Investor's Daily Edge
Friday, May 18, 2007
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What Fox Had to Say about Ron Paul

Freedom is never more than one generation away from extinction.  We didn't pass it to our children in the bloodstream.  It must be fought for, protected, and handed on for them to do the same, or one day we will spend our sunset years telling our children and our children's children what it was once like in the United States where men were free.
-Ronald Reagan

By Charles Delvalle

Dear Reader,

Just when I thought the media bias toward Ron Paul couldn’t get any worse, it did.

As you may know, the latest Republican debate (sponsored by Fox - you know, the “fair and balanced” news guys) was held this past week.  And Ron Paul caused a media uproar.

Now, before I go on, I want to make one thing clear: I LOVE AMERICA.  There’s no place else I’d rather be.  I’d get into deep trouble for just writing this article in dozens of countries.

With that said, I’ll go on.

At the most recent Republican debate, Ron Paul said, "Have you ever read about the reasons they attacked us?  They attack us because we've been over there.”

Giuliani decided to jump in: “That's an extraordinary statement, as someone who lived through the attack of Sept. 11, that we invited the attack because we were attacking Iraq.  I don't think I've heard that before, and I've heard some pretty absurd explanations for Sept. 11."

Really?  So, Mayor Giuliani, you think they attacked us because they’re jealous?  It’s obvious that American foreign policy has been frustrated at every turn in the Middle East.  In many ways it’s made things worse:

  1. We supported Saddam Hussein during the Iran-Iraq War.
  2. Our troops in Saudi Arabia have contributed to the unpopularity of the Saudi government.
  3. Our decision to sack en-masse the Sunni-dominated police force in Iraq set back political reconciliation years, if not decades.  It’s too early to tell.
  4. The 9-11 commission report admits that our foreign policy contributed to what happened on 9-11.

America has helped create a monster in the Middle East.  And now we’re facing accumulating resentment, not only in the Middle East, but almost everywhere else in the world for our role there.

Of course, in a debate with such limited time per response, Giuliani and Ron didn’t have time to really duke it out. But Ron did expand on his thoughts with CNN in the situation room, which you can see here.

While his explanation hit #1 on digg.com (a community-supported website, where readers get to choose what they consider news), it didn’t even make it to the back pages of mainstream media.

It’s pretty obvious that the media wants to prop up the candidate they think can win, and bash those they feel are long shots to get the nomination.

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And that’s not all the spin I’ve seen this week.  Fox and CNN postulated that the high Internet voter count for Ron Paul was due to online communities messing with the polls. 

Surely Mitt Romney and Giuliani have passionate supporters who could do the same.

The truth is Ron Paul got a high voter count because viewers like him.  It’s that simple.  There’s no conspiracy involved.

Look, Investor’s Daily Edge isn’t advocating Ron for president and neither am I. The truth is it’s too early for me to formulate a good opinion on which candidate I support.

What I am advocating is that the media can be brazenly biased. And this Ron Paul situation is revealing the media’s true colors.

The media can easily change the entire direction of the United States by throwing their weight behind a candidate they support.  So if they like a candidate who supports “BIG Government” and that candidate wins, you, as an investor, have to deal with it.

If they back a candidate who doesn’t support free trade, you’ll have to deal with that, too.

These biases aren’t something you can just walk away from.  Our freedom is being taken away from us while we sleep.  And if you don’t understand what’s going on, there’s no way to prepare yourself financially or otherwise for what may come.

I love my country because it’s free.  The moment we allow media and the elite who run the media to take our freedom away, we lose everything we cherish.

Free markets and free countries need each other.  They cannot exist for long separately.  Do you hear that, Big Media?

- Charles

 

P.S.  To let me know what you thought of today's article, send an e-mail to: feedback@investorsdailyedge.com.

[Ed. note: Speaking of Politics, the front runners in both the Democratic and Republican primary debates are hell-bent on destroying your Social Security nest egg. Click here NOW to find out how to avoid the total wipeout of YOUR Social Security Account.]

 
Market Watch

How Ethanol Affects Natural Gas

By Charles Delvalle

How would Ethanol and making ethanol from corn affect the energy market and NG ?

Thanks,
AS, Israel

Dear AS,

If ethanol production boomed, it would have very little effect on Natural Gas. That's because Natural Gas is primarily used to power homes, not cars. Ethanol on the other hand, is used to power cars, not homes.

Ethanol would have the biggest effect on gasoline and crude oil production. But still, the effect won’t be drastic until cellulosic ethanol is perfected in five to ten years. Cellulosic ethanol allows producers to use things like wood chips, switch grass and stems to create ethanol. This would instantly bump capacity up while lowering production costs.

 

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The Market Minute
 

As suspected … the market began showing weakness once lower unemployment claims and a resilient Philly Fed report dashed hopes of an interest rate cut.  While it is still too early to say the economy is out of the woods yet, it looks like the worst of the economic slowdown may be behind us.  While this is good for the economy, it’s bad for the markets.  Make sure to keep an eye on your long positions.




EOT


  In The Markets
 
 
Last
Change
YTD
Dow 13476.72 none10.81 8.13%
Nasdaq 2539.38 none8.04 5.14%
S&P 500 1512.75 none1.39 6.66%
Gold 657.00 none0.90 3.12%
Silver 12.79 none0.03 -0.93%
Oil 64.94 none0.08 7.23%
Nat Gas 8.09 none0.02 31.76%
 
Newsworthy
 

The third years of US presidential terms have been great for investors. Research by academics Scott Beyer, Gerald Jensen and Robert Johnson shows that in the past 12 presidential terms, large-cap stocks gained 23.8 per cent on average during the third years. In years one, two and four they averaged 8.3 per cent. For small caps the gap is bigger: 38 per cent in year three, and 11.75 per cent in the other three years.

This is when presidents are spending money on bolstering their case for re-election, conventional wisdom says. Unpopular policies happen in the first two years. Uncertainty is greatest in the fourth. You make money in the third year.

But the research suggests this whole argument may rest on a false correlation. Presidents do not matter to the market as much as chairmen of the Federal Reserve. The Fed has been accommodating (it has been reducing the discount rate) in 65 per cent of year threes. It has been so lenient in only 48 per cent of all other years.

As for fiscal policy, controlled by presidents, spending rises by an average of 1.8 per cent in the third year. It increases by more in the first two years: most presidents resist the urge to prime the pump with extra spending as elections approach.

-Ft.com

EOT

Meet The Team
 

MaryEllen Tribby - Publisher
Jedd Canty - Business Director
Jon Lewis - Managing Editor
Jon Herring - Editor
Nicole Reynolds - Marketing

Analysts / Editorial Contributors
Michael Masterson

Charles Delvalle
Andrew M. Gordon
Dr. Russell Mcdougal D.D.S.
Rick Pendergraft
Chris Johnson

 

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