How to Profit as China Dumps Japan's Debt

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November 23, 2010 This Plan Could Swipe $44 trillion Worth of Crude From the U.S. Hugo Chavez... Socialist Wacko. But is he just mouthing off when he threatens to cut America off from Venezuelan crude? One of energy's ultimate insiders knows exactly how Chavez could pull this off. Here's the whole unreported scoop - plus the details on how Chavez's plan could hand two U.S. companies 2,505% gains in the next 13 months. Just go here. Three Ways to Profit as China Dumps Japanese Debt By Keith Fitz-Gerald, Chief Investment Strategist, Money Morning As a veteran trader, I have a tendency to look past the day's top headlines. That's why a recent Bloomberg News story - which stated that China sold a net total of 769.2 billion yen ($9.24 billion) worth of Japanese debt in September - really caught my eye. By itself, this story probably wouldn't be a big deal. But this development is the start of an important new trend in the global currency markets. And the following three factors tell me that we should be taking a close look at why China has decided to dump Japanese debt. For instance: Given that the same thing happened in August, September marked the second straight month Beijing has sold more Japanese securities than it purchased. This marks the reversal of a seventh-month stretch of China being a net purchaser of Japanese debt. The two months of sales nearly wiped out the net surplus of 2.32 trillion yen ($27.86 billion) that China had amassed as a result of seven months of buying Japanese debt. Finally, the 2.02 trillion yen ($24.26 billion) worth of Japanese debt that China sold in August was China's single-largest monthly sale of Japan government bonds since 1995, when these statistics first started being recorded. While there are other conceivable explanations, my take is that China is definitely unloading its yen-denominated holdings, and shifting its investments elsewhere as part of a much bigger reallocation strategy. 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"ALL BRANCHES... of our government ARE IN BUSINESS with Wall Street..." from Money Morning Reader, T.S. Verizon iPhone On the Way - But Not Before Christmas By Don Miller, Associate Editor, Money Morning Apple Inc. (Nasdaq: AAPL) will escalate the war for smartphone dominance in early 2011 by releasing a new version of its iPhone to run on the popular Verizon Wireless (NYSE: VZ) network, the biggest U.S. carrier by subscribers. However, the phone won't make it out in time for the Christmas season, as many had hoped. Apple will be ramping up to mass produce the new touchscreen handset by the end of 2010 and release it in the first quarter of 2011, people familiar with the matter told The Wall Street Journal. While the phone would be similar to the iPhone 4 sold by its current carrier, AT&T (NYSE: T), it would be based on an alternative wireless technology used by Verizon, the people said. Read full story... Tiny Maryland Company About to Unleash Holy Hell... Using recent advances in genetics, this tiny biotech has created "warrior" cells that track, link to, and crush nature's deadliest disease. They even clone themselves and evolve - just like the disease does. Forbes ScienceBusiness calls it, "The wave of the future." Estimates show the potential market for this breakthrough could be $7.5 billion. That's enough to shoot this little stock from $7 to $140. Our full report is just now complete. Go here. Vote for Money Morning at.... Facebook Twitter Money Morning Quote of the Day: "China will be the answer to Japan's problems." -Renault CEO Carlos Ghosn Top Stories November 22, 2010 Muni-Bond Market Tumbles As Investors Demand Higher Yields on Shaky Finances November 21, 2010 Automaker's Shares Jump in Early Trading as Investors Buy GM Stock Following Record IPO November 20, 2010 We Want to Hear From You: Are You a Follow-the-Leader Investor? 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