Saturday, 22 January 2011

Weekend Edition

The Global Food Crisis Is Upon Us

Saturday, January 22, 2011
The global food crisis is upon us… Riots over milk and flour killed three people and injured 420 in Algeria this
month. On January 10, the Serbian government said it's considering an export tax on wheat to discourage
shipments. India halted onion exports in December after prices more than doubled.

Global food prices jumped 25% last year to an all-time high in December. While we haven't yet experienced food
shortages in the U.S., they could be coming. According to the USDA, higher prices will boost U.S. agricultural exports
16% to a record $126.5 billion this year. Already, major grocery chains are planning price increases.

Fortunately, we've got a food crisis stock to beat all others. It's a small company in North America that has built
from scratch one of the largest farms in the world today. This company has already invested almost $60 million into
its farm subsidiary, which I visited last year. I stood on the plains and looked in all directions. I couldn't see the
end of the vast land holdings this company is using to grow wheat, barley, field peas, and other crops.


And now this company is using synergies with the crop farm to build one of the largest cattle ranches in the world.
It has exclusive access to more than 2 million acres of some of the most productive, fertile farmland in the world…
and the land is totally off-limits to all possible competitors. It's virtually impossible to compete with this company on
the cost of primary inputs like farm machinery and labor, due to its unique relationships with the providers of these
goods and services.

Extreme Value readers who took my advice on this stock are already up more than 80%. I believe large, triple-digit
gains lie ahead in the next few years. With the way the food crisis is playing out, the stock could double this year.
I just raised my buy limit on it to reflect the excellent performance of some of its other investments (like its hoard
of more than 70,000 ounces of gold bullion). To get access to this opportunity and others just like it, click here.

The Daily Crux, our financial news aggregator, recently published a list of 20 economic records set last year. For
some, 2010 was a banner year…

Financial firms are expected to pay out an all-time high compensation of $144 billion. The Federal Reserve earned
record profits of around $81 billion. Government spending is at an all-time record of about $6.85 million per minute.
And the number of Medicare recipients hit a new record (50 million-plus).

By other measures, for regular people who need to keep working to pay bills and eat, 2010 was a disastrous year…
A record number of people became so discouraged they stopped looking for work. The federal debt hit $14 trillion
. Banks foreclosed on more homes than ever before (2.87 million). More homes were repossessed than ever before
(more than 1 million). The average time needed to find a job hit an all-time record. The number of Americans on
food stamps hit a new all-time record (43 million-plus), and…

The value of the U.S. dollar hit an all-time low in 2010.

Those records are just another way of saying Goldman Sachs and its friends get paid, the government gets paid…
and you and me? Well… we're the ones doing all the paying!

And again, I must reiterate for those of you looking for the No. 1 money-making strategy… the best way to make a
fortune is to print it up. That's what the Fed did. It printed maybe $1.5 trillion or so and bought a bunch of securities
with it. It earned record profits from the yield.

Goldman only earned less than $6 billion in the first three quarters of 2010. Say it makes $8 billion or so for the whole year. That's less than one-tenth of what the Fed made. It's hard to stay ahead of a counterfeiter…

Or is it? Another all-time record was set last year: The price of gold hit $1,400 an ounce.

Big kudos to our natural resource analyst, Matt Badiali… because another one of his recommendations is skyrock
eting…

You're probably aware of the string of huge winners Matt is generating for his subscribers right now. In just the past year, he's booked a 542% gain in ATAC Resources, a 345% gain in Silver Wheaton, a 339% gain in Jinshan Mines, a 198% gain in AuEx Ventures, and a 161% gain in Rainy River.

One of Matt's biggest investment themes right now is to buy stakes in the world's largest undeveloped resource
deposits. The argument here is giant mining companies see China and India's incredible potential demand for
natural resources like crude oil, natural gas, copper, uranium, and agriculture… and are scrambling to lock up
long-term reserves. If the giants don't buy up these resources now, they run the risk of dwindling reserves in
the future.

One of the whoppers Matt is focused on is a gargantuan undeveloped copper and gold deposit in Alaska known as
"Pebble." At last count, Pebble holds 80 billion pounds of copper… which makes it one of the five largest copper
deposits ever discovered. But that's just part of the story…

The find also contains more than 100 million ounces of gold… which makes it one of the largest gold deposits ever
discovered.

Back in March 2009, Matt recommended acquiring a stake in Pebble through 50% owner Northern Dynasty Minerals
(NAK). Shares were trading for $4.18.

The market is catching on to Matt's thesis… The stock has exploded more than 100% in the past two months,
handing Matt's readers a total gain of nearly 350%. He thinks the move is attributable to takeover talk… and
he's tightening his stop loss to lock in this huge gain.

While Matt is cautious on "hoarding" with precious metals stocks right now, he's super-bullish on hoarding one
of the world's largest stores of energy.

The company that owns this hoard is trading for dirt-cheap, which makes it a safe position. It also has a huge
portfolio of undeveloped reserves, which offer the shareholder tremendous future upside. The stock also pays a
safe dividend that can only rise during a period of inflating resource prices. It's all in the latest issue of the S&A
Resource Report. Learn more about his recent ideas here.

Regards,

S&A Research