Tuesday, December 3, 2013

[GET] Burning Your Money

Ignore this sober warning and you may as well take your savings… your retirement—and your very financial security—and KISS THEM GOODBYE.


On the other hand, if you HEED the warning on this page—and ACT on the advice I send you in my newest guide—not only will you have plenty of time to insulate your wealth…


Look, it’s no secret that our government is bleeding the single greatest gushing of red ink in history.


And no institution on earth—not the White House, not Congress… and certainly not the abomination we so politely refer to as the ‘Federal Reserve’—has the faintest hope of slowing it—let alone STOPPING it.


Despite what the Fat Cats and Bureaucrats try to tell you, the undeniable truth is that Washington has completely LOST CONTROL of the federal budget.


And far worse than that, they’re oblivious to what this means for you and me—namely, that a nightmarish wave of hyperinflation is set to demolish everything we’ve EVER worked for.


The definition of hyperinflation is "inflation that is very high or ‘out of control’, a condition in which prices increase rapidly as a currency loses its value."


This happened in Germany after World War I… when hyperinflation caused the inflation rate to swell from 300 to 800 billion percent, or 300,000,000,000% to 800,000,000,000% over a six-month period.


The value of German mortgages in 1913 was roughly $10 billion US dollars. At the height of hyperinflation in late 1923, these mortgages were only worth one US penny!


In fact, hyperinflation was so bad that workers demanded to be paid daily, or even multiple times per day, so that their wages would not be worthless at the end of the day.


When they received their pay, workers literally RAN from their jobs to the store in the hopes that their paychecks would still be enough to purchase a meal or some goods.


There are stories of people using wheelbarrows to haul enough money to buy a loaf of bread. Money was sold or traded by weight and creative minds found other uses for the money, including making clothing with it, using it for wallpaper, and stuffing it in clothing and walls for insulation.


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Before I tell you why China’s elite and middle classes are preparing for a hyperinflation collapse—let’s look at the "other side of the story" that no one is talking about…


For example, according to shadowstats.com—a leading producer of real and UNBIASED government statistics—the dollar has lost almost 20% of its international value just in the last 30 months or so.


In other words… it’s falling steeply in terms of how much corn, wheat, soybeans, beef, copper, silver and gold it can buy. And it’s also falling against the euro, the yen, the pound and the Swiss franc.


Think about that: For generations now, the United States has been the primary source of capital throughout the world. It was the U.S. that owned big stakes in foreign economies. So we certainly didn’t need their capital to sustain us.


Every time we run a deficit in our federal budget, our government officials must go, hat in hand, asking for money from central banks and investors in Europe… Asia… and even Latin America.


Now, after thousands of such trips, and trillions of such transactions, a significant chunk of America’s wealth has literally been sold off or thrown away.


With a country like Brazil, the foreign investor DID have a choice. Whenever he lost faith in Brazil, for whatever reason, he pulled out in a big hurry, along with countless others, sending Brazil’s financial market into periodic crashes.


This was the biggest difference that separated the U.S. from a country like Brazil—whenever Brazil slacked off or did the wrong thing, it got slapped down, hard!


And so it was that we merrily ran huge deficits and borrowed to the hilt, as if nothing was wrong. And despite it all, foreign investors continued to pour more and more money into America.


In the 1980s it was primarily the cash-rich Japanese who led the way, investing billions into U.S. stocks and bonds, helping to lift the Dow and the Treasury bond market out of their worst slumps of the postwar era.


And for much of this decade it has been India and China, with their exploding industries which thrived on U.S. consumption.


But now, after nearly three decades of massive, virtually non-stop capital flows into the U.S. from abroad… some countries are beginning to realize it was NOT such a good idea after all.


When Treasury Secretary Tim Geithner recently visited China in a rah-rah session for the dollar—their reaction was almost appalling.


In fact, while speaking to Chinese university students… he promised them that the dollars owned by their government were "very safe."


Think about that for a second… in an Asian country—where politeness, inscrutability and "saving face" are paramount—this is shocking, indeed.


Then there’s the experience of Richard Fisher, president of the Dallas Federal Reserve Bank. He recently visited China and met with government officials.


In an interview afterward, he said he was grilled about the Fed’s purchases of Treasury debt. "I must have been asked about that a hundred times in China. I was asked at every single meeting about our purchases of Treasury Notes. That seemed to be the principal preoccupation of those that were invested with their surpluses mostly in the United States."


As the British Telegraph noted, this is…



Burning Your Money

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