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Survive and Profit From
The Great U.S. Government
Debt Default
of 2009-2012
IN THIS REPORT:
- Why the U.S. government has no choice but to effectively DEFAULT on its massive debts — by paying them off with cheaper dollars …
- How this great debt default is already gutting the buying power of your money and could double your cost of living — or more — in the months ahead …
- What you must do immediately to protect your savings, your investments and your retirement …
- How you can USE this crisis to multiply your money many times over with investments that soar 181.5% … 233.3% … 359.8% … and more when the dollar sinks.
By Larry Edelson
Dear Investor,
There’s no way to sugar-coat this — so please forgive me for being blunt:
You are being robbed.
Since March of 2009, the value of every dollar you have saved, invested or set aside for retirement has plunged 15%. A greenback that was worth $1.00 just seven months ago is now worth only 85 cents.
Back in the late 1970s, even smaller, slower declines in the dollar came with a massive surge of inflation, gutting your buying power.
Now, it’s happening again. The falling dollar is already making energy … food … clothing … and most of the products you buy more expensive:
- Just in the last seven months, gold has surged 14%, crude oil is up 96%.
- Raw materials needed to manufacture most products you buy are also rocketing higher. Copper is up 88%. Aluminum is up 38%. Nickel and Cadmium for the batteries in your cell phone and computer are up 93% and 18% respectively.
- Cotton is up 45% and wool is up 24%, which can only drive the cost you pay for clothing higher. Food imported from overseas is already soaring: Coffee and tea are up 26% and 42%. Oranges are up 41%. Sugar is up 71%. Olive oil is up 14%.
- And as the dollar continues to dive against foreign currencies, you can expect all your other expenses to rise as well.
Hard to believe when everyone is talking about deflation? Well think again: In the entire history of the U.S., there has never been a period when Washington spent as much money as it is doing now without major inflation rearing its ugly head.
And what if this disturbing trend continues? What if the dollar begins plunging even faster? How will you make ends meet?
In this report, I’ll show you why the dramatic plunge in the dollar you’ve seen so far is only the beginning … why the U.S. government now has no choice but debase the greenback … why this war on the dollar is a defacto default on its debts …
And most importantly, I’ll give you the steps you need to take now to protect yourself and profit.
The plain truth is …
Washington now has no choice
but to DEFAULT on its massive debts
by crushing the value of your dollars
Here are four reasons why:
REASON #1 — The federal deficit is now EIGHT TIMES LARGER than it was in 2007.
Three years ago in September, the federal deficit for fiscal year 2007 came in at just $161 billion.
By September of 2008, it had more than doubled to $407 billion.
And just a few days ago, Washington revealed that the deficit had exploded to $1,400 billion ($1.4 trillion)!
That’s an outrage: A 770% increase in just three, short years!
REASON #2 — The “official” national debt has more than DOUBLED since 2000: It took more than two centuries — 224 years from 1776 to the year 2000 — for America’s national debt to hit $5.7 trillion.
But it has only taken Washington only nine years to pile up another $6.1 trillion in debt: Today, the national debt stands at $11.8 trillion.
REASON #3 — Deficits as far as the eye can see will likely double the national debt again by 2019:
According to the White House’s own Office of Management and Budget (OMB), the deficits ahead will add $9 trillion in debt over the next ten years, bringing the national debt to more than $21 trillion.
But even the OMB’s report underestimates the volume of red ink we’re likely to see. It assumes Washington will avoid introducing new social programs, will fight no new wars or pass any new stimulus packages over the next decade. And it assumes no new economic or market disasters that could open new, deeper sinkholes in the nation’s finances.
Meanwhile, rather than cut back on spending, the Obama administration is already planning to spend even more! They’re sending supplemental checks to 50 million seniors. They want to extend unemployment benefits. They want to renew tax credits for new homeowners. And they want to pass the biggest health care package in history.
U.S. Congressional Budget Office Admits That An
Even Much More Dramatic Debt Crisis Is Very Possible
Even the nonpartisan Congressional Budget Office (CBO) says that the $9 trillion in expected new budget deficits could be a gross understatement and that we could be on the brink of a massive fiscal disaster. In its 2009 report, “The Long-Term Budget Outlook,” the CBO writes
“[Our] model predicts only a gradual change in the economy as federal debt rises. In actuality, the economic effects of rapidly growing debt would probably be much more disorderly as investors’ confidence in the nation’s fiscal solvency began to erode. If foreign investors anticipated an economic crisis, they might significantly reduce their purchases of U.S. securities, causing the exchange value of the dollar to plunge, interest rates to climb, and consumer prices to shoot up …
“The growth of debt would lead to a vicious cycle in which the government had to issue ever-larger amounts of debt in order to pay ever-higher interest charges.”
How high will the national debt really soar between now and 2019? The CBO’s report makes it abundantly clear that the sky’s the limit.
REASON #4 — The TOTAL national debt is nearly NINE TIMES LARGER than Washington claims. When reporting the national debt, Washington conveniently leaves out the $104 trillion the government owes to seniors and veterans through Social Security, Medicare, Medicaid and veterans benefits programs.
These unfunded liabilities are no longer merely an obscure ledger entry: This year, the oldest of our 76 million baby boomers turn 63 and are already beginning to collect these benefits.
All told, Washington is now
a staggering $125.8 TRILLION in debt!
The simple truth is, the federal government’s debt is gargantuan and unsustainable.
Even if the government miraculously balanced the budget tomorrow … ran surpluses every year from now on … and paid down that debt at the rate of $100 million PER DAY … it would take 3,446 years for Washington to pay off the debts it already owes!
DEBASING THE CURRENCY: A Time-Honored Tradition This is the path politicians have followed time and time again when confronted with unpayable debts:
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When Rome began to fall, the denarius plunged to ONE FIFTIETH of its former value before becoming worthless. The bottom line …
The U.S. government’s debts are
PATENTLY UNPAYABLE!
Washington has no choice but to crush the value of your money, then pay its bills with cheaper dollars:
Our leaders can NOT simply refuse to pay what they owe to bond-holders, seniors and veterans. If they did, they’d trigger social and economic chaos the likes of which few nations have ever seen.
Nor can they ever hope to make good on their obligations with spending cuts and higher taxes. The political and economic cost would simply be too high.
The ONLY path left is for Washington to effectively DEFAULT on its obligations — by paying them with cheaper dollars!
For Washington to crush the dollar, no new laws need be passed; no new policies need be put in place. In fact …
This intentional destruction
of the U.S. dollar
has already begun.
Fed Chairman Bernanke is already cranking up the printing presses — printing money like there’s no tomorrow — and then using that new, unbacked money to buy not only Treasury bonds … but also $941 billion in mortgage-backed securities!
Bottom Line: The Fed has added more than $1 TRILLION in cash and reserves to the coffers of the nation’s banks, a pace of growth which is FORTY-FIVE times faster than normal.
Even in the most extreme circumstances of recent history, the Fed never pumped in anything close to this much money in such a short period of time:
Before the turn of the millennium, the Fed scrambled to provide liquidity to U.S. banks to ward off a feared Y2K catastrophe, bumping up bank reserves by an unprecedented $73 billion increase in just three months.
At the time, that was considered extreme. But it was only ONE-FOURTEENTH as large as the money printing operation the Fed has just undertaken!
In the days following the terrorist attacks on the World Trade Center and the Pentagon, the Fed rushed to flood the banks with liquid funds, adding $40 billion by 9/19/01. That, too, was considered massive at the time. But was only 1/25th as big as what they’ve just done.
THIS is what has flooded the global markets with unwanted U.S. dollars.
THIS is why the dollar has plunged 15% against other major currencies since March alone.
THIS is why the price we pay for energy, food, clothing and most of the other products we buy has surged.
Mark my words: This great dollar disaster is NOT a flash in the pan; NOT a short-term trend. The plunge in the dollar’s value we’ve seen so far is only a drop in the bucket compared to the devastation we’re likely to see in 2010, 2011 and beyond.
The WORST-case scenario:
Believe it or not, this alarming erosion in the buying power of your money is actually NOT the worst-case scenario for the value of your money. The real danger is a more sudden, more dramatic collapse in the dollar, which would be far more devastating to you. And it looks as though the likelihood of this scenario could be increasing.
According to the U.S. Treasury Department, Washington now owes $7.9 TRILLION to foreign investors and governments.
Those debt instruments and obligations are now worth 15% less than they were just seven, short months ago. And of course, the interest on that debt is now being paid with dollars that are also worth 15% less.
Unsurprisingly, foreign governments, central banks, financial institutions and investors are fed up with this state of affairs and are now planning veritable lenders’ strikes with the potential to slash world demand for dollars — and with it, the dollar’s value.
That’s why …
"The costs of a dollar-dominated system to the world may have exceeded its benefits. The dollar should be replaced by a new global reserve currency. " — Zhou Xiaochuan "Replacing the dollar with an artificial currency would solve some of the problems related to the potential of countries running large deficits and would help stability." — Dr. Detlef J. Kotte |
- China — by far the largest holder of U.S. debt — has repeatedly announced that it is diversifying OUT of dollars, preferring currencies that are not evaporating before its very eyes.
- Arab states, Russia, even France and Japan are seriously considering the proposal to replace the dollar when pricing oil and settling international energy transactions.
- Members of the G-20, the International Monetary Fund and the World Bank have begun calling for the dollar to be replaced as the world’s reserve currency.
- The United Nations has just issued a monumental, game-changing report that recommends the establishment of a new “Global Reserve Bank” or a reformed IMF to issue an artificial reserve currency — a “global currency [that] would be backed by a basket of currencies of all the members.”
As these demands reach a critical mass, they could trigger a panic — a stampede out of the dollar.
Nobody will want to be the last to sell. The panic could be massive. It could strike suddenly. And it could drive up your cost of living more rapidly than almost anyone believes possible today.
The choices you make NOW
could make all the difference for you.
Look: Every investor worth his or her salt knows that you should never fight the decision-makers at the U.S. Federal reserve.
They control the U.S. money supply and they heavily influence our interest rates — two of the most powerful controls on the economy and investment markets. They generally get what they want.
And right now, they want — and desperately need — a much cheaper dollar with which to pay Washington’s otherwise unpayable debts.
Of course, you could simply ignore Washington’s great war on the dollar — or worse, try to fight it. But investors who do so are no longer just fighting the Fed. They’re also battling against …
- The entire Obama administration …
- The U.S. Congress …
- The U.S. Treasury …
- China’s central bank …
- Russia, Japan and France …
- The G-20 …
- Oil-exporting countries …
- The International Monetary Fund …
- The World Bank …
- And even the United Nations!
All of these powerful players have BOTH ample motives AND plenty of opportunity to crush the value of your money. Not only that, many are openly admitting that’s precisely what they intend to do.
This is the reality. These are the cards you’ve been dealt as an investor.
But it’s also very personal: When your money is devalued, your wealth is diminished. Every dollar you have buys less — everything costs more. Your standard of living is threatened; your quality of life, reduced.
Wage earners and investors who hide their heads in the sand while their own government devalues their money will suffer enormous financial pain. Retirees and anyone approaching retirement who plan to live on fixed incomes could be wiped out.
The only choice you have is whether you’ll ignore this reality — bury your head in the sand and risk massive losses as your buying power plunges and your cost of living soars …
Or whether you’ll take a stand to defend your savings, investments and retirement.
URGENT SELF-DEFENSE
The ONLY way to protect yourself is to take action: To hedge against this great dollar disaster with investments that effectively replace what’s being confiscated from you.
For starters, I recommend that every investor hold between 10% to 25% of total capital in gold bullion.
Some guidelines:
- Do NOT buy rare gold coins with numismatic value for your core bullion holdings. They carry a hefty premium — a substantial mark-up — over the price of the gold itself.
- To minimize the premium you pay, consider buying the largest ingots you can afford.
Typically, I recommend ten-ounce ingots fabricated by majors like Engelhard or Johnson Matthey for two reasons: First, the purity and weight of the gold content is guaranteed and second, because the premiums on larger ingots are typically far less than those on smaller one-ounce coins.
With gold at $1,050 per ounce, these ingots would go for just $10,500 plus the premium your bullion dealer charges you.
If you need to buy your gold in smaller increments, stick with the one-ounce bullion coins offered by major mints in the U.S., Canada, Australia and South Africa. They can be acquired for the current price of gold plus a small dealer mark-up.
Important: Most of these mints offer their bullion coins in proof condition for an additional premium. Insist on the standard “brilliant uncirculated” versions of those coins. They’re cheaper.
- Selecting the best bullion dealer is important. Three of my favorites are Monex, Fidelitrade and Dillon Gage. All offer excellent service and prompt shipment. Just one word of warning: The premiums each dealer charges does vary. It’s a good idea to compare prices before you buy.
When deciding where to store your gold, consider using a safe deposit box at your bank or a secure gold storage facility. Most of these are former banks that have been converted into depositories available for public use. DO NOT agree to let the bullion dealer store your gold for you.
Your best defense is a strong OFFENSE:
Natural resource investments that soar
when the dollar dives!
The good news is that there’s an entire class of investments that naturally rise in price when the U.S. dollar declines in value.
Take gold, for instance: Since 2003, the U.S. dollar has lost nearly a third of its value relative to a basket of major world currencies — but gold has more than TRIPLED.
And since March of this year, while the dollar has dropped 14% in value, gold bullion prices have hit new all-time highs over $1,050 per ounce. Silver has also been on fire — rising 35% since March of this year alone. Plus, in the same time period, steel prices are up 17% … oil is up 58% in price … and copper prices have positively exploded — up 79% in just seven, short months!
And naturally, when resource prices rise, the shares of the companies that produce those resources rise even faster. Since March of 2009 alone, for instance …
- AK Steel Holding Corp is up 197% …
- ATP Oil & Gas is up 373%, and …
- Quadra Mining LTD is up 288% …
- All in just over six months!
What’s BETTER than resource stocks
when the dollar dives?
Normally, it would be enough to harness the great dollar decline with everyday stocks like those I just named. But when I see a monster trend like this one …
With Obama, Geithner and Bernanke all neglecting or damaging the U.S. dollar …
With most of the world’s largest governments, institutions and investors demanding that the dollar be replaced as the world’s reserve currency …
And with the greenback in a free-fall as resource prices skyrocket …
I ALSO like to use a portion of my money to go for even greater leverage — and greater profits — using CALL OPTIONS on my favorite resource stocks.
Strictly limited risk … virtually
UNlimited profit potential!
Options aren’t for everyone, and they’re certainly not for ALL of your money. Losses can and do happen! But with call options on my favorite resource stocks …
- You can get started with as little as $100: Instead of being required to put up huge minimums, you can harness the power of this amazing resource bull market for as little as $100 — and in some cases, even less!
- Your risk is strictly limited: No matter how speculative a trade may be, you always know — to the penny — the maximum risk you’re taking with each trade. When you buy options, you can never lose more than what you invest (plus a small brokerage commission).
- Your profit potential is virtually unlimited: There is no ceiling on how far your option can rise, no limit to how much you can make. Profits exceeding 100% are frequent. And profits as high as 500% on a single option are not unheard of.
- You get far more leverage without ever borrowing a dime: You pay a small premium to potentially control a vast amount of a natural resource company’s stock. Right now, for example, you could pay $60 for the option to control 100 shares of Ivanhoe Mines worth $1,310 … or $110 to control 100 shares of Yanzhou Coal worth $1,497 … or $248 to control 100 shares of Freeport McMoRan worth $7,003.
It’s this enormous leverage — without ever having to assume a penny of debt — that generates the great profit potential. And with so many resource stocks now rising, it’s not unreasonable to anticipate a long series of profits in short bursts of time.
With the right timing …
- You could have invested just $1,510 to buy ten call options on Yanzhou on June 24 … closed your position on August 3 … and grabbed a quick 181.5% gain in just 40 days.
- OR, you could have invested just $500 to buy ten calls on Yanzhou last June 24 … sold them on August 24 … and banked a 264% gain in just 60 days.
- OR, you could have tried a much higher risk trade, investing $640 in another bundle of ten calls on Yanzhou on May 4, 2009 … closed your position on June 11 … and banked a 290.6% gain in just 38 days.
That’s enough to turn a $10,000 investment into $39,060 in just over one month!
Your returns on copper producer Freeport McMoRan could have been even more impressive …
- You could have invested just $2,610 to buy ten calls on this copper producer on July 29 … closed your position on September 16 … and grabbed a 359.8% gain in just 49 days.
- OR, you could have bought ten Freeport calls for a total investment of just $830 on December 24 of last year … sold them on April 13 of this year … and realized a 791.6% gain in just 110 days.
- OR, if you wanted to take a flyer with a few bucks, you could have bought a more aggressive bundle of ten calls on Freeport last December 24 … sold them on May 6, 2009 … and banked a remarkable 1,345.8% gain in just 133 days.
That would be enough to turn a $10,000 investment into $144,580 in just over four months!
It gets better: Here’s what call options on Ivanhoe Mines could have earned you this year …
- You could have invested just $750 to buy ten calls on Ivanhoe on the 21st of May of this year … closed your position on July 9 … and grabbed a 233.3% gain 49 days later.
- OR, you could have bought an entirely different set of Ivanhoe calls on March 4 … sold them on the 15th of September … and realized a 488.9% gain in less than seven months.
- OR, if you felt like swinging for the fences, you could have bought a bundle of ten riskier calls on Ivanhoe stock for just $100 on the 26th of June … hit the timing right by selling them on September 9 … and banked a whopping 1,800% gain in just 75 days.
That last bundle of options would be like buying a lottery ticket — and the vast majority of the trades I recommend are far less aggressive.
But once in a while — only when I feel particularly strong about an opportunity — I may give you an optional “swing-for-the-fences” recommendation with this kind of potential. Sometimes, it’s worth taking a crack at it with a small amount of money you can afford to lose because …
A 1,800% gain would be enough to turn a $10,000 investment into $190,000 in just over two months!
I can’t go back in time to grab these gains, and neither can you. Plus, needless to say, if your timing is off or if you choose the wrong options, you’ll lose money. But I repeat: Even in the worst-case scenario, your losses are limited strictly to the amount you invest in each trade (plus a small broker commission). When you buy options, you can NEVER lose a penny more.
I created Resource Windfall Trader
to help you capture this truly massive
profit potential BEGINNING RIGHT NOW!
Considering the enormous opportunities now available in gold, oil and other resource investments, many of our readers have asked that we add a more focused, more highly leveraged service — a service that’s dedicated to helping you profit from this great war on the dollar with resource stocks AND ALSO helps you LEVERAGE those profits with the careful purchase of options.
That’s why I’ve created Resource Windfall Trader … which is quite different from other services we offer in two important ways:
1. It focuses exclusively on profit opportunities in companies related to natural resources — gold, oil, food, construction materials and manufacturing resources that are most likely to rise as the dollar declines.
2. It also uses the remarkable leverage that only options can provide — virtually unlimited profit potential with strictly limited risk on each and every trade.
Resource Windfall Trader makes
resource investing as simple as 1-2-3:
Immediately when you join me, you’ll receive the Resource Windfall Trader operating manual — a $495 value, free — to help you get started.
And every day from now on, Resource Windfall Trader will simplify your resource investment decisions:
STEP #1: Every trading day of the year, I identify the investments I feel are most likely to hand you substantial profit potential without exposing you to unwarranted risk.
STEP #2: When my analysis — including the study of cycles — confirms that it’s time to buy, I rush you an email with complete instructions: WHY I’m making the recommendation … precisely what you should buy or what to sell … how much to pay … and when you should execute the trade.
STEP #3: Since my instructions are in plain English, you can just call your broker with my word-for-word trading instructions or make the trade quickly and easily online.
And if you ever have a question about any trade, just call my toll-free V.I.P. helpline anytime and we’ll get you the answers you need.
SAVE AT LEAST $2,000!
As you probably know, our options trading services are normally $5,000 per year. But if you activate your membership to Resource Windfall Trader now, your one-year membership is just $3,000.
You SAVE $2,000 by activating your membership now — PLUS, you’ll also be locking in those savings every year as long as you remain a member. You will never be asked to pay more than this discounted rate.
Looking for an even better value? Great!
Join Resource Windfall Trader now for two years. Instead of $10,000 for two years, your membership is just $4,600!
You get 24 months of Resource Windfall Trader for just $4,600. That’s a savings of $5,400 — 54% OFF!
Or call toll-free 1-877-719-3477 (Overseas: 1-561-627-3300).
And once again, you’ll lock in your savings as long as you’re a member: Plus, when you join Resource Windfall Trader, you’ll take advantage of our convenient automatic payment plan. We’ll notify you ahead of time and then charge your credit card each time your subscription is about to expire. You’ll never have to worry about price increases, renewal notices or missing a single issue.
When you consider the fact that …
As a member of Resource Windfall Trader, you get recommendations designed to help you harness the greatest natural resource and commodities bull market in memory …
You can see how a single trade could repay your membership fee many times over!
My promise to you:
If you don’t make a bundle,
WE won’t make a penny.
Nobody can guarantee profits, and losses are always possible. But I can guarantee this: If you are not absolutely thrilled with the money I help you make in Resource Windfall Trader, we don’t make a dime.
Just join now by calling toll-free 1-877-719-3477 (Overseas: 1-561-627-3300), or by clicking the appropriate link below:
You must be delighted with the profits Resource Windfall Trader earns you, or cancel anytime in your first 90 days for a full refund of your membership fee — or anytime thereafter for a refund on the remaining portion of your membership.
Since your satisfaction is unconditionally guaranteed, you could, for example, activate your two-year membership right now for just $4,600 and lock in your $5,400 savings for as long as you’re a member …
Then follow our trading recommendations for the next 90 days — either on paper or with real money; your choice …
Then, you and you alone decide:
If, as I suspect, Resource Windfall Trader delivers profits that dwarf the small membership fee, just continue using my trading signals to go for huge gains in this great commodity bull market. Otherwise, just cancel your membership within the 90 days and we’ll rush you a full refund of every penny you paid.
And even if you change your mind later on, you can still cancel and receive a refund on the remaining portion of your membership!
As you consider your decision, please keep this in mind …
- You’ll save AT LEAST $2,000 on your Charter Membership in Resource Windfall Trader …
- With the world declaring war on the U.S. dollar, natural resource investments have the potential to make you much richer in as few as 90 days and to cover your membership many, many times over …
- You get my Resource Windfall Trader Quick Start Guide — a $495 value, free, and …
- Your membership is guaranteed — you can test drive Resource Windfall Trader for the next three months and still get a full refund if you’re not thrilled with the profits I generate for you.
I urge you: With the U.S. dollar plunging and key natural resources and commodities shooting for the moon …
With options on those resource stocks capable of spinning off gains of 181.5%, 233.3%, 359.8% and FAR more in just weeks …
And with the most dramatic declines in the dollar and increases in natural resources still ahead … this is probably NOT a good time to hesitate.
To add Resource Windfall Trader to your investing arsenal now — and to save at least $2,000 on your membership — just click the appropriate button below:
Or, if you prefer, call toll-free 1-877-719-3477
(Overseas: 1-561-627-3300).
This is clearly no time to dilly-dally. I look forward to welcoming you aboard before the deadline!
Best wishes,
Larry Edelson
Editor, Resource Windfall Trader
Resource Windfall Trader
Membership Application
ABSOLUTELY, Larry! I want to protect myself from the dollar’s decline AND go for the home-run gains that are possible with the world’s most explosive natural resource stocks and stock options! Please accept my membership in Resource Windfall Trader as indicated below.
I understand that you cannot guarantee profits and losses are always possible. But I will be using strictly speculative funds that I can afford to risk. And what’s more, my membership is fully guaranteed: I must be thrilled with the profits you bring me, or I can cancel within 90 days for a full refund of my membership fee, or anytime thereafter for a refund on the remaining portion of my membership.
I also understand that by applying for my membership in Resource Windfall Trader today, I’m locking in my savings as long as I remain a member: You will notify me ahead of time and then charge my credit card to renew my membership at this deeply discounted rate until I tell you to stop.
Or call toll-free:
1-877-719-3477
(Overseas: 1-561-627-3300)
Click here for our terms & conditions.
Resource Windfall Trader
15430 Endeavour Drive
Jupiter, FL 33478
Tel: 877-719-3477
Fax: 561-625-6685
