in the copper market – declining in 2012 as the financial crisis continues at best, and deepens at worst, particularly in the EU. Stocks are low because bank financing of stock is disappearing as banks retrench, and it makes no sense for traders to hold stocks if forward prices are lower than today’s price.

As for supplies, US crude oil production is probably higher, and consumption lower, than widely appreciated. Elsewhere, there is plenty of oil available now that much of the Dark Inventory has been liquidated, and this liquidation was probably why in November 2011 we saw the highest Saudi monthly deliveries in 30 years.

Finally, we see North Sea oil being shipped – for the first time since 2008 – half way around the world to find Far East buyers. We also see Petroplus, a major independent Swiss refiner, crippled by inflated crude oil prices, and shutting down three refineries because demand for its products has disappeared, and it can no longer finance crude oil purchases now that banks have pulled its credit lines.

In my world, refineries closed due to reduced demand for their products imply a reduction in demand for crude oil: but not, apparently, on the Planet Hype of investment banks with funds to sell.

History does not repeat itself, but it does rhyme, and my forecast is that the crude oil price will fall dramatically during the first half of 2012, possibly as low as $45 to $55 per barrel.

Then What?

As the price collapses we will see producer nations generally and OPEC in particular once again going into panic mode, and genuinely cutting production. We will also see the next great regulatory scandal where a legion of risk-averse retail investors who have lost most or all of their investment will not be pleased to hear that they were warned on Page 5, paragraph (b); clause (iv) of their customer agreement that markets could go down as well as up.

At this point, I hope and expect that consumer and producer nations might finally get their heads together and agree that whereas the former seeks a stable low price, and the latter a stable high price, they actually have an interest – even if intermediaries do not – in agreeing a formula for a stable fair price.

We can’t solve 21st century problems with 20th century solutions and I shall address the subject of resilient global energy market architecture in my next post.

This is a guest post by Chris Cook, former compliance and market supervision director of the International Petroleum Exchange.

By. Chris Cook

Source: The Oil Drum

eddie :0)

Will 2012 Boom or Bust?

by Charlie Page

As we enter a new year we are almost all thinking the same thing; will we see the economy turn around in 2012 or will we suffer through yet another year of turmoil?

More to the point, we are all asking this question — will 2012 be a boom year or a bust for me?

People are hurting today, and being hurt. You might be one of them.

Today, perhaps more than ever before, people need to make money online. And yet, ironically, there are more liars and thieves online today than ever before. Not so ironic really when you consider that con men and charlatans have always preyed on those most in need.

The question today is this – is there something you can do to make 2012 a boom year and not a bust year for you and your family? I believe there is, and have devoted both time and resources to changing my own business plan to help you get that done.

With that as my introduction let me share how I intend to help you make 2012 a boom year and not a bust.

For me personally it means more focus on helping others and tightening up my own business plan. When I say “tightening my own business plan” I mean this -

Doing more of what really works and spending less time on shiny objects that sound good but are not yet proven.

For me mobile marketing is a good example. While I can see logically that the web is moving to cell phones, and understand the value of reaching massive audiences, I know of no one who is making anything close to a full time living doing mobile marketing.

Except the people selling the “how to” information of course! :-)

By contrast, I know many people who are doing well with blogging, article marketing, solo ads and other core marketing methods that are proven to work.

So here is my personal short list of focus areas and a brief word of why I chose them.

More free information than ever before

It’s a fact that the economy stinks. Another fact, many have been ripped off by sites that promise the moon and deliver disappointment and now they can’t afford the high-quality information that they need to move to the next level.

So in 2012 I’m going to give away more information than ever before, all without shortchanging those who buy memberships from me. For members 2012 is going to be an incredible year.

Fewer sites with more intense focus

I was planning on opening five new membership sites in 2012. After much thought and prayer (you know me!) I’ve shelved that plan and decided to focus on making the sites I have now stronger and opening fewer new sites. I’m working on ways to give away the information I was going to sell before.

More about that to come on this very blog!

Succeed with a method and let members clone that success

I’ve been around long enough to know there is no “paint by numbers” way to make money online. If I had a nickel for every time I heard “Just tell me exactly what to do and I’ll do it and make a lot of money” I would have a lot of nickels. Sorry to say, no one can do that. No one can promise you will make any money online, much less these crazy claims of going from $0 to $100,000 in a few weeks.

But there are blueprints you can follow. And success does forge a path.

So here is what I’m going to do for my members — I’m going to spend my time and money trying things and then report to members on what works and show them exactly what I did so they can do it too.

Will this guarantee success? Sadly, no. In business there are no guarantees of success. No business wins every time. But it will give them a huge leg up. And since this will be for members only there is no possibility of saturation once the blueprints are released.

This will be for members of my sites only. If you are member of Directory of Ezines, Follow Up Selling Systems, Ezine Advertising Live or Article Marketing Live you will receive more information inside the member area of those sites.

And thank you for being a member! :-)

Review products that work well and expose those that don’t

I’m asked almost every day which products I use in my business. I am also asked often to review or comment on a particular product so the person asking can avoid a mistake. Because this happens so often, and because I believe it will help you, I’m adding a review section to my blog.

In that section I will share the exact products and vendors I use to run my business and why I use them. I will also share the results of my product testing as I buy and test new products.

While I will be offering reviews and other articles on topics not on the list below, my main free information will focus on what I know and do, and that means focusing on core marketing methods since these are things I actually do in my own business every week. I have always taught only from a place of experience (instead of what might work) and I plan to do that even more in 2012.

As to the free information, I will be focusing on these areas in 2012.

Affiliate Marketing

Article Marketing

Automating Your Marketing

Copywriting

Driving Traffic

Email Marketing

Ezine Advertising

Increasing Conversions

List Building

Marketing Strategy

Personal Growth

Testing & Tracking

So there you have it. These are my plans for 2012 … ways I hope to be of help to you in the coming year.

Listen, I know it’s tough out there. I know there are far too many sites that promise the moon only to take your money and run.

But please know this – there are methods of marketing that work and work well if you work them and can avoid being distracted. You don’t need to be a geek to use them. You don’t need huge amounts of money to get started with them. And they work equally for everyone who uses them.

I often ask people how long they have been trying to make money online and hear answers like “18 months” or “three years”. I ask them to imagine how life would be different if they wrote only one article per week or make one blog post per week during that time.

Almost universally these good people know in their hearts that doing what is proven to work, and doing it consistently, is the path to true success online.

The marketing methods that work well aren’t sexy and they don’t bring in immediate riches, but they work well when you work them and they create multiple streams of traffic (and income) that can put you in a position of working only when you want, where you and and (best of all) only if you feel like working that week.

And that is a beautiful thing indeed!

I sincerely hope that 2012 is your best year yet. I’m going to work hard to help make it so.

P.S. If you like my plan please leave a comment below or share this message with others. Or both! I read and reply to comments myself and will continue doing so in 2102. Thanks!

http://143191m-n26z1s66rbnp4kxa0j.hop.clickbank.net/

The Largest Bubble in U.S. History

On August 6th after S&P downgraded the U.S. debt rating from AAA to AA+ with a negative outlook, NIA prayed that Americans would not make the mistake of buying U.S. Treasuries as a safe haven. We normally don't pray about economic matters, but only God can save the U.S. economy today as well as investors who have been brainwashed into believing U.S. government dollar-denominated bonds are a safe place to store wealth. Unfortunately, only when hyperinflation arrives will the majority of American citizens realize that fiat U.S. dollars should be used as a medium of exchange only and not a place to store wealth. Since NIA was launched two and a half years ago, the overwhelming majority of our economic predictions have come true, with many of our accurate predictions being unique only to us. Sometimes we are a bit early with our predictions, but they almost always eventually come true. One of our predictions that we have been wrong about in the short-term, but will be proven right about later this decade, is the collapse of the U.S. Treasury market. We thought there was a chance that many Americans would once again make the mistake of buying U.S. Treasuries during the recent sell-off of global financial markets, but we were shocked to see the yields of some U.S. Treasuries such as the 10-year bond, decline to new record lows. The yields of many government bonds have fallen through their lows of late-2008, but unlike the liquidity crisis of late-2008 when gold prices declined to a low of $720 per ounce, gold futures on August 22nd reached a new all time nominal high of $1,899.40 per ounce. NIA likes gold as a bet against the U.S. Treasury market, which we believe is the largest bubble in world history. Any investor buying 10-year Treasuries with a yield of only 2.20% needs to have their head examined. Based on official Bureau of Labor Statistics (BLS) data, year-over-year price inflation in the U.S. is already 3.63%. NIA estimates the real rate of price inflation to currently be approximately 8% and we project real price inflation to reach double-digits next year. NIA finds it very unlikely that the U.S. will be able to survive the next ten years without hyperinflation. Take a look at the long-term chart of 10-year yields below. After the inflationary crisis of the 1970s, 10-year yields surged to a high in the early-1980s of 14.5%. After inflation began to decline in the mid-1980s, the 10-year yield bottomed at 7% before rising again to 9%. In the 1990s, the 10-year yield averaged around 6.5%. 

 With the help of NIA's critically acclaimed economic documentaries including 'Meltup', 'The Dollar Bubble', and 'Hyperinflation Nation' that have been seen by millions of people, a larger percentage of the investment community is educated than ever before about the currency crisis that is ahead. We estimate that about 1/10 of our country now finally understands that as long as we are running massive budget deficits with our government making no real attempt to cut spending in a meaningful way, gold will keep increasing in nominal value and the U.S. dollar will continue losing its purchasing power. However, 9/10 of our nation still doesn't understand why they should own gold and would chase after $1,000 in cash being blown by the wind before picking up a 1 oz gold coin lying below them on the ground. Investors today are buying and selling assets based on what they perceive to be risk assets and safe haven assets. Market volatility is now at a level last seen in March of 2009 towards the end of the last financial crisis. On days with either positive economic news or rumors that Bernanke is getting ready to unleash QE3, stock prices rise while the prices of both gold and U.S. Treasuries fall. On days with either negative economic news or rumors that Bernanke is unlikely to unleash QE3, stock prices fall while both gold and U.S. Treasury prices rise. Investors are buying both gold and U.S. Treasuries as a safe haven. Those buying U.S. Treasuries as a safe haven are doing so based on the market's actions in late-2008 when Treasuries rallied with the stock market collapsing. They fail to realize that every financial crisis is different and the next crisis will be nothing like 2008. In 2008, we had a crisis due to a lack of liquidity. Today, the world is flooded with liquidity, but most people don't realize it yet because trillions of dollars are being hoarded on the sidelines and not chasing goods and services. Nobody knew for sure in 2008 how the Federal Reserve would react to the liquidity crisis. If the Federal Reserve did the right thing and allowed banks to fail we would have experienced many years of deflation. The Federal Reserve has made it clear that they will print enough money to bailout all major banks or other companies deemed "too big to fail". We are in a situation where the worse the economy gets, the more money the Fed will print and the higher prices of all assets will rise. NIA predicts right now that over the next 16 months between now and the end of calendar year 2012, we will see the largest short-term increase in 10-year bond yields on a percentage basis in history. With CPI growth increasing for eight straight months and even the Fed's misleading core-CPI growth up 290% since October on a year-over-year basis, investors will soon realize that it is far too risky to own bonds that are paying such low yields. President Obama yesterday nominated Alan Kreuger to lead his Council of Economic Advisers. We laughed when he heard Obama tell Kreuger that it will be tough for him to fill the shoes of Austan Goolsbee, who recently left his post to resume teaching at the University of Chicago. Whether it be Kreuger, Goolsbee, or Christina Romer (who preceded Goolsbee), they are all Keynesians who believe that more government spending and intervention is the key to bringing down unemployment and having a healthy economy. Krueger worked in the White House during the first two years of the Obama administration as assistant Treasury secretary for economic policy. Krueger received his Ph.D. in economics from Harvard University and has worked at Princeton University since 1987, where his mail frequently gets mixed up with fellow Keynesian and New York Times op-ed columnist Paul Krugman. Krueger is the author of a book that was written solely to convince readers that having a high minimum wage doesn't cause unemployment. It should be common sense to all NIA members that if the government raised the minimum wage to $50 per hour, unemployment would rise dramatically as most jobs paying wages below $50 per hour would be destroyed. The truth is, eliminating the U.S. minimum wage would create thousands of new entry-level jobs in America and help lower the unemployment rate. Krueger was also instrumental in developing the "cash-for-clunkers" program, which NIA has written about on many occasions as being a monumental disaster for the U.S. economy. It is absurd how the mainstream media calls Ron Paul an extremist for wanting to eliminate government intervention in our financial markets, reduce government spending, balance the budget, stop the Fed from printing money, and return to sound money. In NIA's opinion, Krueger is the real extremist. If there was no minimum wage and there never was "cash-for-clunkers", many unemployed 17 year old kids who are home on Facebook, could instead be out earning enough money to buy their own used car. The youth unemployment rate is currently double the overall unemployment rate and used car prices are up 20% during the past year, because of the policies supported by Krueger. The U.S. government used "cash-for-clunkers" to buy phony GDP growth in 2009, stealing from future automobile sales. After the "cash-for-clunkers" program ended, General Motors reported that their sales in August of 2010 declined 25% from sales in August of 2009. NIA predicted on September 1, 2010, that this would lead to a sharp contraction in GDP growth and cause the Fed to unleash the mother of all quantitative easing. Two months later on November 3, 2010, the Fed announced $600 billion in additional quantitative easing. GDP growth in the 4Q of 2010 declined to 3.14% on a year-over-year basis, down from 3.51% in the 3Q of 2010. GDP growth has continued to decline lower this year to 2.24% in the first quarter and 1.55% in the second quarter (which was just revised downward from an initial estimate of 1.62%). The BLS used a price deflator of only 2.5% in the 2Q. In our opinion, real GDP in the U.S. today is already in negative territory. With it becoming increasingly likely that official year-over-year GDP changes will become negative by the end of calendar year 2011, it is only a matter of time before the Federal Reserve unleashes QE3 in disguise under a new name. With the Federal Reserve no longer reporting the M3 money supply, the broadest measure of money supply currently reported by the Fed is M2. During the past few weeks, the U.S. has been seeing a very alarming rise in M2. The M2 money supply has risen $228.5 billion over the past four weeks to $9.5218 trillion. On an annualized basis, this equals a 32% increase in M2. Much of this gain can be attributed to people moving funds from institutional money funds and large time deposits into checking and savings accounts. Investors are nervous about the state of our economy and as soon as the investment community begins to realize that the next economic crisis will be a currency crisis, not a liquidity crisis, we will see the world lose confidence in the U.S. dollar and rush out of U.S. Treasuries and into gold, silver, and other real assets. It is important to spread the word about NIA to as many people as possible, as quickly as possible, if you want America to survive hyperinflation. Please tell everybody you know to become members of NIA for free immediately at: http://inflation.us

The New York Times published what  seemed to me a somewhat cranky Op-Ed piece on August 1, 2005, called “Bad to the Last Drop,” by Tom Standage. Mr. Standage, who is the technology editor of The Economist, conducted a blind taste test of ten bottled and tap waters with his friends. The result? They couldn’t tell which was tap and which was bottled, so their conclusion was that “people cannot tell the difference between tap water and bottled water,” therefore, they are wasting their money when they buy the latter.

This was a very poor test, in my view. I remember when I lived in Argentina, as a youngster, and commuted between two cities, Buenos Aires and Mar del Plata. I spent my teenage years in the latter, which is a seaside resort, and the tap water seemed just fine. Then I went to Buenos Aires for college, and the tap water there was vile! After a while I got used to it, and it seemed normal. Then I would return to my home town, and the tap water there was vile in turn! Until I got used to it, and then it became normal. As I moved twice a year -- college, recess, summer, etc. -- my relationship with the waters swung widely, and every time the taste took getting used to.

This experience taught me that the subjective taste of water changes according to one’s habit, so I have no trust in these taste tests. But what Mr. Standage and others overlook are the major reasons why some people use bottled water, which is to avoid the toxic chemicals added to the tap water. He briefly acknowledges the issue and throws it away just as fast -- “What of the idea that drinking bottled water allows you to avoid the chemicals that are sometimes added to tap water? . . . if you want to avoid those chemicals for some reason, drinking bottled water is not enough,” he writes. “You will also have to wear a gas mask in the shower, and when unloading the dishwasher.” Note he doesn’t mention the chemicals, which are chlorine and fluoride.

And therein lies a tale. My major reason for avoiding tap water is that fluoride has been added to it. Let me explain.

Fluoride is a by-product of steel manufacturing, and was also a byproduct of the manufacture of the atomic bomb in the 1940’s. It seems that fluoride combines with uranium to form the gas uranium hexafluoride, which, when passed through a semi permeable membrane, separates bomb-grade, fissionable uranium-235 from the much more abundant and stable uranium-238. This done, fluoride is released into the environment as waste, where it can damage crops, livestock, and humans.

The US government, prodded by industrialists and officials involved in The Manhattan Project, decided to give fluoride a friendlier face, and found the solution in a simple measure that would appear to be a health benefit. Since about 1945, fluoride has been added to municipal water supplies at a concentration of 1 part per million. This is done, ostensibly, to keep children under the age of six from getting cavities. Therefore, it is a medication that is added to the water supply. Little attention is given to the fact that this medication may not be appropriate for adults. It seems obvious to me that medicating the water supply is not a democratic idea.

There are many health problems associated with fluoridation, such as an increase in uterine cancer mortality, a rate of dental fluorosis (fluoride-induced toxicity and tooth mottling) as high as 72% in children, lower fertility rates, and osteogenic sarcoma, a malignancy. A significant number of studies found that fluoridated water may in fact increase the rate of fractures, even though fluoride may provide a higher bone mass. In one study it was found that the highest fluoride content in bone ash was found in skeletons of women with the most severe osteoporosis.1

Fluoride is a poison. It is the 13th most common -- and one of the most toxic -- elements in the earth's crust. Its regular use on a long-term basis results in serious health effects. Among the ways it can affect living beings, including people, the two major ones are that

· It disrupts enzymes (by changing their hydrogen bonds) and prevents them from doing their job of producing proteins, collagen in particular, which is the structural protein for bone and teeth, ligaments, tendons and muscles.

· It also damages DNA repair enzymes and prevents the formation of the enzyme acetylcholinesterase in the brain, which is involved in conveying signals along nerve cells.

Since all cells in the body depend on enzymes, fluoride can have widespread toxic effects. Among them are dental fluorosis, the white spotted, yellow or brown permanently stained teeth, and skeletal fluorosis, a debilitating condition that occurs when fluoride accumulates in bones, making them extremely weak and brittle. In addition, fluoride can severely damage the brain, both directly and indirectly. Interestingly, many European countries banned fluoride from their water supply many years ago. Their research had convincingly linked fluoride with the following:

· Fluoride disrupts the synthesis of collagen and leads to breakdown in the bone, tendon, skin, cartilage, lungs, trachea, and kidney.

· Fluoride inhibits the formation of antibodies in the blood, which cause a disruptive effect on various tissues in the body, which then confuses the immune system and causes it to attack its own tissues.

· Fluoride increases the tumor growth and the general cancer rate.

· Fluoride has been linked to cancer, low IQ's in children, genetic disorders and muscle degeneration. 2

Regarding the presumed evidence for the benefits of fluoride, you’d think there would be plenty of studies. Apparently, it’s not so. This from Donald J. Miller, MD, who wrote in an article titled “Fluoride Follies”,

In evidence-based medicine, systematic reviews (meta-analyses) are considered to be the best, most "scientific" evidence. A systematic review of water fluoridation studies, published in the British Medical Journal in 2000, found, as the chair of the Advisory Group that commissioned the review puts it, "The review did not show water fluoridation to be safe. The quality of the research was too poor to establish with confidence whether or not there are potentially important adverse effects in addition to the high levels of (dental) fluorosis.

He adds, "The review team was surprised that in spite of the large number of studies carried out over several decades there is a dearth of reliable evidence with which to inform policy." In other words, the case for fluoride does not stand up to careful evidence-based scrutiny.3

Among dentists, there is controversy. Many will support the use of fluoride, both in the water supply and as a topical treatment. Others feel that there is way too much fluoride in our environment, and that it is dangerous. According to Susan Rubin, a dentist and holistic health counselor from Mount Kisco NY, the downside of systemic fluoride outweighs any potential benefits. “Studies point to possible connections to brittle bones, increased hip fractures in post menopausal women in fluoridated communities,” she wrote me in August 2005. “There are currently questions of a connection to osteosarcoma. If systemic fluoride had to be approved by the FDA today as safe AND effective, I do not believe it would be passed. It was implemented in water supplies without ever having to face that type of scrutiny.”

Dr. Rubin continues, “I'm most concerned that a chemical like this is put into water supplies that affect entire populations. What about informed consent? What about medicating entire groups of people who would receive no benefit? Is that ethical? As a dentist, I sat on the fence for a number of years before really sitting down to take the time to research the fluoride issue. Once I did my homework, I worked hard to increase awareness of the issue. Most of my fellow dentists will not even consider the possibility that fluoride is harmful simply because it is not what we were taught in dental school and the ADA supports water fluoridation. Books, minds and parachutes need to be open in order to work properly! I'd like to see more health professionals with open minds and less touting the party line on health issues like this.”

Unfortunately, fluoride is very difficult to filter out of water because it is so finely dispersed that only reverse osmosis gets rid of it. And that system denatures the water too much for my taste, much like distilled water, in which no living thing thrives.

I say, avoiding fluoridated water is a sensible option, and if bottled water is the solution, so be it. I regret that all those plastic bottles mess up the environment -- I buy 5-gallon bottles at home, and refill. At home I use it for all cooking and drinking. Unfortunately, pretty much all commercially made foods, teas, and coffees in restaurants and take-out places are prepared with fluoridated water. But I feel that even if the chemical is present in the food and the shower vapor, at least you can avoid drinking 6-8 glasses of fluoridated water every day, and so your exposure to this one toxic chemical can be somewhat limited.

-----------------------------

REFERENCES

1. Alhava EM, Olkkonen H, Kauranen P, Kari T. The effect of drinking water fluoridation on the fluoride content, strength and mineral density of human bone. Acta Orthop Scand. Jun 1980;51(3):413-420.

2. Mercola J. What You Don't Know About Fluoridation Could Hurt You. Available at: http://www.mercola.com/2005/aug/2/fluoridation.htm. Accessed August 2, 2005.

3. Miller DWJ. Fluoride Follies. www.LewRockwell.com. Available at: http://www.lewrockwell.com/miller/miller17.html. Accessed August 3, 2005.

Alternative ADHD Treatments    http://aol.it/eOFz3t

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How to Make Your ClickBank Product More Profitable

Written by: Jeff Mulligan 

Changes in the ClickBank marketplace may be costing you money. But if you are making this mistake, fixing it can bring you more profits.

The new architecture in the marketplace serves to promote use of the ClickBank search engine. If someone goes to the marketplace now, there are fewer links in front of them, and the search engine is front and center.

Now more affiliates will use the search engine to look for products they can promote that will fit their niches. And more shoppers will use it to find products they want to buy.

But here's the problem: Many merchants are using site descriptions in their ClickBank accounts that do not describe their product. Instead, many promote their affiliate program or commission levels. And the issue with that is that it does not help the ClickBank search engine find your product.

The same is true of the other ClickBank search engines on the web. Since they are either spidering the marketplace or using ClickBank-supplied feeds for their data, they have the same limitations.

The ClickBank search engine only spiders the site title and description that you put into your merchant account screen.

So it has a pretty small index of material from which to derive its results.

If you waste that valuable space talking about affiliate commissions instead of using keywords relevant to your product, you are giving up free traffic and potential affiliates.

Put your affiliate recruiting info on a non-obtrusive link at the bottom of your site. An interested affiliate will find it.

And keep that extremely valuable real estate in your ClickBank title and description relevant to your products.

Doing that helps the ClickBank search engine deliver shoppers and affiliates to your product.

About The Author:

Author Jeff Mulligan is the creator of CBmall, a ClickBank affiliate storefront and search engine that creates multiple income streams from ClickBank products.

Info at http://bit.ly/16qcWD

eddie:D

What to take to bed with you - not a joke

Pretty neat idea. Never thought of it before.

Put your car keys beside your bed at night

Tell your spouse, your children, your neighbors, your parents, your Dr's office, the check- out girl at the market, everyone you run across. Put your car keys beside your bed at night.

If you hear a noise outside your home or someone trying to get in your house, just press the panic button for your car. The alarm will be set off, and the horn will continue to sound until either you turn it off or the car battery dies..

This tip came from a neighborhood watch coordinator. Next time you come home for the night and you start to put your keys away, think of this: It's a security alarm system that you probably already have and requires no installation. Test it. It will go off from most everywhere inside your house and will keep honking until your battery runs down or until you reset it with the button on the key fob chain.

It works if you park in your driveway or garage. If your car alarm goes off when someone is trying to break into your house, odds are the burglar/rapist won't stick around.

After a few seconds all the neighbors will be looking out their windows to see who is out there and sure enough the criminal won't want that.

And remember to carry your keys while walking to your car in a parking lot. The alarm can work the same way there. This is something that should really be shared with everyone. Maybe it could save a life or a sexual abuse crime.

P.S. I am sending this to everyone I know because I think it is fantastic.

Would also be useful for any emergency, such as a heart attack, where you can't reach a phone. My Mom has suggested to my Dad that he carry his car keys with him in case he falls outside and she doesn't hear him. He can activate the car alarm and then she'll know there's a problem.

Please pass this on even IF you've read it before. It's a reminder

eddie:D

/

http://bit.ly/  check it out it's free!

eddie

free ebooks

http://www.startupinternetmarketing.com/pagelinks/free.html

eddie:D

free ebooks

  http://www.financial-freedom-made-simple.com/free-ebooks-wealth-and-success-ebooks.html

eddie:D

 Michael's : school essay

       I remember the time when I caught my first large- mouth bass. The weekend started off great. I was packing my bags for a trip to my favorite destination. I was going to my country house on Bear Pond in Lake Hopatcong, New Jersey. It was on a hot weekend in July, in 2009. I went with my mom, uncle and my great uncle. We were going to the country to put the boat in the water and start fishing for bass.

     We got there and the pond was sparkling. It was a beautiful day and the weather was clear and sunny. We arrived at 10 in the morning. I saw the house up on the hill and was ready for a great weekend. I couldn’t wait to get the boat out from under the house. My uncle John had the battery charged already. We got the oars out too. The boat is a red and blue rowboat that seats about 4 people. We finally got the boat down to the water. We took it down the driveway that is filled with soft green moss and some gravel. It was time to get the boat in the water.

      The water was cool but not too cool. It was going to feel good because it was so hot. I was so happy to go out in the boat. The boat slid easily over the rocks on the shore and into the shallow water. There were 2 red canoes and a sailboat out on the water already. The pond looked so beautiful. My mom packed a lunch and drinks for the day. All of us were going out on the boat to go to the island we go to have fun fishing and swimming. We call the island Blueberry Island because there are so many blueberry bushes on it. My uncle used to fish on this pond his whole life. My mom and him came to this house every summer when they were kids. I had my fishing rods and my tackle box ready.

     As soon as I stepped foot on the rock of the island I casted my fishing rod. I used minnows and lures. The bass in this pond can be very big. Me and my uncle went up to the rocks to cast away from every one. I started with lures but nothing was really happening. The minnows were just what the bass were looking for. They started biting like crazy! My uncle caught the first one and then it was my turn. It happened and my line started to run. This was it! I had a bass on the line. It was mine! The bass was strong and a fighter and my line was out far. My uncle had the net ready and got it out of the water. I was so happy and kept on fishing for the rest of the day. After a while we all went swimming to the island across from where we were. We had a wonderful day!

       We went home around 4:00 because it gets cold on the water late in the day. We went home and then had a barbeque. I got so sun burned that day too. I didn’t put enough sunscreen on. I know now that minnows are better than lure to use to catch bass. It was the best fishing trip ever because I caught my first large mouth bass.

Michael

I had fun with this one  eddie:D

     Hello I am a Large-Mouth Bass. I am a fish and I live in a pond. My pond is surrounded by enormous green trees, boulders and some structures that aliens live in. I don’t really know where my pond and it doesn’t matter to me. I have everything I need right here. I am 14 inches and I weigh 3 pound. I love eating minnows, frogs, lizards and worms.

I remember one time when I was just a baby bass it is one of my worst memories. I was swimming around with my friends and all of a sudden I saw a hurt minnow. I thought about lunch so I swam over and ate him. When I started to swim away something went through my lip and started to pull me towards the shore. I tried to go the other way but it was no help. When I got to the shore there were the aliens! They took me out of the water and took the thing out of my lip. They looked at me and then I saw bright lights and then they threw me back in the water. That was a scary time. I remember another time when I was a little older and I was swimming with my one friend. We were by the boulders by the shore because it is cool there during the day. Out of the blue the aliens were jumping in all around us! We didn’t know which way to go. They kept jumping in from every direction. Then they were almost hitting us. We finally got away from the aliens.

    I feel absolutely ecstatic about my pond. There are deep canyons in the middle where I can stay during the summer. There are fallen trees where I can hang out with my friends. My world is my pond. This is the place to be. Sometimes new fish come in to the pond from other ponds and everyone says this is the best. I am a big strong bass and I am at the top of the food chain.

There are two important things I have learned from my experiences. First I have to look at what I want to eat before I eat it. I need to make sure that it doesn’t have anything in it. The other thing is to make certain that I stay clear of the ALIENS!

My son Michael who is in the 8th grade Wrote this essay for school.  I enjoyed it so much I thought you would to.

eddie:D

 "Some people believe that network marketing really doesn't work. To put it lightly, they're WRONG. I am going to take the next few minutes to explain to you why network marketin will always work so that the next time someone takes the time to tell you that network marketing doesn't work you explain to them how misinformed they truly are.

 Here is why Network Marketing will ALWAYS work:

Even in a strong economy people will ALWAYS need supplemental income: The truth is most people live pay check to pay check. They aren't able to buy the nice things that they want for themselves and their families. There is and will always be a constant DEMAND for more money. Network marketing is a

simple, part time and low risk way for full time workers to fill this need. To put it simply, as long as people need money network marketing will ALWAYS be there to fill that  need.

 People will ALWAYS want freedom from jobs they don't enjoy:

Despite what you may think, there are people out there that truly don't enjoy their job. They go to work because they have to and not because they want to. Network marketing offers a promise of true financial freedom. The ability to leave the 9 to 5 working world. This freedom will ALWAYS be to tempting to pass up.

People will ALWAYS want more free time to do with as they please:

 Did you know in a past poll conducted by Money magazine that 64% of American men and 68% of American women polled said that if they had a choice between more money and more time off they would choose the time? People covet their free time. Network marketing offers the promise of working from home and making your own hours. Again, the opportunity to create free time will ALWAYS draw people to network marketing.

Conclusion:

As long as people crave time, moeny and freedom network marketing will ALWAYS exist.

The next time that someone tries to tell you that network marketing doesn't work you know that they couldn't be more wrong.  All you have to is ask your accuser 1 of 3 questions:

Do you want more money?

Do you want freedom from your job?

Do you want more time?

I guarantee they will answer yes to one of these questions.  When they do they will have proved exactly why network marketing will always work!

Resource Box:

Over $225,000 added to your bottom line and 4,120 people added to your downline in just 14 months is nothing to sneeze at. Yet, this 25-yr old "unknown" rookie network marketer claims he can show any knuckle-head how to repeat his results.

And thousands already agree. And if *you* don't agree that his SYSTEM is the quickest and laziest way to build your network marketing business, then you get double your money back. Is this guy stupid or just plain brave?

eddie:D

The Dirty Truth About Network Marketing That you Must Know and Understand If You Ever Want to Succeed"

Here it is:  On the surface, network marketing companies appear to be thriving communities of consuming customers all happy with the product that they are consuming and they really are, but what drives that community of thriving consumers has

absolutely nothing to do with the product itself.

Let's think about this statement.

 Let me ask you a question: Why did you decided to get started in a network marketing business?

You don't have to say anything out loud but answer this question in your head right now to yourself.

I guarantee you answer is somewhere along these lines "Well, I started my business because I wanted to make some extra money and who knows maybe even become financially free."

 Am I right?

Well let me ask you another question now.

When you prospect and talk to leads about your business what do you talk to them about?

Most likely you try to stick to the corporate script which inevitable ends up with your prospect asking you questions about your network marketing companies products or services.  And by the end of the conversation you've lost control of

the call and both you and your prospect end up confused (usually get somewhere between details about your companies product or service and the compensation plan).  You get of the phone and hope that my some grace of god your prospect you paid $5 to confuse will decided to join your business. Likely story!

Here's why: Successful Network Marketing has NOTHING to do with selling your prospect on your product at ALL! To the contrary, the only thing that you should EVER talk to your prospect about is the same thing that got you sold on your companies business . . . More Money and Financial Freedom!

You see network marketing is built on financial hopes and dreams and honestly, if you're looking for business builders to recruit into your organization your prospects hopes and dreams of financial success are the only thing that you should speak to them about, so they can sell themselves on it.

As an illustration of this principle think about the

situation this way, if you had equal amounts of your

company's product in one hand and money in the other which do you think your prospect would choose?

The top money earners know the answer to that question and that's how why make all there money!

Here's the other shift in perspective that you're going to have to make if you want to have ultimate success with your business and it's simply a logical continuation on the point just discussed.

What you think of as your company's product is NOT its real product at ALL!  Do you think your network marketing company's product is its moon juice or long distance service? If you do you're very wrong.

Continuing on from my last point, remember your network marketing business will not grow if you just push product it will only grow if you sell people on their financial dreams.

So if you think about it, your company's real product is it's sales training and marketing system. The better your company's marketing system is able to help you generate sales the better any more quickly you will be able to reap the financial benefits of your business.

To extend this point further, eventually you'll want your downline to do all the work so you don't have to.

The simpler and more effective the marketing system plus the strong the training your company provides the easier your system will duplicate.

If you want to think about it in its most simple form, your company's real product is its duplicability.

If you find a system that is easy to duplicate and you can have your prospect "sell themselves" on their financial dreams you will have a highly successful network marketing business.

Your Job is Simple: Find people that want to attain financial freedom your way and then shorten their learning curve so that they can go out and do the same.

Resource Box: Discover how to earn a whopping $4,567,09 per month in your spare time even if nobody joins your MLM business. Forget cold calling. Forget those home meetings. In fact, forget everything you've ever been taught about building a solid

income in Network Marketing from the "gurus". Let this 25- yr "unknown" marketer show you how he built an organization

of over 4,120 in 14 short months without making one phone call! 

eddie:D

How To Get Re-Tweeted

Author: Laura Roeder

October 26th, 2009

     Today I’m going to tell you how to craft your tweets for the holy grail of twitter – retweets!

WHY am I getting worked up over reweets? What’s the big deal?

    They are a big deal because

retweets are the #1 best way to rapidly accelerate your list of followers on twitter. Yes, much better than those junky “get 10,000 followers overnight” deals because:

   1. Many of those deals will get you BANNED from twitter which kiiiiiind of defeats the purpose, don’t you think?

   2. Those deals by nature get you a bunch of RANDOM people that could care less about you or your business. Everything I teach is about getting *targeted* followers who love your stuff and are actively raising their hands to build a relationship with you and your business.

OK sorry about that little diatribe . . .

Anyway the nature of retweets is people are putting YOUR twitter name in front of THEIR list, which can quickly multiply exponentially! Let me walk you through the math . . . one of your followers retweets your message that has 500 followers (a pretty low number on twitter, I won’t even go into the common situations where you hit the jackpot by getting retweeted by someone with a follower list of 10,000 . . . or much MUCH more).

  3. of the people on their list (that don’t even follow you!) with 500 each ALSO retweet the message.

Your message (which can very well be a promotional message for your business) has just been placed in front of 2,000 people in the blink of an eye! Many of whom are discovering you for the first time! This happens ALL the time on twitter. (Search @lkr on twitter and you’ll see that I’m retweeted almost daily.)

   OK so how does this gain you TARGETED followers instead of the random junkpile that other methods deliver?

The simple beauty of this is that people only choose to follow you if they have some interest in the message that they saw retweeted. So you’re only adding people to your follower list who have already had a “free sample” of you and want more. Pretty cool huh?

- Laura

eddie:D