The Immortalizing Enzyme

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The Daily Reckoning | Thursday, June 30, 2011 Greece makes promises to postpone breaking them... Using modern science in the continuing search for the Fountain of Youth... Plus, Bill Bonner on telling bankers to 'drop dead', consumers who are hip to the absence of a recovery, and plenty more... ------------------------------------------------------- AT LAST! Consistent, Active Income - Made Easy! You could retire with this hidden, "easy as batting practice" income secret. It recently clicked together with a 97% success rate - now it could be about to happen again. The next profit alert goes live on Wednesday. Get yours - right here. Of Debts and Broken Promises Why Greek Austerity Does Not Equal Solvency Eric Fry Reporting from Laguna Beach, California... My daughter is not Greek...but she sometimes acts like it. This observation is not meant to disparage my daughter...or the Greeks. It is simply an observation. My daughter, Gaby, often makes promises, just before asking me for money. Yesterday evening, after she dirtied up a frying pan and a few kitchen utensils to make some pasta, I asked her to clean up the mess. "Oh yeah, I'll do that in a sec," Gaby replied. "Can I have some money to go to dinner with my friends later?" "Ah...I guess," I stammered. "But make sure you do your dishes before you go." "Oh yeah, I will," she smiled. "Okay, here's $20," I said. "I'll see you a little later. I'm going out for a bit." You all know what happened next... Shortly after I left, Gaby skipped out the door with $20. The dirty dishes sat in the sink until I came home later...and cleaned them myself. Jean-Claude Trichet, President of the European Union, are you listening? Bad habits die hard. Gaby is too accustomed to making empty promises; her father is too inclined to believing them...and even to indulging them. Christine Lagarde, Managing Director of the IMF, are you listening? Yesterday, stock markets around the world rallied as the Greek parliament voted to accept the austerity measures that are a prerequisite for receiving additional bailouts from the European Union and IMF. You see how easy that is? Make a promise; get some money. Making promises is easy. Keeping them is the hard part. Within minutes of passing the austerity plan, riots broke out in Athens. "In a haze of tear gas," the Associated Press reported, "protesters hurled anything they could find at riot police and tried to blockade the Parliament building... In Athens, the mood was dark." Nevertheless, the same AP news story related, "Investors cheered the bill - which aims to cut spending and raise taxes... The bill - along with another that must be passed Thursday on implementing the austerity package - will release the next Euro 12 billion (USD 17 billion) installment of a Euro 110 billion (USD 157 billion) international bailout from the European Union and the International Monetary Fund." We predict the Greeks (and Gaby) will continue making promises for as long as the promises yield handouts. But we also predict that the Greeks will stop making promises...and start breaking them as soon as the last check clears...if not sooner. Promising austerity is not austerity, and even if it were, austerity is not solvency. The austerity plan the Greeks approved yesterday hopes to raise about $110 billion over five years. This sum would not even repay the $157 billion bailout the EU and IMF have provided already, let alone balance a budget. For further perspective, $110 billion over five years would equal $22 billion per year (assuming my third grade math teacher was correct). That figure would not have come close to plugging Greece's $34 billion shortfall last year or its $52 billion shortfall in 2009. And Greece's near-term economic future is not looking any rosier than its recent past. At the end of all this promising and indulging, we predict the Greeks will get the better end of the deal. They will trade feeble promises for hard dollars...until the hard dollars run out. Already, each euro-zone household underwrites about 535 euros ($773) of Greek debt, according to Open Europe, a London-based research group. Already, almost none of these households wish to contribute a single euro to the "profligate Greeks," much less 535 euros. Presumably, these households will resist fresh capital calls from the EU. In other words, the money will run out and the Greeks will default. But while waiting for the inevitable Greek default, let's turn our attention to investments that know nothing about the distasteful world of feeble promises and indulgent handouts. Let's turn our attention to investments that know only about attempting to satisfy a vast and insatiable demand, no matter the macro-economic condition of the day. Patrick Cox, editor of the Breakthrough Technology Alert, you have the floor... Patrick Cox's Breakthrough Technology Alert Presents... Is This The Last Stock You'll Ever Need? This one tiny stock could be the last one you'll ever need. You're about to see a story so shocking and hidden - it could rival the great wealth creations in history. Get all the details - right here. The Daily Reckoning Presents The Immortalizing Enzyme Patrick Cox In the early 1500s, according to legend, the Spanish explorer, Ponce de Leon, traversed Florida looking for the Fountain of Youth. He never found it. 500 years later, scientists are still searching for it. They haven't found it either, but they might be getting close. A certain anti-aging enzyme has captured the attention of the scientific community. Telomerase is the name of this "immortalizing enzyme." There is no publicly traded company doing real telomerase gene-activation research now. Moreover, there is no guarantee that those who are working in this area will accomplish their goals of stopping or reversing the cellular aging process. This is, however, an area that investors in transformational technologies should be monitoring closely. So consider this a heads-up. In the last 100 years, improvements in medical technology have had an enormous impact on life expectancies. In America, life expectancy has gone from 47 years in 1900 to 78 years today. Although life expectancy has improved, the maximum human lifespan of 125 years has not. Few of us make it that far, of course. Big things, though, are happening in regenerative medicine and anti- aging technologies. Clinical evidence is mounting that one of the most important mechanisms of human aging, telomere shortening, can be arrested or even reversed with drugs that induce telomerase production. Telomerase is the enzyme that regenerates telomeres. Telomeres form the end pieces of our DNA strands in chromosomes. Without telomerase, telomeres shorten every time a cell divides. As we age, cumulative divisions increase, and the length of the telomere caps decreases. Eventually, the strands get too short to permit cells to divide and regenerate accurately. Cells become senescent - old. Eventually, when enough of our cells become senescent, we die. Therefore, if we could somehow lengthen the telomeres in human cells, we could theoretically greatly increase human lifespan. The potential of telomerase-activating compounds, therefore, extends far beyond lifespan extension. Studies show that short telomeres are a risk factor for diabetes, Alzheimer's, atherosclerosis and cancer. When the cells lining our blood vessels break off because of turbulence in the bloodstream, other cells have to divide to replace them. The replacement cells, of course, have shorter telomeres. Studies have found that the parts of the circulatory system that have the most plaque buildup also tend to have the shortest telomeres. Alzheimer's has also been shown to have a connection to telomere length. Although causality has yet to be determined, the brain cells of Alzheimer sufferers are shorter than those who do not have the disease. Until recently, most scientists believed it was impossible to halt or reverse the molecular aging that takes place inside of our cells. That began to change with the publication of a paper detailing a study done by Geron Corp., Sierra Sciences, T.A. Sciences and the Spanish National Cancer Research Center. The paper describes the activity of TA-65, the first compound discovered that activates telomerase in the human body. T.A. Sciences, based on licensing from Geron, markets TA-65. Geron is the original discoverer of the compound. TA-65 is derived from the roots of Astragalus membranaceus, a plant used in traditional Chinese medicine. But TA-65 is a relatively weak telomerase-activating agent. The question, therefore, is, "What would a strong telomerase inducer do?" Specifically, many scientists wanted to know if telomerase could merely slow the aging process, or whether it might actually turn back the clock. The journal Nature recently published an article showing that telomerase reverses the aging process in mice genetically engineered to lack the enzyme. The study was carried out by scientists at the Belfer Institute for Applied Cancer Science and various departments of Harvard Medical School. Let me explain the purpose of the study by quoting the source. This is a little technical, but it is worth reading carefully: An aging world population has fueled interest in regenerative remedies that may stem declining organ function and maintain fitness. Unanswered is whether elimination of intrinsic instigators driving age-associated degeneration can reverse, as opposed to simply arrest, various afflictions of the aged. To find out if these dramatic effects are reversible, Dr. Ronald DePinho's team engineered mice with the telomerase inactivated in such a way that it could be turned back on by feeding them the chemical 4- OHT. The researchers allowed the mice to grow to old age without the enzyme, and then reactivated it for a month. Nature News reports the following: "What really caught us by surprise was the dramatic reversal of the effects we saw in these animals," says DePinho. He describes the outcome as "a near 'Ponce de Leon' effect" - a reference to the Spanish explorer Juan Ponce de Leon, who went in search of the mythical Fountain of Youth. Shriveled testes grew back to normal and the animals regained their fertility. Other organs, such as the spleen, liver and intestines, recuperated from their degenerated state. The one-month pulse of telomerase also reversed effects of ageing in the brain. Mice with restored telomerase activity had noticeably larger brains than animals still lacking the enzyme, and neural progenitor cells, which produce new neurons and supporting brain cells, started working again. "It gives us a sense that there's a point of return for age-associated disorders," says DePinho. "Drugs that ramp up telomerase activity are worth pursuing as a potential treatment for rare disorders characterized by premature ageing," he says, "and perhaps even for more common age-related conditions." Over the past decade, Sierra Sciences has been working on finding more potent telomerase-activating compounds. Laboratory tests reveal that several of these molecules have 100 times the potency of TA-65. These, however, are man-made molecules and would require many tens of millions of dollars to obtain regulatory approval. Currently, the company is looking at naturally occurring substances because they would be easier to bring to market than a man-made drug. Sierra Sciences has discovered various natural compounds that increase telomerase production, but it is not yet clear if they will increase telomere lengths. Telomerase research is still in the early stages, but the financial implications of success at extending life spans through regenerative medicine would be unfathomable. Time is the one product for which there is unlimited demand. Regards, Patrick Cox, for The Daily Reckoning Joel's Note: Fellow Reckoners interested in pursuing the profit opportunities Patrick's disruptive technology ideas present will do well to take a quick look at this primer presentation. Enjoy. Technology Profits Confidential Presents... Why Some People DIDN'T Go Broke In The Bust From 2008 until now, some people watched their gains go UP... On what? Not gold or blue chips. And obviously not real estate. Yet they could soon do it - and so could you. Click here to watch the free new video that shows you how. Bill Bonner Why Greece Should Default and Go Broke With Dignity Bill Bonner Reckoning from Delray Beach, Florida... First, the market news. Yesterday, stocks went up. Gold went up. And bonds went down. It was a 'risk on' day...but not so much of one that you could draw any conclusion from it. Investors still had the Greek debt crisis on their minds. But they seemed to have gotten tired of worrying about it. All the financial sweepers in Europe are working around the clock, trying to get the mess under the carpet or out the door. By the looks of the markets, they were succeeding. But it's not over yet. You'll remember that we gave some advice to the financial officials who are in charge of bailing out Greece? We told them to take a page out of Gerald Ford's book. Just tell the Greeks to "drop dead." Today, we give advice to the Greeks. Tell the bankers to 'drop dead.' A vote is expected today...which will tell us something. The Financial Times says it could be a "suicide vote." That is, the governor of Greece's central banks says the Greeks will be committing financial suicide if they don't go along with the plan. Speaking to The Financial Times, Mr. Provopoulos expressed concern that Greece's economic crisis had been played down by politicians over the past 18 months as the country lurched towards a possible default. "We have never really had a debate in this country about what went wrong. In Portugal the new government has come in and said that there will be a difficult two years ahead. We have not had that kind of talk here," he said. He added: "For parliament to vote against this package would be a crime - the country would be voting for its suicide." Turning up the heat, Olli Rehn, the EU's top economic official, dismissed German suggestions that the eurozone was contemplating a "Plan B" in case the Greek parliament failed to approve the austerity cuts. "The future of the country and financial stability in Europe are at stake," Mr Rehn said. "I trust that the Greek political leaders are fully aware of the responsibility that lies on their shoulders to avoid default." We're not so sure. From what we've been able to make out of the rescue plan, they'd be better off rejecting it. Not that we're in favor of people who don't play fair. But this deck was always stacked. And the dealer had a few aces up his sleeve at the get go. The way we figure it, the politicians, the banks - notably Goldman Sachs, as well as the big French banks - were in on the whole thing from the get-go. It would be considered rude to mention it, for example at a champagne-swilling reception hosted by Christine Lagarde, but the whole deal was always corrupt. Goldman Sachs helped the Greeks disguise their debt so they could get in the EU system. Then, more or less the same bankers, advising pension funds, the IMF and the European Central Bank, urged them to buy Greek debt. And then, when the debt went bad, they organized a rescue - which spared the lenders any losses. And then, when the rescue went bad, they set to work figuring out the terms of a new rescue...and warning the Greek people that if they don't go along, they'll have to face Armageddon. The Greeks would be better off calling their bluff. Then, they could go broke with some dignity. They wouldn't get any more credit. But more credit is the last thing they need. Besides, each time they are rescued, they end up in worse shape, with more debt to pay...and higher interest rates to pay on it. So tell the bankers to 'drop dead.' Of course, the Greeks themselves were as corrupt as the bankers. They took their opportunities, too, as they came along. If they could get paid for not working, they didn't work. If they could get a subsidy and not have to compete in the real world economy, they took the subsidy. If they could retire early, or get something for nothing, or hoodwink investors with some nonsense figures...of course, they did it. So, there's a pot. And there's a skillet. Both are as black as a tax collector's heart. And now they are both colluding to make sure neither has to reckon with his greed and errors. Trouble is, that's not the way it works. Debt doesn't go away just because a knave and a fool decide they don't want it. It's still there. Like grinning death. It knows it will have its way. And more thoughts... Let's see how things are going in the US. We're here in South Florida...where consumer confidence is falling, just as it in the rest of the nation. Hey, if there were a recovery, how come consumer confidence is falling? The answer is simple: there ain't no recovery and consumers know it. The feds can babble about anything they want, but the typical consumer knows he is in a tough spot...and it's getting tougher. The good news: gasoline prices are falling. "But so are home prices in South Florida," says the Palm Beach Post. House prices rose in 13 cities says the latest news. But not in Miami...which is in Palm Beach county. Over on page 4 it says "Fla. Seniors insecure about income." They ought to be. They've lost purchasing power for the last 10 years. Of course, that's just a part of the story. As we keep saying, the last 10 years has been a 'lost decade' - for Florida seniors as well as just about everyone else, except the rich. The middle classes have lost ground on every front. Their houses are now back to 1990s prices. Their real incomes have actually gone down. Their stock portfolios too have lost value in real terms. And the job market offers them fewer jobs than it did in 2000. A gallon of gasoline costs only $3.64 in Palm Beach County, down from $3.85 a month ago. But it's up from $1.30 in 2000. "Consumers will keep their wallets closed until they feel a heightened level of confidence," says a source interviewed by the Palm Beach paper. When will that be? No one knows, but if present trends continue Florida seniors will have turned up their toes long before they turn up their confidence. Regards, Bill Bonner for The Daily Reckoning ------------------------------------------------------- Readers who are interested in exactly what Bill is doing to protect and grow his own family wealth will do well to take a look at his Bonner & Partners Family Office project. In it, Bill and his team of international analysts, contrarian thinkers and specialists work to devise creative, though low-risk investments to build long-term financial security. Feel free to take a look at a personal invitation, from Bill's son, Will, right here. ------------------------------------------------------- Here at The Daily Reckoning, we value your questions and comments. If you would like to send us a few thoughts of your own, please address them to your managing editor at joel@dailyreckoning.com Bear Traps in the Bond Market This is probably the trap Mr. Market is setting. The Great Correction will prove to be more bad news for investors – except for those who have put their money in 'safe' US dollars...and US treasury debt. Gradually, investors will move more and more of their money out of 'risky' assets and into bonds. Why the Greek Debt Crisis Won't "Grow Away" Irish Property Market Seeks Divine Intervention China: Where Money Is Treated Best I am sure that Mr. Pento is right because every country on the Face Of The Planet (FOTP) is desperately creating more and more money, and the money will eventually find its way to the place where it is treated best and/or has the best prospects, which is, in this case, Bob. Oops! I meant "China." Buying Gold on the Price Inflation Guarantee Awaiting the "Zero Hour" of Available Credit German Banks Warm to 30-Year Greek Debt Front and center today, there's more optimism that the "implementation" part of the 2-day Greek voting in Parliament, will pass, and that optimism has the euro (EUR) on the rise again. The first vote to accept the austerity measures passed yesterday, with only one dissenting vote... Marc Faber on the Massive Proliferation of Fraud in China Risk Returns, Dollar Buying Ends The Daily Reckoning: Now in its 11th year, The Daily Reckoning is the flagship e-letter of Baltimore-based financial research firm and publishing group Agora Financial, a subsidiary of Agora Inc. The Daily Reckoning provides over half a million subscribers with literary economic perspective, global market analysis, and contrarian investment ideas. Published daily in six countries and three languages, each issue delivers a feature-length article by a senior member of our team and a guest essay from one of many leading thinkers and nationally acclaimed columnists. 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