Euro Chaos

What do you think would happen to the U.S. dollar if New York and Massachusetts were to reject the U.S. Constitution?

There would be chaos. Nobody would trust the value of the dollar, and it would crash in international currency markets.

That’s what’s happening right now — with the euro.

French citizens have overwhelmingly rejected the new European Constitution in their referendum last week, voting it down 55% to 45%. Three days later, Dutch voters rejected it by an even bigger margin — 62% to 38%.

And the polls show that the vote was not just a rejection of the European constitution. It was also a rejection of the euro itself.

Many in France and Holland want to get rid of the euro and bring back their French francs and Dutch guilders. The reason in simple. Unemployment is on the rise. In Holland, it’s just risen to 6.6%. And in France, it’s at a 40-year high of 10.2%, the worst since the years following World War II, when the country lay virtually in ruins.

This sentiment is not isolated to France and the Netherlands. In Germany, for instance, a recent poll showed that 56% of the population hates the euro. They want to dump it and restore their beloved German mark.

No wonder! The German economy — like France’s — is mired in one of its worst recessions since World War II. Unemployment is running at 12%. Tax receipts are plunging. GDP growth is a paltry 1%, despite massive efforts to get it going.

In Italy, Welfare Minister Roberto Maroni is calling the euro an “inadequate” currency. He wants a national referendum to bring back the Italian lira.

Many Italians agree. Italy is now in its second official recession in two years. Its economy actually shrank by a half percent in the first quarter, the steepest drop in six years.

This is a major, fundamental shift, and it’s opening the doors to large profit opportunities. Here’s what to do …

FIRST, get your money safely out of euros and euro-sensitive investments.

Many companies headquartered in the Eurozone are listed on the New York Stock Exchange and the Nasdaq. These companies, whose primary stocks are denominated in euros, are going to get battered. If you own any, sell.

In my Safe Money Report, the only holding we have left which is sensitive to the euro is the Prudent Global Income Fund (PSAFX), representing a very small portion of the overall portfolio. Based on when I recommended it, the position is up about 12% including dividends. If you own it, grab your gain and get out.

Stash the cash away in a safe place, such as short-term U.S. Treasuries, where you should already have a big portion of your money.

SECOND, many of the investors fleeing the euro are rushing into gold. That’s a key reason why gold surged last week, reaching a three-week high of $425 on Friday. It’s also one of the powerful forces behind the recent surge in the price of mining shares — up an average of FOURTEEN percent in just the last two weeks.

Remember: Gold and gold shares are not only a hedge against a falling dollar and rising inflation. They’re a hedge against a crisis in ANY major paper currency.

So hold all your gold shares and bullion. If you don’t own any but want a nice, diversified stake in rising precious metals markets, consider the US Global World Precious Minerals Fund (UNWPX).

THIRD, when people run from a crisis in a major currency like the euro, they not only turn to gold but also to black gold — oil.

That’s a key reason energy prices are surging — just as we told you they would last week in “Martin on Monday.”

Indeed, in the past two weeks, oil has jumped nearly 20% — to over $55 per barrel. New record highs are now a stone’s throw away.

As a result, the energy investments I’ve been recommending in Safe Money are also heading back to new highs. Stick with them. Or, if you don’t own any, take a serious look at the royalty trust we told you about last week — Enerplus Resources (ERF).

The great glory of Enerplus is that virtually its entire reason for existing is to distribute nearly all its earnings to shareholders — providing a juicy dividend yield of 9%.

Plus, for larger profits using money you can afford to risk, I have a FOURTH recommendation — currency options. Recently, for example …

Subscribers following my euro options recommendations had the opportunity to nail down gains of up to 84% and 101% in just three weeks.

And that was on euro declines of only one or two cents each — without a major crisis! With the debacle that’s beginning to unfold, the euro could fall about ten times more — with the profits correspondingly larger.

The options we’re looking at right now let you control about 230,000 dollars worth of euros for just $2,100. If the euro suffers a relatively modest fall — say, about a dime — these options could be worth between $8,400 and $10,500.

Since I’m talking about options, your risk of loss is strictly limited to $2,100 you invest, plus a small commission you pay your broker. But the profits can be very large. Even with the 10-cent fall, you could walk away with as much as five times your money.

And with a truly MAJOR decline in the euro — such as I see coming — you could build your initial $2,100 up to as much as $30,000. And that’s just one example of the opportunities opening up to subscribers to my Interest Rate and Currency Trader. There are dozens of profit opportunities in the currency options market, including not only the euro itself, but also the Swiss franc, Australian dollar, the Canadian dollar and more.

But the big opportunities right now lie with put options on the euro. A crisis in a major currency is a rare event, and it opens doors for vast profit potential. But you have to move fast. No one can say just how quickly the euro will unravel.

Limited to a maximum of 1,000 subscribers —
and we’re down to the last 362

I’ve limited the Interest Rate and Currency Trader to 1,000 subscribers — to insure that you get good fills on your buys and sells. My staff has firm instructions to return all checks beyond that.

The price is $5,000 per year or $450 per month with convenient monthly billing. If you can’t afford to spend money like that without worrying about it — or jeopardizing your liquidity — you shouldn’t be investing in these high-powered currency options.

The recent votes in France and the Netherlands — rejecting the European Constitution — are a shattering blow to the euro. And it’s opened up an opportunity to build a modest $2,100 investment up to as much as $10,500 on a modest move; and up to as much as $30,000 on a large move.

So the time is now.

How to Optimize Your Profit Opportunities in The Euro

Diversification is key. So to optimize your profit opportunities, we generally recommend several different options — with different strike prices and varying expiration dates, but always with limited risk.

SECOND, we swing for the fences. And when you swing for the fences, sometimes you strike out — and you lose money. But on the earlier euro options trades — even before the crisis — subscribers who followed my recommendations had the opportunity to nail down pre-commission gains of 84% and 101% in just three weeks. And again, that was on a move of just a couple of pennies in the euro.

Not every trade can be profitable. But right now, with this debacle unfolding, the profit opportunities are far greater — and if we’re right, you could multiply your money many times over.

Currency options are our main focus because we’re convinced that there are opportunities to make some not-so-small fortunes in currencies relatively soon. But movements in currencies are directly tied to interest rates, and we often make recommendations in interest-sensitive options as well.

All recommendations and updates are sent to you instantly via e-mail. As a back-up, you can also get them via fax or on a secure, private area on our website.

Third, many analysts give a recommendation but don’t give you all the information you need to really act on it. We tell you when to get in, when to get out, and when to “roll over” your position so you don’t miss the opportunity.

This is an exclusive service that has no ambiguities — no ifs, buts, wherefores, or other weasel phrases so many analysts use to cover their you-know-whats.

One last point: The euro options we’re tracking right now are what I would call “dirt cheap.” But the euro is beginning to slide again, and once that trend picks up steam, you can kiss these dirt-cheap put options on the euro good-bye. Their price is likely to explode.

These options can move extraordinarily fast. The gains I mentioned earlier — up to 101% — came in just 3 weeks. So every day, even every hour, counts.

If you want to take advantage of this opportunity to buy these euro put options that could build $2,100 into as much as $30,000, you need to respond promptly. The number to call us at is 1-800-815-2917.

Good luck and God bless!

Martin D. Weiss, Ph.D.
Editor, Safe Money Report
President, Weiss Research, Inc.
eletter@weissinc.com

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