Tax & Financial Consulting Services
"The U.S. Dollar: Headed for that Meltdown As I've Been Warning You"
With all heck breaking loose in our economy — banks and mortgage companies failing, real estate prices still falling, GM, Ford, Chrysler and virtually the entire airline industry all but officially bankrupt — can you now see why I've been a strong advocate of gold?
I'm sure you can, and if you've been following my recommendations, you should be very happy indeed with my suggestions. But now is not the time to sit back and kick your feet up. I have never, in all my years studying the markets, seen the U.S. economy in such trouble and with myriad dangers lined up one right after another to rob you of your wealth.
There is simply no way the greenback can hold its already devastated value when:
— The Fed is pumping out fiat money like there's no tomorrow. (Listen to audio on website "The Creature from Jeckyll Island" about what fiat money really is...)
— Real interest rates are negative and will likely remain that way for months, possibly years, to come. (Means inflation will we triple digit regardless of the lies the government says it is on CNN)
— The Federal debt is approaching $10 trillion and contingent liabilities are soon headed north of $60 trillion. (Need I say more...wow)
— The trade deficit continues to remain deeply in the red and is bound to get worse because of soaring energy prices. (Buy into China and Asia)
— Main Street, USA and foreign investors are beginning to wake up to Washington's manipulation of economic stats like the phony CPI figure.
— And the Fed is accepting all sorts of junk paper from banks, mortgage companies, investment banks, and soon, even failing hedge funds, to try and keep our financial system solvent. (Increase in taxes to pay the International Bankers)
Why You need to Buy Gold & Silver
A long time ago, the dollar used to be backed by gold and silver. For every dollar you had, you could walk up to the U.S Treasury and redeem that greenback for yellow or silver metal.
Today, the dollar is backed only by "the full faith and credit of the US taxpayer." Washington has not only fiscally mismanaged our economy, but now the government is papering over the errors (better way of saying cooking the books), rampant abuse and speculation of people at the helm of companies like Fannie Mae and Freddie Mac and thousands of other banks and brokers.
Those institutions' errors, whether "criminal" or not, are appearing in all the defaults and junk paper in the financial system, and the Federal Reserve is accepting it all as collateral for dollars!
Can you see why savvy investors here in the US and overseas are buying gold like crazy? Can you see why it's not far-fetched to expect gold to continue higher, ultimately reaching its "inflation-adjusted" price of $2,200 an ounce?
The Dow Jones Industrials Have Cracked the
11,000 level, and Are Headed Much Lower!
Forget all the Wall Street happy-talk (lies) about this quarter's supposedly good earnings in many sectors. Instead, tell them the Dow has already lost 78% of its purchasing power, and see what they have to say. They'll tell you you're nuts, but the truth is, as I have said repeatedly in past issues, the Dow is already down 78%, in a giant stealth bear market, and now, the next phase has begun!
This is where the decline becomes visible to the naked eye ... and fear begins to set in.
Investors, both domestic and foreign, begin selling in droves, battering every rally attempt in the Dow, and ultimately pushing it down below 10,000 ... to 9,200, or perhaps even lower.
All the while, because of the weakening U.S. dollar — inflation rages higher ... commodity prices shoot to the moon ... and gold soars like an eagle.
I Think the Next Huge Collapse
Will Happen in the U.S. Bond Markets
For the life of me, I can't understand why anyone would want to own U.S. corporate, municipal — or even Treasury — bonds right now. Which is where a good percentage of your 401K plans have there money vested. Now you know one of the reasons why your portfolio is hovering below water right now.
Don't get me wrong. I am just as patriotic as you are. But as I noted above, the Federal Reserve is now backing our dollars — and by implication so is the U.S. Treasury — with all sorts of junk paper. (FYI...remember the Federal Reserve isn't Federal ... What? ...again, listen to "The Creature from Jeckyll Island"). And on top of it all, the Fed is printing fiat (fake) money like crazy, keeping real interest rates negative.
This is a disaster in the making for the U.S. bond markets. Soon, investors could dump U.S. Treasury bonds like crazy ... realizing that they are far from a "safe" investment. Bond prices would collapse ... and these investors would flock in droves to the only true safe form of preserving wealth — gold and silver — pushing both metals even higher.
Here Are the Three Steps You Should Consider Right Now
Step #1 If you missed my conference call last week Diversification, go back to the playback of the call and I tell you how to obtain these investments and protect your financial well-being.
Step #2. If you don't already own gold, I strongly suggest you buy some now. Don't worry about a $10 pullback. Or even a $100 pullback. Buy gold for the long-term and protect your paper dollars pronto. As I have suggested in my past newsletters, and on last weeks conference call, I would seriously consider allocating 20-30% of your net worth to gold and silver investments. You might want to put 2/3 in pure gold and silver investments, and the other half in mining shares.
Visit the following site www.publicgold.com/gngpreciousmetals in order to purchase Gold & Silver Eagles at a 20-30% discount instantly propelling your investment into a double digit gain.
To review, my favorite gold investment vehicles. Become an exclusive member of the G&G Investment Society subscription for USD ($99).
Step #2: Consider Buying or Adding to your China and Asia investments.
Become a memeber of the G&G Investment Society and learn some ways to do that ...
- (????): This ETF invests at least 90% of its assets in the securities of the FTSE China 25 index and is a great overall play on China.
- (????): This Fund Seeks out the best returns from companies in China and India in the following industries: Oil and gas, software, telecommunications, banks, Internet and mining.
- (????): This US Global mutual fund invests at least 80% of its money in the China region, from Mainland China to Hong Kong, Taiwan and more.
Lastly, be sure to stay tuned in to G&G Tax & Financial tips for the latest news on what's happening to your security and finances. To become a member of the G&G Investment Society newsletter subscription, please send an e-mail to GGIS@gngassoc.com for sign up instructions.
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Aain, if you missed the last conference call, no problem. You can listen to the playback of the conference by dialing the number below:
Playback Number: (641) 715-3487
Access Code: 974124#
Tax & Financial Consultant, RFC
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"The greatest advantage that the people have is the truth"
LEGAL NOTICE: This work is based on SEC filings, current events, interviews, corporate press releases and what I've learned as a financial consultant. It may contain errors and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility. G&G Associates expressly forbids from having a financial interest in any security that is recommended to our subscribers