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The Only Thing Standing In The Way Of A Complete
Devaluation Of The U.S. Dollar Is
HE RETIRES Not Even Ben 'Printing Press' Bernake
can Stop The Perfect Storm That Will Bring Down the Find out exactly how the
combination of 18 years of Greenspan's loose monetary policy, $8.06 trillion Dear A-Letter Reader, The secret is out: There's nothing standing in the way of Alan Greenspan's retirement on January 31st. Washington's power brokers and puppet masters begged him to stay...and now in a desperate appointment, they're hoping that Ben Bernanke can keep up the Maestor's charade economy... But it's too late - even Bernanke can't save us from the mess that Greenspan and the rest of their cronies at the Federal Reserve have helped orchestrate. Make no mistake, three ominous clouds are circling the In this report, I'll show you exactly when and how it's going to come down - and more important - how you can be one of the few left standing with your wealth intact when it does. An Economic Experiment Gone Very Wrong The job of the Fed Chairman is to take away the punch bowl when the party gets good - and prevent the inevitable morning-after hangover. But Alan Greenspan has been more likely to spike it instead. When faced with the Crash of 1987 just two months into his term, he commented that: "It wasn't a question of whether you would open up the taps or not open up the taps. It was merely how you would do it, not if." And he's been opening the taps ever since. As each debt-driven boom turns into a bust, he makes sure to start growing a new one. To make up for the tech stock bubble that burst, he's created the housing bubble. To offset the bailout of hedge fund Long Term Capital Management, he fired up the printing presses. To pay for two Middle East Wars, he gave politicians the green light to rack up monstrous national debt. The appointment of Ben Bernanke is merely a change of barkeep...and we won't be able to escape the consequences of nearly two decades of binge drinking much longer. The U.S. dollar has been briefly buoyed by the incremental rise in interest rates the last few months - but don't be fooled. There are other forces at work that have destined the dollar for devaluation...and those forces are too strong to be headed off by monetary policy manipulation for much longer. Smart investors who see the writing on the wall are already taking cover - led by outspoken billionaire Warren Buffet, who has turned $21 billion of Berkshire Hathaway's stash of cash into foreign currency. Even though he's already generated $1.8 billion in gains since he
abandoned the dollar in favor of foreign currencies two years ago, Warren
Buffet both bemoans and defends his strategy: This is a story that's unfolding before our very eyes - but it's one that most people simply don't want to see. It's almost too painful to imagine. Banks around the world dumping their dollars in favor of stronger currencies. A wave of foreclosures and layoffs. And nowhere else to go u -when $10 won't be enough to get you a cup of coffee in another country, let alone this one. Here are the three storm clouds brewing that foretell a perfect economic storm is on its way. As you'll see in a minute, there may be no stopping it now. But you can protect yourself - and even make a handsome profit even as the ships of your friends and associates sink all around you. Storm Cloud #1:
Greenspan Hijacks While it's true that the Federal Reserve System became the babysitter of the economy when we came off the gold reserve standard in 1971 - under Greenspan it has become indulgent to the point of our detriment. By seeking to remove economic consequences from all manner of irresponsible behavior and unjust calamities, he has also taken away any sense of fiscal responsibility.
What does this have to do with you and me - and the portfolios of millions of U.S investors? The bomb that is Alan Greenspan's monetary policy has been ticking for the last 18 years, and it is set to explode on January 31, 2006 - the day he retires.
The Instead, incoming Fed chief Ben Bernanke is going to go down in history as the man left holding the bag when the Greenspan legacy finally delivers the dollar's fateful nosedive... The day he was nominated by President Bush, Bernanke assured the country, "If I am confirmed to this position, my first priority will be to maintain continuity with the policies and policy strategies established during the Greenspan years...I'll do everything in my power, in collaboration with my Fed colleagues, to help ensure the continued prosperity and stability of the American economy." In just a minute, you'll see why we won't be calling the legacy of the Greenspan years one of prosperity and stability for too much longer. We'll be calling it embezzlement... Because when Alan Greenspan made interest rates historically low for a record number of months, he did more than start a housing bubble. He put the entire country up for sale. The result? A massive re-distribution of wealth - and you might be surprised where it all went... Storm Cloud #2: The The U.S national debt is an alarming problem - but maybe not for the most obvious reasons. It's not just that we owe more than we make as a nation, it's that we no longer own the debt. Proponents of today's debt will tell you it's nothing to worry about - and
indeed, after WWII, the national debt was twice what it is now -120% of the
GDP (gross domestic product) at it's height. But it's different today. Back then, Americans held 85% of the bonds against that debt. Basically, we owed ourselves the money, and through production and self-resilience, we paid ourselves back handsomely over the years. Today, foreign ownership of our debt is up from a historical 15% to today's
38%. Those pesky I.O.U. notes - about $4 trillion of them and counting -
represent 10% of our net worth as a nation. There's another, smaller, number
that you need to know about - because it poses a much bigger problem. The
current account deficit of the
Long after the cars stop running, the computers break down and the gas stops flowing, the rest of the world will still hold our real estate and other natural resources. This is a dangerous combination that many economists feel is pointing to an inevitable devaluation in the U.S. dollar. It is the same combination that was experienced by:
The little-discussed current account deficit is the Most of us would like to believe that such devaluations and the resulting financial chaos they cause can't happen to us... Of course, none of us would have dreamed that we'd watch the twin towers of the World Trade Center collapse in a heap of ash, either - claiming thousands of American lives, making us feel vulnerable in ways that we couldn't have imagined just the day before. When the writing is on the wall for a negative event to occur, we can no longer afford not to read it. When foreign countries decide to stop stockpiling the U.S dollar as their reserve currency, and sending us their savings accounts, the U.S. dollar will become a practically worthless excess of paper. Foreign countries who are in a stronger economic
position will lose confidence in the And a loss of confidence will be the spark that sets off this frightening scenario. The day that Alan Greenspan retires, the real situation in the U.S. will
be revealed undefined and his heir apparent Ben Bernanke's
only known plan for this oncoming disaster will be to douse the fire with a
little gasoline: "The U.S. government has a technology, called a
printing press (or, today, its electronic equivalent), that allows it to
produce as many U.S. dollars as it wishes at essentially no cost. By
increasing the number of U.S. dollars in circulation, or even by credibly
threatening to do so, the (They don't call him Printing Press Ben for nothing...but when he foolishly
lures the dollar into a freefall and brings down the entire When that day comes, you'll wish you had joined Warren Buffet in a wealth-preserving hedge against the U.S. dollar. In just a minute, I'm going to show you a way to do just that - and start profiting from day one as well. But first, the third and final dark cloud that will seal the fate of the dollar once and for all... Storm Cloud #3: With one eye on the current account balance, But it's the worst form of pretzel logic. The The Federal Reserve actually wants
the dollar to be worth less than other currencies to solve the Consider first that the Chinese economy is stronger than it's ever been.
They are the world's producers and savers, we are
the world's consumers and debtors...which puts This fast-developing nation is in line to become the third brewing dark cloud of our 'perfect storm' undefined and it's going to be one heck of a squall when it bears down on the dollar. Take a look at how the 38% slice of Major Foreign Holders of
Source: As they comply with world demands to unpeg their currency from the dollar, the value of their money will gradually begin to increase and strengthen and become more competitive against the dollar. But here's the real rub: Since we came off the gold standard in 1971, the U.S. dollar has been the reserve currency for the rest of the world. A weaker dollar will mean that every nation that holds billions of dollars of their treasury in U.S. dollars will become poorer as well. The rest of the world's banks aren't about to let that happen. Instead, they'll start tradin U.S. dollars for euros, yen - and yes, the newly revalued Chinese yuan - faster than you can say the word 'forex.' While Washington tries to fix the big problems they've created, average Americans will be left holding the bag - saddled with bank accounts and portfolios whose value that will plummet when the dollar gets weak. When the great exchange occurs, the U.S. dollar will fall so far, so fast, it will make us a pauper nation practically overnight. The only ones left standing will be those smart investors who saw the storm coming - and did something about it early on. Like now. The One Investment That Can Keep You Afloat I'm Erika Nolan, Executive Director of The Sovereign Society. You may have read about us recently in Robb Report's Worth Magazine or heard us interviewed on CNBC . We're internationally recognized as the leading information resource for wealthy individuals interested in global investment opportunities and offshore asset protection. Our experts and analysts from around the world have been watching and reporting on these dismal dollar trends for several years now. But this is different. While our watchful eye is always on profit potential - in fact, I'll tell you in a minute how we taught our members how to turn the dollar's drop into gains of 797% and 1,794% - the potential for your wealth to be completely wiped out is at hand. Without a plan, most people have little or no hope of weathering this storm. Our members know they are safe, though. And you can, too. As long as you understand that it is more urgent than ever before that you act now - both to protect your assets, and to earn substantial profits in a market that is being underutilized by the average investor. That's why I'm pleased to offer you a special report on the one trade that can keep you afloat through this pending 'perfect storm' when you join our advisory service, The Money Trader. You'll gain access to our team of leading currency experts who can show you how to earn profits unlike anything you've seen on Wall Street lately, as well as position yourself for the coming devaluation of the dollar. Simply called, 'The Trade', this special report will explain a specific long-term currency trade in full detail - not unlike what Warren Buffet has done to keep Berkshire Hathaway afloat - designed to protect you when the dollar tanks. This trade - and this advisory service - does more than that, however. It is also designed to deliver profits right now. Let me explain... How Our Readers Made 797% and 1,794% Gains... And Why We Think We'll Keep It Up In The Coming Months It's no secret now that the dollar has been losing value against other currencies for the last four years - but it was still an early trend when we offered a stunning currency play to our subscribers in our April 2001 issue of The Sovereign Individual - our monthly newsletter to our members. We showed our readers exactly how to purchase September 62-cent Swiss Franc call options - and get into this trade for just $1,500 per contract. Of course, we explained that an option is the right - but not the obligation - to make an actual purchase. We explained that a 'contract' would grant them the right to purchase 125,000 Swiss Franc's at a cost of 62 U.S. cents each. And we told them exactly why we thought this was a good idea u- much as I've explained the current trends providing the foundations for our newest trade in the previous pages. In just 22 months after we made this recommendation, the Swiss Franc had risen to 72 U.S. cents, and our members who were holding the option to buy them at 62 U.S. cents turned each contract they held for $1,500 into $13,450 -for a gain of 797% in just 22 months!
Of course, our members were hooked on the currency market, and begged for more. So in May 2002 we turned to the euro. At the time it was trading at just 87 U.S. cents - hard to believe! But our currency experts saw the makings of a dollar dive/euro rise even then - the huge trade deficits, the
weakening But there was no losing on this trade. By March 2003 the euro was up to $1.08, which gave our readers an 18-cent
per-unit gain! That made each contract of $1,125 worth $22,437 when it was
exercised - for a gain of 1,794% in just 10 months! Our readers
were happy, but honestly, we felt like we were cheating them. While these
gains were fabulous, we knew there was so much more out there in this market.
And we knew that diversification outside of the dollar was critical to those
people protecting their wealth...and growing it. That's when we got serious about finding ways to make money in the currency market and launched The Money Trader. That's When It Really Got Good... We very quickly went on to help subscribers rack up gains of 86% on the
Swiss franc ...92% on the Canadian dollar...42% on Australian...and more. (above positions all closed 11/11/04)
As good as these gains are, we knew we could make the service better. Ordinary currency options offered investors incredible leverage, but they also carry the risk of time decay and sometimes have poor liquidity. But what if there was an investment in the spot or cash FX market that offered all the limited risk, leverage and potential return of regular currency options ... that was highly liquid ... paid interest ... had lower transaction costs ... and never had to expire. Well, guess what? We found just such a way to play currencies. More importantly, we found two powerhouse traders who are experts at it: Meet Our Currency Experts: We found the right market, and were making some of the right trades. All we needed now was a team that knew not only the markets and trends inside and out, but who have razor-sharp timing. Boy, did we get more than we asked for. A quick google search of their names will reveal the whole story - but to save you the trouble, I can tell you that they are each recognized as top currency experts in their own right. Their articles and columns regularly apprear in Stocks and Commodities, CBS Market Watch, ActiveTrader, Futures and SFO Magazine. They're sought out by Bloomberg, Reuters, and other major news services on an almost daily basis. They're active on many major trading sites too, including DailyFX, EliteTrader, eSignal, and FXStreet. Because Kathy and Boris make all of their Money Trader recommendations as a team, each one is backed by the expertise of not one, but two of the world's leading traders. Boris focuses on the big picture - the macro trends that drive the world's major currencies. Kathy's forte is pinpointing the best entry and exit points to take advantage of the latest shifts for strong returns. Together, they also specialize in the spot currency market, plus are adept at making oil and gold trades as well, since these two commodities are closely related -and in some cases inextricably linked to the currency markets. You could learn the top strategies of currency trading from either of our editors, but together they're a practically unbeatable team. Their winning combination has made them two of the most successful and highly-respected advisors in the market today. Now, The Money Trader gives you exclusive access to Boris and Kathy's best recommendations - before the press or anyone else gets hold of them. Kathy and Boris introduced us to the spot market. Boy, what an eye-opener. With the spot market, you can...
The spot market is where you find currency "carry trades." That's where you sell a low-yielding currency and buy a higher-yielding one undefined and you earn interest on the play every single day! You can see why Boris and Kathy find this market so attractive. But it's not enough. Now, they're ready to power up the double-digit gains their subscribers are receiving and turn them into TRIPLE-DIGIT gains. How? By using a financial strategy they call "synthetic options." Options with Triple-digit Profit Potential, NO expiration date... and that Actually Pay You Interest!The advantages of synthetic currency options over regular currency options
are enormous. Those advantages include...
Synthetic currency options in the spot market combine the liquidity and low transaction costs of buying outright positions with the limited risk and high leverage properties of options. Along with high liquidity, the currency market also offers the largest leverage of any financial market offering margin terns as low as 1%, or 100:1 leverage factor. These two properties of the spot FX market make currencies far better options "substitutes" than options themselves. Additionally, the leverage factor of spot provides traders the exact same opportunity as options of making large returns on a small base of capital. Part of the beauty of the Money Trader is we include plays tailored for both the more aggressive and the more conservative investor. You can play the high-leverage "synthetic currency options" or the low-leverage, lower-risk picks that can still allow you to see returns of 15% to 35% on your money. We communicate in real time with at least one trading bulletin a week, via email. Each bulletin is written in plain English, and gives you the trade, the analysis behind it, and exactly how to place it. Plus, you'll have access to our password-protected website for special profit opportunity reports and the running tally of The Money Trader portfolio any time of the day or night. How Good Are They? In late March of 2005, FX Week published rankings of the world's top currency experts, based on average weekly accuracy in five major currency pairs: euro/dollar, dollar/yen, euro/yen, sterling/dollar and dollar/Swiss franc... In the first three months of this year, Boris and Kathy's company
reportedly differed from the actual market fluctuations by a mere 1.034%.
This laser-like accuracy beat the track records of Merrill Lynch, JP Morgan,
Lloyds TSB, Danske Bank, the Royal Bank of The key to their success and consistency is a three-level approach that analyzes fundamental, technical and market indicators. They pay rigorous attention to reducing risk and identifying the best trades at all times. They won't win every single time - but we've scoured the marketplace of experts in the area of currency trading, and I can tell you firsthand (as the one who did much of the scouring!) we've convinced the best of the best to come onboard withThe Money Trader - and they're about to make our subscribers much, much wealthier. Recommendations from experts at this level are normally only available to large institutions, major hedge funds, and the cream of the world's elite investors.But now you can put them to work for you. Start Pulling In GAINS Today While The 'Perfect Storm' Is Still Brewing But You'll Be Glad For The PROTECTION As Soon As It Hits... There was a day when I might have introduced you to currency trading just because it was fun and easy, or because you could make a lot of money. While these reasons remain true - foreign exchange can no longer be viewed as the delicacy of trading venues. Putting a portion of your wealth into currency trades as a hedge against the falling dollar is now a must for anyone who would like to preserve their wealth through the rest of this decade...let alone through retirement and possibly to pass along to future generations. The minute you subscribe to our currency trading service - The Money Trader - you can download three free reports that will:
Free Report #1: The Trade The dollar has nowhere to go but down as a perfect storm brews in world markets that earmark its fatal decline.
The result of this deadly cocktail will be a chain reaction of countries around the world dumping U.S. dollars by the truckload. Secure yourself today, and get situated in the long-term trade that will
preserve your wealth - and keep you out of the fray when the Free Report #2: Secrets Of The Spot Market: How To Make 15% to 35% Returns On Your Safe Money : This report busts wide open the myth that keeps many average investors out of the currency markets: safety. Contrary to popular belief, the currency market is actually more secure and stable than the equity market. Just by holding your money in strong currencies, you can earn 15%, 25%, even 35% on your 'safe' money. The term 'spot market' is just another way of saying 'cash' - which means it's accessible and liquid, with low transaction costs. Let's say you wanted to convert $10,000 to euros - you could spend $500 to do so at an airport kiosk, $200 to do so at your local bank, or just $3 to do so with an FX dealer! But in addition to being safe, the spot market is also a speculator's play
place. Remember how George Soros became "the
man who broke the bank of Or Michael Marcus, who parlayed $35,000 into an $80 million fortune by becoming one of the largest individual traders in German Deutchmarks. Or Bill Lipshutz who earned an average of $250,000 a day for Saloman Brothers. Now, thanks to the Internet, success on the spot currency market is not limited to swashbucklers and institutions - the average investor gets to play, too. This report will give you a detailed accounting of how to trade in the spot market - either for safety or speculation - it's your choice! Free Report #3: The Dollar Anthology Boris and Kathy have a passion for the currency market that is truly remarkable - so you don't have to! Instead, we gathered the pertinent details for you - an empowering overview of interest rates, inflation, trade balances, federal budgets, gold prices, bond prices and stock prices...all the factors that relate to the value of the dollar. You can print and file this chart-filled report, or just access it online
when you need to get a bird's-eye view of everything that's affected the
value of the dollar since President Nixon took the You'll see how the dollar has stacked up against other major currencies and gold. When and why it has risen sharply and plunged hard, as happened in the mid-80s when it fell nearly 50% against its principal rivals. It's completely up-to-date. And it includes plain-language supporting text
that makes each of these pictures a powerful, short lesson on the recent
economic history of the Won't You Join Us... Unfortunately, not everyone is willing to read the writing on the wall - and take immediate action. But the evidence is obvious, and the trends are already underway. Given how tenuous the economic situation is, any surprise event could tip the scales even faster. Honestly, when I extend an opportunity like this, I'm usually excited about the great gains readers will make - and about lifting the lid of a hidden investment or dormant asset class about to bust loose. But today, my urgency comes from a place of concern. Will you make a ton of money? It's up to you. Not every single recommendation will be a winner, of course. That would be an unrealistic promise - and you'd know I was a little full of myself. But based on everything we've done so far, I'm completely confident that you will make more than enough to cover the cost of your subscription in 90 days - and then pile on the profits from there - or we will refund you every penny you paid. And if you cancel after 90 days, we'll refund your money for the unused portion of your subscription. You see, I'm willing to make you this kind of guarantee because I don't want you to hesitate over something as insignificant as the subscription fee - when your entire portfolio and financial future is at risk. Frankly, we could charge much more than the current rate of $1,500 a year, given the expertise and reputation of our advisors, the potential profits of this market, and all its benefits to average investors. And we even break that amount down into more digestible installments of $375 every three months to make it that much easier. But I truly believe this is the single most important investment you can make - and the timeline is uncertain, at best. The window for this trade that we'll tell you more about in our special report The Trade could close at any time - with a bang. I don't want you to be left out. All you need to do is subscribe now, download your free reports, and follow along with the analysis and recommendations within to get started. Soon, you'll receive further updates and more plays from Kathy and Boris - and the gains will come rolling in. But the most important thing you can do right now is to be safe, not sorry. Sincerely,
Erika Nolan P.S. - The 'perfect storm' is indeed brewing. Bernanke's appointment is headed for approval and the bond market is already packing its bags...China has begun a gradual currency revaluation...a horrific hurricane season is plunging us deeper into debt...The Feds and their Washington puppeteers will continue to try and convince us that everything is O.K. But now you know...it's not. One by one, the storms I've noted will roll in. When they converge, it really will be too late.
======================================================================= ALL CONTENTS OF THIS LETTER ARE COPYRIGHT 2005 BY THE SOVEREIGN SOCIETY. ALL RIGHTS RESERVED: REPRODUCING ANY PART OF THIS DOCUMENT IS PROHIBITED WITHOUT THE EXPRESS WRITTEN CONSENT OF THE SOVEREIGN SOCIETY. Protected by U.S. Copyright Law {Title 17 U.S.C. Section 101 et seq., Title 18 U.S.C. Section 2319}: Infringements can be punishable by up to 5 years in prison and $250,000 in fines. LEGAL NOTICE:This work is based on SEC filings, current events,
interviews, corporate press releases and what we've learned as financial
journalists. 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. The SOVEREIGN SOCIETY expressly forbids its writers from
having a financial interest in any security they recommend to our
subscribers. And all THE SOVEREIGN SOCIETY's (and
affiliated entities') employees and agents must wait 24 hours after an
initial trade recommendation is published on the Internet, or 72 hours after a
direct mail publication is sent, before acting on that recommendation. |
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Under
his guiding hand, the Fed has dangled unlimited liquidity like a carrot in
front of a debt-ridden government, overextended consumers, and morally
challenged financial institutions. 
Simply
put, the current account deficit is the difference between what the 
