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Chief among those forces: Worldwide currency battles and the collapsing dollar!
But if you think the currency battles now raging are dramatic, wait till you see the all-out currency WAR that’s now emerging!
To help give you a sneak preview, let me simply reiterate the warnings I issued months ago:
- Emperors with no clothes: Investors everywhere are waking up to the reality that their leaders are nothing more than Emperors with no clothes: Reckless spenders without a single clue of what they’re doing, bearing nothing but false hopes for their people.
- Fed trashing the dollar: Our Federal Reserve, led by Fed Chief Ben Bernanke and egged on by President Obama, will remain hell-bent on devaluing the U.S. dollar. All in a desperate attempt to inflate away our country’s massive unpayable debts and spark a flame in our economy.
- Global bashing of paper currencies: Soon, other central banks around the will join in the fray, desperately trying to prevent their currencies from appreciating against the dollar … or actively seeking to depress their currencies outright against the greenback.
- Flight to gold and resources: Savvy investors everywhere will seek out the best assets and investments that could rise as currencies around the world lose their purchasing power — gold, natural resources, and even select blue-chip stocks.
Now, my warnings are coming true in spades! The Fed has trashed the dollar by announcing its intent to run the dollar printing presses … other central banks have cranked up their own printing presses … and the flight to gold and resources is in full swing.
We see …
- Gold soaring to once-unthinkable prices, more than $1,350 an ounce!
- Oil roaring back from a low of $71.50 at the end of May to nearly $84.50 today, a five-month gain of 18%.
- Copper, $2.77 a pound at the beginning of June, now at nearly $3.78 — a 36% gain in four months.
- Platinum and palladium also soaring.
- Sugar approaching a 30-year high — more than DOUBLE its price of early May.
- Grains and other agricultural commodities also soaring, led by wheat, which is up from a low of $4.73 a bushel in early June, to as high as $8.74 just two months ago, a two-month gain of nearly 85%.
And all this while the international value of the U.S. dollar has plunged an incredible 13.5% since early June!
Mark my words: Years from now, we’ll look back at this period — and the upcoming mid-term elections in the U.S. — as a major turning point in the dollar and the world’s monetary system.
Why? Because the currency wars I’ve been predicting are now becoming a reality:
The Bank of Japan (BOJ) has now announced it will engage in “quantitative easing” — printing money to try and devalue the yuan. The BOJ has even taken printing money a step further, a step I told you to soon expect from our own Federal Reserve in my last Uncommon Wisdom column — purchasing of real estate assets and equities.
The European Central Bank (ECB) is on the verge of doing the same. Until now, the ECB has erred on the conservative side of money printing, refraining from a full-court blitz. But now, all that’s changed. The ECB sees that Fed Chairman Ben Bernanke will stop at nothing, and that the BOJ is now printing money. So the ECB is now ramping up its printing presses, getting ready to flood its economy with paper euros.
China continues to actively resist revaluing its currency, the yuan, higher. In other words, China wants to keep its currency competitive.
But lest you think China is selling its currency and buying dollars and euros to keep its yuan from going much higher, think again:
China is largely investing its reserves in natural resources. A smart play that will not only help ensure the country has the resources it needs to keep growing, but also will have a hedge against the falling value of the dollar.
And in other regions of the world where currencies would normally appreciate as the dollar falls in value — countries like Singapore, Indonesia, Malaysia, an even Australia and Canada — central banks are doing everything in their power to slow down the rise in their currencies.
The ultimate forces underlying these
currency wars go much deeper
than simply trying to boost exports!
Boosting exports is the standard explanation you get from economists and policymakers. “Cheapen the currency and you make your exports more competitive,” goes the pitch.
That’s hogwash — nothing more than policymakers’ political speak to gain favor with their constituents.
Quite to the contrary, what’s really behind today’s currency wars and competitive currency devaluations are the three following forces …
Force #1: The growing recognition in the U.S. and Europe that half the world is mired in a deep, structural recession, if not a depression.
This is why savvy investors are naturally betting on other regions of the world, like Asia and Latin America, that show real economic growth potential. So they’re pulling out of the dollar — and even the euro — to do so.
Equally important …
Force #2: The widespread rejection of public policies in the U.S. and Europe.
This is why investors are moving their money away from government — out of harm’s way — to assets like gold and other investments.
Most important of all …
Force #3: Central banks themselves now believe that governments cannot stop the economic implosion occurring in the U.S. and Europe.
This is why they are gearing up for massive currency devaluations to try and inflate away bad debts and levitate asset prices. And, they are being led by none other than the most powerful central bank on the planet, the Federal Reserve.
Ironically, the Federal Reserve is about to become even more powerful. Our upcoming mid-term elections virtually guarantee it.
To understand why — and how to profit from it — you absolutely must not miss Weiss Research’s unprecedented event which goes offline tonight.
In this fast-paced strategy session, not only will you get a much better understanding of the investment dangers and profit opportunities the election will create …
You’ll also get very specific investment recommendations on how to profit from the raging currency wars! You will learn …
- The most likely results of the upcoming elections — what the new Congress will look like …
- Why the elections could EMPOWER the Federal Reserve to print even MORE money and how you can profit from that change …
- How these sweeping changes in Washington will impact the U.S. economy …
- How U.S. stocks, gold, foreign currencies, oil and other investments will react …
- The new dangers to your wealth that you’re likely to face in the months ahead, and …
- How you can USE these trends to grab substantial profit potential beginning right now!
Plus, near the end of this crucial strategy session, the Weiss team will invite you to claim a $300 “Thank-You” just for watching!
Best wishes,
Larry
