The World Cup scheduled for 2010 in South Africa is showing deep cracks in the country’s economy — positioning investors to reap gains of 129%.

FIFA and UEFA (that’s Fédération Internationale de Football Association and Union of European Football Associations to non-football folks) are becoming increasingly vocal about South Africa economic woes.

You see, South Africa’s having a bunch of problems this year, and some authorities are saying the problems aren’t going away anytime soon. Here’s what I mean…

– GDP growth came in a 2.1% (compared to expected growth of 4%) in Q1 2008.
– Inflation hit a five-year high of 10.1% year-on-year in April (interest rates were raised to 11.5%).
– Unemployment is incredibly high (at between 20% and 40% - that’s official vs. unofficial numbers).

But for the soccer organizations perhaps the worst drawback is South Africa’s undependable electricity supply.

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If you think the game isn’t rigged against you, read no further than this obscure report of 2005 I’m about to reveal.

It’s the best example I’ve seen of a media bias against emerging markets. The reason I point it out? So many people do “headline investing” that it could be costing you thousands in untold profits.

The basic flaw in relying on Big Media is that it’s reactive by nature. The so-called news from Big Media is the most flagrant exercise in self-importance America has ever witnessed. Big Media serves you leftovers with the arrogance of a world-class chef.

Big Media masks its sloth and ego by giving you heaping portions of fear, urgency and sappiness instead of original in-depth reportage. Big Media is a masquerade ball.

Now we’re about to rip away the mask… Continue Reading »