Russia's growing influence in world energy markets

Russia threw their weight around late last year regarding natural gas pipelines which provide heat for European homes. They ended up cutting off Ukraine until the latter acquiesced to Russia's demands for higher prices. Meanwhile, the rest of Europe was held hostage and forced to accept higher prices as well.

The US recently scrapped plans to build missile defense shields in the Czech Republic and Poland, again bowing down to Russian threats, implied and otherwise.

Russia is now the world's #1 producer of crude oil, 25% higher than #2 Saudi Arabia. You think that has something to do with them getting their way recently?

I wrote this letter before the day after...

I wrote this after Obama was declared the winner in the Presidential race:

Obama will perpetuate the welfare state, as people seek handouts instead of being productive members of society.

I agree with all you said about Obama--he's charming, articulate, intelligent, and perhaps even well-meaning. Jimmy Carter was the brightest President we've ever had. Look what happened when he was in charge. Granted, he had a speech impediment, but Obama's ideas are actually more dangerous.

My advice right now is to put your money in tax-free vehicles, whether muni bonds or properly structured, maximum-funded life insurance, or the Mississippi Go Zone. For Growth, buy Wal-Mart and McDonald's, as the strong will get stronger. Natural gas pipelines master limited partnerships are down 80% from their peak, yet reporting recording earnings. And meanwhile, they're giving 20% dividends annually while we wait for a rebound. 200-300% returns won't surprise (between the quarterly dividend and share appreciation), and it's not some speculative high tech play--it's an investment in a gas pipeline company--people will still need to heat their homes and cook, even if they turn the thermostat down. Plus, more municipalities are converting their fleet vehicles to natural gas, as they burn cleaner. T. Boone Pickens made a fortune in oil, then natural gas, and now alternative energy. Bet WITH him, not AGAINST him. Two gas plays I've bought have ex-dividend dates of Nov. 10, so it's too late to buy (it takes 3 business days to settle positions)--there are others, or I will wait another 3 months for the next window.

Kinder Morgan is the safest play, but their dividend is only 6% at today's prices--still solid. My buys have higher yields (20% and 14% dividends, respectively). Since it's an MLP , all its cash flow and earnings go directly to unitholders (me). These MLP's should double within a year, but even if they are flatlining, I still earn the dividend. Disclaimer: this is not a recommendation for any single commpany--these are shares I purchased myself or am considering purchasing.

If you wanna be lazy, just put it in an orange account earning 3%, but realize the big, bad wolf of inflation is just around the corner. The Treasury is printing all kinds of dollars, trying to save this sinking ship, and it's going to make our currency worthless, much like the 70's, when gold, oil, gas, and every other commodity skyrocketed. It's not a matter of if, it's a matter of when. The market will finally wake up to it, and you're going to see a mass exodus OUT of the stock market and real estate markets, and one INTO hard assets.

Meanwhile, watch a lot of TV, read a lot of books, work out, surf the internet, because doing anything else will be expensive.

Yesterday's rant:

Well the markets certainly confirmed my suspicions that Obama is not the answer, even if the average person wanted a "change", as the Dow Jones dropped almost 500 points yesterday. Usually, a change in regime brings hope, a renewal of faith, and optimism, which people are holding on to. But the real money is saying "I don't think so". They're saying growth will be negative or non-existent for years, our future looks grim, and so do our children's and grandchildren's, as we sock them with future taxes on money we spent that we didn't have.

I was wrong--GM lost $6.9 BILLION last quarter--much worse than even the most pessimistic projections. Their collapse is inevitable, as even a bailout by the governement won't help--neither will a merger with Ford or Chrysler.

Hell, at this pace, the US government will be out of business this next decade. At which point, the gun enthusiast with 50 guns will seem prescient instead of crazy.