Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21
CISCO 2020 Dot com Bubble Stock vs 2021 Bubble Tech Stocks Warning Analysis - 6th Oct 21
Precious Metals Complex Searching for a Bottom - 6th Oct 21
FB, AMZN, NFLX, GOOG, AAPL and FANG+ '5 Waves' Speaks Volumes - 6th Oct 21
Budgies Flying Ability 10 Weeks After wings Clipped, Flight Feathers Cut Grow Back - 6th Oct 21
Why Silver Price Could Crash by 20%! - 5th Oct 21
Will China's Crackdown Send Bitcoin's Price Tumbling? - 5th Oct 21
Natural Gas News: Europe Lacks Supply, So It Turns to Asia - 5th Oct 21
Stock Market Correction: One More Spark to Light the Fire? - 5th Oct 21
Fractal Design Meshify S2, Best PC Case Review, Build Quality, Airflow etc. - 5th Oct 21
Chasing Value with Five More Biotech Stocks for the Long-run - 4th Oct 21
Gold’s Century - While stocks dominated headlines, gold quietly performed - 4th Oct 21
NASDAQ Stock Market Head-n-Shoulders Warns Of Market Weakness – Critical Topping Pattern - 4th Oct 21
US Dollar on plan, attended by the Gold/Silver ratio - 4th Oct 21
Aptorum Group - APM - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 3rd Oct 21
US Close to Hitting the Debt Ceiling: Gold Doesn’t Care - 3rd Oct 21
Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
Original Oculus VR HeadSet Rift Dev Kit v1 Before Facebook Bought Oculus - 3rd Oct 21
Microsoft Stock Valuation 2021 vs 2000 Bubble - Buy Sell or Hold Invest Analysis - 1st Oct 21
How to profit off the Acquisition spree in Fintech Stocks - 1st Oct 21
�� Halloween 2021 TESCO Shopping Before the Next Big Panic Buying! �� - 1st Oct 2
The Guide to Building a Design Portfolio Online - 1st Oct 21
BioDelivery Sciences International - BDSI - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 30th Sep 21
America’s Revolving-Door Politics Behind the Fall of US-Sino Ties - 30th Sep 21
Dovish to Hawkish Fed: Sounds Bearish for Gold - 30th Sep 21
Stock Market Gauntlet to the Fed - 30th Sep 21
Should you include ESG investments in your portfolio? - 30th Sep 21
Takeda - TAK - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 29th Sep 21
Stock Market Wishing Away Inflation - 29th Sep 21
Why Workers Are NOT Returning to Work as Lockdown's End - Wage Slaves Rebellion - 29th Sep 21
UK Fuel PANIC! Fighting at the Petrol Pumps! As Lemmings Create a New Crisis - 29th Sep 21
Gold Could See Tapering as Soon as November! - 29th Sep 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

How Obama Destroyed National Security and Made Uranium Investors a Fortune

Politics / Uranium Feb 04, 2014 - 05:22 PM GMT

By: Marin_Katusa


With Valentine's Day coming up fast and furious, I wanted to take a moment to give heartfelt thanks to one of my personal heroes this year—the man who single-handedly destroyed US national security and will give smart uranium investors a lot to be grateful for in the coming months. This letter is addressed to him.

Dear President Obama (may I call you Barry?),

I'm writing this letter to you in sincere appreciation and heartfelt gratitude for your achievements regarding national security and the uranium sector.

Perhaps you wonder what on earth national security could have to do with uranium (unless it is used in those pesky nuclear weapons that you keep taking away from the mullahs).

In fact, I bet you do wonder, because apparently it never occurred to you that one could depend on a ready supply of the other.

But let's take this one step at a time.

I know you're used to receiving information on the state of the union from your slew of sycophantic advisors in the form of tidbits and sound bites, so I'll try not to overwhelm your fragile cerebrum.

Please take a look at the facts listed below, and maybe, just maybe, it'll begin to dawn on you…

7 Facts You Should Know About Uranium in America

Amount of electricity in the United States generated by nuclear power: 20%.

Number of homes in President Obama's America that are powered by the Russians: 1 in 10.

Number of homes in President Kennedy's America that were powered by the Russians: 0.

Percentage of imported uranium in President Obama's America: over 90%.

Percentage of imported uranium in President Kennedy's America: 0%.

In 1962, the US was the largest producer of uranium in the world.

In 2013, the US ranked #8 in uranium production, right after China.

But let's not stop there. To fully understand in what way national security and uranium might be linked (except that they both share some of the same vowels and consonants), I need to insert a brief…

History of the DOE

Believe it or not, but it was good old Albert Einstein who was the catalyst for the creation of what's known as the US Department of Energy (DOE) today. In 1939, seeing that the Germans had an alarming head start in the nuclear race, Einstein wrote a letter to your predecessor Franklin D. Roosevelt, alerting him to that fact.

We know the rest from the textbooks: In 1939, Germany invaded Poland… in 1941, Japan bombed Pearl Harbor… and within two months, in 1942, Roosevelt instructed the Army Corps of Engineers to build a nuclear bomb—the start of the Manhattan Project. The US dropped two nuclear bombs on Japan, and in August of 1945, Japan surrendered.

The beginning of the Cold War led to the creation of the DOE.

In 1946, the US presented a plan for international control of nuclear research at the United Nations summit. The Soviet Union completely rejected the American proposal, launching the race for the nuclear bomb between the two superpowers.

After World War II, the Manhattan Project was turned over to the Atomic Energy Commission, which by the late 1940s had invested hundreds of billions of dollars into expanding the weapons complex.

By 1973, OPEC caused chaos at the pumps for Americans, and President Nixon announced an energy plan of independence for the US by 1980 (the first of many announced by subsequent presidents; I wonder why they never worked out).

Nixon created the Federal Energy Administration, and in 1974, his successor, Gerald Ford, signed the Federal Energy Reorganization Act. Like most political promises, the program failed to deliver, and by the late 1970s, Jimmy Carter was facing high oil prices and low approval ratings.

President Carter created the Department of Energy, and nine days before Elvis Presley died of a heart attack, James Schlesinger was sworn in as the first secretary of energy.

I know, Barry, you've been impatiently shifting around in your seat, waiting for the punchline. Okay, now this is where you come in…

President Obama Makes Changes to the DOE

Perhaps you know that since its inception, the Department of Energy has been the largest holder of uranium in the world. The DOE's mandate for uranium was a strategic one, and the essential goal—as an issue of national security—was for the US and its citizens to never become dependent on another nation for uranium.

All the DOE had to do was follow two simple rules for sales to the US utilities that required uranium to power American households. Here they are:

  1. Never sell more than 10% of domestic demand into the market per year.
  1. Never sell uranium at such a low price that it would sabotage domestic uranium production.

Enter you, Mr. President, Barack Obama. You rode your campaign horse to victory on slogans like "Yes we can" and "It's about time. It's about change."

Unfortunately, you forgot to mention that rather than change American politics, you were about to short-change the American people.

Why, oh why couldn't you just leave well enough alone? Every US president before you had obeyed those two rules I mentioned above—Republican or Democrat, from Truman to Kennedy to even George W. Bush.

In mid-2013, you, Barry, apparently not understanding the importance of national energy security, changed the law and dropped the two rules. (We've been writing about this for a while now, so thanks for providing us with editorial material too.)

Since your advisors obviously did such a dismal job explaining it to you, maybe we can help.

How You Destroyed the US Uranium Sector—and US National Security

You see, the DOE built up its strategic stockpile of uranium from domestic production to make sure that the nuclear power generation that is so vital for the United States' supply of electricity was never at risk. (The US is the world's largest consumer of uranium and makes up about 25% of the global demand.)

All the presidents before you, Barry, followed the two sacred rules because the Russians, due to their Soviet legacy assets, can produce uranium at much lower prices than the Americans. Therefore, it is crucial to keep domestic production economic and competitive.

However, your recent job numbers didn't look so good, did they—so you decided to milk the nuclear sector in order to create jobs and raise $250 million for the reclamation of old nuclear sites.

(You never openly stated this, but we found out anyway. It was easy, you see—to figure out your agenda, all we had to do was work backwards through the nuclear chain and look at the companies the DOE approved for the clean-up jobs, because these companies have announced their work programs for the next few years. Nice try there, Mr. President.)

So to get your $250 million—do we still count in millions, by the way? I thought everything under a billion was viewed as chump change these days—you made the DOE sell significantly more uranium into the market than ever before in the history of the United States.

And of course your timing couldn't have been worse. Namely, you decided to do this right after the Japanese started selling record amounts of uranium after the Fukushima incident, and the wave of uranium hitting the market dropped the spot price from over US$72/lb to US$34/lb… a more than 50% drop within 24 months.

Well, you got what you wanted: with the spot price slashed in half, 95% of all US uranium production is now uneconomic. That means the miners are losing money and the higher-cost producers will soon go bankrupt.

Thanks to your tireless efforts, the former "Land of the Free" is now a junkie dependent on Russian uranium supplies for its next fix. And the nice Mr. Putin, whose country was America's sworn enemy not too long ago (remember that?), now essentially controls 10% of the entire US electricity matrix.

Which proves again that with friends like you, Barry, one can make do quite easily without enemies.

So why exactly am I writing you a thank-you letter?

Well, as a community organizer, you wouldn't know such things, but you see, the cure for low prices is low prices.

Less uranium production = less supply = higher price. So thanks to you, the shares of first-class uranium explorers and producers now really have nowhere to go but up. Well done!

You may have endangered the welfare of your entire nation for the foreseeable future, but from an investor's viewpoint, you deserve a ton of chocolate truffles. Because you have single-handedly created—oh, just the…

Greatest Investment Opportunity in Uranium EVER

So, thank you, dear Mr. President, because your loss is my gain.

Oh, come on now, no need to hide your face in shame. After all, this is not the first time government stupidity has set up an incredible opportunity to make a fortune—you're in very good company.

Thanks to your stunning incompetence, I wouldn't be surprised if you handed me and my Casey Energy Report subscribers a double or triple on our investments.

So I close my letter with the warmest wishes for the rest of your presidency. May you never change.

Yours in deep gratitude,

Marin Katusa

Now to you, dear readers: If you want to find out the true extent of the windfall my dearest friend, Mr. Obama, has so kindly provided for us, you should give the Casey Energy Report a try today.

The current issue is all about the latest and greatest opportunities in uranium investing, and in our article "Making the Grade," we'll take you to the richest uranium deposit in the world and tell you all about the company that's in the best position to be successful there.

There's no risk in giving it a try: Test my newsletter for the next 3 months, and if you don't like it or don't make any money, just cancel within that time for a full refund, no questions asked. Click here to get started.

© 2014 Copyright Casey Research - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Casey Research Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in