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America’s Financial Armageddon is rushing towards us like a runaway freight train, and this coming Wednesday we will explain exactly how and when in an emergency briefing with that exact title. (Beware: You have only two days left to claim your free registration.)
Meanwhile, time is running out for Washington as well, with Congress careening toward two imminent deadlines:
The first is May 16, just eight days from today — when the U.S. Treasury exhausts its credit limit, bumping up into the debt ceiling authorized by Congress.
The second — the true drop-dead deadline — is coming several weeks later, when Treasury Secretary Geithner exhausts a series of maneuvers and accounting gimmicks to keep the government in business a while longer.
What happens if the Republican leadership, the Democrats and the White House can’t strike a deal on the budget? The United States would DEFAULT on its maturing debts — an event so unthinkable it’s even hard for most people to say the word.
What are the chances this doomsday scenario will actually take place? If it did happen, what would the consequences be? Would there be any way to avoid a total bond market shutdown and hyperinflation?
What if Congress and the White House reach some sort of an agreement but FAIL to fix our nation’s fundamental fiscal problems? Will we go back to business as usual? Or will global investors be so disappointed in their failure that they decide to dump U.S. bonds anyhow?
Dr. Weiss and I — along with Weiss Ratings sovereign debt analyst Gavin Magor — will give you our answers this coming Wednesday at our “America’s Financial Armageddon” briefing. But I can tell you right now that …
The mere fact that our government has allowed itself to be pushed this close to the edge of the cliff is, in itself, a warning of dramatic changes ahead.
Put simply, the game of fiscal “chicken” now being played in Washington — a game in which both sides refuse to compromise on their principles even as this deadline rushes towards us — may well prove to be the straw that breaks the camel’s back in the U.S. bond market.
Reason:
Our leaders in Washington are losing all credibility. Few investors believe what they say or promise any more — let alone foreign investors who hold the bulk of U.S. government securities.
Washington promises recovery, but delivers chronic — and now, based on Friday’s job report, HIGHER — unemployment.
Washington promises budget cuts, but delivers still bigger deficits.
And here’s one more: The Federal Reserve said its “quantitative easing” money printing operations would end in June. But now, based on a series of pronouncements by Fed officials, it’s pretty obvious they may have no intention of ending anything!
Instead, they’re hell bent on continuing to create money out of thin air, pump it into the economy and pray it will work.
Their “logic”? Totally illogical and INSANE! Look …
* The $1.25 trillion the Fed has ALREADY pumped into the housing market via the purchase of mortgage-related securities have done diddly-squat for home prices. In fact, the latest Case-Shiller report on home prices shows they’ve fallen to within a whisker of the lows they set in the depth of the housing bust back in February 2009. That means that, in terms of home prices, we’ve already suffered a “double dip,” and all the Fed’s money injections have been for naught.
* The nearly $600 billion the Fed has already pumped into the bond market via the purchase of U.S. government securities has also backfired. Since the beginning of the current QE2 bond-buying program, bond yields are up, not down.
* The more than $800 billion in stimulus funds thrown at the economy have also failed to revive the American jobs engine. As you saw Friday, unemployment is also going up again — not down.
Meanwhile …
Hundreds of billions more newly created dollars are chasing a static, or in some cases, declining supply of goods, virtually guaranteeing a rise in energy, food and other prices.
Despite any recent rises, with yields still so low, government bond investors are grossly underpaid for the real risks they’re taking.
This is precisely why we’re hosting an urgent briefing next week — America’s Financial Armageddon: Survive and Prosper. But the deadline for registering to attend is the day after tomorrow: This coming Tuesday, May 10, 2011 — just two days from today!
At this briefing, my team and I will answer your questions about our new country ratings — precisely why we rated the United States just two levels above “junk” status and what the consequences are likely to be.
And we will do everything in our power to give you the answers that you need to protect your family and your wealth as this crisis goes critical. Questions like …
- Is the U.S. really likely to default on its debt? Or is it more likely that global investors will crash the treasury market first?
- Is the latest correction in gold and silver opening a window to buy them as a hedge against inflation? What’s the best way to invest in the precious metals?
- Specifically which investments are the most certain to rise when the dollar falls?
- Should I sell just my long-term treasuries? What about Treasury bills?
- How about U.S. Savings Bonds? Municipal bonds? Corporate bonds?
- Which investments should I be buying now for maximum profit potential as inflation and interest rates rise?
- Does your higher rating on countries like China, Malaysia and South Korea mean I should be investing in their stocks and ETFs as well?
- How will soaring interest rates impact the value of my home? What are your recommendations?
- A crash in treasuries means that the U.S. dollar would get slaughtered — right? What should I be doing right now to protect my family from skyrocketing prices?
- What will happen to my Social Security benefits if the dollar ends up buying next to nothing?
- In the worst case scenario, will U.S. stocks continue to trade? Or will the markets be shut down like they were after 9/11?
- Which stocks will get hit hardest by soaring interest rates and the crashing dollar? Are there any that will actually BENEFIT from this crisis?
- Are my money market accounts safe? How about my CDs?
The answers to these questions could make all the difference for you this year and beyond.
And to attend, you just need to do two simple things immediately …
FIRST, put this event on your calendar NOW:
America’s Financial Armageddon:
Survive and Prosper
WHEN:
Wednesday, May 11, 2011
at 12:00 Noon, Eastern Time
(4:00 PM GMT)
FORMAT:
Question-and-answer
session online
PRICE:
Free for our readers ONLY
AND SECOND, click this link to grab
your free registration NOW!
Remember: The absolute deadline to register for this urgent briefing is this coming Tuesday — just two days from today!
As soon as you register, you’ll be invited to send any questions you have to me in advance. Plus, you’ll also have the opportunity to submit your questions at the briefing itself. You have my word that we will move heaven and Earth to get you the answers you need whether at this briefing or immediately after.
This briefing is essential for serious investors: The information and recommendations we give you could make the difference between financial survival and financial failure for you in 2011 and 2012. Registration is free and takes only a few seconds. Just click this link to reserve your place at this all-important briefing now.
Best wishes,
Mike Larson
Mike Larson graduated from Boston University with a B.S. degree in Journalism and a B.A. degree in English in 1998, and went to work for Bankrate.com. There, he learned the mortgage and interest rates markets inside and out. Mike then joined Weiss Research in 2001. He is the editor of Safe Money Report. He is often quoted by the Washington Post, Reuters, Dow Jones Newswires, Orlando Sentinel, Palm Beach Post and Sun-Sentinel, and he has appeared on CNN, Bloomberg Television and CNBC.
{ 4 comments }
So what is it guys – Hyper inflation or Depression (deflation)
And what is the solution from your Perspective
No solution just shouting out the odds. There seems to be no solution – buy silver/gold then what sell it at higher prices but you can’t buy anything else cause the prices of everything has skyrocketed.
Stocks go the same way as Zimbabwe – but hey you don’t want to sell cause the next day you can’t buy anything –
The way you guys are talking we are in for “end of days” hence there is no one safe –
There is going to be blood on the streets and no one to clean up
If there Hyper inflation on the way – why are you advising people in this newsletter to short stocks with ETF.
Have i read this article above incorrectly.
LIKELY RIGHT
THE $US IS DEADO. ARMEGEDON, ZIMBABWE, YOUR CHOICE……
HOW LONG TIL? MONTHS.
End of story. Sorrry for the poor pun…………………………..
Precious metals protect us from currencies crashing but when hyperinflation hits America it will be hard to depend on real money when people are starving and desperate. We bought an abandoned farm in a sparsely populated ares off the grid. When the big crash comes all of your wealth will not help you if your in a populated area. Prepare a place where you can live on the land and be self sufficient without fear of masses of people stealing your food. Get plenty of guns and stockpile supplies. For this crash will come soon.