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 The Fed kept rates steady at 5.25% yesterday.
“Readings on core inflation have improved modestly in recent months,” the press release stated. “However, a sustained moderation in inflation pressures has yet to be convincingly demonstrated. Moreover, the high level of resource utilization has the potential to sustain those pressures."
Translation: Beside food, energy and commodities, “inflation” doesn’t seem like a problem. But we’re not sure.
"So instead of the Goldilocks economy, which the Fed would like you to believe we have,” comments our friend Chris Gaffney, “we have an economy which is way too hot and way too cold!
“I can't argue with the nonmove by the FOMC, but I think the positive spin they’re putting on their actions is misleading. The economy isn’t in a 'sweet spot'; the economy has backed them into a corner and they can't move. Right now they are just sitting back and hoping the big bad bears don't come knocking!"
 The economy grew at less than 1% annually during the first quarter this year -- the slowest rate since the U.S. invaded Iraq four years ago.
 The U.S. markets responded to the news violently, a massive sell-off ensued and when the smoke cleared, the Dow and S&P 500 registered epic losses of… brace yourself… less than half a percent.
 Gold has been trending upward slightly. This morning, it’s back to $650.
 “This might be the canary in the coal mine,” Chris Mayer writes. Yesterday, shareholders of US Foodservice Inc., the nation's second largest food distributor, rejected a $3.6 billion buyout “bond and loan” deal. This denial marks the first significant opposition to the highly leveraged, easy-credit buyouts that have littered the market in 2007.
“The debt-fueled buyout binge may be running out of gas,” suggests Chris. “The passing of this particular canary is important for the larger stock market, as well,” he told us. “The buyout binge has pushed valuations of many companies upward. Buyout firms willing to pay 12 times cash flow raise the bar on the pricing of similar companies. Once those buyers disappear, though, the valuations should come down.”
“Of course, for individual investors, that’s a good thing,” says Chris. “You may have a shot at picking up some of your favorites on the cheap. As in all markets, there will be pockets of prosperity that buck the trend.”
 Vladimir Putin announced plans to take over 460,000 square miles of Arctic territory -- including the North Pole. Russian scientists recently confirmed that the Lomonosov ridge, an underwater shelf that begins in Russian territory, continues underneath an enormous portion of the northern Arctic.
How big? Imagine a mass larger than France, Germany and Italy… combined.
Here’s the real kicker: If the international community can’t stop him, Putin and company will have access to over 10 billion tons of oil and gas that, according to his scientists, could be extracted easily. Ten billion tons… that would easily secure Russia’s spot as the No. 1 gas producer in the world, and catapult them it past Saudi Arabia as the No. 1 oil producer.
Think of the political ramifications: The Great Oil Grab of 2007 >>
 “By 2010, 50 new nuclear power plants will be built in India and China alone,” reports Jonathan Kolber of The Emerging Capital Report.
Yesterday, we held our monthly editorial meeting. Our writers, editors and analysts from around the world convened in the dining room of our historic 14 West headquarters. We’ll share their ideas with you over the next few issues of The 5. But first, Jonathan’s sudden bullishness on nuclear power and uranium caught us by surprise… and was one of our favorites:
• As much as 30% of the world’s supply of refined uranium comes from Cold War-era nuclear warheads, which could run out as early as 2013
• The world’s second largest uranium mine, the Cigar Lake mine owned by Cameco, was flooded in late 2006, rendering it useless in the short term
• In less than 20 years, growth in electricity demand will add 5,000 billion kilowatt-hours to annual consumption. You can get that much electricity by burning 10 billion barrels of oil or 3 billion tons of coal annually or digging up and enriching 150,000 tons of yellowcake (raw uranium)
• The Wall Street Journal recently projected an up-to-$200 spot price for uranium by the year’s end… that’s almost a 50% gain in less than six months.
Jonathan is looking into a tiny Canadian uranium mine. He wasn’t ready to let fly with the recommendation yesterday, so we’ll hold back, too. But we’ll let you know as soon as he’s ready. Or you could hear it direct from the horse’s mouth >>
 “Regarding the story about the Spanish waiting to seize the Odyssey,” wrote a reader, “I was reading a paper my daughter recently wrote in college about the Spanish royalty, conquistadors and the genocide they should be charged with. It seems to me that even if the Spanish claim that the galleon Odyssey recovered was one of their own, we should be asking where the Spanish stole the gold and silver from and how many thousands of indigenous peoples were slaughtered for it. Maybe some war crimes or crimes against humanity ought to be explored. What gall!”
Spanish conquistadors were known to have searched the Orinoco Belt for gold. Maybe Chavez will lay claim to the coins, too. What a show that would be, eh? Chavez versus Odyssey Marine versus the Spanish government, litigated in Florida courts. Fantastic.
 “Sooooo, let me see if I've got this right,” began a self-proclaimed “20-year F-150 driver.” “You, the great editor of 5minforeplay -- oops, Forecast -- who derives his income from sitting his butt in front of a computer all day (now, that's really making something -- Ironic: Since all you do is complain that this country no longer ‘makes anything,’ what is it you’re making?). I find it the absolute pinnacle of arrogance, snobbishness and the fact that you don't have a freakin' clue that there are millions of ‘meatheads’ in this country who are earning a living, many much more substantial than yours, by actually making something, while at the same time driving a pickup!
“Go ahead and explain your statement while you’re ‘producing’ something on your computer. I guess your transportation of choice is a Volvo -- oh, sorry, not cool enough. You're so above us you probably don't own a car. Public transportation is so much more responsible. Try getting a load of drywall to your house on the bus! Sorry -- won't work. Guess you'll have to call a carpenter for that. He'll be right over -- in his pickup -- meathead!”
Funny, we don’t remember “complaining” about any of this. That we make less than we import is a fact. A historic one, at that. But you’re right… all we make are investment recommendations. You can take ’em or leave ’em.
On the other hand, we are building a new bar in our living room. Maybe you’d like to drive your F-150 over to help. We still need some mahogany paneling, but it doesn’t fit in the Land Rover. Thanks, buddy.
Cheers,
Addison Wiggin
The 5 Min. Forecast
P.S. Six days left! You can still take advantage of the best deal we’ve ever offered. Get our newest $995 investment research service... Plus four new services we have planned in the next 12 months FREE… on the house... gratis... no charge. This offer ends on midnight, July 5, 2007. You must act by then… after that, the door will shut. You’ll never see an offer this low in price ever again. Click here
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Monday. June 25, 2007: 
