WARNING: |
What
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Hello. My name is Porter Stansberry.
A little over ten years ago I founded Stansberry & Associates Investment
Research. It has become one of the largest and most recognized investment
research companies in the world, serving hundreds of thousands of subscribers
in more than 120 countries.
You may know of our firm because of the work we did over the last several years
– helping investors avoid the big disasters associated with Wall Street's
collapse.
We warned investors to avoid Fannie and Freddie, Bear Stearns, Lehman Brothers
and General Motors and dozens of other companies that have since collapsed. We
even helped our subscribers find opportunities to profit from these moves by
shorting stocks and buying put options. To my knowledge, no other research firm
in the world can match our record of correctly predicting the catastrophe that
occurred in 2008.
But that's not why I created this letter.
I reference our success and experience with Wall Street's latest crisis
because we believe there is an even bigger crisis lurking – something that will
shake the very foundation of America.
And that is why I've spent a significant amount of time and money in the past
few months preparing this letter.
In short, I want to
talk about a specific event that will take place in America's very near
future... which could actually bring our country and our way of life to a
grinding halt.
This looming crisis is
related to the financial crisis of 2008... but it is infinitely more dangerous,
as I'll explain in this letter.
As this problem comes to a head, I expect there to be riots in the streets...
arrests on an unprecedented scale... and martial law, enforced by the U.S.
military.
Believe me, I don't make this prediction lightly and I have no interest in
trying to scare you.
I'm simply following my research to its logical conclusion.
I did the same when I tracked Fannie and Freddie's accounting. The same with
General Motors. And Bear Stearns and the rest. And when I began giving this
warning in 2006 no one took me very seriously... not at first. Back then, most
mainstream commentators just ignored me.
And when I presented my case and exposed the facts at economic conferences,
they got angry. They couldn't refute my research... but they weren't ready to
accept the enormity of its conclusions either.
That's why, before I go any further, I have to warn you...
What I am going to say
is controversial. It will offend many people... Democrats, Republicans, and Tea
Partiers, alike. In fact, I've already received dozens of pieces of hate mail.
And... the ideas and solutions I'm going to present might seem somewhat radical
to you at first... perhaps even "un-American."
My guess is that, as you
read this letter... you'll say: "There's no way this could really
happen... not here."
But just remember:
No one believed me
three years ago when I said the world's largest mortgage bankers Fannie Mae and
Freddie Mac would soon go bankrupt.
And no one believed me when I said GM would soon be bankrupt as well... or that
the same would happen to General Growth Properties (the biggest owner of mall
property in America).
But again, that's exactly
what happened.
And that brings us to today...
The same financial problems I've been tracking from bank to bank, from company
to company for the last five years have now found their way into the U.S.
Treasury. I'll explain how this came to be. What it means is critically
important to you and every American...
The next phase in this crisis will threaten our very way of life.
The savings of millions will be wiped out. This disaster will change your
business and your work. It will dramatically affect your savings accounts,
investments, and retirement.
It will change everything about your normal way of life: where you vacation...
where you send you kids or grandkids to school... how and where you shop... the
way you protect your family and home.
I'll explain how I know these events are about to happen. You can decide for
yourself if I'm full of hot air. As for me, I'm more certain about this
looming crisis than I've been about anything else in my life.
I know that debts don't just disappear. I know that bailouts have big
consequences. And, unlike most of the pundits on TV, I know a lot about finance
and accounting.
Of course, the most important part of this situation is not what is
happening... but rather what you can do about it.
In other words: Will you be prepared when the proverbial $@*% hits the fan?
Don't worry, I'm not
organizing a rally or demonstration. And I've turned down every request to run
for political office.
Instead,
I want to show you exactly what I'm doing personally, to protect and even grow
my own money, and how you can prepare as well.
You see, I can tell you with near 100% certainty that most Americans will not
know what to do when commodity prices – things like milk, bread and gasoline –
soar. They won't know what to do when banks close... and their credit cards
stop working. Or when they're not allowed to buy gold or foreign currencies. Or
when food stamps fail...
In short, our way of life in America is about to change – I promise you. In
this letter I'll show you exactly what is happening.
You can challenge every single one of my facts and you'll find that I'm right
about each allegation I make.
And then you can decide for yourself.
Will you act now to protect yourself and your family from the catastrophe
that's brewing right now in Washington?
I hope so. And that's why I wrote this letter.
I'm going to walk you through exactly what I am doing personally, and what you
can do as well. I can't promise you'll emerge from this crisis completely
unharmed – but I can just about guarantee you'll be a lot better off than
people who don't follow these simple steps.
But I'm getting ahead of myself just a bit.
Let me back up and show you in the simplest terms possible what is going on,
why I am so concerned, and what I believe will happen in the next 12 months...
The Greatest Danger
America Has Ever Faced?
In short, I believe that we as Americans are about to see a major, major
collapse in our national monetary system, and our normal way of life.
Basically, for many years now, our government has been borrowing so much money
(very often using short-term loans), that very soon, we will no longer be able
to afford even the interest on these loans.
Again... I say these things as an expert in accounting and financial research.
You may not think things are THAT BAD in the U.S. economy, but consider this
simple fact from the National Inflation Association:
Even if all U.S. citizens were taxed 100% of their income... it would still not
be enough to balance the Federal budget! We'd still have to borrow money, just
to maintain the status quo.
That's absolutely incredible, isn't it?
Yet I've never seen this fact reported anywhere else.
Normally I study these kinds of numbers when I'm looking at a business to
invest in or to recommend to my readers. But lately I've spent most of my time
looking into our national balance sheet, because as the banking system
collapsed in 2008, all of the bad debts were absorbed by the world's
governments.
For example, when Fannie Mae and Freddie Mac collapsed in the summer of 2008,
the U.S. government responded by simply guaranteeing all of their outstanding
debt.
Since then these companies have recorded hundreds of billions of losses – all
of which were passed along to the government. Yes, you can still get mortgages
today. And yes, Freddie and Fannie are still in business. But costs associated
with these programs are piling up at the U.S. Treasury – and they are
enormously expensive.
These losses and trillions in other private obligations are now the
responsibility of the U.S. government.
The problem is, even before this crisis, our government was deeply in debt.
With each additional commitment we sink further and further into debt...
closing in upon the moment that we can simply no longer afford even the
interest payments on our obligations.
According to even my most conservative calculations (using numbers provided by
the Congressional Budget Office) a debt default by the U.S. government would be
inevitable – were it not for one simple anomaly... the one thing that has saved
the United States so far.
I'm talking about our country's unique ability to simply print more money.
You see, the U.S. government has one very important weapon to use in this
crisis: It is the only debtor in the world who can legally print U.S. dollars.
And the U.S. dollar is what's known as "the world's reserve
currency."
The dollar forms the basis of the world's financial system. It is what banks around
the world hold in reserve against their loans.
That's a secret that most politicians don't understand:
As things stand now,
the U.S. government can't go broke in any ordinary sense of the word because it
can simply print dollars to pay for its bad debts. (It's been doing so since
March of 2009).
That
might sound pretty good at first. Since we can always just print more money,
what is there to worry about...?
Well, let me show you...
You see, as things stand today, America is the only country in the world that
doesn't have to pay for its imports in a foreign currency.
Let's say you're a German and you want to buy oil from Saudi Arabia. You can't
just pay for your oil in German marks (or the new euro currency), because the
oil is priced in dollars.
So you have to buy dollars first, then buy your oil.
And that means the value of the German currency is of great importance to the
German government. To maintain the value of its currency Germans must produce
at least as much as they consume from around the world, otherwise the value of
its currency will begin to fall, causing prices to rise and its standard of
living to decline.
But in America...?
We can consume as much as we want without worrying about acquiring the money to
pay for it, because our dollars are accepted everywhere around the word. In
short, for decades now, we haven't had to produce anything or export anything
to get all the dollars we needed to buy all the oil (and other goods) our
country required.
All we had to do was borrow the money.
And boy did we. Take a look at this chart...
Even as late as the 1970s, America was the world's largest creditor. But by the
mid-1980s we'd become a debtor to the world. And since the late 1990s we've
been the world's LARGEST debtor.
Today, our government owes more money to more people than anyone else in the
world.
And that was before the financial crisis!
In short, with all of these bad debts piling up, we've had to begin repaying
our debts by printing trillions of new dollars. The impact of this is
only just now beginning to be felt.
And once our creditors figure out what's happening, they're going to be very
angry.
I believe they will either completely stop accepting dollars in repayment... or
greatly discount the value of these new dollars. I'm sure you think that sounds
crazy, but as I'll show you, it is already happening.
And that will make our consumption-led way of life impossible to afford.
Just think about the price of oil...
Access to cheap oil has been America's #1 gift of owning the world's reserve
currency.
This, along with several other government policies, has made gas cheaper
in the U.S. than almost anywhere else in the developed world. I know you may
think gas prices have skyrocketed in recent years... but look at how much less
we pay than other developed nations...
According to the most
recent study (March 2011) by Kiplinger's Personal Finance, we pay around $3.61
a gallon on average, here in the U.S. But in Canada, it's $5.56, the French pay
a whopping $8.21, the Japanese pay $6.62, Australians pay $5.41, and the
Chinese pay $4.54.
And here's the thing...
If oil is no longer priced in dollars, the price of oil for Americans will
skyrocket immediately. It will change our lives, overnight.
Airline travel will get much more expensive. The cost to ship goods by truck to
grocery stores around the country will get much more expensive. Farming itself
will get a lot more costly... so will commuting to work... taking a taxi...
just about everything we do will suddenly get much more expensive.
And just remember: In order for prices to start skyrocketing, all that has to
happen is that other countries start preferring payments in something besides
U.S. dollars.
The U.S. dollar has been the world's currency for decades now... so most
Americans don't have a clue about what the repercussions are of losing this
status.
You might think this could never happen... but it happens all the time when
countries get too far in debt or when they consume too much or produce too
little.
In fact, the same thing happened to Great Britain in the 1970s.
Most people don't know this, but British Sterling was the reserve currency for
most of the world for nearly 200 years... for most of the 18th and 19th
centuries.
It continued to play this role until after World War II, when America was
forced to prop up Britain's economy with foreign aid – remember the famous
Marshall Plan, when we gave billions to help European countries rebuild?
Unfortunately though, Britain pursued a socialist national agenda. The
government took over all of the major industries. Like Barack Obama, Britain's
leaders wanted to "spread the wealth around." Pretty soon the country
was flat broke.
The final straw for Britain came in 1967, when things got so bad the Labour
Party (the socialists) decided to "devalue" the British currency by
14%, overnight. They believed this would make it easier for people to afford
their debts.
In reality, what it did was make anyone holding British sterling 14% poorer,
overnight, and it made everything in Britain, much, much more expensive in the
coming years.
And for the country as
a whole, it ushered in one of the worst decades in modern British history.
Most Americans don't know
about Britain's "Winter of Discontent" in the late 1970s, when the
government put a freeze on wages. There were continuous strikes in nearly every
sector... grave diggers, trash collectors... even hospital workers. Things got
so bad at one point that many hospitals were reduced to accepting emergency
patients only.
In 1975, inflation in Britain skyrocketed 26.9%... in a single year!
The government also imposed what was known as the "Three Day Week" in
1974. In short, businesses were limited to using electricity for only three
specified consecutive days' each week and they were prohibited from working
longer hours on those days. Television companies were required to cease
broadcasting at 10.30pm... to save electricity.
The extreme problems in the economy led to Britain being nicknamed, "the
sick man of Europe."
Just how bad were things, exactly?
Well, listen to several Brits tell of their experiences. Their stories were
collected recently by the BBC television channel...
John Blackburn, from
Wetherby said:
"I was a control engineer at Huddersfield Power Station at the time and
part of my duty was to switch off the supply to various substations around the
town, according to an official rota. On many an evening shift I would have to
switch off the power to my own home before going back for a candle-lit
supper!"
Richard Evans, from London, recalls:
"My mother had to cross a picket line to get into the maternity hospital
(they told her she couldn't come in....). My Grandmother had to bring in food
for her to eat, and clean towels and bedding."
David Stoker, Guildford, said:
"I lived in the North East near Newcastle and I vividly remember my
grandmother and I walking from one shop to another in search of candles to buy.
All were sold out. Innovatively, butchers placed string down cartons of
drippings which we bought... These worked although the smell and risk of fire
made them less practical than candles."
Imagine...
Britain was a global superpower for 150 years. But when they started
intentionally devaluing their currency, things went straight down hill.
Maybe you don't think something similar can happen here... but I'm telling
you... it's already underway!
In fact, the exchange value of the U.S. dollar has plummeted in the past year.
Look at this chart...
From June first of 2010 to June 1st of this year, the U.S. dollar has plunged
12%. That's a huge move in the currency world. In short, people are quickly
losing faith in the U.S. dollar.
What happened to the
British currency is now happening to the U.S. dollar.
Not
only will the price of gas, oil, and other commodities skyrocket in America,
almost EVERYTHING we consume will immediately get more expensive. All the
clothing, furniture, and household goods we import from China.
All the food we get from Central and South America... all the electronics,
televisions, computers, and cars we get from Asia and Europe.
In fact, it's happening, right now before our eyes: The price of gold is up 85%
since the financial crisis. Oil prices have doubled. Soy beans are way up.
Copper prices are up more than 170% since 2009. Cotton prices are up
80%... in just the past few months, since July of this year!
In fact, it's happening right now before our eyes: The price of gold is up more
than 100% since the financial crisis of 2009.
See Kitco historical gold prices. IN the beginning of Nov. 2008, gold was
trading for less than $740. Now it's over $1,500, so it's up more than 100%.
As Wesley Card, the head of a clothing company that includes brands like
Dockers and Anne Klein, recently said: "It's really a no-choice situation.
Prices have to come up."
The chart below shows how much a few key commodities have skyrocketed in price,
just since the beginning of 2009...
Of course, skyrocketing commodity prices are just the beginning.
There are other disastrous consequences to the U.S. dollar losing status as the
world's currency...
For example, there would be much less demand for U.S. dollars around the globe,
so interest rates will skyrocket. Instead of getting a mortgage at today's
incredibly low rates of 4.5%, it might cost you 8% or even 10% or 15%.
Imagine what that would do to housing prices!
Stock prices will likely plummet by at least 40% in a matter of weeks as a
result of this event in the currency markets.
It will cost every American business A LOT more money for supplies and
materials. No one will be able to get a loan... and no bank will want to make
loans.
In short, when the
U.S. dollar loses its spot as the world's 'reserve currency,' it will cause a
brutal downturn in the economy, which I expect will be about 10-times worse
than the mortgage crisis of 2008.
You
see, what will also happen as a result of this currency crisis, and the end of
the U.S. dollar as the world's reserve currency, will be massive inflation, the
likes of which we have never seen before.
When everyone is trying to get rid of their dollars, the government is printing
more and more to pay debts, and no one wants to own them, the crisis will reach
epic proportions.
Just look for example, at what happened to one European country that faced this
type of crisis in the 1990s...
This is what happens during a major hyperinflation in the real world.
By the early 1990s, the national government of one European nation had spent
nearly all its savings. So what did they do next? Simple... they began to steal
the savings of private citizens by limiting people's access to their money in
government-controlled banks.
And of course, to finance the daily operations of maintaining their basic
infrastructure, they started printing money, big time. Even so, the country's
basic infrastructure began to fall apart. There were potholes in the street,
broken water pipes... elevators that never got repaired... and entire
construction projects that simply shut down, before being completed.
At this point, the unemployment rate was more than 30%.
Not too bad, right?
But it got worse... much worse.
You see, once you start down the dangerous road of printing money, things can
get extremely bad, very quickly.
As San Jose State University Economics Professor Dr. Thayer Watkins, an expert
on countries that try to inflate their way out of big debts, wrote on this
particular disaster:
"The government tried to counter the inflation by imposing price controls.
But when inflation continued, the government price controls made the price producers
were getting so ridiculously low that they simply stopped producing. bakers
stopped making bread... slaughterhouses refused to sell meat to the stores...
other stores closed down"
So what did the government do next to try to curb inflation?
Well, one bright idea they had was to force stores to fill out government
documents every time they increased prices. They thought that this would slow
down price increases, because the paperwork would take so much time!
But like many government plans, this one had terrible, unintended consequences.
Since stores had to dedicate an employee to do nothing but register this
paperwork, and since the process took so long, stores began to raise prices on
basic goods at even higher rates, so that they didn't have to come back and
file more paperwork!
Incredible, isn't it?
Then, of course the government did what all governments do during periods of
hyperinflation: They created a new currency... which basically removed six
zeroes from the old one. So 100,000,000 old units were soon worth 100 new
units. Of course, this didn't work either... it never does.
Between October of 1993 and January 1995, prices increase by, get this: 5
quadrillion percent. That's...
5,000,000,000,000,000%
In other words, a loaf of bread that cost $1 in 1993, suddenly cost
$50,000,000,000,001
Yes, that's $50 TRILLION.
I know, it's laughable... but I can guarantee that the people of this once
proud European country weren't laughing one bit, especially those living on a
fixed income.
Of course, at this point, the country completely fell apart. As Dr. Thayer
Watkins wrote:
"The social
structure began to collapse. Thieves robbed hospitals and clinics of scarce
pharmaceuticals and then sold them in front of the same places they robbed. The
railway workers went on strike and closed down the country's rail system."
At this point, businesses and citizens across the country basically refused to
take the local currency.
Instead, everyone started dealing in German Marks. Keep in mind, the daily rate
of inflation was nearly 100%.
Can you imagine the panic in a society when the price of just about everything
doubles... every single day? It was absolute pandemonium, and the economy
basically came to a grinding halt. It was like living in a war zone. Truckers
stopped delivering goods. Stores, restaurants, and gas stations all shut down.
In fact, the only way to get gas was to buy it on the side of the road, from
someone selling it out of a plastic can.
Steve Hanke, an Economics
professor at Johns Hopkins, wrote that:
"People couldn't
afford to buy food in the free market – they kept from starving by either
waiting in long lines at state stores for irregularly supplied rations of
low-quality staples, or by relying on relatives who lived in the countryside.
For long periods, all [the] gas stations were closed, with the exception of one
station that catered to foreigners and embassy personnel. People also spent an
inordinate amount of time at the foreign-exchange black markets, where they
traded huge piles of near-worthless money for a single German mark or US dollar
note."
The number of operating busses dropped by 60%... and busses were so crowded
that drivers couldn't even collect fares. Government ordered blackouts left
people without heat and electricity for long periods of time.
In another ridiculous government move, they actually made it illegal to NOT
accept a personal check.
Imagine... you could write a check... and in the several days that it typically
takes for a check to clear, inflation would wipe out almost all of the cost of
covering your check.
Of course, as is typical, the government took none of the blame. As Dr. Thayer
Watkins reported, the government's official position was that the
hyperinflation occurred "because of the unjustly implemented sanctions
against the people and state."
Again... I know what you
are thinking... "just because it happened in Europe doesn't it mean it can
happen here, right"?
Well guess what...
The same thing that happened in this European country – Yugoslavia – also just
happened in Iceland and Greece, but on a less dramatic scale. Of course, the
only reason the situations in Greece and Iceland weren't worse is because of
giant foreign bailouts. Yes... that's right... more debt to solve the problem
of already existing, insurmountable debts.
It's all going to come to a head soon. Much sooner than most people think.
Remember too that in roughly the past 100 years this type of debt crisis has
reared its ugly head in Germany, Russia, Austria, Poland, Argentina, Brazil,
Chile, Poland, the Ukraine, Japan, and China.
And I believe it will soon happen right here in the United States.
Don't believe me?
Well, the truth is that it's already happening at the local and state levels.
Take a look...
According to the Center on Budget and Policy Priorities, a Washington,
D.C.-based think-tank, at least 46 states face huge budget shortfalls for 2011,
on top of the deficits they still haven't completely figured out for 2010.
The center reports that the total state budget shortfall could reach $160
billion.
And although many states got federal help over the past year, that aid is now
gone.
So what are these desperate governments trying to do?
You probably won't believe their proposals...
* SELL EVERYTHING: The
state of Arizona, for example, announced in early 2010 that it is selling $735
million worth of government-owned buildings, but will still occupy them by
paying a 20-year lease. The government is selling the legislative buildings, the
House and Senate, the State Capitol Executive Tower, the state fairgrounds,
even prisons.
* RELEASE PRISONERS: In California, the state has taken the radical step of
opening its prison doors and releasing thousands of inmates. About 11% of the
state budget ($8 billion) goes to the penal system (more than they spend on
higher education).
So California is slashing the number of inmates by 6,500 next year. In other
words, they are cutting loose about 4% of the prison population.
Incredibly, other states, including New York, may soon do the same thing.
* LIFE INSURANCE: In Georgia, the government is proposing taking out "dead
peasant" policies on state employees. When these folks die, the money
won't go to the dead person's family... but to the state coffers, to help pay
for more programs, insurance, and pension liabilities!
It's simply incredible,
isn't it?
State and municipal governments are so broke, and so desperate, that they are
taking unprecedented steps to at least temporarily avoid bankruptcy. Nearly
every state in the union is talking about legalizing some form of gambling, to
boost tax revenue. California still wants to legalize marijuana, even though it
was defeated in the recent election.
Of course, none of these ridiculous steps will work on the long run.
And the truly amazing thing is that the U.S. Federal government is in even
worse shape than the local governments! The only reason we haven't seen the
full brunt of this crisis yet on the federal level is because we've just
continued to pile on more and more debt.
The states can't print money... but the Federal government can (at least for
now). And for the moment, this is all that is preventing a currency collapse of
unprecedented proportions.
And this is the
important point: What most people don't realize is that the U.S. government can
only continue printing dollars... as long as the U.S. dollar remains the
world's reserve currency.
In
other words, this is all going to fall apart much sooner than people think. In
fact, it's already happening...
The first steps are already well underway. It is happening right now... before
our very eyes.
I can't stress this enough: You need to act now in order to
protect your assets, and grow your savings in the next few years. In the next
few minutes, I'm going to show you exactly how I'm protecting my own money, and
what I recommend doing with your own.
But first, let me show you what exactly is going on right now...
"America... must be very
worried"
Like I said, most Americans don't believe the U.S. dollar could ever lose its
spot as the world's reserve currency.
But I am here to tell you... this process is already well underway.
For example, although it went almost completely unreported in the U.S. press,
last fall, a group of the world's most powerful countries, including China,
Japan, Russia, and France, got together for a secret meeting – WITHOUT the
United States being present or even knowing about the meeting.
Veteran Middle East report Robert Fisk reported on this even in the Britain's
Independent newspaper:
"In the
most profound financial change in recent Middle East history, Gulf Arabs are
planning – along with China, Russia, Japan and France – to end dollar dealings
for oil, moving instead to a basket of currencies including the Japanese Yen,
Chinese yuan, the euro, gold and a new, unified currency planned for nations in
the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and
Qatar."
Fisk also interviewed a
Chinese banker who said:
"These
plans will change the face of international financial transactions. America and
Britain must be very worried. You will know how worried by the thunder of
denials this news will generate."
And sure enough, after
Fisk published the details of this secret meeting, U.S. officials and central
bankers from around the globe denied these plans.
But as the old central banking adage goes... how do you know exactly when a
currency will be devalued?
The answer: Right
AFTER the head of the central bank goes on television to adamantly deny that
any such transaction will occur. (And guess who just went public in recent
weeks with a statement about how the U.S. will "not devalue its
currency"? Yes, you guessed it... U.S. Treasury Secretary Tim Geithner.)
You
see, the last thing a central banker wants to do in the midst of a devaluation
is to give people a warning BEFORE he can devalue. So they have to deny, deny,
deny. After the announcement is made, it's too late for citizens and investors
to get out.
Like I said, what's incredible is that this story of a secret meeting among
most of the major powers besides the U.S. was greatly under reported in the
American press.
But you know what... the way I see it, it's much more telling to look at
actions rather than government press releases.
For example, here is what is happening, right now in the real world.
When you read these facts, I think you'll agree with me that the U.S. dollar's
days are numbered, as far as remaining the world's reserve currency.
China is getting out
Cheng Siwei, a former vice-chairman of the Standing Committee, said that China
is going to stop putting so much money into U.S. dollars, and will instead look
to the Japanese Yen and the Euro.
China holds more U.S. dollars than anyone else on the planet. But China is
getting out of the U.S. dollar as fast as they can without crashing their own
economy.
Look at this chart...
It shows that China's holdings of U.S. dollars peaked in 2009, but China is
unloading as many dollars as they can, as quickly as possible.
And this is just one sign of the end of the U.S. dollar standard.
There are many more...
The dollar is no
longer good here
As I am sure you are aware, for years the U.S. dollar has been accepted almost
universally around the globe.
Heck, many times when I've traveled, I never even bothered to convert to the
local currency, because I knew everyone would take my dollars.
Well, that's simply not the case anymore...
HSBC, one of the largest banks in Mexico, no longer allows you to deposit U.S.
dollars into their banks. They've done this on the heels of money-laundering
allegations, but we suspect they also simply don't want to be stuck with tons
of U.S. dollars, as the currency continues to decline.
This move would have been unfathomable 10 years ago... that a big bank in
Mexico would no longer accept U.S. dollars for deposit. But today it is the
harsh reality.
And Mexico is not the only place this is occurring...
Reuters reports that the same thing has happened in 2008 in one of Europe's
most popular tourist spots...
Currency exchange outlets in Amsterdam have been reportedly turning away
customers who want to exchange their U.S. dollars for Euros.
As one traveling American told the Reuters news agency: "Our dollar is
worth maybe zero over here," said Mary Kelly, an American tourist from
Indianapolis, Indiana, in front of the Anne Frank house. "It's hard to
find a place to exchange. We have to go downtown, to the central station or
post office."
In India, the country's tourism minister said in 2008 that U.S. dollars will no
longer be accepted at the country's heritage tourist sites, like the Taj Mahal.
And the U.S. dollar is no longer good anywhere in Cuba.
The New York Times reports that: "now, many shops in China no
longer accept dollar-based credit cards issued by foreign banks... and
foreigners cannot convert American dollars into renminbi beyond a given
quota."
Iran, of course, has already moved all of its reserves out of U.S. dollars, and
Kuwait de-pegged it's currency from the dollar a few years ago:
Bloomberg News recently reported that China and Russia plan to start
trading in each other's currencies to diminish the dollar's role in global
trade. "Given the risk to the dollar and U.S. assets from their fiscal
position, they want to reduce their dependence on the dollar as an invoicing
currency," said Bhanu Baweja, of UBS bank.
It's even happening
here in the USA
Most Americans don't know that some states in the Mid-West are already using
"alternative currencies"...
An NBC News affiliate in Michigan reports that
"new types of money are popping up across Mid-Michigan and supporters say,
it's not counterfeit, but rather a competing currency. Right now, for example,
you can buy a meal or visit a chiropractor without using actual U.S. legal
tender."
What most Americans don't realize is that this is all totally legal.
The U.S. Treasury Dept web site says that, according to Coinage Act of 1965:
"There is... no Federal statute mandating that a private business, a
person or an organization must accept currency or coins as for payment for
goods and/or services."
I saw one report that says there are now 150 of these alternative local U.S.
currencies being accepted around the country!
USA Today reports that the largest of these local currencies is a
currency called "Berkshares," which are being used in the Berkshires
region of western Massachusetts.
According to the paper:
"Since its start
in 2006, the system, the largest of its kind in the country, has circulated
$2.3 million worth of BerkShares."
And even in places that do
not yet have local currencies, store owners may now actually prefer foreign
currencies rather than U.S. dollars...
In Washington, DC, just 25 miles from my office, some stores have begun
accepting euros. Of course, the euro isn't much more stable than the dollar
right now. But my point is that most people don't understand there is NO FEDERAL
REQUIREMENT in the United States for a private store to accept dollars for
non-debt transactions.
You see, no matter what the government decides, stores and businesses will
accept whatever they believe is a strong currency.
As Texas Representative Ron Paul wrote recently:
"If you
walk into a 7-11 to buy a soda, the clerk doesn't have to accept your dollars,
he could demand euros, silver, or copper. But because legal tender laws backing
the dollar have caused the dollar to drive other currencies out of circulation,
[right now] it is easier for stores to accept dollars."
Well, all that is quickly
changing...
Many places in Texas now accept Mexican pesos for payment. "Euros
Accepted" signs are popping up in of all places: Manhattan. And not only Manhattan,
but in New York's favorite summer playground... the Hamptons.
There, an art gallery assistant was quoted by The Real Deal: "I wouldn't
want to discourage a sale in any way because of a currency issue."
And it's not just small stores that are accepting other methods of payment
besides U.S. dollars.
The Chicago mercantile exchange the world's largest futures and commodities
exchange board), now accepts gold to settle futures contracts. Until recently,
the exchange typically accepted only U.S. treasuries and bonds as payment.
These guys obviously see the writing on the wall.
This would have all been completely unthinkable 10 years ago, but today it's a
reality. And this trend is going to keep moving incredibly fast.
That is why...
The smartest investors
are taking action...
Bill Gross, who probably knows as much about currencies and debt as anyone in
the world, runs the world's biggest bond fund. He was quoted by Bloomberg:
"We've told
all of our clients that if you only had one idea, one investment, it would be
to buy an investment in a non-dollar currency. That should be on top of the
list."
Jim Rogers, one of the
world's most successful multi-millionaire investors writes:
"The dollar
is not just in decline; it's a mess. If something isn't done soon, I believe
the dollar could lose its status as the world's reserve currency and medium of
exchange, something that would lead to a huge decline in the standard of living
for U.S. citizens like nothing we've seen in nearly a century."
I know... you probably
still don't believe it can happen here in the United States. But think about
it...
Are we as Americans really immune to the laws of economics and finance?
I don't think so.
And every circumstance I know of, in which a government has tried to inflate
its debts away, has ended in disaster. It will happen here too.
As Jim Rogers says:
"History
teaches us that such imprudent monetary and fiscal behavior has always led to
economic disaster."
This is why World Bank
president, Robert B. Zoellick, in a speech at the School for Advanced
International Studies at Johns Hopkins University, recently said: "The
United States would be mistaken to take for granted the dollar's place as the
world's predominant reserve currency. Looking forward, there will increasingly
be other options to the dollar."
And this is why the International Monetary Fund (IMF) recently published a
paper calling for a new global world currency.
A paper entitled "Reserve Accumulation and International Monetary Stability,"
written by the Strategy, Policy and Review Department of the IMF, recommends
that the world adopt a global currency called the "Bancor" with a
global central bank to administer the currency.
The report is dated April 13, 2010... and no, unfortunately this is not just a
bad rumor.
This is a deadly serious proposal in an official document from one of most
powerful institutions in the world.
Do you see where this is all heading?
As Brazilian economist and strategist Ricardo C. Amaral wrote:
"The US
dollar served its purpose since the end of WW II and became the major foreign
exchange reserve currency... [but] the days of the US dollar playing that
special role... has reached the end of the line, since today that system is
very sick and it is dying a slow death...
Mr. Amaral added that we will soon see: "the major collapse of the US
dollar creating the biggest international monetary crisis the world has ever
seen..."
This
is why gold and silver prices are soaring:
It's not a matter of "if" the U.S. dollar will lose its status as the
world's reserve currency... it's simply a matter of "when."
Investors know there are serious, serious problems with the U.S. dollar, so
they are fleeing to precious metals, which have historically been very reliable
when a country has major currency problems.
In short: It's not hard to see why people are no longer accepting U.S.
dollars... and why many foreign countries are pushing for a new world reserve
currency.
The good news is, no matter what happens, I've found several ways for you to
protect your savings – and you could even make 3- to 5-times your money over
the next few years.
I'll show you exactly what to do in a moment. But first let me explain why the
collapse of the dollar as the world's reserve currency could happen much sooner
than most people expect...
The REAL State
of the U.S. Economy
I know many of my friends, colleagues, and family members are still in serious
denial.
In the world of psychology, they call this the "normalcy bias."
You see, the normalcy bias actually refers to our natural reactions when
facing a crisis.
The normalcy bias causes smart people to underestimate the possibility of a
disaster and its effects. In short: People believe that since something has never
happened before... it never will. We are all guilty of it... it's
just human nature.
The normalcy bias also makes people unable to deal with a disaster, once it has
occurred. Basically... people have a really hard time preparing for and dealing
with something they have never experienced.
The normalcy bias often results in unnecessary deaths in disaster situations.
For example, think about the Jewish populations of World War II...
As Barton Biggs reports in his book, Wealth, War, and Wisdom:
"By the end
of 1935, 100,000 Jews had left Germany, but 450,000 still [remained]. Wealthy
Jewish families... kept thinking and hoping that the worst was over...
Many of the German Jews, brilliant, cultured, and cosmopolitan as they were,
were too complacent. They had been in Germany so long and were so well
established, they simply couldn't believe there was going to be a crisis that
would endanger them. They were too comfortable. They believed the Nazi's
anti-Semitism was an episodic event and that Hitler's bark was worse than his
bite. [They] reacted sluggishly to the rise of Hitler for completely
understandable but tragically erroneous reasons. Events moved much faster than
they could imagine."
This is one of the most
tragic examples of the devastating effects of the "normalcy bias" the
world has ever seen.
Just think about what was going on at the time. Jews were arrested, beaten,
taxed, robbed, and jailed for no reason other than the fact that they practiced
a particular religion. As a result, they were shipped off to concentration
camps. Their houses and businesses were seized.
Yet most Jews STILL didn't leave Nazi Germany, because they simply couldn't believe
that things would get as bad as they did. That's the normalcy bias... with
devastating results.
We saw the same thing happen during Hurricane Katrina...
Even as it became clear that the levee system was not going to work, tens of
thousands of people stayed in their homes, directly in the line of the oncoming
waves of water.
People had never seen things get this bad before... so they simply didn't
believe it could happen. As a result, nearly 2,000 residents died.
Again... it's the "normalcy bias."
We simply refuse to see the evidence that's right in front of our face, because
it is unlike anything we have experienced before.
The normalcy bias kicks in... and we continue to go about our lives as if
nothing is unusual or out of the ordinary.
Well, we're seeing the
same thing happen in the United States right now.
We
have been the world's most powerful country for nearly 100 years. The U.S.
dollar has reigned supreme as the world's reserve currency for more than 50
years.
Most of us in America simply cannot fathom these things changing. But I promise
you this: Things are changing... and faster than most people realize.
For a moment, just look at a tiny fraction of the evidence around us....
** 13% OF POPULATION ON FOODSTAMPS
And get this: The number of Americans on food stamps has now gone up every
month for 37 months. That's over three years!
Can a country really be in good shape when 14% of the population can't even
afford to buy food?
Or how about this...
** SHANTY TOWNS COMING TO YOUR NEIGHBORHOOD
Although it's gone almost completely unreported in the mainstream press, in a
dozen or so cities across the nation (like Fresno, Sacramento, and Nashville),
there are hundreds of people living in modern-day, Depression-era shanty towns.
The Fresno shanty town has received the most publicity, after a visit by Oprah
Winfrey. There, about 2,000 residents are homeless. They even have a security
desk at the shelter, because the encampment has gotten so large. City officials
say they have three major encampments near downtown, and smaller settlements
along two local highways.
Also...
** 43% OF AMERICAN FAMILIES ARE ESSENTIALLY BROKE
According to a recent article on MSN Money, about 43% of the American families
spend more than they earn each year.
Look at this chart... it's unbelievable..
The average household carries $8,000 in credit card debt... and personal
bankruptcies have doubled in the past decade.
How in the world can we possibly spend our way out of the current crisis?
We certainly can't do it with savings... the only answer is to print more
money, which will hasten the fall of the U.S. dollar as the world's reserve
currency.
** THE MYSTERY OF DISAPPEARING JOBS
There's simply no one better at bending statistics than the U.S. government.
Take the unemployment rate, for example. Back in the 1930s, anyone without a
job but not retired was considered "unemployed."
Today, however, the government calculates unemployment mainly by counting the
number of people receiving unemployment benefits. So when people's benefits
expire, they are no longer counted... and the unemployment rate actually falls!
Ridiculous... I know.
But the reality is, the true unemployment rate is much, much higher than what
the government is reporting.
If you don't believe me, look at two job postings I read about recently...
In Long Island City, an estimated 2,000 people waited in line at the local
employment office – some for as long as four days! – to apply for 100 elevator
mechanic apprenticeship positions.
And in Massillon, Ohio, 700 people applied for a single janitorial job...
paying $16 an hour, plus benefits!
The point is, our country is not growing jobs, because the government makes it
harder and harder for businesses. With current regulations in place, our
country will never experience the type of growth necessary to dig our
government out of the hole they've put themselves in.
I'm sure you think I'm exaggerating, but just look at what the CEO of one of
America's most important companies said..
Intel CEO Paul Otellini said in a recent speech: "I can tell you
definitively that it costs $1 billion more per factory for me to build, equip,
and operate a semiconductor manufacturing facility in the United States"
He said that 90% of the additional costs are not from higher labor rates... but
from higher taxes and regulatory charges, which other nations simply don't
impose.
Cypress Semiconductor CEO T.J. Rodgers agreed that the problem is not higher
U.S. wages, but anti-business laws. He was quoted in an interview with CNET
News: "The killer factor in California for a manufacturer to create, say,
a thousand blue-collar jobs is a hostile government that doesn't want you there
and demonstrates it in thousands of ways."
Few Americans today realize that we have the second highest corporate tax
rate in the world. And since Japan's new prime minister just announced
that he plans to reduce the country's corporate tax rate by 15%... the U.S.
could soon have THE highest corporate tax rate in the world.
Why would anyone want to start a business here, when they can do it for less
money...and keep more of the money they make... by locating elsewhere?
It's just another good reason to avoid the U.S. dollar...
So is this:
** DEBT-RIDDEN U.S. COMPANIES
Did you know that in 1979, there were 61 American companies that earned a
top-level AAA credit rating from Moody's?
Today, there are only four: Automatic Data Processing, Exxon, Johnson &
Johnson, and Microsoft
Does this sound like an economic recovery to you... when only four companies in
the entire country are stable enough to earn a triple-A credit rating?
Me neither. But it's nothing compared to what's going on in the housing
sector...
** A CRAZY LAS VEGAS ECONOMICS STORY
You want to know how crazy things are in the U.S. right now...
Consider the bizarre state of the Las Vegas housing market, where The New York
Times reports that building is booming again in a city where nearly 10,000 new
houses are empty, thousands are in foreclosure, thousands of regular people
have simply stopped paying their mortgages and average prices are down more
than 60% since 2006.
What could possibly be driving this building mania?
Well, it turns out that buyers don't want homes that were built during the boom,
because they sit in neighborhoods that look like ghost towns, and because many
of these never-occupied houses are filled with cockroaches and other critters.
So local builders are doing the worst possible thing they could be doing in Las
Vegas right now... building more homes! Similar scenarios are taking shape in
Phoenix and other U.S. cities.
Of course, this might look good for economic numbers, but all it does is make
the situation much, much worse in the long run.
Want to see another crazy trick some businesses are using to artificially boost
their earnings numbers?
This is just incredible to me...
** OUR HOPE FOR THE FUTURE: NEW JERSEY'S HOMELESS
If you've been reading my work at all over the past few years, you know that I
am extremely bearish on the "for profit" education sector, such as
University of Phoenix.
What could possibly be wrong with these institutions that offer inexpensive
education to tens of thousands of students across the country?
Well, to me it's just another symptom of how distorted and crazy our economy
and country has become. Here's what I mean...
One of the crazy practices institutions employ is to actually enroll homeless
people into their programs.
You probably think I'm making this up... but even Business Week recently ran a
report on this practice.
Why would they do this?
Well, because these folks qualify for federal grants and loans used to pay for
college tuition fees. According to reports I read, the University of Phoenix,
for instance, relies on federal funds for more than 85% of its revenues.
At another for-profit school, Drake College of Business, almost 5% of the
student body at its Newark, N.J., campus is homeless, Business Week
recently reported.
Of course, the majority of these students will never be able to repay their
loans. But the colleges certainly don't care... that's the government's
problem... not theirs.
Once again, it's the taxpayers like you and me who will be left holding the
bag.
And here's another good reason why investors are afraid of holding dollars
right now...
** IN THE STOCK MARKET, IT'S 1937 ALL OVER AGAIN
One of the most worrisome problems in the stock market right now is that we
could basically be repeating the exact same situation that occurred from 1937
to 1942.
Most Americans think we've had this amazing stock market recovery since the
financial crisis of 2008... and we have to a certain extent.
But we are by no means out of the woods.
In fact, during America's last real economic collapse, in the 1930s and 1940s,
we saw a similar drop and recovery... before the markets crashed all over
again.
In fact, the situation is eerily similar.
Look at this chart... it's one of the scariest I've seen in a long time. It
shows an overlay of what happened in the stock market in 1937 compared to 2008.
In both situations, we saw big crashes, of about the exact same magnitude...
then a big recovery, again of about the same size.
But what will happen next?
Well, if history is any guide, we could well have another big leg down in the
stock market. That's exactly what happened 70 years ago.
And with all of the problems left unresolved in our economy today, it could
certainly happen again, especially if the U.S. dollar loses its reserve status.
As The Wall Street Journal reported:
"Over the
last year the stock market has followed a path eerily similar to 1937. First, a
strong, rapid run to a recovery high – same pace, same magnitude. Then a
correction – again, the same. Will we continue on the path that led the
correction of 1937 into a collapse in 1938?
The point is, the cards
are seriously stacked against us.
This looming currency crisis is inevitable.
Almost every state in the country is on the verge of bankruptcy. We have
borrowed an impossible amount of money, which we'll never be able to pay back.
Our economy is an absolute mess. Taxes are sky high already... and will
certainly go much higher over the next few years. And nearly all of the world's
major financial players are preparing for an alternative to the U.S. dollar as
the world's reserve currency.
To me, it is so
obvious that we are about to experience a serious currency crisis, that I can't
believe people can deny this reality with a straight face.
Again,
if you don't believe a currency crisis is coming, just take another look at the
price of gold and silver compared to the U.S. dollar over the past decade.
It's obvious that smart investors want to hold gold and silver, not U.S.
dollars.
Anyone with any sense or basic understanding of economics can tell that the
U.S. dollar is doomed. And it's going to have major repercussions, which the
average American has not yet even considered.
So, what can you do?
Well, I've done a lot of research on this, and have found that there are a
surprising number of simple things you can do to not only protect what you've
currently got, but to also potentially make quite a bit of money as this
currency crisis unfolds.
Here's what I recommend...
What You Can Do to Protect
Yourself and Actually Make Money
So what should you do... to protect and possibly even grow your wealth in the
next few years?
Well, there's a series of pretty simple financial moves I believe you should
begin making, immediately.
And here's something I want you to keep in mind: I'm really only going to talk
about your finances here.
As far as protecting your family... well... it depends on your circumstances.
If you live in an urban area, I recommend making sure you've got somewhere you
can go in case there are riots or food and water shortages. I think there's a
very good chance we'll see that in the next two years.
Wherever you're going to wait out the chaos, I recommend you have basic food,
water, and medical supplies to last you for at least six months.
Remember, you won't be able to count on the government during this crisis.
Think about it... if the government couldn't even save the city of New Orleans
during hurricane Katrina, how in the world will it save an entire country when
all hell breaks lose?
And as I said earlier, the truth is, the government won't even try to save
individual American citizens... the government will be much more concerned with
saving itself.
As far as taking care
of your money – to make sure you don't lose money and even use this situation
to come out quite a bit ahead – well, that's where I can help you.
All of the moves I
recommend are simple and fairly straightforward to implement – at least right
now. If you wait to do these things, however, they will almost certainly get
very expensive, difficult, and even impossible to do.
If you do these things now, not only will you be better prepared to weather the
coming storm, I believe you could also make quite a bit of money over the next
few years.
And if I'm wrong... well... that's the best part... I think you'll still make
very good gains.
Even if all we get out of this crisis is a mild inflation, you will still be
set up to do very, very well.
So here are the specific steps you should take...
STEP #1. GET SOME
OF YOUR MONEY BEYOND THE REACH OF THE U.S. GOVERNMENT (it's perfectly legal,
and a lot easier than you think)
I know you probably don't
believe me when I tell you that the U.S. government is going to implement
policies to save itself, which are unimaginable right now.
But remember, desperate governments will do very desperate things. That's why
they outlawed the ownership of gold 80 years ago.
That's why they are already talking about "nationalizing" automatic
401(k) and retirement plans... and it's why it might soon be against the law to
open a foreign bank account, or to move your money overseas without paying
outrageous taxes.
The good news is, I met recently with a man who is considered one of the top
"asset protection" attorneys in America.
In short, I learned that there are four simple investments you can make right
now, which you DO NOT have to report to the U.S. government.
Don't get me wrong...
When and if you ever sell these things, years down the road, you are still
required to pay taxes on your gains. But the great thing is, while you are
holding these investments, so long as you play by the rules, neither you nor
anyone else is required to report them to the government.
And this benefit should be obvious...
The less the government knows about where you have your money, the better. They
simply will have a very hard time taking what they don't know you have.
I am personally putting a fairly significant portion of my portfolio into one
of these assets. And I plan to hold it for a long time. No matter what happens,
I know I'll have a significant amount of money that is beyond the government's
grasp.
I'm not going to tell you exactly what I'm doing here in this letter, but I
will explain everything in full detail in my new report, called: The 4
Investment Assets You Do NOT Have to Report to the U.S. Government. And I
will gladly give you access to a copy, free of charge.
In addition to explaining how I'm protecting my own money, I'll show you three
other places you can put your money, which you legally do not have to report to
the U.S. government.
Of course, normally it
would cost you thousands of dollars to meet with my asset protection attorney,
and to take advantage of his best strategies. But I'll reveal everything you
need to know to get started in this report.
Plus, I'd like to send you
the information on...
STEP #2: HOW TO
ACQUIRE THE WORLD'S SAFEST ASSETS, WHICH ARE LIKELY TO PERFORM BEST DURING THIS
PERIOD.
What I'm talking about
here is buying as much gold and silver as you can reasonably afford. I know...
gold has had a huge run, jumping more than 400% in the past decade.
But believe me, when the U.S. dollar loses its status as the world's reserve
currency, this early run is going to be a mere afterthought.
I will be surprised if gold does not reach $5,000 or $6,000 an ounce in the
next few years.
The smartest money managers in the world, people like George Soros, David
Einhorn, and John Paulson, have all recently taken huge positions in gold. And
I think you are crazy to not do the same.
How should you do it?
There are many options. And my research firm has recently published a great
book, called The Gold Investors Bible, which details in full all of the
best ways to own and hold gold bullion.
In this volume, we reveal dozens of secrets about the gold industry...
specifically the best ways to buy, sell, and store your gold. It explains whey
some gold coins are better than others. How to buy gold with ZERO dealer
markup. How to easily and safely store some of your gold overseas, very
cheaply... where to hide it... and so much more.
Not regularly available for sale, this book is valued at $24. I'd like to give
you instant access to a copy, totally free of charge.
And what about silver?
Well, I believe silver will serve a unique role during this currency crisis.
Let me explain...
For most of recorded history, the price of gold has been around 16 times the
price of silver. This ratio – the so-called "silver ratio" – has
fluctuated from time to time based on silver discoveries and attempts by
governments to regulate the silver-to-gold ratio. But... in a free market,
where demand for silver as money exists, I'd expect the natural supply and
demand balance to lead to a silver price around 1/16 times the price of gold.
If gold = $1,400...
Silver should = $87, but today it's around $34.
Based on the historical ratio, with the price of gold around $1,500, the price
of silver should be around $90. It's not, of course. Today, silver is trading
around $34. Today then, gold is selling for more than 44-times the price of
silver.
What explains the difference between hundreds of years of history and today?
Why is silver still so cheap relative to gold?
When silver is "demonetized," as it is now (meaning it's not being
used for money, but just for industrial purposes), supplies soar as people sell
silver for gold and other currencies.
On the other hand, during periods of monetary crisis, demand for silver as
money pushes the silver ratio heavily in silver's favor.
For example, the ratio returned to its historic range (16) during World War I.
It happened again in the early 1970s, when Nixon abandoned the gold standard.
It also happened most famously in 1979-1980, when it seemed as if America was
really entering a serious money crisis
Most people don't know this, but silver is actually the best-performing asset
of this century... not gold.
As my multimillionaire friend and currency expert Chris Weber pointed out, Gold
has risen from $256 to $1,500 since 2001. That is a rise of over 500%. Silver
has risen from $4.02 to $34. That is a rise of 845%.
In short, silver is the best hedge against a money crisis.
As the dollar fails, silver will once again be in demand as money.
And my friend Chris Weber believes silver will likely hit $187 an ounce.
If that happens, you could make gains of around 450% if you invest at today's
prices.
So what are the best ways to buy silver?
Well, my firm has done a ton of research on this precious metal. We have found
great ways to hold the metal personally... to have it stored in a secure location
in the United States or overseas... and more. We've put everything we know into
a valuable guide called: Secrets of the Silver Market.
I'd like to give you this valuable resource, also free of charge. I'll show you
how to get it in a second.
But first let me get to the 3rd financial step I recommend you take right now:
STEP #3: LEARN THE
100% SECRET
If you want the
opportunity to make a lot of money during the coming crisis, one sure way to do
it is to learn the intricacies of an unusual investment strategy that is now
making some investors an absolute fortune.
At my research firm, we have been teaching readers this method for several
years.
And get this: You don't have to buy a single stock to begin using this
strategy... and it has nothing to do with "shorting."
In a nutshell, this is an approach that could enable you to safely extract
gains of exactly 100% from the market... without ever owning or touching a
stock.
Keep in mind: this strategy can play out in two very different ways. Though
you'll always be able to keep the initial cash you extract from the market,
there is a chance you will be required to purchase the underlying stock, at a
price less favorable that its current market value. So please understand, there
is risk involved with this strategy, and it probably won't be right for
everyone.
But this can be such a sound market strategy, especially in times of financial
uncertainty, that once you learn how it works, you might decide to never invest
the old-fashioned way again.
That's why I call this the 100% Secret.
For example, look at how it has worked for a few of the folks I taught this
secret to in recent years...
Last year, for example, Peter Kos of Boise, ID began using this strategy. He
says he now makes an average of $10,000 per month. And Randy Bowman of
Annapolis, MD told me he's made over $87,500 with this technique. Bernard
Henderson of Carmel, IN, now collects an average of $100 a day. Another, Harold
Welchik of New Brunswick, NJ, has made over $20,000.
Tim Hewitt from Sacramento probably put it best when he wrote me and said:
"This has saved my portfolio."
That's why financial author Lee Lowell writes: "I've been a professional
trader for 17 years... but many people have never heard of a [this investment],
let alone used this strategy. This is a great way to get your hands on instant
cash."
Pulitzer Prize winning author James Stewart learned this technique recently and
said: "[These payouts] are so rich I consulted a colleague to make sure
they were real."
This seldom-understood strategy is how we've helped dozens of people make
incredible gains, even in a terrible stock market. And in all likelihood, when
the stock market gets really bad, as I expect it soon will, this will be
incredibly lucrative and safe strategy.
Everything you need to know is in my new report called: The 100% Secret –
The Easiest Way to Make Money When Stocks are Risky.
I'll explain exactly how this investment strategy works so you can decide if
its something that might be right for you. And I'll show you how you could
begin to take advantage of it, starting immediately..
Believe me, this is something you want to learn about now. Because as the stock
market begins to unravel, this incredible technique will likely get more and
more lucrative.
And that brings me to:
STEP #4: MAKE SURE
YOU OWN THE ONE ASSET THAT CAN HELP SAVE YOU AND YOUR FAMILY, NO MATTER HOW BAD
THINGS GET
There's
no telling exactly how bad things are going to get as this crisis unfolds.
I firmly believe there could be riots, marches in the streets, bank runs,
massive arrests, and periods of uncontrollable mayhem... at least for several
months as things begin to unravel.
But the good news is that there is one asset you can own (now widely available
in America), which should help protect you and your family from this chaos...
and could also likely make you a fortune in the years to come.
I'm not talking about guns or bonds or gold or other precious metals... or
anything like that. And of course this has absolutely nothing to do with the
stock market.
What I'm talking about is a very powerful asset that wealthy families have used
for centuries to protect themselves... and preserve and build their fortunes.
An index tracking this asset has absolutely crushed the stock market between
1991 and 2009, by returning about 430% more than stocks during that period.
Best of all, it provided these gains with almost no volatility. Just look at
the chart below.
See how that blue line goes straight up, without any hiccups?
Multimillionaire investor Barton Biggs wrote that this type of asset,
throughout history, "protected both your wealth and your life."
During World War II, for example, when millions of families lost their entire
life savings through inflation or government seizure, this was the one
asset that enabled some families to protect, preserve, and grow their
money.
What the average American doesn't realize is that many of the richest people in
the United States have a significant ownership stake in this asset: The Walton
family (of Wal-Mart fame), Bill Gates, Ted Turner, the Hilton family, Charles
Schwab, Microsoft billionaire Paul Allen, the Hunt family (of Texas oil fame),
the Hearst family, the Ford family, and more
As I mentioned, you can easily make this investment today, here in America.
Probably less than 1% of the population owns it today... but it is readily
available, and fairly inexpensive.
I've written up all of the details on everything you need to know. My full
report is called: The World's Most Valuable Asset in a Time of Crises.
There are several ways to make this investment. I'll show you what they are.
Like I said, this has nothing to do with stocks, bonds, precious metals, guns,
medicine, or anything like that. Yet it could save your family... and make you
very wealthy in the coming years.
As my multi-millionaire friend Doug Casey says, it's the ONE THING you should
own in the years to come.
I don't want to say any more about it than that, here in this letter. The truth
is, the fewer people who know about this investment secret, the better.
So how can you begin taking these simple steps, right away?
Well, my company, Stansberry & Associates Investment Research, is a
financial research firm.
We have a staff of about 50 people, and our main objective is to find safe and
profitable investment ideas that you are not likely to hear about anywhere
else.
Since we started this business a decade ago, we have helped a lot of people
make a lot of money...
Harold Thiessen from Montana wrote recently to say: "My IRA has gone from
a low of $315,000.00 to the present high of $952,000.00. I can only thank [you]
for changing my life so much."
Dan Koffin, from San Diego, also contacted us recently to say: "Since
joining, my portfolio has grown by several hundred thousand dollars. I look
forward to a long and prosperous relationship."
We even got an interesting note recently from a reader named Ulysses Reuter,
who says he has been making a "small killing" – enough to buy a
nice-sized boat and a house in Mexico. Here's the photo he sent (below). He
writes:
Mr. Reuter added: "We took delivery of her 3 weeks ago and are cruising
the Bahamas. In October we will take her through the Panama Canal over to the
Pacific side since I just bought a home in Mexico..."
Then there was the nice note from Mitchell Donavan, from Ithaca, New York. He
said: "I was working long hours with overtime to make a living when I
joined you. The excellent results have allowed me to retire early."
Believe me, nothing makes me feel better than receiving notes like these.
But I have to tell you, right now, I am really worried that a lot of our
subscribers and many, many hard-working Americans are going to get caught
totally by surprise when this inevitable crisis hits.
That's why I created this letter, and that's why I'd like to send you the full
details on exactly how I believe this is all going to unfold... and exactly how
to protect yourself and even prosper during this crisis.
Remember: The government is not going to save you:
If the government couldn't save one small city from the disastrous news coming,
then how is it going to save all of us when the [beep] really hits the fan?
You can either let things happen to you... or you can take a few simple steps
and take charge of your family's fate.
Please, just give the work I've done a look... and I believe you will have all
the information you need at your disposal.
The best part is, you can take a look at my research, and receive everything
I've mentioned here, at absolutely no risk or obligation.
Simply let me know you'd like to take a trial subscription to my monthly
newsletter, called Stansberry's Investment Advisory, and I will
immediately give you access to:
Research Report #1:
The 4 Investment Assets You Do NOT Have to Report to the U.S. Government
Research Report #2: The Gold Investor's Bible
Research Report #3: Secrets of the Silver Market
Research Report #4: The 100% Secret – The Easiest Way to Make Money in a
Risky Stock Market
Research Report #5: The World's Most Valuable Asset in a Time of Crises
Also, on the first Friday
of each month, I'll send you my monthly newsletter, Stansberry's Investment
Advisory. I'll keep you up to date on exactly what's going on regarding
this financial crisis, and I'll show you some unusual and incredible ways to
make money now and as it begins to unfold.
We have found some great ways to make a fortune as the government continues to
try to bail out one failing industry after another.
I'll also keep you up to date on what I am doing to protect myself. I'll make
sure you stay abreast of changes to the laws and government interventions.
And... every day the markets are open, I'll send you my paid-subscribers-only
e-mail called the Stansberry & Associates Digest.
In short, I report on all the work my firm is doing... the most interesting
investment ideas... what we're researching now... and what we expect to happen
in the months to come.
So how much does my work cost... and how can you get started?
Well, a one-year subscription, including everything I mentioned here, normally
costs $99 per year – that's what many others have paid.
But right now, you can try my research, for HALF-OFF the normal rate. You'll
pay just $49.50 for an entire year.
Why so cheap?
Well, to be honest, our business really only works if our subscribers stick
with us for the long-term. But we realize you've got to try our work first, to
see if it's right for you.
And that's why, through this letter, we're making it so cheap, and essentially
risk-free to try. What I mean is, you'll have the next four months to take a
look at the Research Reports I've just described, plus the next four issues of
my newsletter... and the next four months of my daily Digest reports. Try it
for 4 months – FULL REFUND – 100% Keep everything.
If you decide for any reason my work is not right for you, just let us know and
you can receive a full refund... and keep everything you've received so far.
In other words, by taking me up on this offer, you are agreeing only to TRY my work
to see if you like it.
I know it will be one of the best financial moves you ever make:
I hope you'll consider this offer seriously. I know in my heart it will be one
of the best financial moves you ever make.
To get started, simply click on the link below, which will take you to a secure
order form. Your order will be processed immediately, and you'll have access to
all of my work in a matter of minutes.
Sincerely,
Porter Stansberry
Founder, Stansberry & Associates Investment Research
July 2011