Composed Conversations On Transformational Technologies

The Daily Reckoning U.S. Edition

Home . Archives . Unsubscribe

The Daily Reckoning | Sunday, February 12, 2012 Improving — and extending! — the life of every human on earth, Reckoners weigh in on the permanence of change and public enemy #1, Plus, all the archives from the past week, ensouled for your immediate enjoyment... --------------------------------------------------------------- Your Chance to Claim $1,205 off Agora Financial’s Most Popular Research... Why today, you ask? Because you absolutely must see the amazing story that just broke days ago. You’re moments away from one of the biggest wealth creation stories of the decade. You must act on this amazing story before Tuesday, February 14th. Click here to find out why. Reporting from Buenos Aires, Argentina... Joel Bowman What do you do if you’re a guy like Patrick Cox? Seriously? You go to dinner parties and people ask, “So, Patrick, what is it that you do?” “Well,” you might respond, “I investigate transformational technologies.” “Trans...eh...come aga...” “That’s right. I research disruptive technological breakthroughs set to significantly alter the trajectory of history...ones likely to deliver multi-generational wealth to a handful of forward-looking individuals.” (Silence...followed by...) “I...er...I see. Umm...er... So do you play any sports?” “Let me ask you a question. Have you ever heard of Moore’s Law?” We’re sure Mr. Cox handles idle dinner party chit chat better than our poor portrayal above. Nevertheless, it must surely be a bore to suffer though conversations about the weather when all you really want to do is get down to the nitty-gritty of, for example, the latest induced pluripotent stem cell therapy research. Well, Patrick. You don’t have to be shy here. Not in these pages. You are amongst friends and Fellow Reckoners. So please, take it away... [This week’s feature column first appeared in the pages on Feb. 6, 2011] The Daily Reckoning Presents Get Rich Slow Patrick Cox Get-rich-quick investment advice is a fantasy. Get-rich-slow is a validated strategy for real wealth. Today, it is more important than ever to keep the long-run perspective firmly in mind... Lest you’ve forgotten, world financial markets are in a state of unparalleled disorder. More capital has been drained from markets, thanks to the irresponsibility of politicians and the acquiescence of naive citizens, than at any time in modern history. The damage done by bombers and tanks in world wars has been matched by the unintended consequences of central planning and bureaucracies. Fortunately, however, the political and philosophical trend lines are all pointing to true long-term reform. The pendulum’s swing cannot be stopped, and the coming decades will be unmatched in terms of technological progress and wealth creation. This is exactly the time to be investing in the future. Metaphorically, and sometimes actually, there is blood in the streets. You’ve probably heard that Baron Rothschild, the famously successful 18th-century British investor, said, “The time to buy is when there’s blood in the streets.” In fact, some believe the original quote was, “Buy when there’s blood in the street, even if the blood is your own.” Remember, investors who bought and held a diversified portfolio of disruptive technologies before and during the Great Depression got rich. Those who lost confidence because they weren’t seeing the quarterly gains typical in bull markets missed their golden opportunity to “buy low.” This, I repeat, is a chance of historic magnitude to buy the companies that are going to change the world and power the recovery — like the one I am going to tell you about today. One company has accomplished a major milestone: The demonstration that the company can produce purified cell populations... As I’ve explained in discussions about other stem cell companies, the ability to produce pure cell populations is critical. The FDA is extremely concerned that the introduction of unpurified stem cells might cause inappropriate cell growths, or even cancers. Geron’s nonpurified stem cell lines did, in fact, produce microcysts in early tests. For liver or any other stem cell therapy, therefore, it is critical that the cells used in a therapy are only the type needed for that therapy. While I had little doubt that this company would solve this problem, I had no idea what the solution would be. I spoke to the leading researcher who helped me understand this breakthrough technology. Essentially, this company has discovered how to replicate a feature of early embryonic development that begins the process of cell differentiation. Known as the “primitive streak,” it is the initial division of undifferentiated embryonic cells into “bilateral symmetry.” Some bioethicists, in fact, consider this event the “ensoulment” or beginning of life. Regardless, the primitive streak has unique characteristics that provoke very specific movement of cells within the embryo. The important thing to know is that this company has created artificial primitive streaks. Therefore, they can provoke purified cells to migrate into purified cell populations. This company also enrolled the first US-based donor in its program to establish the clinical-grade human parthenogenic stem cells capable of immune-matching most humans. It has already gone through the rigorous bureaucratic and regulatory process to assure that the cells created by these donor cells are acceptable to the FDA. Regulatory approvals were obtained from the Institutional Review Board (IRB) and the Stem Cell Research Oversight (SCRO) Committee. Cell lines have already been collected offshore, but the American side is critical to the company’s road map. Highly purified stem cells are not just effective replacement cells; they are young. People who use these cells for therapies will have organs and tissues with life spans that will extend for as much as a hundred years or more. This will change the nature of medicine as we know it... It’s the future of biotech. And I believe this amazing technology could eventually improve... and extend... every life of every person on earth... Regards, Patrick Cox, for The Daily Reckoning Joel’s Note: We’re always eager to learn where Patrick’s latest investigation has taken him. Though we admit an impressive ignorance in the field of disruptive technologies ourselves, Patrick has amassed a rather impressive track record for both identifying and capitalizing on opportunities in this realm for readers of his Breakthrough Technology Alert. In his most recent report — which just hit the virtual shelves this past weekend — Patrick claims he’s identified the “Last Stock You’ll Ever Need.” That’s a big claim, you’ll surely agree. Naturally, we’re skeptical...a trait our vocation and various avocations demand. That said, Patrick’s report is a fantastically, characteristically intriguing write up...even if you do decide to buy a stock or two after this one. Check it out here. (But again, make sure you do so BEFORE Feb. 14...when the offer disappears from the Internet.) World oil production is about to be shaken to its core... You won’t believe which nation analysts at Wall Street’s biggest banks expect to become the world’s biggest energy producer by 2017 — or the effect it will have on America... our economy... our future... Click here to see who is set to become the new king of oil — and how you can use the news to go for big profits as early as this MAY! ALSO THIS WEEK in The Daily Reckoning... The Value of a Thief By Chris Mayer Gaithersberg, Maryland “Every human problem is an investment opportunity if you can anticipate the solution,” the old gentleman told me. “If not for thieves, who would buy locks?” I just met this remarkable fellow, full of wisdom on investing, yet hardly known beyond a small group of fans. His name is Thomas Phelps, and he’s had quite a career. He was The Wall Street Journal’s Washington bureau chief, a former editor of Barron’s, a partner at a brokerage firm, the head of the research department at a Fortune 500 company and, finally, a partner at Scudder, Stevens & Clark (since bought out by Deutsche Bank). Phelps retired in Nantucket after a varied 42-year career in markets. Big Opportunity From Tiny Machines By Ray Blanco Marco Island Back in 1959, Nobel-winning physicist Richard Feynman delivered a now-famous talk titled “There’s Plenty of Room at the Bottom,” in which he envisioned the potential applications of tiny machines. Today, one of the most important innovations leading to the current generation of smartphones and tablets is known as MEMS... Coming Soon: Smart Television! By Patrick Cox Marco Island, Florida My colleague Ray Blanco and I recently attended the Consumer Electronics Show in Las Vegas. The big story this year was the convergence in consumer electronics. Specifically, it was the arrival of extraordinary high-definition 3-D as well as “smart” TVs. In fact, Ray and I had backstage passes for the biggest 3-D events. “Loophole” lets you tap Big Oil's cash stash... Big Oil made out like bandits when gas prices hit $4. How about using this little-known “loophole” to get some of that cash back? And not just a tiny stock dividend either — this can pay you up to three times the income most stocks or bonds pay. Even though this move has nothing to do with the stock market. Watch this video below for details. The Weekly Endnote... And now, it’s over to a few readers for some thoughts, ideas and rumors... First up, this from one faithful Reckoner... Your Feb. 7, article brought up some memories. As a child in Stalinist Hungary of the early 50’s I experience first hand [and indirectly through my parent’s worries] being recruited as spy for the government. In grade 1 we were equipped with bandanas and told we were all members of the Pioneers [basically the Stalinist equivalent of Hitler youth]. Among other things we could do to show our love for our dear friend, also know as Rakosi, the head of the Hungarian Communist party, was to report to our teacher any ‘unpatriotic’ talk by our neighbours or even our parents. Similarly, at the adult level people were encouraged to report suspicious or unpatriotic activity to their local party rep. This activity pretty well negated itself through it’s over-enthusiasm. To illustrate, if Mr. Jones reported his neighbour Mr. Brown on Monday, within a short time Jones would be taken away by the secret police for fraternizing with the ‘known traitor’ Mr. Brown. Within a few more days many of Jones’ friends would receive similar visits for fraternizing with the known traitor Jones. The Jones’ of the world quickly learned to shut up. Keep up the good work. And this, from Reckoner Steve... Exciting times, sure it is things move at the speed of light, and we can now see who is going to rape and plunder, steal, and corrupt. Has anything actually change in 2,4,6 thousand years. Those who gain control use it to their advantage, until they have plundered the system until it collapses. Then it begins to rebuild and a whole new group takes over and it repeats. Is it any different today, we are just more comfortable in a leisurely way in the western society, as we are again raped and plundered, statist control, and barbarian takeovers, and positioning for the war machine so we can plunder others. It doesn’t matter when now or before, it is just easier to be lulled into a state of complacency today. The end result is the same, it just may be on a bigger scale today, and we can watch it unfold on CNN, CNBC, etc. Cool, we can watch it live as it unfolds. And finally this, from Reckoner Avery... After reading the criteria that the FBI is using to identify perps such as “Sovereign Citizens”, I am now fearful that I must be on the list. How could I not be? I am an avid Daily Reckoning and Whiskey reader. I am becoming aware of the world around me as my once zombified eyes are being opened and marvel at the history of my own country that, I am embarrassed to admit, I have either forgotten or never learned in the first place. I’m 56 years old! What must it be like for someone who is in their first trimester of life? Complete oblivion I guess. Pretty soon I will catch myself checking the skies for black unmarked helicopters. No really! When I think about it, we never look up as compared to down or straight ahead. You keep on writing and I will keep on reading. Perhaps we will meet someday in a detention center somewhere abroad. --- As always, we welcome your thoughts. Email them to the address below and... ..enjoy your weekend. Cheers, Joel Bowman Managing Editor The Daily Reckoning ---------------------------------------------------------------- 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 Why US Job Creation Heats Up in Cold Weather Debt Beats the Economy in a Growth Race Why Gold is Money Despite Changing Conditions The Next American Oil Boom? Ireland Says It Won’t Need Additional Bailouts Of Fat Tails and Fashionable Gloom and Doom 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. Cast of Characters: Bill Bonner Founder Addison Wiggin Publisher Eric Fry Editorial Director Joel Bowman Managing Editor The Mogambo Guru Editor Rocky Vega Editor Additional articles and commentary from The Daily Reckoning on: Twitter Facebook DR iPhone APP To end your Daily Reckoning e-mail subscription and associated external offers sent from Daily Reckoning, cancel your free subscription. If you are you having trouble receiving your Daily Reckoning subscription, you can ensure its arrival in your mailbox by whitelisting the Daily Reckoning. © 2010-2012 Agora Financial, LLC. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This newsletter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the World Wide Web), in whole or in part, is strictly prohibited without the express written permission of Agora Financial, LLC. 808 Saint Paul Street, Baltimore MD 21202. Nothing in this e-mail should be considered personalized investment advice. A lthough our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice.We expressly forbid our writers from having a financial interest in any security they personally recommend to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of a printed-only publication prior to following an initial recommendation.Any investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.