| May 20, 2014 | | | | |  | | | Better to Die Tomorrow Instead of Today | | | - Maybe we're not "freaking doomed" after all...
- Can we survive the mother of all credit bubbles only by expanding credit even more?
- Plus, Paul Mampilly with a tear-jerking story based on true events that might convince you to "do well by doing good"...
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May 20, 2014  Peter Coyne, re-examining the "we're doomed" thing...
After taking a step back yesterday, we've decided that we may not be "freaking doomed" after all. Sorry for the false alarm. But there was good reason why we considered it for a moment. See, for some time now, we've been struggling to pin down the direction that America is headed in. The question is vitally important to you as an investor -- it affects the whats, hows, wheres and whens of investing your money. As we see it, there are two paths ahead... The first is being paved by indebted and wealth-sucking government types. Special interest groups and people on handouts will keep voting spendthrifts into office who will pass laws that bring the living standards of the many down in order to raise the living standards of a few well connected. The second outcome is a world in which living standards improve for all. That would be thanks to innovators who, despite government, take personal risk to create wealth. It could be via breakthrough medical treatments that could one day cure cancer or by creating new technologies like 3-D printing. Anyway, we've aptly called this ongoing theme "A Tale of Two Americas." For much of this year, we saw the two forces -- government and entrepreneurs -- as being opposed to each other. And we thought that government indebtedness would bring the house down. But economist Richard Duncan, who's visiting us here in Baltimore, made us seriously question our convictions. The two tales of America, if we follow Richard's logic properly, started back in 1968. Back then, the Federal Reserve had to maintain at least 25% gold backing for all of the dollars issued. That served as a limit on the number of dollars that could be printed. After WWII, abiding by the 25% backing wasn't a problem -- probably because the U.S. had most of the world's gold. But in the '60s -- thanks to President Johnson's pipe dreams -- we were bleeding the yellow metal. So Congress, in their deliberative wisdom, changed the law in '68 and removed all required gold backing. Here's what happened afterward: With no constraints -- credit creation shot through the roof. Total debt, Richard told us, which includes all of the debt of governments, individuals and corporations, jumped 50-fold from 1964-2007 -- from $1 trillion to $50 trillion. That credit growth financed a breakneck speed of economic growth too… until recently. Now, as Richard explains, the economy is fully dependent on credit growth. If it slows or, God forbid, contracts, then we would slip into recession, or worse: a civilization-decimating depression, he says. It was enough to jostle us for a moment… to make us think, like Mogambo often says, that we're all freaking doomed. And for all we know, we are. Richard is certain of his conclusions, that's for sure. But he doesn't think we're necessarily doomed. Constructively, he offers up some solutions. We don't fully agree with them… but we see some overlap. For example, Richard believes that to keep the credit bubble from popping and tearing down civilization with it, it's essential for government to keep borrowing. "Better to die tomorrow, instead of today," quips Richard. But why does the government have to spend borrowed money bombing people, he wonders. U.S. debt is at only 100% of GDP. If Japan, which has a 200% debt-to-GDP ratio, is any lesson, then the U.S. can borrow at least $17 trillion more. Why not have the government invest $1 trillion in biotech… nanotech… other breakthrough technologies… solar energy, etc., he suggests. In the worst case, that money is wasted. But he dismisses that argument, because he assumes that the government would've wasted it anyway. At best, he reasons, perhaps we can discover ways to extend human life, cure cancer or improve productivity, and then maybe we can hope to pay down the debt. Again, we're not entirely sold on Richard's strategy… but we recognize it's different and thought-provoking. We'd be curious what you have to say about it. You can shoot me an email to let me know what you think about it: peter@dailyreckoning.com. (Note: I'll personally respond to your message.) We'll at least agree with Richard that breakthrough biotech and other innovations that improve everyday lives will be the best path forward. And dying tomorrow instead of today always is an appealing proposition. That's why we've selected today's feature essay by Paul Mampilly. Paul, our investment director, is also the editor of Agora Financial's FDA Trader. Saying he's bullish on biotech is a complete understatement. Read on to learn about his latest pick -- a stock that could return you 200% in the coming months... | | | | | | | | | The Most Lethal Arm of the United States Government
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Can Whiskey Prevent Cancer?
Did you know there's a type of whiskey…produced in just one region of the world…that actually has more potent antioxidants than wine? CLICK HERE NOW for all the details. | | | | | | | | The Daily Reckoning Presents: No matter if Richard Duncan's theory is right, it appears clear that biotech breakthroughs and other transformative innovations that can extend and improve our lives is one of the brightly shining spots in the U.S. economy. In fact, Paul Mampilly, our investment director, believes this is the golden age of biotech investing. He believes you can earn massive returns while investing in companies with drugs that benefit humanity. He calls the strategy "doing well by doing good." Read on for the latest example, one that could earn you 200% in the coming months...
****************************** | | | | Make 200% on a Lifesaving Drug That Could Save Your Daughter | | | | by Paul Mampilly | | |  You need to know that this is a true story.
You also need to know that the names of the persons and the dates of the events have been changed to protect the identities of the people involved. On Aug. 7, 2007, Grace Mary Lovejoy died. She was exactly 10 years and 8 months old at her death. As Madeleine Helen Lovejoy described it… "The noise was coming from Grace Mary's heart machine. Doctors rushed into the room, hovered over Grace Mary and began performing resuscitation procedures. "They continued to work on Grace Mary for two more hours… until they told us: "They've done all they can for her. Grace Mary has fought hard, and it has taken a toll on her small body. She cannot take much more of this. You need to make a decision as to whether to continue to resuscitate her or let her go. "I had to make the hardest decision of our lives. Our little girl was called home that day to join our lord in heaven." Grace Mary Lovejoy was a child "full of life, and her beautiful personality was so genuine. She was kind, caring, humble and extremely good-hearted. Grace Mary was really a beautiful girl, and she had a true innocence about herself. Grace Mary was an angel in disguise." Her death certificate reads, "Cause of death… lupus." Today, I want to show you a company currently testing drugs so we're closer to the day when there will never be another Grace Mary Lovejoy. This company has a drug that, if approved by the FDA, would have helped Grace Mary to live. She would be 17 today, dreaming of her prom and going to college. | Lupus -- or Mr. Lupus, as I am going to call it -- is a disease that stalks its victims like a murderer. | Now, before I tell you the name of the company and show you how to invest in this company's stock, I want you to understand what killed Grace Mary Lovejoy. Lupus -- or Mr. Lupus, as I am going to call it -- is a disease that stalks its victims like a murderer. First, Mr. Lupus devastates his victims' bodies by ravaging their kidneys, brains, lungs, heart, skin and joints. Bit by bit, he slowly eats away at every organ, until you are weak and vulnerable. And then he leaves you weak enough to get sick and die from the medical equivalent of a cold. The full name of our murderer is systemic lupus erythematosus. He goes by SLE to those who know him well. In medical jargon, SLE is an autoimmune disease. What's an autoimmune disease? Imagine if the United States Army came to attack us instead of going to kill our enemies. Well, that's how you should think of an autoimmune disease. You see, our body has its own built-in army called the immune system that protects us by attacking enemies, things like bacteria and viruses. When you get an autoimmune disease, it's as if our body's army is going to war against us. That is, instead of attacking bacteria and viruses, it comes to attack our own body instead. Long story short, this kind of traitorous behavior by our immune system can kill us. We don't know yet why exactly this happens. What we do know is that sooner or later, your own army comes to kill you, and you die. That's what happened to Grace Mary Lovejoy. Now just a bit more about Mr. Lupus before we get to the investment details of this story… Ninety percent of Mr. Lupus' victims are women. If you're a man, just think about your daughter, your mother and your wife. This affects them. Mr. Lupus does not discriminate in terms of age. So he can come to get you anytime, even though most victims are between the ages of 10-50. Bottom line: Mr. Lupus is going to kill and devastate people's lives unless someone does something about it. And one company I'm recommending to my FDA Trader readers is doing something about it. Already it's spent nearly $300 million testing drugs for lupus. | | | | | | |
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Click here now for the amazing story. | | | | | | | | One of the company's lupus drugs showed promising results in Phase 2 trials and is entering into Phase 3 clinical trial. That was the focus of the latest alert I sent to my paid up readers and the reason is simple -- a company can announce results of a drug only once the Phase 3 trial is complete. And we know that a result is coming soon. You need to understand that in the world of clinical testing, "complete" means: - The company has enough people to sign up and take the medicine that it's trying to test.
- It has successfully finished giving this drug to ALL the patients in the clinical trial.
- Every patient in the trial has taken a full course of the medicine.
This whole process can take as long two or three years. But it's critical you understand that all three steps must be finished for the company to determine if the drug is working. This means that the results may be announced tomorrow. Or next week. Or it may take longer, maybe even as long as a month. No one knows the exact day when the trial results are going to be announced -- not even the CEO of the company. Everyone that participates in a clinical trial, from the doctors to the patients to the CEO of the company, is required to keep things under wraps until the official announcement is made. You can go to jail for insider trading if you violate these rules. The important thing that I want you take away from what I am saying is this: You must click here to get in now, before the announcement is made. There is one more reason you should buy the stock I'm referring to right now. As the interim results get nearer to being announced, people are going to start bidding up the stock. That's just normal behavior. Other biotech investors don't want to buy a stock until after the interim results are released -- so they will wait. | Other biotech investors don't want to buy a stock until after the interim results are released -- so they will wait. | I can tell you from 25 years of experience that by then it'll be too late. To make the big money from a Phase 3 play -- what I call a "Rocket Trade" -- you have to buy the stock before the news is announced. And the one stock I've picked for paid-up readers is dirt-cheap right now. In fact, the stock is trading at its lowest price in nearly five years. If the company's drug has positive results in the Phase 3 trial, it's going to become the standard drug for many lupus patients. And because lupus is a lifetime disease, patients are going to take this medicine for their whole life and the company will have a constant stream of cash coming in for 20 or 30 years. I could be wrong, but my research suggests that it is going to have positive results. I believe that the stock is going to go up by at least 200%. If that seems ridiculous to you, remember that this is exactly what happened with Sarepta Therapeutics, whose stock tripled after it announced positive trial results. Same with InterMune, whose stock doubled after it announced positive Phase 3 trial results. And when you look at similar companies that have approved drugs for diseases like Lupus, you'll see that these companies are highly valued by the stock market. For example, Vertex Pharmaceuticals has a drug for cystic fibrosis and a stock market value of $15 billion. BioMarin, a company that has drugs that are similar to the one I've hinted at today, has a stock market value over $8 billion. For you, this is a huge opportunity to get in on the cheap and make big money before this company's stock price flies higher. Simply click here to learn how to access the play now. I can tell you that I would buy as much of this stock in my own account if I were allowed. But Agora Financial -- the Daily Reckoning's parent company -- forbids me from buying stocks that I recommend to my readers. Regards, Paul Mampilly
for The Daily Reckoning P.S. As an ex-hedge fund manager, I can help you consistently grab profits from the hottest sector on Wall Street -- biotech -- lightning fast and with incredible regularity… The key is something I call the "Magic Calendar". The system is simple -- you just circle a date and get into a stock. Then on that date, you can take your profits. And my data suggest you can profit an average of 118% every 90 days. Provided you follow the system the way I explain right here. If you're interested in learning how such a calendar exists… where to access it… and the next date you're supposed to circle (hint: it's May 26, just six days from now), then click here now. We have only a limited number of these calendars available. First come, first served. | | | | | | | | |  Paul Mampilly has had close to 25 years of investment experience, maintaining almost every kind of job in finance. He's covered biotech and health care as an analyst and portfolio manager for major international banks such as Deutsche Bank, ING and Bankers Trust. And he's been part of a team managing a $23 billion mutual fund and a $6 billion hedge fund that Barron's named as one of the world's best hedge funds in 2008. His impressive list of clients have included European aristocracy, the Templeton Foundation, Swiss private banks, Fortune 500 companies like Sears and giant banks like the Royal Bank of Scotland. | | | | | | | | | BE SURE TO ADD dr@dailyreckoning.com to your address book.
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